California Water Service Group (CWT) Q1 2026 earnings summary

Executive summary

• Q1 2026 results were in line with expectations, with revenue rising to $214.6 million from $204.0 million year-over-year, but net income fell to $4.0 million ($0.07 per diluted share) from $13.3 million ($0.22 per diluted share) due to higher operating and interest expenses.

• Infrastructure investment reached a record $129.5 million, up 17.6% year-over-year, with continued progress on PFAS treatment and cost recovery from polluters.

• Major acquisitions in Nevada, Oregon (Nexus Water Group), and Texas (BVRT) are progressing, expanding operations and customer footprint outside California.

• Celebrated the centennial year with employee and customer events, and declared the 325th consecutive quarterly dividend, with an 8% annualized increase to $1.34 per share.

Financial highlights

• Q1 2026 operating revenue was $214.6 million, up from $204.0 million in Q1 2025.

• Net income was $4.0 million ($0.07 per diluted share), down from $13.3 million ($0.22 per diluted share) year-over-year.

• Operating expenses increased to $196.4 million, mainly from higher water production, depreciation, and interest expense.

• Capital investments for the quarter reached $129.5 million, with a full-year plan of up to $627 million.

Outlook and guidance

• The revised proposed decision on the 2024 California General Rate Case authorizes a $90.5 million (10.9%) revenue increase in 2026, with further increases in 2027 and 2028, pending CPUC approval.

• Approval of the rate case will allow retroactive application of new rates to January 1, 2026.

• Capital investment for 2025–2027 expected to total up to $1.96 billion, outpacing depreciation.

• Compounded annual rate base growth projected at over 11% with planned investments.