| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 197.33 | 8.0% |
| Total Income | 197.33 | 8.0% |
| Expenditure | 179.17 | 11.7% |
| PBT | — | |
| Net Profit | 4.04 | 69.7% |
| OPM | 9.21% | 3.03pp |
| NPM | 2.05% | 5.25pp |
| EPS | 0.07 | 68.2% |
California Water Service Group Reports Q1 2026 Results, Net Income $4.0 Million
30 Apr 2026 · 30 Apr, 3:48 pm
Summary
California Water Service Group reported first-quarter 2026 net income of $4.0 million, or $0.07 per diluted share, a significant decrease from $13.3 million in Q1 2025, primarily due to the pending decision on the 2024 California General Rate Case. Despite the profit decline, revenue for the quarter increased by 5.2% year-over-year to $214.6 million. The company also made substantial infrastructure investments of $129.4 million and announced the acquisition of Nexus Water Group's systems in Nevada and Oregon for approximately $218 million, reinforcing its growth strategy. Management expressed optimism regarding the revised proposed decision for the 2024 CA GRC, which is expected to provide significant visibility into future authorized revenues.
Key Highlights
- 1
Net income for the first quarter of 2026 significantly decreased to $4.0 million, or $0.07 per diluted share, compared to $13.3 million, or $0.22 per diluted share, in Q1 2025.
- 2
Revenue for Q1 2026 increased by 5.2% year-over-year to $214.6 million, up from $204.0 million in Q1 2025, primarily driven by rate changes and accrued and unbilled revenue.
- 3
Operating expenses rose by 8.2% to $196.4 million in Q1 2026 from $181.6 million in Q1 2025, mainly due to an $8.3 million increase in water production costs.
- 4
The company made substantial infrastructure investments of $129.4 million in Q1 2026, marking a 17.5% increase from $110.1 million invested in Q1 2025.
- 5
California Water Service Group announced an agreement to acquire Nexus Water Group’s water and wastewater systems in Nevada and Oregon for approximately $218 million, expanding its geographic footprint.
- 6
A revised proposed decision for the 2024 California General Rate Case (GRC) was received, authorizing rate increases of $90.5 million in 2026, $43.2 million in 2027, and $48.9 million in 2028.
- 7
The company declared its 325th consecutive quarterly dividend and announced its 59th annual dividend increase, raising the annualized dividend by 8% to $1.34 per common share.
Management Comments
Martin A. Kropelnicki
On April 29, we received a revised PD in our 2024 California GRC, which represents a significant milestone and provides significant visibility into our California authorized revenues over the next several years. We look forward to the CPUC adopting a final decision at its April 30, 2026 meeting or shortly thereafter, and being able to provide more clarity after the case is finalized.
Martin A. Kropelnicki
Additionally, during the quarter we announced our agreement to acquire Nexus Water Group’s systems in Nevada and Oregon, which expands our geographic footprint and supports our long-term growth strategy, while maintaining our focus on disciplined and accretive investments. We have filed Change of Control applications with the public utilities commissions in Nevada and Oregon.
Informational and educational content only. Not investment advice.