California Water Service Group (CWT) investor relations material

Executive summary

• Q3 net income was $65.4 million, or $1.05 diluted EPS, versus $61.2 million and $1.03 in Q3 2025; revenue increased 6.7% to $332.2 million.

• Rate changes and new customers drove growth, partly offset by lower customer usage; 9M infrastructure investment totaled $424.8 million.

• Priorities included affordability, infrastructure investment, emergency preparedness, and closing the Oregon and Nevada acquisitions before year-end 2026.

Financial highlights

• Q3 revenue gains included $22.1 million from rate changes and new customers and $3.9 million from DREMA, partly offset by $4.4 million from lower water usage.

• Q3 operating expenses rose 3.7% to $249.5 million; conservation spending increased $2.8 million, while water production costs were largely unchanged.

• 9M revenue rose 9.6% to $855.3 million; net income was $125.9 million versus $116.7 million, and diluted EPS was $2.07 versus $1.96.

• 9M operating expenses increased 7.6% to $683.6 million; water production costs rose $14.1 million, primarily due to higher wholesale rates.

• Q3 net operating income was $82.7 million versus $70.6 million; 9M operating cash flow was $262.2 million versus $254.7 million.

Outlook and guidance

• 2026 utility capital expenditures are estimated at $600 million–$620 million, including an estimated $50 million for PFAS compliance; 9M expenditures were $424.8 million.

• Rate base is projected to exceed $3.45 billion by 2028, at an 11.9% CAGR; estimates exclude anticipated Nevada and Oregon investments and remain subject to regulatory approval.

• California's 2024 rate case provides potential revenue increases of $43.2 million in 2027 and $48.9 million in 2028, subject to the CPUC earnings test and inflation adjustments.

• Nevada and Oregon acquisitions were expected to close before year-end 2026; BVRT change-of-control approval and closing were expected in early 2027.

• Planned 2026 debt issuance totals $275 million in notes and first mortgage bonds, expected by year-end to refinance debt and fund general corporate purposes.