California Water Service Group (NYSE:CWT – Get Free Report) is projected to post its Q2 2026 results before the market opens on Thursday, July 30th. Analysts expect the company to announce earnings of $0.79 per share and revenue of $283.50 million for the quarter. Interested persons can check the company’s upcoming Q2 2026 earning overview page for the latest details on the call scheduled for Thursday, July 30, 2026 at 11:00 AM ET.
California Water Service Group (NYSE:CWT – Get Free Report) last posted its earnings results on Thursday, April 30th. The utilities provider reported $0.07 EPS for the quarter, missing analysts’ consensus estimates of $0.25 by ($0.18). The company had revenue of $214.57 million during the quarter, compared to the consensus estimate of $210.27 million. California Water Service Group had a return on equity of 7.06% and a net margin of 11.77%.The company’s revenue for the quarter was up 5.2% on a year-over-year basis. During the same period last year, the firm posted $0.22 EPS. On average, analysts expect California Water Service Group to post $3 EPS for the current fiscal year and $3 EPS for the next fiscal year.
California Water Service Group Price Performance Shares of CWT opened at $51.02 on Thursday. The firm has a fifty day simple moving average of $46.78 and a two-hundred day simple moving average of $45.62. The firm has a market cap of $3.05 billion, a PE ratio of 25.51, a P/E/G ratio of 1.86 and a beta of 0.51. The company has a current ratio of 0.69, a quick ratio of 0.65 and a debt-to-equity ratio of 0.87. California Water Service Group has a 1-year low of $41.29 and a 1-year high of $52.51.
California Water Service Group Dividend Announcement The company also recently disclosed a quarterly dividend, which was paid on Friday, May 22nd. Investors of record on Monday, May 11th were issued a $0.335 dividend. The ex-dividend date of this dividend was Monday, May 11th. This represents a $1.34 annualized dividend and a dividend yield of 2.6%. California Water Service Group’s payout ratio is presently 67.00%.
Wall Street Analysts Forecast Growth A number of research firms recently commented on CWT. Wall Street Zen upgraded California Water Service Group from a “sell” rating to a “hold” rating in a research report on Saturday, July 18th. Weiss Ratings raised California Water Service Group from a “hold (c-)” rating to a “hold (c)” rating in a research report on Friday, June 12th. Finally, Robert W. Baird set a $54.00 price target on California Water Service Group in a research note on Friday, May 1st. One equities research analyst has rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, California Water Service Group presently has a consensus rating of “Moderate Buy” and an average target price of $54.50.
Get Our Latest Stock Report on California Water Service Group
Insider Activity at California Water Service Group In related news, Director Thomas M. Krummel sold 3,700 shares of California Water Service Group stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $43.30, for a total transaction of $160,210.00. Following the transaction, the director directly owned 23,805 shares in the company, valued at approximately $1,030,756.50. The trade was a 13.45% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Lester A. Snow sold 1,100 shares of the business’s stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $44.00, for a total value of $48,400.00. Following the sale, the director directly owned 18,316 shares of the company’s stock, valued at $805,904. This represents a 5.67% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.78% of the stock is currently owned by company insiders.
Institutional Inflows and Outflows Several institutional investors have recently made changes to their positions in CWT. Algert Global LLC raised its stake in California Water Service Group by 17.9% during the 3rd quarter. Algert Global LLC now owns 6,257 shares of the utilities provider’s stock worth $287,000 after acquiring an additional 950 shares during the period. Entropy Technologies LP bought a new position in shares of California Water Service Group in the third quarter worth approximately $288,000. Russell Investments Group Ltd. boosted its position in shares of California Water Service Group by 214.8% in the third quarter. Russell Investments Group Ltd. now owns 6,259 shares of the utilities provider’s stock worth $287,000 after purchasing an additional 4,271 shares during the period. Tower Research Capital LLC TRC increased its stake in shares of California Water Service Group by 664.7% in the second quarter. Tower Research Capital LLC TRC now owns 6,286 shares of the utilities provider’s stock worth $286,000 after purchasing an additional 5,464 shares in the last quarter. Finally, Oxford Asset Management LLP purchased a new stake in shares of California Water Service Group in the second quarter worth $234,000. Institutional investors own 82.78% of the company’s stock.
About California Water Service Group (Get Free Report)
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.
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SAN JOSE, Calif., July 21, 2026 (GLOBE NEWSWIRE) -- In recognition of the utility’s commitment to supporting employees and fostering workplace engagement, Newsweek has named California Water Service Group (NYSE: CWT) one of only two water utilities in its 2026 list of “America’s Greatest Workplaces.” The ranking was developed by Newsweek in partnership with Plant-A Insights Group, a statistics portal and industry-ranking provider.
Working with Aniline, a leading third-party human resources analytics firm, Newsweek and Plant-A evaluated 10 categories of worker satisfaction among U.S. employees, such as company culture, compensation and benefits, career progression and training, and mental well-being. The assessment also considered more than 120 key performance indicators, such as leadership, integrity, compensation, and work-life balance, as well as more than 37 million data points. The study incorporated publicly available data and a large-scale, confidential online employee survey, analyzing more than 7.6 million reviews from over 575,000 employee interviews. In total, the study evaluated 70,000 U.S. companies with more than 1,000 employees across more than 90 industries and recognized the top 1,500 companies.
“At California Water Service Group, we take care of our employees so they can take care of our customers and communities, and we are proud of our ongoing track record of being recognized as a top workplace for employees,” said Marty Kropelnicki, Group Chairman & CEO. “We appreciate Newsweek recognizing our commitment to creating a workplace where employees feel supported, valued, and empowered to deliver quality, service, and value to the communities we serve.”
The full list is available at rankings.newsweek.com/americas-greatest-workplaces-2026.
About California Water Service Group
California Water Service Group is the largest regulated water utility in the western United States. It provides high-quality, reliable water and/or wastewater services to more than 2.2 million people in California, Hawaii, New Mexico, Washington, and Texas through its regulated subsidiaries, California Water Service, Hawaii Water Service, New Mexico Water Service, and Washington Water Service, and its utility holding company, TWSC Inc. (Texas Water Service). This year, the company commemorates a century of service.
Group’s purpose is to enhance the quality of life for customers, communities, employees, and stockholders. To do so, it invests responsibly in water and wastewater infrastructure, sustainability initiatives, and community well-being. The company’s nearly 1,300 employees live by a set of strong core values and share a commitment to protecting the planet, caring for people, and operating with the utmost integrity. The company has been named one of “America’s Most Responsible Companies” and the “World’s Most Trustworthy Companies” by Newsweek, a USA Top Workplace, and a Great Place to Work®. More information is available at www.calwatergroup.com.
Key Takeaways CWT plans $627 million in 2026 and $667 million in 2027 for infrastructure upgrades.Cal Water's approved $1.45 billion plan allows annual revenues increases through 2028.CWT expects rate base growth above 11.1% annually, exceeding $3.2 billion by 2027. California Water Service Group (CWT - Free Report) is benefiting from strategic investments that support the upgrade and replacement of aging infrastructure. These investments focus on improving system reliability, enhancing water quality and boosting operational efficiency, thereby strengthening service delivery.
The company plans to invest $627 million in 2026 and $667 million in 2027, respectively, to support rate base expansion and sustainable long-term earnings growth. These investments strengthen infrastructure, support PFAS treatment, improve efficiency, enhance water system reliability and address quality requirements.
Recently, CWT’s subsidiary, Cal Water, received approval from the California Public Utilities Commission to invest $1.45 billion through 2027 in water quality, system reliability, power-outage resilience, cybersecurity and long-term water supply projects. The decision allows the company to increase annual revenues by $90.5 million in 2026, $43.2 million in 2027 and $48.9 million in 2028.
CWT expects infrastructure and other capital investments to support a more than 11.1% compound annual rate base growth, with the rate base projected to exceed $3.2 billion by 2027.
The company’s planned acquisition of water and wastewater systems could expand its customer base and create additional infrastructure investment opportunities. Overall, continued capital spending, regulatory support and rate-base growth could provide a strong foundation for sustainable earnings growth, although regulatory approvals, financing costs and execution risks remain important considerations.
Aging Water Utility Infrastructure Calls for UpgradesAs per the U.S Environmental Protection Agency, nearly $1.25 trillion will be needed over the next 20 years for water and wastewater infrastructure improvements. Aging water infrastructure creates investment opportunities as utilities replace old pipelines, upgrade treatment facilities and improve system reliability
American Water Works (AWK - Free Report) continues to invest in upgrading, expanding and maintaining its water and wastewater infrastructure. The company plans to spend $3.7 billion in 2026 and $19-$20 billion from 2026 through 2030 to support system reliability and long-term growth.
American States Water (AWR - Free Report) plans to invest $185-$225 million in 2026 to strengthen and improve infrastructure, support rate base growth and create long-term financial opportunities.
The Zacks Rundown on CWTCWT’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 EPS indicates a year-over-year increase of 19.07% and 7.03%, respectively.
Image Source: Zacks Investment Research
Debt to CapitalCWT's debt-to-capital ratio currently stands at 50.29%, lower than the Zacks Utility- Water Supply industry’s 54.63%.
Image Source: Zacks Investment Research
CWT’s Stock Price PerformanceIn the past month, the company’s shares have risen 13.6% compared with the industry’s 8.6% growth.
For those looking to find strong Utilities stocks, it is prudent to search for companies in the group that are outperforming their peers. Is California Water Service Group (CWT - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
California Water Service Group is one of 111 companies in the Utilities group. The Utilities group currently sits at #14 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. California Water Service Group is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for CWT's full-year earnings has moved 0.3% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, CWT has gained about 15.4% so far this year. Meanwhile, stocks in the Utilities group have gained about 7.5% on average. This means that California Water Service Group is performing better than its sector in terms of year-to-date returns.
One other Utilities stock that has outperformed the sector so far this year is Companhia Paranaense de Energia - Copel Unsponsored ADR (ELPC - Free Report) . The stock is up 25.9% year-to-date.
Over the past three months, Companhia Paranaense de Energia - Copel Unsponsored ADR's consensus EPS estimate for the current year has increased 60.6%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, California Water Service Group belongs to the Utility - Water Supply industry, which includes 9 individual stocks and currently sits at #176 in the Zacks Industry Rank. This group has gained an average of 8.6% so far this year, so CWT is performing better in this area.
In contrast, Companhia Paranaense de Energia - Copel Unsponsored ADR falls under the Utility - Electric Power industry. Currently, this industry has 63 stocks and is ranked #159. Since the beginning of the year, the industry has moved +9%.
California Water Service Group and Companhia Paranaense de Energia - Copel Unsponsored ADR could continue their solid performance, so investors interested in Utilities stocks should continue to pay close attention to these stocks.
Investors with an interest in Utility - Water Supply stocks have likely encountered both California Water Service Group (CWT - Free Report) and American Water Works (AWK - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
California Water Service Group and American Water Works are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This means that CWT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
CWT currently has a forward P/E ratio of 19.51, while AWK has a forward P/E of 21.62. We also note that CWT has a PEG ratio of 1.84. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AWK currently has a PEG ratio of 2.86.
Another notable valuation metric for CWT is its P/B ratio of 1.78. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, AWK has a P/B of 2.33.
Based on these metrics and many more, CWT holds a Value grade of B, while AWK has a Value grade of D.
CWT is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CWT is likely the superior value option right now.
July 09, 2026 16:10 ET | Source: California Water Service Group
SAN JOSE, Calif., July 09, 2026 (GLOBE NEWSWIRE) -- California Water Service Group (NYSE: CWT) today announced that its 2026 second-quarter earnings results will be released at 9:00 a.m. ET with its earnings conference call to follow at 11:00 a.m. ET on Thursday, July 30, 2026.
All stockholders and interested investors are invited to attend the conference call. To attend, please dial 1-800-715-9871 or 1-646-307-1963 and key in ID# 5478283, or you may access the live audio webcast at https://edge.media-server.com/mmc/p/p8cvrm58/
Please join at least 15 minutes in advance to ensure a timely connection to the call. A replay of the call will be available from 2:00 p.m. ET on Thursday, July 30, 2026, through September 28, 2026, at 1-800-770-2030 or 1-609-800-9909 and key in ID# 5478283, or by accessing the webcast above. The call will be hosted by Chairman, President and Chief Executive Officer Martin A. Kropelnicki and Senior Vice President, Chief Financial Officer and Treasurer James P. Lynch. Prior to the call, Cal Water will furnish a slide presentation on its website.
About California Water Service Group
California Water Service Group is the parent company of regulated utilities California Water Service, Hawaii Water Service, New Mexico Water Service, Washington Water Service, and Texas Water Service, a utility holding company. Together, these companies provide regulated and non-regulated water and wastewater service to more than 2.2 million people in California, Hawaii, New Mexico, Texas, and Washington. California Water Service Group’s common stock trades on the New York Stock Exchange under the symbol “CWT.” Additional information is available online at www.calwatergroup.com.
SAN JOSE, Calif., July 01, 2026 (GLOBE NEWSWIRE) -- Following its agreement to acquire Palm Mutual Water Company (Palm Mutual) in May 2025 and subsequent approval by the California Public Utilities Commission, California Water Service (Cal Water) has completed the purchase of Palm Mutual’s water system assets and will now begin serving its customers through Cal Water’s Bakersfield District.
The Palm Mutual system serves an estimated 250 residents through 63 residential customer connections and is located just two miles from Cal Water’s Northeast Bakersfield Treatment Plant. Cal Water already serves Palm Mutual through a master meter interconnection, since Palm Mutual did not own or operate its own sources of supply. Cal Water plans to upgrade the system’s infrastructure over time to help support long-term water quality and reliability.
“We believe everyone should have access to safe, clean, reliable, and affordable water and that bringing Palm Mutual’s water system into our Bakersfield District will help its customers have the high-quality water they need for their everyday use and emergencies, both now and into the future,” said Martin A. Kropelnicki, Cal Water Chairman and CEO. “We welcome Palm Mutual’s customers to California Water Service and look forward to serving them.”
Cal Water, the largest subsidiary of California Water Service Group (NYSE: CWT), is regulated by the CPUC, which approved the acquisition in December 2025. Cal Water’s Bakerfield District already serves about 445,600 people through approximately 120,000 service connections in its own system and the City of Bakersfield water system, which it operates.
About California Water Service
California Water Service provides high-quality, reliable water utility services to more than 2.1 million people statewide through 500,000 service connections. Cal Water’s purpose is to enhance the quality of life for customers and communities. To do so, it invests responsibly in water and wastewater infrastructure, sustainability initiatives, and community well-being. The company’s 1,200 employees live by a set of strong core values and share a commitment to protecting the planet, caring for people, and operating with the utmost integrity. The utility, commemorating a century of service this year, has been named one of “America’s Most Responsible Companies” and one of the “World’s Most Trustworthy Companies” by Newsweek, a USA Top Workplace, and a Great Place to Work®. More information is available at www.calwater.com.
This news release contains forward-looking statements within the meaning established by the Private Securities Litigation Reform Act of 1995 ("PSLRA"). The forward-looking statements are intended to qualify under provisions of the federal securities laws for "safe harbor" treatment established by the PSLRA. Forward-looking statements in this news release are based on currently available information, expectations, estimates, assumptions and projections, and our management's beliefs, assumptions, judgments and expectations about us, the water utility industry and general economic conditions. These statements are not statements of historical fact. When used in our documents, statements that are not historical in nature, including words like will, would, expects, intends, plans, believes, may, could, estimates, assumes, anticipates, projects, progress, predicts, hopes, targets, forecasts, should, seeks or variations of these words or similar expressions, are intended to identify forward-looking statements. Examples of forward-looking statements in this news release include, but are not limited to, statements describing Cal Water’s expectations regarding operating and investing in the Palm Mutual system. Forward-looking statements are not guarantees of future performance. They are based on numerous assumptions that we believe are reasonable, but they are open to a wide range of uncertainties and business risks. Consequently, actual results or outcomes may vary materially from what is contained in a forward-looking statement. Factors that may cause actual results or outcomes to be different than those expected or anticipated include, but are not limited to, our ability to integrate the business and operate the Palm Mutual water system in an effective and accretive manner as well as those described under the section entitled "Risk Factors" and elsewhere in our most recent Annual Report on Form 10-K, our subsequent Quarterly Reports on Form 10-Q, and our other Securities and Exchange Commission filings. In light of these risks, uncertainties, and assumptions, investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this news release. We are not under any obligation, and we expressly disclaim any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events, or otherwise.
Key Takeaways CWT benefits from rising demand, acquisitions, and investments, boosting financial performance. California Water Service plans $760M and $690M investments in 2026 and 2027 for efficiency. CWT has 324 straight dividends, 2.98% yield, and lower debt-to-capital than the industry. California Water Service Group (CWT - Free Report) is benefiting from rising demand driven by an expanding customer base. Contribution from strategic acquisitions and organic assets is boosting its financial performance. The company makes capital investments to modernize and replace aging systems, enhancing service reliability and providing high-quality services to customers.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CWT’s Growth Projection The Zacks Consensus Estimate for CWT’s 2026 and 2027 earnings have moved up 1.19% and 4.20%, respectively, over the past 60 days. The Zacks Consensus Estimate for CWT’s 2026 and 2027 sales is pinned at $1.07 billion and $1.13 billion, indicating year-over-year growth of 7.28% and 5.74%, respectively.
CWT’s long-term (three to five years) earnings growth rate is 10.62%.
CWT’s Stable Investments California Water Service makes capital investments in infrastructure development and maintenance, enabling it to provide safe, high-quality service throughout California, Washington and New Mexico. CWT aims to invest $760 million and $690 million in 2026 and 2027, respectively, to enhance its operational efficiency and support long-term financial performance.
CWT’s Capital Return Program California Water Service has been constantly rewarding its shareholders with dividend hikes, reflecting stable earnings and strong cash flow. In January 2026, the company’s board approved its 324th consecutive quarterly dividend, including a 10-cents increase.
California Water Service has a dividend yield of 2.98% versus the Zacks S&P 500 composite’s average of 1.39%. The company’s current annualized dividend is $1.34 per share.
CWT’s Debt Position CWT’s times interest earned ratio (TIE) at the end of the fourth quarter of 2025 was 2.6. The TIE ratio is a key solvency metric that indicates how effectively a company can meet its long-term debt obligations, reflects how operating earnings cover interest expenses and highlights overall financial stability.
CWT’s total debt-to-capital is 48.67%, which is lower than the industry’s 53.34%, indicating stronger financial stability and lower leverage risk.
Price Performance of CWTIn the past month, California Water Service shares have rallied 1.2% compared with the industry’s 3.7% growth.
Image Source: Zacks Investment Research
Other Stocks to Consider Some other top-ranked stocks from the same sector are American States Water (AWR - Free Report) , CMS Energy (CMS - Free Report) and Essential Utilities (WTRG - Free Report) , each carrying a Zacks Rank #2.
AWR, CMS and WTRG dividend yields are 2.66%, 2.93% and 3.51%, respectively.
The Zacks Consensus Estimate for American States Water, CMS Energy and Essential Utilities 2026 EPS is pegged at $3.59, $3.86 and $2.25, suggesting year-over-year growth of 6.53%,6.93% and 2.27%, respectively.
Key Takeaways AWR outpaces CWT with higher ROE, lower debt-to-capital, and stronger recent price gains. CWT projects faster EPS growth, with 19.07% rise in 2026 compared with 6.5% rise for AWR. AWR benefits from diversified operations, rate hikes, and steady infrastructure investments. The companies under the Zacks Utility - Water Supply industry provide safe and reliable water and wastewater service to millions of consumers across the United States. The U.S. water and wastewater industry operates through 2.2 million miles of aging pipelines.
The water and wastewater industry is highly fragmented, with more than 50,000 community water systems and nearly 14,000 wastewater treatment systems providing services to the customers. Companies are making regular investments to upgrade and maintain their aging infrastructure, enabling them to maintain service reliability. The regulated structure enables these companies to recover costs through authorized rate hikes and rewards shareholders through dividends.
Given the importance of water and wastewater service provider companies, let us discuss American States Water Company (AWR - Free Report) and California Water Service Group (CWT - Free Report) . These two regulated utilities are benefiting from rising demand, rate hike and significant infrastructure investments, making them comparable players within the industry.
American States Water stands out with its regulated structure that efficiently serves water and electricity customers through its three subsidiaries. The company is benefiting from an expanding customer base, new rates and a diversified business model that supports revenue and earnings growth. Its strategic investment plans support the upgrade, maintenance and replacement of its aging infrastructure, enhancing service reliability and strengthening long-term growth.
California Water ranks among the largest investor-owned water utilities in the United States and operates through seven subsidiaries. It operates through both regulated and non-regulated structures and efficiently serves about 2 million customers in 100 communities. The company is gaining from rising demand from its expanding customer base, driven by both acquisitions and organic growth. Its disciplined investment strategy supports infrastructure development, improves operational efficiency, enhances service reliability and boosts long-term financial performance.
American States Water and California Water are among the leading utilities. Examining their fundamentals side by side can reveal which stock presents the most attractive investment opportunity.
AWR & CWT’s Earnings Growth ProjectionsThe Zacks Consensus Estimate for CWT’s earnings per share is pegged at $2.56 in 2026 and $2.73 in 2027, suggesting year-over-year growth of 19.07% and 6.77%, respectively. CWT’s long-term (three to five years) earnings growth is currently pinned at 10.62%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AWR’s earnings per share is pegged at $3.59 in 2026 and $3.75 in 2027, suggesting year-over-year growth of 6.53% and 4.46%, respectively. AWR’s long-term earnings growth is currently pinned at 5.65%.
Image Source: Zacks Investment Research
Debt to CapitalThe Zacks Utilities sector is a capital-intensive sector, and continuous investment is required for infrastructure modernization, maintenance and replacement. It helps to improve operational efficiency, enhance service reliability and support growing demand. These utilities combine internally generated cash flows with borrowed funds from capital markets to finance long-term investments, ensuring steady growth.
American States Water's debt-to-capital currently stands at 47.13% compared with California Water’s 48.67%. Both companies are using debt to fund their business. Both AWR and CWT’s debt levels are lower than the industry’s 53.34%, with CWT slightly higher than AWR, indicating greater reliance on borrowed funds.
Image Source: Zacks Investment Research
Return on EquityReturn on Equity (“ROE”) reflects how efficiently a company utilizes shareholders’ funds to generate profit. It plays a vital role in evaluating management efficiency and overall financial performance, highlighting how efficiently resources are used to generate sustainable growth.
American States Water's current ROE is 13.1%, outperforming California Water, which reports a lower ROE of 7.67%. AWR utilizes shareholder capital more efficiently and generates higher returns, though the company’s returns remain slightly below the industry average of 13.72%.
Image Source: Zacks Investment Research
AWR & CWT’s Dividend YieldDividends are regular payments distributed by a utility company to reward its shareholders, reflecting the company’s earnings stability and strong cash flow. They offer investors commitment to delivering consistent returns on invested capital.
Currently, the dividend yield for California Water is 2.90%, while that for American States Water is 2.59%. The dividend yields of both companies are higher than the S&P 500’s yield of 1.39%.
Capital Investment PlansU.S. water utilities' operation is capital-intensive, as huge funds are required for upgrading aging water and wastewater infrastructure to ensure safe and reliable service for customers. According to the Environmental Protection Agency, an investment of $1.25 trillion will be required over the next 20 years to maintain and expand water services.
California Water aims to invest $760 million and $690 million in 2026 and 2027, respectively, to strengthen infrastructure, improve operational efficiency and maintain service reliability. American States Water plans a strategic capital investment of $185-$225 million in 2026 to support infrastructure development, enhance service reliability and boost long term financial performance.
Price PerformanceAmerican States Water has gained 5.8% over the past month compared with California Water's 4% rally.
Image Source: Zacks Investment Research
Summing UpAmerican States Water and California Water both gain from rising demand driven by an expanding customer base and new rates and are making substantial infrastructure investments to serve millions of customers across the United States.
American States Water’s stable earnings per share growth, stronger ROE, lower debt-to-capital ratio and better price performance make it a more attractive choice in the utility sector.
Based on the above discussion, American States Water currently has an edge over California Water, though both presently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
California Water Service Group (CWT - Free Report) is headquartered in San Jose, and is in the Utilities sector. The stock has seen a price change of 7.39% since the start of the year. The water utility is paying out a dividend of $0.34 per share at the moment, with a dividend yield of 2.88% compared to the Utility - Water Supply industry's yield of 2.62% and the S&P 500's yield of 1.39%.
Looking at dividend growth, the company's current annualized dividend of $1.34 is up 8.1% from last year. Over the last 5 years, California Water Service Group has increased its dividend 5 times on a year-over-year basis for an average annual increase of 7.00%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. California Water Service Group's current payout ratio is 56%, meaning it paid out 56% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, CWT expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $2.56 per share, with earnings expected to increase 19.07% from the year ago period.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that CWT is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).
April 29, 2026 16:05 ET | Source: California Water Service Group
SAN JOSE, Calif., April 29, 2026 (GLOBE NEWSWIRE) -- At its meeting on April 29, 2026, the California Water Service Group (NYSE: CWT) Board of Directors declared the Company’s 325th consecutive quarterly dividend in the amount of $0.3350 per common share, payable on May 22, 2026, to stockholders of record as of the close of business on May 11, 2026.
About California Water Service Group
California Water Service Group is the largest regulated water utility in the western United States. It provides high-quality, reliable water and/or wastewater services to more than 2.2 million people in California, Hawaii, New Mexico, Washington, and Texas through its regulated subsidiaries, California Water Service, Hawaii Water Service, New Mexico Water Service, and Washington Water Service, and its utility holding company, Texas Water Service. This year, the company commemorates a century of service.
Group’s purpose is to enhance the quality of life for customers, communities, employees, and stockholders. To do so, it invests responsibly in water and wastewater infrastructure, sustainability initiatives, and community well-being. The company’s nearly 1,300 employees live by a set of strong core values and share a commitment to protecting the planet, caring for people, and operating with the utmost integrity. The company has been named one of “America’s Most Responsible Companies” and the “World’s Most Trustworthy Companies” by Newsweek, a USA Top Workplace, and a Great Place to Work®. More information is available at www.calwatergroup.com.
Forward Looking Statements
This news release contains forward-looking statements within the meaning established by the Private Securities Litigation Reform Act of 1995 (“PSLRA”). The forward-looking statements are intended to qualify under provisions of the federal securities laws for “safe harbor” treatment established by the PSLRA. Forward-looking statements in this news release are based on currently available information, expectations, estimates, assumptions and projections, and our management’s beliefs, assumptions, judgments and expectations about us, the water utility industry and general economic conditions. These statements are not statements of historical fact. When used in our documents, statements that are not historical in nature, including words like will, would, expects, intends, plans, believes, may, could, estimates, assumes, anticipates, projects, progress, predicts, hopes, targets, forecasts, should, seeks or variations of these words or similar expressions, are intended to identify forward-looking statements. Examples of forward-looking statements in this news release include, but are not limited to, statements describing the expected timing of the quarterly dividend payment. Forward-looking statements are not guarantees of future performance. They are based on numerous assumptions that we believe are reasonable, but they are open to a wide range of uncertainties and business risks. Consequently, actual results or outcomes may vary materially from what is contained in a forward-looking statement. Factors that may cause actual results or outcomes to be different than those expected or anticipated include, but are not limited to, those described under the section entitled “Risk Factors” and elsewhere in our most recent Annual Report on Form 10-K, our subsequent Quarterly Reports on Form 10-Q, and our other Securities and Exchange Commission filings. In light of these risks, uncertainties, and assumptions, investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this news release. We are not under any obligation, and we expressly disclaim any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events, or otherwise.
SAN JOSE, Calif. , April 29, 2026 (GLOBE NEWSWIRE) -- California Water Service Group (Group or Company, NYSE: CWT), a leading publicly traded water utility serving California, Hawaii, New Mexico, Washington, and Texas, today reported first quarter 2026 results and provided an update on the revised proposed decision issued by the California Public Utilities Commission (CPUC) on April 29, 2026 (revised PD) on California Water Service Company's (Cal Water's) 2024 California General Rate Case (2024 CA GRC).
April 30, 2026 19:15 ET | Source: California Water Service Group
SAN JOSE, Calif., April 30, 2026 (GLOBE NEWSWIRE) -- California Water Service (Cal Water), the largest subsidiary of California Water Service Group (Group) (NYSE: CWT), received a final decision on its 2024 General Rate Case and Infrastructure Improvement Plan from the California Public Utilities Commission (CPUC) on April 30, 2026. The Company believes the decision enables Cal Water to invest responsibly in water system infrastructure through 2027 to support its communities and sets Cal Water’s revenue and rates to help sustain safe, clean, reliable water service through 2028.
The CPUC adopted the proposed decision (PD) issued March 13, 2026 with revisions issued on April 29, 2026 (revised PD). The final decision increases Cal Water’s company-wide revenues by $90.5 million in 2026 (a rate increase of 10.9%), $43.2 million in 2027 (a rate increase of 4.7%), and $48.9 million in 2028 (a rate increase of 5.1%). The differences between approved revenue and rate increases in the PD and the revised PD are primarily attributable to a reduction in authorized capital, some of which is now subject to the CPUC’s advice letter process discussed below Cal Water is currently analyzing how the final decision will impact rates in each of its service areas.
The decision also authorizes Cal Water to invest $1.45 billion in its districts from 2024 through 2027 to upgrade infrastructure, such as water quality projects to protect customers from existing and newly regulated contaminants; pipes and other infrastructure to keep pumping and delivering water reliably; equipment to keep water flowing during power outages and shutoffs; cyber and physical security improvements to protect employees, customers, and facilities; and water supply initiatives to secure long-term sustainability of water sources. It authorizes up to $229 million in additional projects that will be submitted for recovery through the CPUC’s advice letter process.
Although the decision does not allow full decoupling, it does renew the Monterey-style Water Revenue Adjustment Mechanism and water production incremental cost balancing accounts. It also establishes a new sales reconciliation mechanism that allows Cal Water to adjust sales forecasts annually, and it approves a rate design to better enable the company to recover fixed costs regardless of water sales. The mechanisms, balancing accounts, and new rate design provide financial stability while supporting customer affordability, particularly for low-income, low-water-using customers.
“We recognize the criticality of keeping water service affordable while making the infrastructure investments needed to provide safe, clean, reliable water to our communities,” said Martin A. Kropelnicki, Group Chairman and CEO. “We appreciate the CPUC for issuing the final decision in our triennial General Rate Case and Infrastructure Improvement Plan and enabling us to continue providing quality, service, and value to our customers and communities for their everyday and emergency needs.”
This marks the end of a required, extensive, nearly two-year review of the company’s water system improvement plans, costs, and rates. Cal Water expects to implement the new rates effective July 1, 2026.
About California Water Service Group
Group is the parent company of regulated utilities California Water Service, Hawaii Water Service, New Mexico Water Service, and Washington Water Service, as well as Texas Water Service (TWSC, Inc.), a utility holding company. Together, these companies provide regulated and non-regulated water and wastewater service to more than 2.2 million people in California, Hawaii, New Mexico, Washington, and Texas. Group’s common stock trades on the New York Stock Exchange under the symbol “CWT.” Additional information is available online at www.calwatergroup.com.
This news release contains forward-looking statements within the meaning established by the Private Securities Litigation Reform Act of 1995 (“PSLRA”). The forward-looking statements are intended to qualify under provisions of the federal securities laws for “safe harbor” treatment established by the PSLRA. Forward-looking statements in this news release are based on currently available information, expectations, estimates, assumptions and projections, and our management’s beliefs, assumptions, judgments and expectations about us, the water utility industry and general economic conditions. These statements are not statements of historical fact. When used in our documents, statements that are not historical in nature, including words like will, would, expects, intends, plans, believes, may, could, estimates, assumes, anticipates, projects, progress, predicts, hopes, targets, forecasts, should, seeks or variations of these words or similar expressions are intended to identify forward-looking statements. Examples of forward-looking statements in this news release include, but are not limited to, statements describing Group’s beliefs, expectations, and plans related to the CPUC’s final decision on the 2024 GRC and related impacts on Group’s business. Forward-looking statements are not guarantees of future performance. They are based on numerous assumptions that we believe are reasonable, but they are open to a wide range of uncertainties and business risks. Consequently, actual results or outcomes may vary materially from what is contained in a forward-looking statement. Factors that may cause actual results or outcomes to be different than those expected or anticipated include but are not limited to the risks described under the section entitled “Risk Factors” and elsewhere in our most recent Annual Report on Form 10-K and our other SEC filings. In light of these risks, uncertainties and assumptions, investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this news release. We are not under any obligation, and we expressly disclaim any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.
Key Takeaways CWT posted Q1 2026 EPS of 7 cents, down from 22 cents, and missed the estimate of 25 cents by 72%.CWT expenses rose 8.1% to $196.4M as wholesale water, depreciation and net interest climbed.CWT agreed to buy Nexus' water and wastewater system in NV and OR for $218 million. California Water Service Group (CWT - Free Report) posted first-quarter 2026 earnings of 7 cents per share, down 68.2% from 22 cents a year ago. The figure missed the Zacks Consensus Estimate of 25 cents by 72.0%.
The earnings shortfall reflected cost pressure across the income statement. Total operating expenses rose 8.1% year over year to $196.4 million, outpacing the growth in operating revenues.
CWT’s RevenuesQuarterly revenues were $215 million, up 5.2% from the year-ago period. The top line came in below the consensus mark of $218 million by 1.38%.
Operating revenues increased $10.6 million year over year, supported by rate-related items and higher accrued and unbilled revenues. At the same time, customer usage declined, pressuring billed consumption for the quarter.
CWT’s management attributed the usage decline to climate variability between the periods, while noting that rate changes and higher accrued and unbilled revenues contributed meaningfully to quarterly revenues. This mix underscores the company’s continued reliance on regulatory constructs and billing dynamics to smooth results through seasonal demand swings.
CWT’s Operational HighlightsWater production costs increased $8.3 million year-over-year to $71.3 million, driven primarily by higher wholesale water rates. Depreciation and amortization also climbed to $40 million as additional capital assets were placed into service.
During the quarter, CWT announced an agreement to acquire Nexus Water Group’s water and wastewater systems in Nevada and Oregon for approximately $218 million. The transaction is expected to add about 36,000 customer equivalent residential units and roughly $109 million of rate base, expanding the company’s footprint beyond California.
CWT continues to invest heavily in its regulated systems, a strategy that supports long-term rate base growth but also raises near-term non-cash costs. The quarter’s step-up in depreciation expense reflected ongoing infrastructure work and new assets entering service.
The company’s expense profile also showed higher financing-related pressure. Net interest expense increased to $18.6 million from $15.7 million in the prior-year quarter, which further weighed on profitability as capital spending and funding needs expanded.
California Water Rate Case Milestone and Catch-UpA key near-term swing factor remains California Water Service’s 2024 California General Rate Case. The company received a revised proposed decision on April 29, 2026, and received final decision yesterday.
Importantly, the decision authorizes incremental revenues of $90.5 million in 2026, plus additional increases of $43.2 million in 2027 and $48.9 million in 2028. The filing also supports revenue stabilization through continued Monterey-Style mechanisms and additional balancing accounts, along with a new sales reconciliation mechanism aimed at improving fixed-cost recovery.
CWT’s Financial HighlightsCWT ended the quarter with $58.1 million in unrestricted cash and $45.6 million in restricted cash. The company also highlighted access to revolving credit facilities totaling $600 million, expandable to $800 million, with maturities extending to March 2028.
Long-term debt as of March 31, 2026, was $1.472 billion compared with $1.471 billion as of Dec. 31, 2025.
Strategic activity remains in focus. Shareholder returns stayed intact despite the earnings miss. The board declared a quarterly dividend of 33.50 cents per share, marking the 325th consecutive quarterly dividend, and communicated an expected annualized dividend of $1.34 per share following its 59th annual dividend increase.
Cash flow from operational activities in first-quarter 2026 was $49.4 million compared with $38.4 million in the year-ago quarter.
CWT’s Zacks RankCalifornia Water currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming ReleasesAmerican States Water (AWR - Free Report) is slated to report first-quarter 2026 results on May 6, 2026, after market close. The Zacks Consensus Estimate for AWR’s first-quarter EPS is pegged at 77 cents, implying an increase of 10% from the prior-year figure. Long-term (three to five years) earnings growth is pegged at 6.93%.
Essential Utilities Inc. (WTRG - Free Report) is scheduled to report first-quarter 2026 results on May 7, 2026, before market opens. The Zacks Consensus Estimate for WTRG’s first-quarter EPS is pegged at $1.01, implying a decrease of 1.94% from the prior-year figure. The company has a dividend yield of 3.47%, better than its industry’s 2.59%.
Consolidated Water Co. Ltd (CWCO - Free Report) is set to report first-quarter 2026 results on May 12. The Zacks Consensus Estimate for CWCO’s first-quarter EPS is pegged at 27 cents, implying a decrease of 12.90% from the prior-year figure. The company has a dividend yield of 1.73%.
Investors looking for stocks in the Utility - Water Supply sector might want to consider either California Water Service Group (CWT) or American Water Works (AWK). But which of these two stocks presents investors with the better value opportunity right now?
California Water Service Group is rated a Buy for patient investors seeking reliable, inflation-beating income and double-digit total return potential. CWT's recent rate case approval and acquisitions in Nevada, Oregon, and Texas support an 8–10% revenue CAGR and diversify regulatory risk. The dividend yield is nearly 3.2% with a 59-year growth streak, and expected annual increases above inflation reinforce CWT's Dividend King status.
SAN JOSE, Calif., May 13, 2026 (GLOBE NEWSWIRE) -- TIME magazine has named California Water Service Group (Group) (NYSE: CWT) as one of the top 35 companies in its inaugural list of the “World’s Most Impactful Companies.” The first-edition ranking, aligned with the United Nations Sustainable Development Goals, is published in partnership with The Upright Project, an impact data company, and Statista, a leading statistics portal and industry ranking provider.
TIME honored the top 500 companies out of nearly 10,000 public and private companies worldwide with revenue of at least $250 million, sufficient data coverage, and positive overall net societal impact. Group joins the likes of Moderna, Gilead, Pfizer, Sunrun, and Tesla in the top 35. Group is one of eight water utilities listed in the Utilities and Environmental Services category, which is one of the ranking’s 16 industries.
The ranking, grounded in a rigorous, science-based methodology, uses The Upright Project’s Net Impact Model, which quantifies the benefits and costs that a company’s products and services create across society, knowledge, health, and environment factors. The model considered impact- and sustainability-related data from more than 300 million scientific articles and major public databases, including World Bank, World Health Organization, Organisation for Economic Co-operation and Development, and Intergovernmental Panel on Climate Change.
“We are committed to doing the right thing and contributing to the greater good, and we are honored that TIME has included us in its first-ever list of the 500 most impactful companies worldwide,” said Marty Kropelnicki, Group Chairman & CEO.
The full listing is published at time.com/article/2026/05/12/worlds-most-impactful-companies-2026.
About California Water Service Group
California Water Service Group (NYSE: CWT) is the largest regulated water utility in the western United States. It provides high-quality, reliable water and/or wastewater services to more than 2.2 million people in California, Hawaii, New Mexico, Washington, and Texas through its regulated subsidiaries, California Water Service, Hawaii Water Service, New Mexico Water Service, and Washington Water Service, and its utility holding company, Texas Water Service. This year, the company commemorates a century of service.
Group’s purpose is to enhance the quality of life for customers, communities, employees, and stockholders. To do so, it invests responsibly in water and wastewater infrastructure, sustainability initiatives, and community well-being. The company’s nearly 1,300 employees live by a set of strong core values and share a commitment to protecting the planet, caring for people, and operating with the utmost integrity. The company has been named one of “America’s Most Responsible Companies” and the “World’s Most Trustworthy Companies” by Newsweek, a USA Top Workplace, and a Great Place to Work®. More information is available at www.calwatergroup.com.
SAN JOSE, Calif., May 18, 2026 (GLOBE NEWSWIRE) -- California Water Service Group (Group) (NYSE: CWT) published its 2025 Sustainability Report today, showcasing efforts and progress made in its four key focus areas: protecting the planet, serving customers, engaging the workforce, and governing with integrity.
The Sustainability Report aligns with the Sustainability Accounting Standards Board (SASB) Water Utilities & Services Industry Standards, Recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD), and Global Reporting Initiative (GRI) Standards. Key data and metrics are further detailed in the supplemental Sustainability Data Download.
“While much has changed over our 100 years of service, our dedication to delivering safe, clean, reliable water and being a responsible corporate citizen has remained steadfast,” said Martin A. Kropelnicki, Group Chairman & CEO. “By focusing our efforts on key areas, we can fulfill the promise we have made to our customers, communities, employees, and stockholders to provide quality, service, and value—day in and day out. It is this focus that will sustain us into our next century of service.”
Highlights in Group’s key focus areas in 2025 alone include:
Protecting the planet
Invested $7.3 million in emissions-reducing energy solutions.Delivered an estimated 2.6 billion gallons of recycled water for landscaping, irrigation, and industrial uses.Invested $3.4 million in customer conservation rebates and programs in California, which are expected to save more than 100 million gallons of water annually.Reduced total Scope 1 and market-based Scope 2 GHG emissions by 26.7% from a 2021 base year.Procured 12.8% of energy from renewable sources, including onsite solar and a utility green rate program. Serving customers
Achieved 100% compliance with primary and secondary federal and state water quality standards, as confirmed by 630,000+ water quality tests conducted.Offered $22 million in discounts to 100,000+ customers through its California subsidiary’s low-income Customer Assistance Program.Submitted $20.4 million in grant funding applications for water quality or supply projects to reduce rate impacts to customers, with $10.1 million already approved for PFAS treatment in New Mexico.Received an overall satisfaction score of 9.1 out of 10, based on customer survey results.Donated nearly $1.9 million to local community organizations. Engaging the workforce
Earned the Great Place to Work® certification from the Great Place to Work Institute® for the 10th consecutive year.Reduced OSHA-recordable injuries by 35% compared to 2024.Invested more than $1 million in employee training and continuing education. Governing with integrity
Named one of the “World’s Most Trustworthy Companies” and one of “America’s Most Responsible Companies” by Newsweek.Held 50+ discussions on sustainability-related matters during board or committee meetings.Helped pass CA SB 693, which helps streamline emergency response efforts.Spent 26% of procurement in California with diverse suppliers. About California Water Service Group
California Water Service Group (NYSE: CWT) is the largest regulated water utility in the western United States. It provides high-quality, reliable water and/or wastewater services to more than 2.2 million people in California, Hawaii, New Mexico, Washington, and Texas through its regulated subsidiaries, California Water Service, Hawaii Water Service, New Mexico Water Service, and Washington Water Service, and its utility holding company, TWSC, Inc. (Texas Water Service). This year, the company commemorates a century of service.
Group’s purpose is to enhance the quality of life for customers, communities, employees, and stockholders. To do so, it invests responsibly in water and wastewater infrastructure, sustainability initiatives, and community well-being. The company’s 1,300+ employees live by a set of strong core values and share a commitment to protecting the planet, caring for people, and operating with the utmost integrity. The company has been named one of “America’s Most Responsible Companies” and the “World’s Most Trustworthy Companies” by Newsweek, a USA Top Workplace, and a Great Place to Work®. More information is available at www.calwatergroup.com.
MEDIA CONTACT: Yvonne Kingman, (310) 257-1434
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e756088c-02cc-4960-9267-acc569134b1b
May 20, 2026 16:15 ET | Source: California Water Service Group
SAN JOSE, Calif., May 20, 2026 (GLOBE NEWSWIRE) -- At its meeting today, the California Water Service Group (CWT: NYSE) Board of Directors unanimously approved the promotions of Tamara S. Johnson to Vice President, California Operations, and Gregory D. Shimansky to Vice President, Rates and Regulatory Affairs, effective July 1, 2026.
Prior to joining the executive team, Johnson served as Director of Field Operations, Southern California Region. She brings 40 years of public water utility experience to the position, having started her career at California Water Service, Group's largest subsidiary, in 1985. Johnson holds a Master of Business Administration from California State University, Monterey Bay, a Bachelor of Science in Business Administration from the University of La Verne, as well as a Water Treatment Operator License Grade 3 and a Water Distribution License Grade 5 from the State of California. The Vice President, California Operations role is newly created.
"This new position reflects our company's growth and the increasing complexity of water utility operations. Tammy is not only a water utility operations expert, she's also an accomplished professional with a track record of getting things done. It's truly a pleasure to welcome to the officer team someone who has dedicated her entire career to the company," said Chairman and Chief Executive Officer Martin A. Kropelnicki.
Shimansky joined California Water Service Group in 2024 as a director focused on rates and regulatory affairs outside of California. Before joining the Group, he served as Rates and Regulatory Affairs Director at Indiana American Water and General Rate Case Program Manager at San Diego Gas and Electric. He holds a Master of Science in Management from Purdue University and a Bachelor of Arts in Economics from the University of California, Los Angeles. He succeeds Greg A. Milleman, who is retiring after a distinguished 10-year career at Group.
"Greg is results-oriented, and he has done a tremendous job for us thus far. I believe he will be a real asset to the Company as we continue to pursue regulatory mechanisms and rate designs that help keep our rates affordable for customers while allowing us to make the investments in water system infrastructure that help keep our water service safe and reliable," Kropelnicki said.
About California Water Service Group
Group is the parent company of regulated utilities California Water Service, Hawaii Water Service, New Mexico Water Service, and Washington Water Service, as well as Texas Water Service, a utility holding company. Together, these companies provide regulated and non-regulated water and wastewater service to more than 2.1 million people in California, Hawaii, New Mexico, Washington, and Texas. Group’s common stock trades on the New York Stock Exchange under the symbol “CWT.” Additional information is available online at www.calwatergroup.com.
It has been about a month since the last earnings report for California Water Service Group (CWT - Free Report) . Shares have added about 3.7% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is California Water Service Group due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
California Water Service Q1 Earnings Miss Estimates on Higher Costs
California Water Service Group posted first-quarter 2026 earnings of 7 cents per share, down 68.2% from 22 cents a year ago. The figure missed the Zacks Consensus Estimate of 25 cents per share by 72.0%.
The earnings shortfall reflected cost pressure across the income statement. Total operating expenses rose 8.1% year over year to $196.4 million, outpacing the growth in operating revenues.
CWT’s RevenuesQuarterly revenues were $215 million, up 5.2% from the year-ago period. The top line came in below the consensus mark of $218 million by 1.38%.
Operating revenues increased $10.6 million year over year, supported by rate-related items and higher accrued and unbilled revenues. At the same time, customer usage declined, pressuring billed consumption for the quarter.
CWT’s management attributed the usage decline to climate variability between the periods, while noting that rate changes and higher accrued and unbilled revenues contributed meaningfully to quarterly revenues. This mix underscores the company’s continued reliance on regulatory constructs and billing dynamics to smooth results through seasonal demand swings.
CWT’s Operational HighlightsWater production costs increased $8.3 million year over year to $71.3 million, driven primarily by higher wholesale water rates. Depreciation and amortization also climbed to $40 million as additional capital assets were placed into service.
During the quarter, CWT announced an agreement to acquire Nexus Water Group’s water and wastewater systems in Nevada and Oregon for approximately $218 million. The transaction is expected to add about 36,000 customer equivalent residential units and roughly $109 million of rate base, expanding the company’s footprint beyond California.
CWT continues to invest heavily in its regulated systems, a strategy that supports long-term rate base growth but also raises near-term non-cash costs. The quarter’s step-up in depreciation expense reflected ongoing infrastructure work and new assets entering service.
The company’s expense profile also showed higher financing-related pressure. Net interest expense increased to $18.6 million from $15.7 million in the prior-year quarter, which further weighed on profitability as capital spending and funding needs expanded.
California Water Rate Case Milestone and Catch-UpA key near-term swing factor remains California Water Service’s 2024 California General Rate Case. The company received a revised proposed decision on April 29, 2026, and received the final decision yesterday.
Importantly, the decision authorizes incremental revenues of $90.5 million in 2026, plus additional increases of $43.2 million in 2027 and $48.9 million in 2028. The filing also supports revenue stabilization through continued Monterey-Style mechanisms and additional balancing accounts, along with a new sales reconciliation mechanism aimed at improving fixed-cost recovery.
CWT’s Financial HighlightsCWT ended the quarter with $58.1 million in unrestricted cash and $45.6 million in restricted cash. The company also highlighted access to revolving credit facilities totaling $600 million, expandable to $800 million, with maturities extending to March 2028.
Long-term debt as of March 31, 2026, was $1.472 billion compared with $1.471 billion as of Dec. 31, 2025.
Strategic activity remains in focus. Shareholder returns stayed intact despite the earnings miss. The board declared a quarterly dividend of 33.50 cents per share, marking the 325th consecutive quarterly dividend, and communicated an expected annualized dividend of $1.34 per share following its 59th annual dividend increase.
Cash flow from operational activities in first-quarter 2026 was $49.4 million compared with $38.4 million in the year-ago quarter.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in fresh estimates.
VGM ScoresCurrently, California Water Service Group has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, California Water Service Group has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
SAN JOSE, Calif., June 01, 2026 (GLOBE NEWSWIRE) -- In a recognition that reinforces its leadership in sustainability and water-use efficiency, California Water Service (Cal Water) has earned Platinum Certification with the G480 standard from the Alliance for Water Efficiency (AWE) for water conservation and efficiency program operation and management. The platinum certification is the highest status a water utility can achieve for compliance with the G480 standard, established by the American Water Works Association.
The G480 framework outlines the key components of an effective water conservation and water-use efficiency program. It covers utility efforts to improve water use in terms of both supply—through planning and distribution system management, and demand—through strategies such as billing and customer education. Programs that meet this standard are able to benefit all water users and serve as a benchmark for developing and evaluating utility conservation efforts. Platinum certification verifies that a utility’s water conservation program meets 100 percent of the compliance requirements outlined in the voluntary standard. Cal Water is the first utility to earn the platinum certification under the newly updated standard, labeled G480-25.
“As a 100-year-old company, our long-term success has been grounded in our commitment to responsible long-term planning, high-quality service, care for our communities, and stewardship of our limited natural resources,” said Marty Kropelnicki, Cal Water Chairman and CEO. “From our urban water supply planning and stringent water loss control measures to our customer conservation incentive programs, our data-driven sustainability efforts will help keep our communities thriving into our next century.”
“We are pleased to be recognized by AWE with the G480 Platinum Certification as a testament to our robust, industry-leading program,” Kropelnicki said of the designation presented to Cal Water representatives at the CalWEP Peer-to-Peer conference held last week.
About California Water Service
California Water Service provides high-quality, reliable water utility services to more than 2.1 million people statewide through 500,000 service connections. Cal Water’s purpose is to enhance the quality of life for customers and communities. To do so, it invests responsibly in water and wastewater infrastructure, sustainability initiatives, and community well-being. The company’s 1,200 employees live by a set of strong core values and share a commitment to protecting the planet, caring for people, and operating with the utmost integrity. The utility, commemorating a century of service this year, has been named one of “America’s Most Responsible Companies” and one of the “World’s Most Trustworthy Companies” by Newsweek, a USA Top Workplace, and a Great Place to Work®. More information is available at www.calwater.com.
Key Takeaways AWK closed a $315M buy of Nexus water/wastewater systems in eight states, adding about 47,000 customers. American Water Works logged 18 acquisitions in 2025; 22 pending deals could add 58,400 more customers. AWK plans $3.7B of 2026 investment and $46-$48B from 2026-2035 to upgrade and expand infrastructure. American Water Works (AWK - Free Report) announced that it has completed the acquisition of water and wastewater systems across eight states from Nexus Regulated Utilities, LLC, a unit of Nexus Water Group, Inc., for about $315 million. The acquisition expands AWK’s existing customer base by adding about 47,000 new customers. The company took more than a year to close the deal, which was announced on May 19, 2025.
American Water Works continues to expand its operation through systematic acquisition and merger. This enables the company to expand its existing customer base and boost long-term earnings growth. The company completed 18 water and wastewater acquisitions in 2025, adding 20,900 customers. The pending 22 acquisitions (as of April 15, 2026), when completed, will add another 58,400 customers to its customer base.
AWK has been actively investing in upgrading, expanding and maintaining its widespread water and wastewater infrastructure network. The company plans to invest $3.7 billion in 2026 and $46-$48 billion between 2026 and 2035. This investment will strengthen and expand the company’s infrastructure, improve service reliability and support long-term growth.
Consolidation Strengthens Fragmented Water IndustryThe U.S. water industry operates in a highly fragmented manner, with more than 50,000 community water systems and nearly 14,000 wastewater treatment systems. A significant portion of the water and wastewater infrastructure is aging, and regular investment is required for maintenance or replacement. Many smaller utilities lack financial ability and are unable to make the required investment for infrastructure development and maintenance, leading to water loss and poor service to customers.
Consolidation through mergers and acquisitions plays a vital role in infrastructure development, which enhances operational efficiency and improves service quality. As a result, larger utilities expand their footprint through acquiring smaller utilities, supporting service reliability, system upgradation and modernization.
California Water Service Group (CWT - Free Report) announced that it has agreed to acquire Nexus Water Group’s Nevada and Oregon water and wastewater systems for $218 million. The transaction is expected to be closed by the end of 2026. The company plans to invest $627 million and $677 million in 2026 and 2027, respectively, for infrastructure development and to support long-term operational growth.
Essential Utilities, Inc. (WTRG - Free Report) stated that its unit Aqua Pennsylvania has completed the acquisition of the Greenville Municipal Water Authority in Mercer County, PA, for $18 million, expanding its customer base by adding over 2,900 new customers. The company has invested $269 million in the first quarter of 2026 and aims to invest $1.7 billion in 2026 for infrastructure development. The company is also working on a merger agreement with American Water Works. The transaction is expected to close in first-quarter 2027 and will result in the formation of a $40 billion utility company.
Middlesex Water Company (MSEX - Free Report) stated that its unit, Tidewater Utilities, Inc., has completed the acquisition of Pinewood Acres, LLC, water utility assets in Delaware, adding about 360 new customers to its service network. The company invested $21 million in the first quarter of 2026 and plans to invest $506 million in 2026 -2028, which includes $249 million for infrastructure expansion, upgradation and replacement.
Price Movement of AWKIn the past month, shares of the company have plunged 4.5% compared with the industry’s 8.1% decline.
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