California Water Service Group (CWT) Investor presentation summary

Business overview and strategy

• Operates as the largest regulated water utility in the western U.S., serving over 560,000 connections across California, Hawaii, New Mexico, Washington, and Texas.

• Focuses on delivering predictable returns, long-term value, and growth through infrastructure investment and strategic acquisitions.

• Strategic framework emphasizes public health, safety, sustainability, innovation, and stakeholder engagement.

• Maintains a regulated business model with 97.7% of revenue from regulated operations and a 10.27% authorized ROE in California through 2026.

• Expanding footprint in high-growth regions, notably Texas, with significant customer growth and new infrastructure deals.

Financial performance and growth

• Reported 2024 revenue of $1.04B and net income of $191M, with growth driven by delayed rate case decisions.

• Three-year revenue and net income growth supported by interim rate relief and strong operational performance.

• Maintains an A+/stable credit rating and strong liquidity, with $255M available credit and $45.6M unrestricted cash as of September 2025.

• 59 consecutive years of dividend growth, with a 2025 annual dividend of $1.24 and a five-year CAGR of 7.7%.

• 20-year total return of $721 on a $100 investment, outperforming the S&P 500 over the same period.

Regulatory environment and rate cases

• Operates in favorable regulatory environments with transparent returns and progressive ratemaking strategies.

• 2024 California General Rate Case proposes $1.6B investment from 2025-2027 and revenue increases of $83.6M, $140.6M, and $72.4M over three years.

• Rate design balances affordability, conservation, and financial stability, with customer assistance programs and progressive tiered rates.

• Water Cost of Capital Mechanism allows for annual ROE adjustments based on bond index movements.