California Water Service Group (CWT) Q4 2025 earnings summary

Executive summary

• Announced acquisitions of Nexus Water's Nevada and Oregon operations and full ownership of BVRT Holdings in Texas, expanding presence to eight states and diversifying regulatory exposure.

• 2025 marked the 100th year of operations, with record $517 million infrastructure investment and continued focus on rate case progress and regulatory engagement.

• Q4 and full-year 2025 results were negatively impacted by severe wet weather, leading to lower consumption and softer financial performance.

• Increased annual dividend by 10.71% in 2025, marking the 59th consecutive annual increase and 324th consecutive quarterly dividend.

Financial highlights

• Q4 2025 revenue was $220 million, down from $222.2 million in Q4 2024; net income was $11.5 million ($0.19 per share) versus $19.7 million ($0.33 per share) year-over-year.

• Full-year 2025 operating revenue was $1 billion, up 5.4% from non-GAAP 2024 revenue; net income was $128.2 million, up 1% from non-GAAP 2024.

• Diluted EPS for 2025 was $2.15, essentially flat compared to non-GAAP 2024 EPS of $2.16.

• Record $517 million invested in infrastructure in 2025, a 19.8% increase over 2024.

• Annual dividend increased by 10.71% in 2025 and by 8% in early 2026.

Outlook and guidance

• Expecting timely completion and integration of Nexus and BVRT acquisitions.

• Anticipate a decision soon on the 2024 California General Rate Case, with planning underway for the 2027 cycle.

• Continued focus on capital investment, regulatory engagement, and disciplined acquisition strategy to drive growth.

• PFAS treatment program to continue, with $50–$70 million in spending planned for 2026 and majority of treatment in place by end of 2027; $235.3 million in additional PFAS-related capital expenditures expected over multiple years.

• Rate base projected to exceed $3.3 billion by 2027, with an 11.7% CAGR from 2018–2027.