California Water Service Group (NYSE:CWT – Get Free Report) announced its quarterly earnings data on Thursday. The utilities provider reported $0.07 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.25 by ($0.18), FiscalAI reports. California Water Service Group had a net margin of 11.77% and a return on equity of 7.06%. The company had revenue of $214.57 million for the quarter, compared to analysts’ expectations of $210.27 million. During the same period last year, the business earned $0.22 earnings per share. The company’s quarterly revenue was up 5.2% compared to the same quarter last year.
Here are the key takeaways from California Water Service Group’s conference call:
- The Revised Proposed Decision for the 2024 California GRC is on the commission docket and is described as constructive, providing clear revenue growth visibility of approximately $91M (2026), $43M (2027), and $49M (2028) and preserving key mechanisms (RAM and cost balancing accounts).
- Capital investment accelerated — Q1 capex rose 17.6% to $129.5M and management plans $627M for 2026, which would support a >11% compounded annual rate base growth if approved.
- Reported Q1 net income declined to $4M ( $0.07 EPS) from $13.3M ($0.22 EPS) a year ago, driven by lower consumption, higher depreciation and interest from new capital, and a higher effective tax rate that reduced EPS by about $0.32.
- M&A progress continues — change-in-control filings are filed for the Nexus Nevada/Oregon deal and the BVRT minority buyout in Texas, which would add roughly 100,000 connections outside California (≈20% of total) and expand wastewater/recycled water operations.
- PFAS efforts are advancing with ongoing treatment work and legal recoveries (~$66.5M gross, ~$50M net recovered so far covering ~20–25% of estimated PFAS costs), but additional regulatory risks (e.g., potential microplastics rules) could require further capital.
California Water Service Group Stock Up 0.1%
Shares of CWT stock traded up $0.05 on Friday, hitting $42.29. The stock had a trading volume of 664,066 shares, compared to its average volume of 609,634. The company has a quick ratio of 0.80, a current ratio of 0.69 and a debt-to-equity ratio of 0.87. The business has a 50 day moving average price of $45.42 and a 200 day moving average price of $45.27. The company has a market cap of $2.53 billion, a PE ratio of 19.67, a P/E/G ratio of 1.56 and a beta of 0.51. California Water Service Group has a one year low of $41.29 and a one year high of $50.44.
California Water Service Group Dividend Announcement
Analyst Upgrades and Downgrades
CWT has been the subject of a number of recent research reports. Robert W. Baird set a $54.00 target price on shares of California Water Service Group in a report on Friday. Weiss Ratings downgraded California Water Service Group from a “hold (c)” rating to a “hold (c-)” rating in a research report on Friday, April 24th. One analyst has rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, California Water Service Group has a consensus rating of “Moderate Buy” and a consensus price target of $54.50.
Trending Headlines about California Water Service Group
Here are the key news stories impacting California Water Service Group this week:
- Positive Sentiment: CPUC revised proposed decision authorizes material rate increases (~$90.5M in 2026 and additional increases in 2027–28) and new revenue-stabilization mechanisms, improving visibility into future regulated revenues. CPUC Decision
- Positive Sentiment: Agreement to acquire Nexus Water Group systems (~$218M) adds ~36,000 customer equivalents and ~$109M of rate base, expanding geographic diversification and near-term growth runway. Q1 Results & Nexus Acquisition
- Positive Sentiment: Board approved an 8% annual dividend increase and declared the quarterly payout — continuing a lengthy dividend streak that supports income-focused investors. Dividend Declaration
- Neutral Sentiment: Earnings call transcript published — useful for detailed guidance, regulatory commentary and management color on the CPUC timeline and Nexus integration. Earnings Call Transcript
- Neutral Sentiment: Third-party write-ups compare CWT to American Water Works (AWK) on valuation — useful context but not an immediate catalyst. CWT vs AWK Analysis
- Negative Sentiment: Q1 EPS missed expectations ($0.07 vs. ~$0.25 consensus); net income fell sharply year-over-year as operating costs and interest expense rose, pressuring near-term profitability. Q1 Earnings Miss
- Negative Sentiment: Higher water-production costs, increased depreciation and rising interest expense (and higher short-term borrowings) could compress margins before the CPUC rate relief is implemented and collected. Q1 Results & Cost Details
Insider Activity
In other California Water Service Group news, VP Michael S. Mares, Jr. sold 3,892 shares of the business’s stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $44.00, for a total value of $171,248.00. Following the completion of the transaction, the vice president directly owned 8,525 shares in the company, valued at approximately $375,100. The trade was a 31.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, VP Michael B. Luu sold 740 shares of the business’s stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $44.53, for a total transaction of $32,952.20. Following the completion of the transaction, the vice president owned 23,655 shares of the company’s stock, valued at $1,053,357.15. This represents a 3.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 0.78% of the company’s stock.
Hedge Funds Weigh In On California Water Service Group
A number of large investors have recently added to or reduced their stakes in CWT. Danske Bank A S purchased a new stake in shares of California Water Service Group during the third quarter worth about $28,000. EverSource Wealth Advisors LLC grew its stake in shares of California Water Service Group by 109.9% during the second quarter. EverSource Wealth Advisors LLC now owns 697 shares of the utilities provider’s stock worth $32,000 after acquiring an additional 365 shares during the last quarter. Advisory Services Network LLC purchased a new stake in California Water Service Group in the third quarter valued at approximately $44,000. CIBC Private Wealth Group LLC boosted its position in California Water Service Group by 1,475.3% in the third quarter. CIBC Private Wealth Group LLC now owns 1,150 shares of the utilities provider’s stock valued at $53,000 after buying an additional 1,077 shares during the last quarter. Finally, Los Angeles Capital Management LLC purchased a new stake in California Water Service Group in the fourth quarter valued at approximately $85,000. 82.78% of the stock is currently owned by institutional investors.
California Water Service Group Company Profile
California Water Service Group (NYSE: CWT) is a publicly traded holding company that provides regulated water utility services through its subsidiaries. The company delivers safe, reliable drinking water and wastewater management to residential, commercial, industrial and municipal customers across California, Hawaii and New Mexico. Its principal operating units include California Water Service, New Mexico Water Service and Hawaii Water Service, each responsible for end‐to‐end water supply operations—from source development and treatment to distribution and customer service.
Founded in 1926 as the California Water Service Company, the group has grown to become one of the largest investor‐owned water utilities in the United States by customer count.
Further Reading
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