| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 278.04 | 40.9% | 8.5% |
| Total Income | 278.04 | 40.9% | 8.5% |
| Expenditure | 207.14 | 15.6% | 1.3% |
| PBT | — | ||
| Net Profit | 56.47 | 1297.8% | 33.9% |
| OPM | 25.50% | 16.30pp | 5.28pp |
| NPM | 20.31% | 18.26pp | 3.85pp |
| EPS | 0.94 | 1242.9% | 32.4% |
California Water Service Group Reports Strong Second Quarter 2026 Financial Results
30 Jul 2026 · 30 Jul, 3:38 pm
Summary
California Water Service Group reported strong financial results for the second quarter of 2026, with net income rising to $56.5 million ($0.93 per diluted share) from $42.2 million ($0.71 per diluted share) in Q2 2025. Revenue increased to $308.6 million from $265.0 million year-over-year, bolstered by the resolution of the 2024 California General Rate Case and implementation of new rates. The company also achieved a record $147 million in infrastructure investment during the quarter, underscoring its commitment to system modernization. Management highlighted the regulatory framework provided by the rate case decision as crucial for continued infrastructure investment and long-term earnings visibility.
Key Highlights
- 1
California Water Service Group reported second quarter 2026 net income of $56.5 million, or $0.93 per diluted share, a significant increase from $42.2 million, or $0.71 per diluted share, in Q2 2025.
- 2
Second quarter 2026 revenue was $308.6 million, up from $265.0 million in the same period of 2025, driven by rate case decisions and increased customer consumption.
- 3
Year-to-date 2026 net income was $60.5 million, or $1.01 per diluted share, compared to $55.5 million, or $0.93 per diluted share, in the prior year's period.
- 4
The company invested a record $147 million in infrastructure during the second quarter of 2026, compared to $119 million in Q2 2025, with year-to-date investment reaching $276.4 million.
- 5
The final decision on the 2024 California General Rate Case authorizes rate adjustments expected to increase company-wide revenue by $90.5 million in 2026 and approximately $1.45 billion of pre-approved infrastructure investments through 2027.
- 6
The company declared its 326th consecutive quarterly dividend, maintaining a strong track record of shareholder returns.
- 7
Progress was made on the planned acquisition of Nexus Water Group's systems in Nevada and Oregon, with Change of Control applications filed with regulatory agencies.
Management Comments
Martin A. Kropelnicki
Receiving the final decision in our 2024 CA GRC provides the regulatory framework needed to continue investing in the infrastructure our customers depend on, while supporting long-term earnings and cash flow visibility. The decision authorizes meaningful rate adjustments through 2028, approximately $1.68 billion of infrastructure investments through 2027, and new revenue stabilization mechanisms that better align cost recovery with our investment profile and help mitigate the impacts of changes in customer water usage. During the quarter, we also achieved a record level of infrastructure investment as we continue modernizing and strengthening our water systems across our service territories. In addition, we made meaningful progress on our planned acquisition of Nexus Water Group's systems in Nevada and Oregon, including filing Change of Control applications with the applicable regulatory agencies. Finally, we declared our 326th consecutive quarterly dividend. These actions reflect our disciplined approach to investing in our business, growing our regulated footprint, and creating long-term value for our customers, communities, and stockholders.
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