California Water Service's Q1 revenue rises on rate changes, higher accrued and unbilled sales

California Water Service

30/04/2026 04:05

Overview

The U.S. water utility's Q1 revenue rose yr/yr, driven by rate changes and accrued revenue

Q1 net income fell as operating expenses rose due to higher water production costs

Company agreed to acquire Nexus Water Group’s Nevada and Oregon systems for $218 mln

Outlook

Company expects CPUC final decision on 2024 CA GRC on April 30, 2026 or soon after

Revised PD authorizes 2026 revenue increase of $90.5 mln, or 10.9%

Company anticipates investing up to $627 mln in infrastructure in 2026

Result Drivers

RATE CHANGES AND ACCRUED REVENUE - Co said Q1 revenue rose due to rate changes and increases in accrued and unbilled revenue

HIGHER WATER PRODUCTION COSTS - Co said operating expenses rose due to increased water production costs, mainly from higher wholesale water rates

DEPRECIATION FROM NEW ASSETS - Co said depreciation and amortization rose due to new capital assets placed in service

DECLINING CUSTOMER CONSUMPTION - Co said lower customer consumption reduced revenue, citing variability in climate conditions

Company press release: ID:nGNX9jGV45

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Operating Revenue
$214.60 mln
$210.27 mln (2 Analysts)
Q1 Net Income
$4 mln
Q1 Dividend
$0.34
Q1 Operating Expenses
$196.40 mln


Analyst Coverage

The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the water & related utilities peer group is "buy."

Wall Street's median 12-month price target for California Water Service Group is $52.00, about 14.6% above its April 29 closing price of $45.38

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 17 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)