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 AWR’s 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.


Basic:	For The Three Months Ended March 31,
(in thousands, except per share amounts)	2026		2025
Net income	$	29,948	$	26,844
Less: impact from participating securities	87		81
Total income available to common shareholders	$	29,861	$	26,763


Weighted average Common Shares outstanding, basic	39,111		38,253

Basic earnings per Common Share	$	0.76	$	0.70

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 March 31,
(in thousands, except per share amounts)	2026		2025
Common shareholders earnings, basic	$	29,861	$	26,763
Undistributed earnings for dilutive restricted stock units	30		27
Total common shareholders earnings, diluted	$	29,891	$	26,790

Weighted average Common Shares outstanding, basic	39,111		38,253
Stock-based compensation (1)	99		101
Weighted average Common Shares outstanding, diluted	39,210		38,354

Diluted earnings per Common Share	$	0.76	$	0.70

(1) In applying the treasury stock method of reflecting the dilutive effect of outstanding stock-based compensation in calculating diluted EPS, 155,400 and 153,583 restricted stock units, including performance awards to officers of the Company at March 31, 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, under which AWR may 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 has 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 March 31, 2026 and 2025, AWR sold 84,237 and 334,548 Common Shares, respectively, through the ATM offering program and raised proceeds of $6.3 million, net of $0.1 million in commissions paid, and $25.8 million, net of $0.4 million in commissions paid, respectively. AWR also incurred $0.1 million of other expenses for each of the three months ended March 31, 2026 and 2025, which was primarily legal and other costs. As of March 31, 2026, approximately $34.3 million remains available for sale under the ATM offering program.

During the three months ended March 31, 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 three months ended March 31, 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 March 31, 2026 and 2025, AWR paid quarterly dividends to shareholders of approximately $19.7 million, or $0.5040 per share, and $17.8 million, or $0.4655 per share, respectively. During the three months ended March 31, 2026 , GSWC paid dividends of $19.7 million to AWR. GSWC did not pay a dividend to AWR during the three months ended March 31, 2025.