California Water Service Group (NYSE:CWT) Posts Quarterly Earnings Results, Misses Estimates By $0.18 EPS

California Water Service Group (NYSE:CWT) posted its quarterly earnings data on Thursday. The utilities provider reported $0.07 earnings per share for the quarter, missing the consensus estimate of $0.25 by ($0.18), FiscalAI reports. California Water Service Group had a return on equity of 7.67% and a net margin of 12.82%.The business had revenue of $214.57 million for the quarter, compared to analyst estimates of $210.27 million. During the same period in the prior year, the firm posted $0.22 EPS. California Water Service Group’s revenue for the quarter was up 5.2% on a year-over-year basis.

Here are the key takeaways from California Water Service Group’s conference call:

• The Revised Proposed Decision for the 2024 California GRC is on the commission docket and is described as constructive, providing clear revenue growth visibility of approximately $91M (2026), $43M (2027), and $49M (2028) and preserving key mechanisms (RAM and cost balancing accounts).
• Capital investment accelerated — Q1 capex rose 17.6% to $129.5M and management plans $627M for 2026, which would support a >11% compounded annual rate base growth if approved.
• Reported Q1 net income declined to $4M ( $0.07 EPS) from $13.3M ($0.22 EPS) a year ago, driven by lower consumption, higher depreciation and interest from new capital, and a higher effective tax rate that reduced EPS by about $0.32.
• M&A progress continues — change-in-control filings are filed for the Nexus Nevada/Oregon deal and the BVRT minority buyout in Texas, which would add roughly 100,000 connections outside California (≈20% of total) and expand wastewater/recycled water operations.
• PFAS efforts are advancing with ongoing treatment work and legal recoveries (~$66.5M gross, ~$50M net recovered so far covering ~20–25% of estimated PFAS costs), but additional regulatory risks (e.g., potential microplastics rules) could require further capital.

California Water Service Group Stock Performance

Shares of NYSE CWT traded up $0.05 during trading hours on Friday, reaching $42.29. The stock had a trading volume of 664,066 shares, compared to its average volume of 456,037. The business’s fifty day moving average is $45.42 and its two-hundred day moving average is $45.27. The company has a debt-to-equity ratio of 0.87, a current ratio of 0.85 and a quick ratio of 0.80. The company has a market cap of $2.53 billion, a price-to-earnings ratio of 19.67, a PEG ratio of 1.67 and a beta of 0.61. California Water Service Group has a twelve month low of $41.29 and a twelve month high of $50.44.

California Water Service Group Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, May 22nd. Investors of record on Monday, May 11th will be paid a $0.335 dividend. This represents a $1.34 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date is Monday, May 11th. California Water Service Group’s dividend payout ratio is presently 62.33%.

Analysts Set New Price Targets

Several research firms have recently weighed in on CWT. Robert W. Baird set a $54.00 price objective on California Water Service Group in a research report on Friday. Weiss Ratings lowered shares of California Water Service Group from a “hold (c)” rating to a “hold (c-)” rating in a research report on Friday, April 24th. One equities research analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, California Water Service Group has an average rating of “Moderate Buy” and a consensus price target of $54.50.

California Water Service Group News Summary

Here are the key news stories impacting California Water Service Group this week:

• Positive Sentiment: CPUC revised proposed decision authorizes material rate increases (~$90.5M in 2026 and additional increases in 2027–28) and new revenue-stabilization mechanisms, improving visibility into future regulated revenues. CPUC Decision
• Positive Sentiment: Agreement to acquire Nexus Water Group systems (~$218M) adds ~36,000 customer equivalents and ~$109M of rate base, expanding geographic diversification and near-term growth runway. Q1 Results & Nexus Acquisition
• Positive Sentiment: Board approved an 8% annual dividend increase and declared the quarterly payout — continuing a lengthy dividend streak that supports income-focused investors. Dividend Declaration
• Neutral Sentiment: Earnings call transcript published — useful for detailed guidance, regulatory commentary and management color on the CPUC timeline and Nexus integration. Earnings Call Transcript
• Neutral Sentiment: Third-party write-ups compare CWT to American Water Works (AWK) on valuation — useful context but not an immediate catalyst. CWT vs AWK Analysis
• Negative Sentiment: Q1 EPS missed expectations ($0.07 vs. ~$0.25 consensus); net income fell sharply year-over-year as operating costs and interest expense rose, pressuring near-term profitability. Q1 Earnings Miss
• Negative Sentiment: Higher water-production costs, increased depreciation and rising interest expense (and higher short-term borrowings) could compress margins before the CPUC rate relief is implemented and collected. Q1 Results & Cost Details

Insider Transactions at California Water Service Group

In other news, VP Michael S. Mares, Jr. sold 3,892 shares of the firm’s stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $44.00, for a total transaction of $171,248.00. Following the completion of the transaction, the vice president directly owned 8,525 shares of the company’s stock, valued at approximately $375,100. This trade represents a 31.34% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Michael B. Luu sold 740 shares of the firm’s stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $44.53, for a total transaction of $32,952.20. Following the transaction, the vice president directly owned 23,655 shares of the company’s stock, valued at $1,053,357.15. The trade was a 3.03% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.78% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On California Water Service Group

Institutional investors have recently added to or reduced their stakes in the stock. Algert Global LLC grew its position in California Water Service Group by 17.9% in the third quarter. Algert Global LLC now owns 6,257 shares of the utilities provider’s stock valued at $287,000 after acquiring an additional 950 shares during the period. Entropy Technologies LP acquired a new stake in shares of California Water Service Group during the 3rd quarter worth about $288,000. Russell Investments Group Ltd. increased its position in shares of California Water Service Group by 214.8% during the 3rd 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 in the last quarter. Tower Research Capital LLC TRC increased its position in shares of California Water Service Group by 664.7% during the 2nd 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 acquired a new stake in shares of California Water Service Group during the 2nd quarter worth about $234,000. 82.78% of the stock is owned by institutional investors and hedge funds.

About California Water Service Group

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.