Core Viewpoint - California Water Service Group held its Second Quarter 2025 Earnings Call, discussing financial results and future outlook [1][2][3]. Group 1: Company Overview - The call featured key participants including James Patrick Lynch (Senior VP, CFO), Martin A. Kropelnicki (Chairman, President & CEO), and Shilen Patel (Chief Business Development Officer) [3]. - The company provided a slide deck to accompany the earnings call, which is available on its website [4]. Group 2: Financial Results - The earnings call was focused on the financial performance for the second quarter of 2025, with specific results to be detailed later in the presentation [4].

[PART I—FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20Financial%20Information) [Item 1. FINANCIAL STATEMENTS](index=3&type=section&id=Item%201.%20FINANCIAL%20STATEMENTS) Presents unaudited condensed consolidated financial statements and notes on accounting policies, equity, debt, income taxes, and regulatory matters [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) **Condensed Consolidated Balance Sheets (In thousands):** | Item | June 30, 2025 | December 31, 2024 | | :--------------------------------- | :------------ | :---------------- | | **ASSETS** | | | | Net utility plant | $4,334,611 | $4,158,704 | | Total current assets | $361,581 | $324,136 | | Total other assets | $703,737 | $697,443 | | **TOTAL ASSETS** | **$5,399,929** | **$5,180,283** | | **CAPITALIZATION AND LIABILITIES** | | | | Total equity | $1,657,269 | $1,638,286 | | Long-term debt, net | $1,104,046 | $1,104,571 | | Total capitalization | $2,761,315 | $2,742,857 | | Total current liabilities | $686,080 | $538,364 | | Deferred income taxes | $422,779 | $411,083 | | Regulatory liabilities | $845,657 | $814,551 | | TOTAL CAPITALIZATION AND LIABILITIES | **$5,399,929** | **$5,180,283** | - Total assets increased by **$219.6 million** from December 31, 2024, to June 30, 2025, primarily driven by an increase in net utility plant and current assets[11](index=11&type=chunk) - Total current liabilities saw a significant increase of **$147.7 million**, mainly due to higher short-term borrowings[14](index=14&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) **Condensed Consolidated Statements of Operations (In thousands, except per share data):** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Operating revenue | $264,954 | $244,299 | $468,927 | $515,048 | | Total operating expenses | $213,145 | $196,133 | $394,773 | $388,988 | | Net operating income | $51,809 | $48,166 | $74,154 | $126,060 | | Net income attributable to California Water Service Group | $42,168 | $40,551 | $55,499 | $110,468 | | Basic EPS | $0.71 | $0.70 | $0.93 | $1.90 | | Diluted EPS | $0.71 | $0.70 | $0.93 | $1.90 | - For the three months ended June 30, 2025, operating revenue increased by **$20.7 million (8.5%)** and net income attributable to California Water Service Group increased by **$1.6 million (3.9%)** compared to the same period in 2024[17](index=17&type=chunk) - For the six months ended June 30, 2025, operating revenue decreased by **$46.1 million (9.0%)** and net income attributable to California Water Service Group decreased by **$55.0 million (49.8%)** compared to the same period in 2024, primarily due to a cumulative adjustment in 2024 for the delayed approval of the 2021 CA GRC[17](index=17&type=chunk)[99](index=99&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) **Condensed Consolidated Statements of Comprehensive Income (In thousands):** | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $42,050 | $40,377 | $55,252 | $110,067 | | Other comprehensive income (loss), net of tax | $154 | $298 | $308 | $(13,068) | | Comprehensive income attributable to California Water Service Group | $42,322 | $40,849 | $55,807 | $97,400 | - Other comprehensive income (loss) for the six months ended June 30, 2024, included a significant unrecoverable pension benefit plan cost of **$(13,663) thousand**, which was not present in 2025[20](index=20&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) **Condensed Consolidated Statements of Cash Flows (In thousands):** | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $87,367 | $120,939 | | Net cash used in investing activities | $(229,313) | $(214,366) | | Net cash provided by financing activities | $142,415 | $91,136 | | Change in cash, cash equivalents, and restricted cash | $469 | $(2,291) | | Cash, cash equivalents, and restricted cash at end of period | $96,156 | $82,675 | - Net cash provided by operating activities decreased by **$33.6 million** for the six months ended June 30, 2025, primarily due to the receipt of **$83.0 million** from California's Extended Water and Wastewater Arrearages Payment Program in 2024 that did not recur[23](index=23&type=chunk)[130](index=130&type=chunk) - Net cash provided by financing activities increased by **$51.3 million**, driven by higher short-term borrowings and the receipt of PFAS settlement proceeds in 2025[23](index=23&type=chunk)[134](index=134&type=chunk)[135](index=135&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Details multi-state utility operations, accounting policies, equity, debt, income taxes, regulatory changes including a new **$350 million** equity agreement and PFAS settlement - The Company operates as a holding company providing water utility and related services across California, Washington, New Mexico, Hawaii, and Texas through regulated and non-regulated subsidiaries[25](index=25&type=chunk) **Operating Revenue Disaggregation (In thousands):** | Revenue Source | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue from contracts with customers | $256,216 | $226,665 | $438,917 | $381,566 | | Regulatory balancing account revenue | $8,738 | $17,634 | $30,010 | $133,482 | | Total operating revenue | $264,954 | $244,299 | $468,927 | $515,048 | - In May 2025, the Company entered into a new equity distribution agreement to sell up to **$350.0 million** of common stock over three years, replacing a previous agreement[55](index=55&type=chunk) **Income Tax Expense (In thousands):** | Period | 2025 | 2024 | | :------------------------ | :--------- | :--------- | | Three Months Ended June 30, | $8,667 | $9,995 | | Six Months Ended June 30, | $11,405 | $26,854 | **Effective Tax Rate (before discrete items):** | Period | 2025 | 2024 | | :------------------------ | :--------- | :--------- | | As of June 30, | 17.1% | 19.6% | - The Company received **$10.6 million** in May 2025 from a PFAS settlement with 3M Company, the first of ten expected installments, which will be used to offset capital expenditures for PFAS treatment[79](index=79&type=chunk) [Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=23&type=section&id=Item%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses financial performance, liquidity, capital resources, regulatory developments, financing strategies, and water supply [FORWARD-LOOKING STATEMENTS](index=23&type=section&id=FORWARD-LOOKING%20STATEMENTS) - The report contains forward-looking statements based on current information, expectations, estimates, assumptions, and projections, which are subject to numerous uncertainties and business risks[92](index=92&type=chunk) - Factors that may cause actual results to differ include regulatory actions, rate increase opposition, cost recovery, changes in environmental and water quality requirements (e.g., PFAS MCLs), weather impacts, and economic conditions[93](index=93&type=chunk)[95](index=95&type=chunk) [CRITICAL ACCOUNTING POLICIES AND ESTIMATES](index=25&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES%20AND%20ESTIMATES) - Critical accounting policies include regulated utility accounting, income taxes, and pensions (including SERP and postretirement health care benefit plans)[100](index=100&type=chunk) - For the six months ended June 30, 2025, there were no material changes in the methodology for computing critical accounting estimates or the underlying assumptions[96](index=96&type=chunk) - The company is evaluating the impact of the newly signed 'An Act to Provide for Reconciliation Pursuant to Title II of H. Con. Res. 14' on its consolidated financial statements, as it was signed after the quarter close[97](index=97&type=chunk) [RESULTS OF OPERATIONS](index=25&type=section&id=RESULTS%20OF%20OPERATIONS) **Net Income Attributable to California Water Service Group (In thousands, except per share data):** | Period | Net Income | Diluted EPS | | :------------------------------- | :--------- | :---------- | | Three Months Ended June 30, 2025 | $42,168 | $0.71 | | Three Months Ended June 30, 2024 | $40,551 | $0.70 | | Six Months Ended June 30, 2025 | $55,499 | $0.93 | | Six Months Ended June 30, 2024 | $110,468 | $1.90 | - The **$55.0 million** decrease in net income for the six months ended June 30, 2025, was primarily due to a **$46.1 million** decrease in operating revenue, largely from a cumulative adjustment in 2024 related to the 2021 CA GRC delayed approval[99](index=99&type=chunk) **Operating Revenue Change Drivers (In thousands):** | Driver | Three Months Ended June 30, 2025 vs. 2024 | Six Months Ended June 30, 2025 vs. 2024 | | :------------------------------------------------- | :---------------------------------------- | :-------------------------------------- | | Net change due to rate changes, usage, and other | $30,312 | $58,612 | | Interim Rates Memorandum Account (IRMA) revenue | $(7,932) | $(88,596) | | Monterey-Style Water Revenue Adjustment Mechanism (MWRAM) revenue | $(1,535) | $(17,791) | | Deferred revenue | $(190) | $1,654 | | **Net operating revenue change** | **$20,655** | **$(46,121)** | - Total operating expenses increased by **$17.0 million (8.7%)** for the three months and **$5.8 million (1.5%)** for the six months ended June 30, 2025, driven by higher water production costs, other operations expenses (including bad debt), and depreciation/amortization[102](index=102&type=chunk)[104](index=104&type=chunk)[106](index=106&type=chunk)[109](index=109&type=chunk)[111](index=111&type=chunk) [REGULATORY MATTERS](index=28&type=section&id=REGULATORY%20MATTERS) - Cal Water filed its 2024 CA GRC application proposing over **$1.6 billion** in investments for 2025-2027 and a Low-Use Water Equity Program, with proposed rate increases of **17.1%** in 2026, **7.7%** in 2027, and **8.1%** in 2028[113](index=113&type=chunk)[115](index=115&type=chunk)[116](index=116&type=chunk) - The CPUC approved Cal Water's requests for 2025 escalation rate increases (**$27.2 million**), rate base offsets (**$0.9 million** and **$1.6 million**), and expense offsets (**$17.1 million** and **$5.1 million**) for various districts[118](index=118&type=chunk)[119](index=119&type=chunk)[120](index=120&type=chunk)[121](index=121&type=chunk)[122](index=122&type=chunk) - Cal Water filed an application requesting **$125.0 million** for PFAS treatment in 6 districts for 2026-2027, with associated annual revenue increases of **$6.7 million** (2027) and **$9.0 million** (2028)[123](index=123&type=chunk) - Regulatory approvals were also obtained in Washington (Stroh's 2025 Rate Case, **$0.2 million** revenue increase) and Hawaii (2024 Ka'anapali GRC, **$7.5 million** test year revenue requirement)[126](index=126&type=chunk)[127](index=127&type=chunk) [LIQUIDITY](index=30&type=section&id=LIQUIDITY) - Cash flow from operations decreased to **$87.4 million** for the six months ended June 30, 2025, from **$120.9 million** in 2024, primarily due to the non-recurrence of **$83.0 million** from the California Water and Wastewater Arrearages Payment Program[130](index=130&type=chunk) - Utility plant expenditures for the six months ended June 30, 2025, were **$229.5 million**, with an estimated range of **$450.0 million to $550.0 million** for the full year 2025[133](index=133&type=chunk) - Net cash provided by financing activities increased to **$142.4 million** in 2025 from **$91.1 million** in 2024, driven by **$410.0 million** in short-term borrowings and **$10.6 million** in PFAS settlement proceeds[134](index=134&type=chunk)[135](index=135&type=chunk) - The Company maintains short-term liquidity through **$600.0 million** in unsecured revolving credit facilities, with **$135.0 million** available for the Company and **$105.0 million** for Cal Water as of June 30, 2025[137](index=137&type=chunk)[147](index=147&type=chunk) [Summarized Financial Information for Guarantors and the Issuer of Guaranteed Securities](index=31&type=section&id=Summarized%20Financial%20Information%20for%20Guarantors%20and%20the%20Issuer%20of%20Guaranteed%20Securities) - Cal Water (Issuer) has **$100.0 million** in **5.5%** First Mortgage Bonds due 2040, fully and unconditionally guaranteed by California Water Service Group (Guarantor)[141](index=141&type=chunk) **Summarized Statement of Operations (in thousands) - Six Months Ended June 30, 2025:** | Item | Issuer | Guarantor | | :------------------------ | :------- | :-------- | | Net sales | $429,457 | $— | | Income from operations | $77,649 | $385 | | Equity in earnings of guarantor | $— | $52,126 | | Net income | $58,365 | $55,195 | **Summarized Balance Sheet Information (in thousands) - As of June 30, 2025:** | Item | Issuer | Guarantor | | :---------------------------------------- | :--------- | :---------- | | Total assets | $4,906,591 | $1,556,042 | | Total liabilities | $3,549,485 | $72,124 | [Dividends](index=33&type=section&id=Dividends) - Quarterly common stock dividend payments for the six months ended June 30, 2025, were **$0.64 per share**, including a one-time special dividend of **$0.04 per share**, compared to **$0.56 per share** in 2024[145](index=145&type=chunk) - The company's long-term goal is to achieve a dividend payout ratio of **60%** of net income, up from **34.3%** in 2024[145](index=145&type=chunk) - The Board of Directors declared a third-quarter dividend of **$0.30 per share**, marking the 322nd consecutive quarterly dividend[146](index=146&type=chunk) [2025 Financing Plan](index=33&type=section&id=2025%20Financing%20Plan) - The company plans to fund utility plant needs through a balanced approach of long-term debt and equity[147](index=147&type=chunk) - As of June 30, 2025, the Company and Cal Water had **$135.0 million** and **$105.0 million**, respectively, available on their unsecured revolving lines of credit[147](index=147&type=chunk) [Book Value and Stockholders of Record](index=33&type=section&id=Book%20Value%20and%20Stockholders%20of%20Record) **Book Value per Common Share:** | Date | Book Value per Share | | :---------------- | :------------------- | | June 30, 2025 | $27.77 | | December 31, 2024 | $27.49 | - As of May 12, 2025, there were approximately **1,673** stockholders of record for the company's common stock[148](index=148&type=chunk) [Utility Plant Expenditures](index=34&type=section&id=Utility%20Plant%20Expenditures) - Utility plant expenditures totaled **$229.5 million** for the six months ended June 30, 2025, comprising **$216.7 million** in Company-funded and **$12.8 million** in developer-funded projects[149](index=149&type=chunk) - Estimated utility capital expenditures for 2025 are between **$450.0 million** and **$550.0 million**[149](index=149&type=chunk) - Construction work in progress stood at **$432.0 million** as of June 30, 2025[150](index=150&type=chunk) [PFAS Settlement Proceeds](index=34&type=section&id=PFAS%20Settlement%20Proceeds) - Refer to Note 9, 'Commitments and Contingencies,' for detailed information on PFAS settlement proceeds[151](index=151&type=chunk) [WATER SUPPLY](index=34&type=section&id=WATER%20SUPPLY) **Sources of Water as a Percent of Total Water Production:** | Source | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Well production | 53% | 49% | 53% | 51% | | Purchased | 43% | 45% | 45% | 45% | | Surface | 4% | 6% | 2% | 4% | | Total | 100% | 100% | 100% | 100% | - Management believes that water supply from underground aquifers and wholesale suppliers will be adequate to meet customer demand in 2025 and beyond, despite potential rationing requirements[154](index=154&type=chunk) - The EPA finalized a National Primary Drinking Water Regulation for six PFAS in drinking water in April 2024, requiring initial monitoring by 2027 and treatment by 2029, with an estimated capital investment of **$226.0 million** for compliance[156](index=156&type=chunk) - The California Water Board adopted an MCL of **10 parts per billion** for Chromium-6 in drinking water in April 2024, with compliance required within two to four years[157](index=157&type=chunk) [CONTRACTUAL OBLIGATIONS](index=35&type=section&id=CONTRACTUAL%20OBLIGATIONS) - There were no material changes in contractual obligations outside the normal course of business during the six months ended June 30, 2025[158](index=158&type=chunk) [Item 3. Quantitative and Qualitative Disclosure about Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20about%20Market%20Risk) This section states that there have been no material changes to the company's quantitative and qualitative disclosures regarding market risk since its last annual report - No material changes to the Company's quantitative and qualitative disclosures about market risk were reported for the period[159](index=159&type=chunk) [Item 4. Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management found disclosure controls effective as of June 30, 2025, with no material changes to internal financial reporting controls - Management concluded that disclosure controls and procedures were effective at the reasonable assurance level as of June 30, 2025[162](index=162&type=chunk) - No material changes in internal control over financial reporting occurred during the second quarter of 2025[163](index=163&type=chunk) [PART II—OTHER INFORMATION](index=36&type=section&id=PART%20II%20Other%20Information) [Item 1. LEGAL PROCEEDINGS](index=36&type=section&id=Item%201.%20LEGAL%20PROCEEDINGS) The company is involved in legal proceedings, but management expects no material impact on financial position or results - Management does not believe the ultimate resolution of current legal proceedings will materially affect the Company's financial position, results of operations, or cash flows, considering existing reserves[165](index=165&type=chunk) [Item 1A. RISK FACTORS](index=36&type=section&id=Item%201A.%20RISK%20FACTORS) This section states that there have been no material changes to the company's risk factors as previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes to the Company's risk factors were reported for the period[166](index=166&type=chunk) [Item 5. OTHER INFORMATION](index=36&type=section&id=Item%205.%20OTHER%20INFORMATION) This section reports that no director or Section 16 officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the last fiscal quarter - No director or Section 16 officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the last fiscal quarter[167](index=167&type=chunk) [Item 6. EXHIBITS](index=37&type=section&id=Item%206.%20EXHIBITS) This section provides a list of exhibits filed as part of the Form 10-Q, including the Equity Distribution Agreement, Certificate of Incorporation, Bylaws, officer certifications, and iXBRL formatted financial statements - The exhibits include the Equity Distribution Agreement, corporate governance documents, officer certifications (Sarbanes-Oxley Act Sections 302 and 906), and financial statements in iXBRL format[169](index=169&type=chunk) [SIGNATURE](index=38&type=section&id=SIGNATURE) This section contains the official signature block, confirming that the report has been duly caused to be signed on behalf of California Water Service Group by James P. Lynch, Senior Vice President, Chief Financial Officer and Treasurer, on July 31, 2025 - The report was signed by James P. Lynch, Senior Vice President, Chief Financial Officer and Treasurer, on behalf of California Water Service Group on July 31, 2025[173](index=173&type=chunk)

Core Insights - California Water Service Group (CWT) reported second-quarter 2025 adjusted earnings of 71 cents per share, exceeding the Zacks Consensus Estimate of 46 cents by 54.3% and increasing 1.4% from the previous year's 70 cents [1][9] CWT's Total Revenues - CWT's operating revenues reached $265 million, surpassing the Zacks Consensus Estimate of $226 million by 17.3% and showing an 8.5% increase from $244.3 million in the prior-year quarter [2][9] CWT's Operational Update - Total operating expenses were $213.1 million, up 8.7% from $196.1 million in the year-ago quarter - Water production costs rose by $7.9 million due to increased wholesale water rates and customer usage - Maintenance expenses increased by 2.9% year over year to $9 million - Net operating income was $51.8 million, compared to $48.2 million in the previous year [3][9] CWT's Financial Update - As of June 30, 2025, CWT had cash and cash equivalents of $50.5 million, slightly up from $50.1 million as of December 31, 2024 - Net long-term debt stood at $1,104 million, a slight decrease from $1,104.6 million as of December 31, 2024 [5] CWT's Zacks Rank - California Water currently holds a Zacks Rank 3 (Hold) [6] Upcoming Releases - American States Water (AWR) is expected to report second-quarter 2025 results on August 6, with a consensus estimate for earnings at 92 cents per share, indicating a year-over-year increase of 8.2% [7] - Consolidated Water Co. Ltd (CWCO) is also set to report second-quarter 2025 results soon, with a consensus estimate for earnings at 20 cents per share [8]

Financial Data and Key Metrics Changes - In Q2 2025, revenue increased by $20.7 million or 8.5% to $265 million compared to $244.3 million in Q2 2024 [12] - Non-GAAP EPS rose by 15% year over year, reflecting strong performance despite the ongoing rate case [8][13] - Net income for Q2 2025 was $42.2 million or $0.71 per diluted share, compared to $40.6 million or $0.70 per diluted share in Q2 2024 [13] Business Line Data and Key Metrics Changes - Capital spending increased approximately 7% quarter over quarter, with capital investments for the quarter at $119.4 million and year-to-date at $229.5 million [16] - The primary drivers of year-to-date diluted EPS growth were tariff rate changes and increased customer usage, contributing $0.75 per diluted share [15] Market Data and Key Metrics Changes - The company continues to maintain a strong liquidity profile with $50.5 million in unrestricted cash and $240 million in available credit [18] - The Texas utility subsidiary is experiencing growth, with increasing customer connections and paid commitments reflecting sustained demand in the Austin-San Antonio region [31] Company Strategy and Development Direction - The company is focused on growth through acquisitions and capital investments, including a new wastewater treatment facility in California [29] - The ongoing California general rate case is a priority, with the company requesting $398 million over the years 2026-2028 for infrastructure improvements [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the timely completion of the rate case, indicating that the assigned commissioner prioritizes it [48][49] - The company remains committed to investing in water quality and infrastructure, particularly in response to PFAS regulations [25][26] Other Important Information - The company received an A+ stable credit rating from S&P Global, reflecting a strong balance sheet [19] - The board approved a quarterly dividend of $0.30 per share, representing a 10.71% increase earlier this year [20] Q&A Session Summary Question: Expectations for the GRC decision timeline - Management confirmed that they expect a decision by year-end and indicated that the assigned commissioner is prioritizing the case [46][48] Question: Impact of EPA's PFAS timeline on investments - Management stated that they will continue to move forward with planned investments despite the EPA's extended compliance deadlines [52][56] Question: Rate base outlook and capital expenditure shifts - Management clarified that shifts in capital expenditures were due to timing, with no significant changes to core CapEx investments [67][70] Question: Discussion on California's water decoupling bill - Management highlighted the importance of Senate Bill 473, which would require the CPUC to implement full decoupling for water utilities, and noted strong legislative support [75][78] Question: Coverage of PFAS costs through settlements - Management estimated that settlements could cover approximately $40 to $60 million of the anticipated $226 million in PFAS-related costs [91][92]

Financial Data and Key Metrics Changes - In Q2 2025, revenue increased by $20.7 million or 8.5% to $265 million compared to $244.3 million in Q2 2024 [11] - Net income for the quarter was $42.2 million or $0.71 per diluted share, compared to $40.6 million or $0.70 per diluted share in Q2 2024 [12] - Non-GAAP EPS increased by 15% year over year, reflecting strong performance despite regulatory challenges [8] Business Line Data and Key Metrics Changes - Capital spending was up approximately 7% quarter over quarter, with capital investments for the quarter totaling $119.4 million and year-to-date investments at $229.5 million [15] - The primary drivers of year-to-date diluted EPS growth were tariff rate changes and increased customer usage, contributing $0.75 per diluted share [14] Market Data and Key Metrics Changes - The company maintained a strong liquidity profile with $50.5 million in unrestricted cash and $240 million in available credit [16] - The Texas utility subsidiary is experiencing growth, with increasing customer connections and paid commitments reflecting sustained demand in the Austin-San Antonio region [31] Company Strategy and Development Direction - The company is focused on growth through acquisitions and capital investments, including a new wastewater treatment facility in California [29] - The company is actively pursuing a general rate case in California, requesting $398 million over the years 2026-2028 for infrastructure improvements [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the timely completion of the rate case, indicating it is a top priority for the assigned commissioner [48] - The company remains committed to investing in water quality and infrastructure, with a focus on PFAS compliance and treatment projects [25] Other Important Information - The company received an A+ stable credit rating from S&P Global, reflecting a strong balance sheet [17] - The board approved a quarterly dividend of $0.30 per share, representing a 10.71% increase earlier this year [19] Q&A Session Summary Question: Expectations for the GRC decision timeline - Management indicated that the rate case is on schedule, with the assigned commissioner prioritizing its completion [48][49] Question: Impact of EPA's PFAS timeline on investments - Management confirmed that they are proceeding with planned investments despite the EPA's extended compliance deadlines, emphasizing customer health and safety [55][56] Question: Clarification on capital expenditure shifts - Management explained that shifts in capital expenditures were due to timing adjustments, with no significant changes to core CapEx plans [62][66] Question: Status of water decoupling legislation in California - Management provided an update on Senate Bill 473, which aims to implement full decoupling for water utilities, noting strong legislative support [70][72] Question: Coverage of PFAS-related costs through settlements - Management estimated that settlements could cover approximately $40 to $60 million of the anticipated $226 million in PFAS-related costs [83][84]

California Water Service Group (CWT) came out with quarterly earnings of $0.71 per share, beating the Zacks Consensus Estimate of $0.46 per share. This compares to earnings of $0.7 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +54.35%. A quarter ago, it was expected that this water utility would post earnings of $0.16 per share when it actually produced earnings of $0.22, delivering a surprise of +37.5%.Over the last four qu ...

Second Quarter 2025 Earnings Presentation July 31, 2025 Today's Speakers Marty Kropelnicki Chairman & CEO James Lynch Sr. Vice President, CFO & Treasurer Shilen Patel Chief Business Development Officer and Vice President, TWSC, Inc. 2 Signed agreements to add up to 15,000+ new wastewater connections through a master planned community in Silverwood, California 5 Received first PFAS settlement payment for California, Washington, and New Mexico Maintained industry leading credit rating for Cal Water of A+/stab ...

Exhibit 99.1 California Water Service Group Reports Second Quarter 2025 Results SAN JOSE, Calif., July 31, 2025 (GLOBE NEWSWIRE) -- California Water Service Group (Group or Company, NYSE: CWT), a leading publicly traded water utility serving California, Hawaii, New Mexico, Washington, and Texas, today reported financial results for the second quarter 2025. Financial highlights included: According to Chairman, President, and Chief Executive Officer Martin A. Kropelnicki, the Company's solid financial perform ...

Net income of $42.2 million or diluted earnings per share of $0.71 in Q2 2025; net income of $55.5 million or $0.93 per diluted share year-to-date (YTD) in 2025 $119.4 million invested in water system infrastructure during Q2 and $229.5 million YTD in 2025 2024 California general rate case (2024 CA GRC) advanced Agreement executed to own and operate Silverwood wastewater and recycled water systems First installment of PFAS litigation settlement proceeds received totaling $10.6 million, net S&P Global credit ...

Forward Looking Statements SAN JOSE, Calif., July 30, 2025 (GLOBE NEWSWIRE) -- At its meeting on July 30, 2025, the California Water Service Group (NYSE: CWT) (Company) Board of Directors declared the Company's 322nd consecutive quarterly dividend in the amount of $0.30 per common share. The quarterly dividend will be payable on August 22, 2025, to stockholders of record as of the close of business on August 11, 2025. About California Water Service Group California Water Service Group is the parent company ...