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Dec 31, 2025
Cal Water Q4 2025 Earnings Report
California Water Service Group reported solid Q4 2025 results which were impacted by wet weather conditions.
Key Takeaways
California Water Service Group reported a decrease in Q4 net income and revenue compared to the previous year, primarily driven by extremely wet December weather in California which led to declining customer consumption. Despite the weather impact, the company achieved record infrastructure investments and is awaiting a proposed decision on its 2024 California General Rate Case.
Q4 net income decreased 42% to $11.5 million, largely due to lower customer consumption caused by wet weather.
The company invested a record $517.0 million in water system infrastructure during the full year 2025.
Annual dividends were increased by 10.71%, marking the 58th consecutive year of dividend payments.
Management expects a Proposed Decision on the 2024 California General Rate Case in the coming weeks.
Revenue by Geographic Location
Forward Guidance
The company is focused on the regulatory approval of its 2024 California General Rate Case and the integration of new acquisitions.
Positive Outlook
- Anticipated Proposed Decision on 2024 CA GRC by mid-March 2025.
- Potential for final GRC decision adoption by April 9.
- Expansion through acquisition of remaining interests in BVRT Utility Holding Company.
- New wastewater system agreement in San Bernardino County with growth potential up to 15,000 connections.
- Recent rate case completions in Hawaii and Washington adding $5.1 million in authorized revenue.
Challenges Ahead
- Impact of unpredictable weather patterns on customer consumption.
- Rising water production costs due to wholesale rate increases.
- Increased depreciation and amortization expenses from new assets.
- Uncertainty regarding the exact timing of regulatory commission actions.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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