California Water Service Q2 revenue rises on retroactive rate increases

California Water Service

30/07/2026 01:54

Overview
U.S. water utility's Q2 revenue rose and beat analyst expectations
Q2 adjusted EPS increased year-over-year
Results reflect new rates from 2024 California General Rate Case

Outlook
Company expects rate adjustments to increase revenue by $90.5 mln in 2026, $43.2 mln in 2027
California Water Service anticipates investing up to $627 mln in infrastructure in 2026
Company expects regulatory mechanisms to support more predictable cost recovery through 2028

Result Drivers
RATE CASE IMPACT - Resolution of the 2024 California General Rate Case led to retroactive rate increases and new regulatory mechanisms, boosting revenue
CUSTOMER CONSUMPTION - Increased customer water use, driven by climate variability, contributed to higher revenue
INFRASTRUCTURE INVESTMENT - Record infrastructure spending in the quarter supported ongoing service reliability and growth

Company press release: ID:nGNX2Q9b3w

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Operating Revenue
Beat
$308.60 mln
$278.62 mln (3 Analysts)
Q2 EPS
 
$0.93
 
Q2 Net Income
 
$56.50 mln
 
Q2 Dividend
 
$0.34
 
Q2 Operating Expenses
 
$237.70 mln
 

Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 4 "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 $53.00, about 2.5% above its July 29 closing price of $51.73
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 17 three months ago

Reuters Recommended Reads
July 29 - American Water Q2 revenue beats estimates helped by rate increases, acquisitions
July 27 - H2O America Q2 adjusted EPS beats estimates 
July 28 - Xylem raises annual profit forecast as AI growth lifts demand for water-treatment equipment

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.)