California Water Service Group Holding Stock Earnings Reports

Q1 2026 results were in line with management expectations despite a delayed 2024 California general rate case. Revenue for Q1 was $214.6M (vs. $204.0M YoY) while net income was $4.0M, or $0.07 diluted EPS (versus $13.3M, $0.22 in Q1 2025). Key drivers: authorized rate increases and accrued/unbilled revenue boosted EPS, while lower consumption, higher depreciation and interest from new capital, and a higher effective tax rate reduced EPS by about $0.32. Capital investment increased 17.6% in the quarter to $129.5M, with $627M planned for 2026, supporting >11% projected CAGR in regulated rate base if the revised GRC is approved. A revised proposed decision (PD) on the 2024 California GRC is on the CPUC docket and management views it as constructive: it would provide clear near-term revenue growth (approx. $91M in 2026, $43M in 2027, $49M in 2028) and preserve key cost‑balancing mechanisms. Company liquidity remains strong (cash, restricted cash, ~$470M available on lines; $600M credit facility expandable to $800M) and S&P ratings are A+ stable. Management continues M&A progress: NEXUS (Nevada/Oregon) and the BVRT/BVRT minority buyout in Texas (change-of-control filings pending). PFAS remediation work continues; litigation recoveries have generated ~$66.5M gross (~$50M net) toward polluter cost recovery, offsetting a portion of PFAS capital. The Board declared the 325th consecutive quarterly dividend ($0.335/share) and increased the annual dividend to $1.34 (an 8.1% increase). Management expects to implement new tariffs (if PD is approved) with billing changes beginning July 1 and remains focused on integration and closing M&A transactions by year-end.