California Water Service Group (CWT) Q2 2026 earnings summary

Executive summary

• Q2 2026 net income rose to $56.5 million ($0.93 per diluted share), up from $42.2 million ($0.71) in Q2 2025, driven by regulatory decisions, retroactive IRMA recognition, and increased consumption.

• Operating revenue for Q2 2026 was $308.6 million, up from $265 million year-over-year; YTD 2026 revenue reached $523.2 million, up from $468.9 million.

• Record capital investment of $276.4 million in the first half of 2026, with significant focus on PFAS treatment and infrastructure programs.

• Progress on Nexus Water Group integration and strategic acquisitions in Nevada, Oregon, and the BVRT joint venture.

• Published water quality and sustainability reports, celebrated 100 years of service, and received multiple industry awards.

Financial highlights

• Q2 2026 net income was $56.5 million; diluted EPS ranged from $0.93 to $1.05, up from $0.71–$0.93 in Q2 2025.

• Q2 2026 operating revenue was $308.6 million, up from $265 million; YTD revenue was $523.2 million, up from $468.9 million.

• YTD 2026 net income reached $60.5 million ($1.01–$1.10 per share), compared to $55.5 million ($0.93–$1.01) in 2025.

• Primary earnings drivers: IRMA revenue, rate changes, deferred WRAM revenue, partially offset by higher water supply costs and income taxes.

• Q2 2026 operating expenses rose to $237.7 million, mainly due to higher water production and operations costs.

Outlook and guidance

• Focus on executing capital plans, especially PFAS program, and closing Nexus acquisition before year-end.

• Rate base projected to exceed $3.45 billion by 2028, with a CAGR of 11.9%.

• Up to $1.68 billion in infrastructure investments through 2027, with $627 million anticipated for 2026.

• The 2024 GRC authorizes $1.45 billion in capital investments for 2024–2027 and revenue increases totaling $182.6 million.

• New revenue stabilization mechanisms to mitigate customer usage variability and support predictable cost recovery.