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

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

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 Trading Down 6.9%

Shares of California Water Service Group stock traded down $3.11 on Thursday, reaching $42.27. The company had a trading volume of 1,155,760 shares, compared to its average volume of 562,404. The firm’s 50 day moving average price is $45.42 and its two-hundred day moving average price is $45.27. The firm has a market cap of $2.53 billion, a PE ratio of 19.66, a PEG ratio of 1.67 and a beta of 0.61. California Water Service Group has a 52-week low of $41.29 and a 52-week high of $51.15. The company has a debt-to-equity ratio of 0.87, a quick ratio of 0.80 and a current ratio of 0.85.

California Water Service Group Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, May 22nd. Shareholders of record on Monday, May 11th will be given a dividend of $0.335 per share. The ex-dividend date is Monday, May 11th. This represents a $1.34 dividend on an annualized basis and a dividend yield of 3.2%. California Water Service Group’s dividend payout ratio (DPR) is currently 62.33%.

Insider Buying and Selling

In other California Water Service Group news, VP Michael S. Mares, Jr. sold 3,892 shares of the business’s stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $44.00, for a total value of $171,248.00. Following the sale, the vice president owned 8,525 shares of the company’s stock, valued at $375,100. The trade was a 31.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, VP Michael B. Luu sold 740 shares of the company’s stock in a transaction on Friday, March 20th. The stock was sold at an average price of $44.53, for a total value of $32,952.20. Following the transaction, the vice president owned 23,655 shares in the company, valued at $1,053,357.15. This trade represents a 3.03% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.78% of the company’s stock.

Institutional Investors Weigh In On California Water Service Group

Several institutional investors and hedge funds have recently modified their holdings of the company. T. Rowe Price Investment Management Inc. boosted its holdings in California Water Service Group by 1.1% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 3,337,205 shares of the utilities provider’s stock valued at $144,602,000 after acquiring an additional 36,296 shares during the period. Amundi increased its stake in California Water Service Group by 20.3% during the fourth quarter. Amundi now owns 2,738,993 shares of the utilities provider’s stock worth $118,634,000 after purchasing an additional 462,394 shares during the period. Geode Capital Management LLC increased its stake in California Water Service Group by 0.3% during the fourth quarter. Geode Capital Management LLC now owns 1,420,950 shares of the utilities provider’s stock worth $61,579,000 after purchasing an additional 4,613 shares during the period. Dimensional Fund Advisors LP lifted its position in shares of California Water Service Group by 0.4% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,153,931 shares of the utilities provider’s stock worth $50,001,000 after purchasing an additional 4,913 shares in the last quarter. Finally, Invesco Ltd. boosted its stake in shares of California Water Service Group by 6.4% in the fourth quarter. Invesco Ltd. now owns 954,234 shares of the utilities provider’s stock valued at $41,347,000 after purchasing an additional 57,170 shares during the period. Hedge funds and other institutional investors own 82.78% of the company’s stock.

Analyst Ratings Changes

Separately, Weiss Ratings downgraded 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 stock. Based on data from MarketBeat.com, California Water Service Group presently has a consensus rating of “Moderate Buy” and a consensus target price of $55.00.

Key California Water Service Group News

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

• Positive Sentiment: CPUC issued a final decision for Cal Water’s 2024 General Rate Case that allows revenue/rate adjustments and supports infrastructure investment through 2027–2028, improving visibility on regulated earnings and funding for capital projects. GlobeNewswire — CPUC Issues Decision
• Positive Sentiment: The revised proposed decision (now finalized) authorizes about $90.5M of additional revenue in 2026 (and multi‑year increases in 2027–2028), plus mechanisms to stabilize revenue versus usage volatility — a material tailwind for regulated cash flow if amounts are collected as expected. GlobeNewswire — Q1 Results & GRC Update
• Positive Sentiment: Board raised the annual dividend ~8% (quarterly $0.3350), extending a long dividend track record — supportive for income investors and signals board confidence in cash flow. GlobeNewswire — Dividend Announcement
• Positive Sentiment: Agreement to acquire Nexus Water Group systems in Nevada and Oregon (~$218M) expands customer base and rate base, supporting medium‑term growth and geographic diversification. Regulatory approvals still required. Quiver — Q1 Results & Nexus Acquisition
• Neutral Sentiment: Company is increasing infrastructure spending (Q1 capex $129.4M; guidance up to ~$627M for 2026) to support system upgrades — good for long‑term rate base but raises near‑term cash needs and working capital requirements. GlobeNewswire — Capex Disclosure
• Negative Sentiment: Q1 EPS missed estimates ($0.07 vs. ~$0.25 consensus); net income fell to $4.0M from $13.3M year‑over‑year — a clear near‑term earnings disappointment that likely drove selling pressure. MarketBeat — Earnings Report
• Negative Sentiment: Operating costs rose materially (water production costs, depreciation and interest expense up), and short‑term borrowings increased — these cost and financing pressures compress margins until rate relief is fully recognized. GlobeNewswire — Financial Details
• Negative Sentiment: Some investor and insider selling noted in recent filings/coverage, and the acquisition/integration and regulatory approval risks mean execution and timing uncertainty remain. Quiver — Insider & Institutional Activity

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.