California Water Service Q4 net income drops 42%

California Water Service

25/02/2026 21:19

Overview

Water utility's Q4 revenue fell

Net income for Q4 decreased significantly due to wet weather in California

Company invested record $517 mln in water infrastructure in 2025

Outlook

Company expects Proposed Decision on 2024 California General Rate Case soon

Company remains cautious about economic and regulatory uncertainties

Result Drivers

WET WEATHER IMPACT - Declining customer consumption due to wet December weather decreased revenue by $14.6 mln

RATE CHANGES - Rate changes added $12.1 mln to Q4 revenue, offsetting some declines

INCREASED EXPENSES - Operating expenses rose due to higher conservation and depreciation costs

Company press release: ID:nGNXYrjrm

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Operating Revenue
Miss
$220 mln
$239.10 mln (1 Analyst)
Q4 EPS
$0.19
Q4 Net Income
$11.5 mln
Q4 Operating Expenses
$194.4 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 $51.00, about 10% above its February 24 closing price of $46.37

The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 18 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.)