Earnings per Share/Capital Stock

6 Months Ended

Jun. 30, 2026

In accordance with the accounting guidance for participating securities and earnings per share (“EPS”), Registrant uses the “two-class” method of computing EPS. The “two-class” method is an earnings allocation formula that determines EPS for each class of common stock and participating security. AWR has participating securities related to restricted stock units that earn dividend equivalents on an equal basis with the Common Shares, and that have been issued under AWR’s stock incentive plans for employees and the non-employee directors stock plans. In applying the “two-class” method, undistributed earnings are allocated to both Common Shares and participating securities.

The following is a reconciliation of Registrant’s net income and weighted average Common Shares outstanding used to calculate basic EPS:


Basic:	For The Three Months Ended June 30,				For The Six Months Ended June 30,
(in thousands, except per share amounts)	2026		2025		2026		2025
Net income	$	43,274	$	33,690	$	73,222	$	60,534
Less: impact from participating securities	173		135		252		213
Total income available to common shareholders	$	43,101	$	33,555	$	72,970	$	60,321


Weighted average Common Shares outstanding, basic	39,341		38,509		39,227		38,382

Basic earnings per Common Share	$	1.10	$	0.87	$	1.86	$	1.57

Diluted EPS is based upon the weighted average number of Common Shares, including both outstanding shares and shares potentially issuable in connection with restricted stock units granted under AWR’s stock incentive plans for employees and directors, and net income. The following is a reconciliation of Registrant’s net income and weighted average Common Shares outstanding used to calculate diluted EPS:


Diluted:	For The Three Months Ended June 30,				For The Six Months Ended June 30,
(in thousands, except per share amounts)	2026		2025		2026		2025
Common shareholders earnings, basic	$	43,101	$	33,555	$	72,970	$	60,321
Undistributed earnings for dilutive restricted stock units	93		63		116		87
Total common shareholders earnings, diluted	$	43,194	$	33,618	$	73,086	$	60,408

Weighted average Common Shares outstanding, basic	39,341		38,509		39,227		38,382
Stock-based compensation (1)	137		133		119		118
Weighted average Common Shares outstanding, diluted	39,478		38,642		39,346		38,500

Diluted earnings per Common Share	$	1.09	$	0.87	$	1.86	$	1.57

(1) In applying the treasury stock method of reflecting the dilutive effect of outstanding stock-based compensation in calculating diluted EPS, 160,506 and 158,549 restricted stock units, including performance awards to officers of the Company at June 30, 2026 and 2025, respectively, were deemed to be outstanding and included in the calculation of diluted EPS.

On February 27, 2024, AWR entered into an equity distribution agreement with third-party sales agents, which was subsequently amended on February 20, 2026 (the “Equity Distribution Agreement”), under which AWR could offer and sell its Common Shares, from time to time at its sole discretion, through an at-the-market (“ATM”) offering program having an aggregate gross offering price of up to $200 million over a three-year period and pursuant to AWR’s effective shelf registration statement on Form S-3. AWR used the net proceeds from these sales, after deducting commissions on such sales and offering expenses, for general corporate purposes, including, but not limited to, repayment of debt and equity contributions to its subsidiaries. During the three months ended June 30, 2026, AWR sold 442,722 Common Shares, through its ATM offering program and raised proceeds of $33.8 million, net of $0.5 million in commissions paid under the terms of the Equity Distribution Agreement. AWR also incurred $0.1 million of other expenses during the three months ended June 30, 2026, which included primarily legal and other costs to support this ATM offering program. There were no Common Shares issued during the three months ended June 30, 2025. During the six months ended June 30, 2026 and 2025, AWR sold 526,959 and 334,548 Common Shares, respectively, through the ATM offering program and raised proceeds of $40.1 million, net of $0.6 million in commissions paid, and $25.8 million, net of $0.4 million in commissions paid, respectively. AWR also incurred $0.2 million of other expenses for each of the six months ended June 30, 2026 and 2025, which was primarily legal and other costs. On June 12, 2026, AWR successfully completed the ATM offering program, reaching the maximum aggregate offering capacity of $200.0 million in gross proceeds raised. In total, AWR sold 2,575,947 Common Shares through the ATM offering program, and no further sales of

Common Shares will be made under this program.

During the six months ended June 30, 2026 and 2025, AWR also issued 26,023 and 23,463 Common Shares, respectively, related to restricted stock units, pursuant to stock-based compensation plans.

During the six months ended June 30, 2026 and 2025, AWR paid $1.4 million and $1.3 million, respectively, to taxing authorities on employees’ behalf for shares withheld related to net share settlements. During the six months ended June 30, 2026 and 2025, GSWC paid $1.2 million in each period to taxing authorities on employees’ behalf for shares withheld related to net share settlements. These payments are included in the stock-based compensation caption of the statements of equity.

During the three months ended June 30, 2026 and 2025, AWR paid quarterly dividends to shareholders of approximately $19.8 million, or $0.5040 per share, and $17.9 million, or $0.4655 per share, respectively. During the six months ended June 30, 2026 and 2025, AWR paid quarterly dividends of $39.5 million, or $1.0080 per share, and $35.7 million, or $0.9310 per share, respectively.

During the three and six months ended June 30, 2026, GSWC paid dividends of $11.8 million and $31.5 million, respectively, to AWR. During the three and six months ended June 30, 2025, GSWC paid dividends of $18.0 million to AWR. ASUS paid a $8.0 million dividend to AWR during the three and six months ended June 30, 2026, but did not pay any dividends to AWR during the three and six months ended June 30, 2025.