California Water Service Group reported second-quarter 2026 net income of $56.5 million, or $0.93 per diluted share, on revenue of $308.6 million, reflecting recognition of final 2024 California GRC rates retroactive to January 1, 2026. Year-to-date net income was $60.5 million on revenue of $523.2 million. The quarter included infrastructure investment of $147 million and continuation of dividend policy with a quarterly payout of $0.3350 per share.

Financial Highlights

  • Revenue: $308.6 million for Q2 2026, up from $264.95 million in Q2 2025.
  • Net income attributable to California Water Service Group: $56.465 million for Q2 2026, versus $42.168 million in Q2 2025.
  • Earnings per share: Diluted EPS of $0.93 for Q2 2026 (Basic $0.94); YTD diluted EPS $1.01.
  • Operating expenses: Total operating expenses of $237.697 million in Q2 2026 (compared with $213.145 million in Q2 2025).
  • Balance sheet snapshot (unaudited June 30, 2026): Total assets $5,954,964 thousand; total equity $1,810,092 thousand; long-term debt, net $1,471,948 thousand.

Business Highlights

  • Regulatory outcome: Cal Water received final CPUC decision on the 2024 California general rate case (GRC) effective April 30, 2026; new rates recognized retroactively to January 1, 2026 via the IRMA.
  • Authorized rate adjustments from the decision are expected to increase company-wide revenue by $90.5 million in 2026, $43.2 million in 2027, and $48.9 million in 2028, and pre-approve approximately $1.45 billion of infrastructure investments through 2027 (with up to $229 million eligible via advice letter).
  • Revenue stabilization mechanisms renewed/established, including Monterey-style Water Revenue Adjustment Mechanism, water production incremental cost balancing accounts, and a new Sales Reconciliation Mechanism, plus rate design that increases recovery of fixed costs.
  • Infrastructure investment: Record $147 million invested in Q2 2026 and $276.4 million invested through H1 2026; company anticipates investing up to $627 million in 2026 based on the GRC decision.
  • Acquisitions and expansion: Agreement to acquire Nexus Water Group systems in Nevada and Oregon (~$218 million purchase, ~36,000 customer equivalents, ~$109 million rate base) pending regulatory approvals; Change of Control applications filed in Nevada and Oregon and progress in Texas regulatory process.

Original SEC Filing:

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