CWT CALIFORNIA WATER SERVICE GROUP
Price Chart
Executive Summary
CWT reported Q1 2026 EPS of $0.07, a 68% decline from $0.22 in Q1 2025, and net income fell 70% to $4.0M. Revenue rose 5.2% to $214.6M, but operating expenses grew 8.1%, compressing margins. The critical event is the receipt of a revised Proposed Decision in the 2024 California GRC authorizing $90.5M in additional 2026 revenue (10.9% rate increase), with a final CPUC decision expected imminently, which will retroactively boost earnings from January 1, 2026.
Actionable Insight
The Q1 earnings miss is largely backward-looking and explained by the delayed GRC — the stock will trade on the GRC final decision expected April 30. If approved as proposed, the retroactive rate increase should add ~$0.38/share in catch-up EPS for Q1, transforming the reported loss into a beat. Monitor the CPUC vote; any material deviation from the revised PD would be negative. The Nexus acquisition adds long-term rate base growth but is subject to regulatory approvals.
Key Facts
- Q1 2026 EPS $0.07 vs $0.22 YoY, a 68% decline; net income $4.0M vs $13.3M YoY
- Q1 2026 revenue $214.6M, up 5.2% from $204.0M YoY, driven by rate changes and accrued unbilled revenue
- Operating expenses rose 8.1% to $196.4M, led by higher water production costs (+$8.3M) and depreciation (+$4.0M)
- Revised Proposed Decision in 2024 CA GRC authorizes $90.5M revenue increase in 2026 (10.9%), $43.2M in 2027, $48.9M in 2028
- Final CPUC decision expected April 30, 2026; rate increases retroactive to January 1, 2026
- Q1 2026 infrastructure investment $129.4M, up 17.5% YoY; full-year 2026 CapEx guided to $627M
- Agreement to acquire Nexus Water Group's Nevada and Oregon systems for ~$218M, adding ~36,000 customer equivalents
- Annual dividend increased 8% to $1.34/share, marking 59th consecutive annual increase
- S&P credit rating A+/stable; $370M available on bank lines of credit
Financial Impact
Q1 2026 EPS miss of $0.16 vs consensus ($0.07 actual vs $0.23 est) represents a ~70% shortfall; the GRC decision authorizes $90.5M in additional 2026 revenue, which would have added ~$0.38/share if recognized in Q1 (retroactive to Jan 1)
Risk Factors
- CPUC final decision could deviate materially from the revised PD, reducing authorized revenue increases
- Q1 2026 operating expense growth (8.1%) outpaced revenue growth (5.2%), pressuring margins even before GRC impact
- Short-term borrowings increased to $230M from $130M at year-end 2025, indicating higher working capital needs
- Nexus acquisition subject to regulatory approvals in Nevada and Oregon; integration risks
- California snowpack at 19% of normal could impact water supply and consumption patterns
Market Snapshot
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-051949 |
| Document: tm2613168d1_ex99-2.htm | 0001104659-26-051949 |
| Document: tm2613168d1_8k.htm | 0001104659-26-051949 |
| Document: 0001104659-26-051949-index-headers.html | 0001104659-26-051949 |
| Document: 0001104659-26-051949-index.html | 0001104659-26-051949 |
| Document: 0001104659-26-051949.txt | 0001104659-26-051949 |
| 8-K Data (Synthetic) | 0001104659-26-051949 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
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May 27, 2026
18d ago
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Insider Cluster
| $43.82 $45.24 | ▲ +3.24% | ▲ +2.92% | $45.57 (+3.99%) |
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May 20, 2026
25d ago
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8-K
| $43.21 $45.10 | ▲ +4.37% | ▲ +2.53% | $45.57 (+5.46%) |
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May 1, 2026
6w ago
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424B5
| $42.72 $42.88 | ▲ +0.38% | ▼ −2.56% | $45.57 (+6.68%) |
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May 1, 2026
6w ago
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8-K
| $42.03 $43.62 | ▲ +3.77% | ▲ +1.43% | $45.57 (+8.41%) |
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Apr 30, 2026
6w ago
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8-K
| $41.91 $43.28 | ▲ +3.27% | ▲ +1.54% | $45.57 (+8.72%) |
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Apr 30, 2026
6w ago
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Press Release
| $41.91 $43.28 | ▲ +3.27% | ▲ +1.54% | $45.57 (+8.72%) |
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Mar 20, 2026
12w ago
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Insider Cluster
| $43.57 $45.01 | ▲ +3.30% | ▲ +5.45% | $45.57 (+4.59%) |
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Mar 18, 2026
12w ago
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8-K
| $42.94 $43.94 | ▲ +2.34% | ▲ +3.05% | $45.57 (+6.13%) |
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Mar 5, 2026
14w ago
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8-K
| $45.43 $44.37 | ▼ −2.33% | ▼ −0.09% | $45.57 (+0.31%) |
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Feb 25, 2026
15w ago
|
8-K
| $44.25 $45.78 | ▲ +3.47% | ▲ +4.59% | $45.57 (+2.99%) |
US Market Status
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