California Water Service Group

Latest Results (20.05.2026):

California Water Service Group — First Quarter 2026: The Company reported Q1 2026 results largely in line with expectations while awaiting a final CPUC decision on its 2024 California General Rate Case (2024 CA GRC). Q1 results exclude any GRC benefit; net income was $4.0 million ($0.07 diluted) on revenue of $214.6 million. The quarter featured higher operating costs and significant capital spending, plus a pending revised PD that would authorize material rate increases if adopted.

Quarterly financials

Q1 2026 revenue: $214.6M (vs. $204.0M in Q1 2025). Q1 2026 net income: $4.0M, or $0.07 diluted EPS (vs. $13.3M, $0.22 diluted in Q1 2025). Net other income was $4.4M and net interest expense was $18.6M. Dividends remained $0.34 per share for the quarter.

Drivers of revenue change

Revenue drivers in Q1: rate changes added $9.2M, accrued and unbilled revenue added $4.9M, while lower customer consumption (climate variability) reduced revenue by $3.1M. Q1 results did not include any benefit from the pending 2024 CA GRC.

Costs and margins

Operating expenses rose to $196.4M (Q1 2025: $181.6M). Water production costs increased by $8.3M (mainly higher wholesale water rates); depreciation & amortization rose $4.0M due to new capital assets. Net operating income was $18.2M (down from $22.3M a year earlier).

2024 California GRC update

On April 29, 2026 Cal Water received a revised proposed decision (revised PD) from the CPUC authorizing incremental revenues of $90.5M (10.9%) in 2026, $43.2M (4.7%) in 2027 and $48.9M (5.1%) in 2028. The CPUC was expected to adopt a final decision on April 30 or shortly thereafter; once final, new rates may be recognized retroactively to January 1, 2026. The revised PD includes revenue-stabilizing mechanisms (e.g., Monterey-style WRAM, a Sales Reconciliation Mechanism, higher fixed-charge share) and balancing-account recovery provisions.

Capital investment and balance sheet

Q1 2026 capital investments totaled $129.4M (vs. $110.1M in Q1 2025). Based on the revised PD, Group anticipates investing up to ~$627M in 2026. Balance sheet highlights: total assets ~$5.78B, net utility plant ~$4.67B, long-term debt ~$1.47B, cash & equivalents ~$58.1M, restricted cash ~$45.6M, and short-term borrowings of $230M (up from $130M at year-end 2025).

Acquisition progress

The Company agreed to acquire Nexus Water Group systems in Nevada and Oregon for approximately $218M, adding ~36,000 customer-equivalent residential units and about $109M of rate base. The deal is subject to regulatory approvals (change of control filings in Nevada and Oregon) and customary closing conditions.

Capital return to shareholders

Board announced an 8% increase in the annual dividend (an added $0.10) to an expected annualized $1.34 per share. The declared quarterly dividend is $0.3350 per share payable May 22, 2026 (record date May 11, 2026). This marks the Company’s 325th consecutive quarterly dividend and 59th annual increase.