Core Viewpoint - California Water Service Group (CWT) is expected to report a year-over-year decline in earnings and revenues for the quarter ended June 2025, with a consensus outlook indicating a significant drop in earnings per share (EPS) and revenues [1][3]. Earnings Expectations - The consensus EPS estimate for California Water Service Group is $0.46, reflecting a year-over-year decrease of 34.3% [3]. - Revenues are anticipated to be $225.89 million, which is a decline of 7.5% compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. - The Most Accurate Estimate for California Water Service Group is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +29.50%, suggesting a bullish outlook from analysts [12]. Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of a potential earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [10]. - California Water Service Group currently holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, California Water Service Group exceeded the expected EPS of $0.16 by delivering $0.22, resulting in a surprise of +37.50% [13]. - Over the past four quarters, the company has surpassed consensus EPS estimates three times [14]. Industry Comparison - American Water Works (AWK), another player in the water supply industry, is expected to report earnings of $1.49 per share for the same quarter, reflecting a year-over-year increase of 4.9% [19]. - American Water Works has a current Earnings ESP of +0.67% and a Zacks Rank of 2 (Buy), suggesting a strong likelihood of beating the consensus EPS estimate [20].

Core Insights - California Water Service (Cal Water) has signed a 20-year power purchase agreement with EDPR NA Distributed Generation LLC for a solar photovoltaic array to be installed at its Northeast Bakersfield Treatment Plant, aimed at reducing environmental impact and energy costs [1][2][3] Group 1: Partnership Details - The solar array will have a capacity of 2.35 MWdc / 1.75 MWac and is expected to generate approximately 3,800 megawatt-hours of renewable energy annually [1][2] - The partnership is projected to save about $1.7 million in grid energy costs over the agreement's term, based on current electric rates in the Bakersfield District [2] Group 2: Company Commitments - Cal Water emphasizes its commitment to environmental stewardship and aims to meet greenhouse gas emissions reduction targets through this partnership [3] - The company has been recognized as one of "America's Most Responsible Companies" and "World's Most Trustworthy Companies" by Newsweek, highlighting its dedication to sustainability and community well-being [4] Group 3: EDPR NA DG Overview - EDPR NA Distributed Generation focuses on accelerating the adoption of distributed generation and has an operating capacity of 337 MW across 545 active sites [5] - The company provides a comprehensive range of renewable energy services, including financing, development, construction, and operation of energy and storage assets [5]

Core Insights - California Water Service (Cal Water) has signed a 20-year power purchase agreement with EDPR NA Distributed Generation LLC for a solar photovoltaic array to be installed at the Northeast Bakersfield Treatment Plant [1][2] - The solar array is expected to generate approximately 3,800 megawatt-hours of renewable energy annually, which will help reduce grid energy costs by about $1.7 million over the agreement's term [2][3] Company Overview: California Water Service - Cal Water provides water utility services to over 2.1 million people in California through 499,400 service connections, focusing on enhancing quality of life and sustainability [4] - The company has been recognized as one of "America's Most Responsible Companies" and "World's Most Trustworthy Companies" by Newsweek, highlighting its commitment to integrity and environmental stewardship [4] Company Overview: EDPR NA Distributed Generation - EDPR NA DG focuses on accelerating the adoption of distributed generation and offers a range of renewable energy services across North America [5] - The company has an operating capacity of 337 megawatts across 545 active sites, showcasing its extensive involvement in renewable energy infrastructure [5]

Core Viewpoint - California Water Service Group (CWT) is positioned well to potentially beat earnings estimates in its upcoming quarterly report, supported by a strong history of exceeding expectations [1]. Earnings Performance - The company has a solid track record of surpassing earnings estimates, with an average surprise of 78.75% over the last two quarters [2]. - In the most recent quarter, CWT was expected to report earnings of $0.22 per share but instead reported $0.16 per share, resulting in a surprise of 37.50%. In the previous quarter, the consensus estimate was $0.15 per share, while the actual earnings were $0.33 per share, leading to a surprise of 120.00% [3]. Earnings Estimates and Predictions - Recent estimates for California Water Service Group have been trending upward, with a positive Zacks Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [6]. - The current Earnings ESP for the company is +29.50%, suggesting that analysts have recently become more optimistic about its earnings prospects [9]. Zacks Rank and Success Rate - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests that CWT has a high probability of beating consensus estimates, with historical data indicating that nearly 70% of stocks with this combination achieve positive surprises [7][9].

Summary of California Water Service Group's Scholarship Program Core Viewpoint California Water Service Group has awarded $80,000 in scholarships to thirteen students as part of its commitment to enhance the quality of life for the communities it serves, bringing the total scholarship amount to $839,000 since the program's inception [1][4]. Group 1: Scholarship Recipients - Nine out of the thirteen scholarship recipients are first-generation college students, highlighting the program's impact on underrepresented communities [2]. - The scholarships were awarded based on academic achievement, community service, and financial need, with four students receiving $10,000 each, seven receiving $5,000, and two receiving $2,500 [2][3]. Group 2: Individual Aspirations - Recipients have diverse academic goals, including studying molecular and cellular biology, applied mathematics, biochemistry, economics, and engineering, with aspirations ranging from becoming a physician to working at NASA [3]. - Notable recipients include Princess A., who aims to provide healthcare in underserved areas, and Robert B., who aspires to improve healthcare policy as a U.S. Senator [3]. Group 3: Philanthropic Commitment - The scholarship program is funded by stockholder contributions and is administered by Scholarship America, ensuring that it does not affect customer rates [4]. - California Water Service Group emphasizes its commitment to community well-being and sustainability through responsible investments in infrastructure and initiatives [6]. Group 4: Company Overview - California Water Service Group is the largest regulated water utility operating exclusively in the western United States, serving over 2.1 million people across multiple states [5]. - The company has been recognized for its responsible business practices and commitment to integrity, being named one of "America's Most Responsible Companies" by Newsweek [6].

Core Points - California Water Service Group will release its 2025 second-quarter earnings results on July 31, 2025, at 9:00 a.m. ET, followed by a conference call at 11:00 a.m. ET [1] - The conference call will be hosted by key executives including Chairman and CEO Martin A. Kropelnicki, CFO James P. Lynch, and Chief Business Development Officer Shilen M. Patel [2] - A slide presentation will be available on the company's website prior to the call [2] Company Overview - California Water Service Group is the parent company of several regulated utilities, including California Water Service, Hawaii Water Service, New Mexico Water Service, Washington Water Service, and Texas Water Service [3] - The company provides regulated and non-regulated water and wastewater services to over 2 million people across California, Hawaii, New Mexico, Texas, and Washington [3] - The common stock of California Water Service Group trades on the New York Stock Exchange under the symbol "CWT" [3]

Core Insights - California Water Service Group has received an A+/Stable credit rating from S&P Global for its largest subsidiary, California Water Service (Cal Water), indicating an "excellent" business risk rating and "intermediate" financial risk rating [1] - The Chairman & CEO, Martin A. Kropelnicki, expressed satisfaction with the rating, highlighting it as validation of Cal Water's strong balance sheet, fiscal discipline, and credit metrics, which enable responsible infrastructure investments [1] Company Overview - California Water Service Group is the parent company of several regulated utilities, including California Water Service, Hawaii Water Service, New Mexico Water Service, Washington Water Service, and Texas Water Service, collectively serving over 2.1 million people across multiple states [2] - The company's common stock is traded on the New York Stock Exchange under the symbol "CWT" [2]

Core Viewpoint - California Water Service Group's subsidiary, California Water Service, has entered into an agreement to own and operate the wastewater and recycled water systems of the Silverwood community in San Bernardino County, CA, aligning with its strategy to diversify water sources and enhance sustainability [1][2]. Agreement Details - Cal Water will serve approximately 500 wastewater connections currently supplied by the City of Hesperia after the completion of Silverwood's wastewater treatment plant, which is expected to have over 15,000 customer connections upon full development [3]. - The ownership transfer will occur in phases as systems are completed, contingent upon satisfying closing conditions, and will be reorganized as a Cal Water district under the California Public Utilities Commission's supervision [4]. Service Reliability and Expansion - California Water is focused on expanding operations in the western United States through acquisitions, exploring new opportunities in both regulated and non-regulated water and wastewater activities [5]. - The company plans to invest $660 million in capital expenditures in 2025 and a total of $2.06 billion from 2025 to 2027 to upgrade infrastructure and improve service quality [7]. Industry Significance - The U.S. has nearly 50,000 community water systems and 14,000 wastewater treatment systems, which are vital for public health and environmental sustainability [8]. - There is a growing trend of U.S. water utility companies acquiring wastewater systems to address funding and management challenges faced by municipalities, bringing in necessary capital and expertise for upgrades [9]. Competitor Activities - Other companies, such as American Water Works, Middlesex Water Company, and Essential Utilities, are also pursuing wastewater acquisitions as part of their growth strategies, indicating a broader industry trend towards consolidation and expansion in wastewater services [11][12][13]. Stock Performance - Over the past three months, California Water's shares have increased by 0.5%, compared to a 4.3% growth in the industry [14].

Core Insights - California Water Service (Cal Water) has signed an agreement to own and operate the wastewater and recycled water systems for the Silverwood community in San Bernardino County, California [1][2] - The development will initially have approximately 500 wastewater connections, expanding to over 15,000 at full buildout [2] - The phased ownership transfer is subject to satisfactory closing conditions and will be overseen by the California Public Utilities Commission [3] Company Overview - California Water Service provides utility services to over 2.1 million people through 499,400 service connections [4] - The company focuses on enhancing quality of life through responsible investments in water and wastewater infrastructure and sustainability initiatives [4] - Cal Water has received recognition as one of "America's Most Responsible Companies" and "World's Most Trustworthy Companies" [4]

Core Viewpoint - California Water Service Group (CWT) is positioned as a strong investment option in the Zacks Utility Water Supply industry due to its consistent infrastructure investments, acquisitions, and organic growth strategies [1] Growth Forecast & Surprise History - The Zacks Consensus Estimate for CWT's 2026 earnings per share (EPS) has increased by 0.8% to $2.53 over the past 60 days [2] - The estimated revenues for 2026 are projected at $1.02 billion, indicating a year-over-year growth of 5.7% [2] - CWT's long-term earnings growth rate is forecasted at 8.8%, with an average earnings surprise of 57.87% over the last four quarters [2] Debt Profile Overview - CWT's total debt to capital ratio stands at 47.25%, which is better than the industry average of 56.04% [3] - The times interest earned (TIE) ratio for CWT was 3 at the end of Q1 2025, indicating the company can comfortably meet its interest obligations [3] Return to Shareholders - CWT has consistently increased shareholder value through dividends, currently paying a quarterly dividend of $0.30 per share, leading to an annualized dividend of $1.20 [4] - The current dividend yield for CWT is 2.55%, surpassing the industry average of 2.42% [4] Structured Investment Approach - CWT plans to invest $2.06 billion in capital expenditures from 2025 to 2027, with $660 million allocated for 2025 [5] - These investments are aimed at maintaining, upgrading, and expanding existing infrastructure to support a growing customer base [5] Key Acquisitions - CWT has expanded its operations in the western United States through strategic acquisitions, including agreements to acquire water utility assets from Casa Loma Water Company and Palm Mutual Water Company [6] - These acquisitions are expected to enhance the company's customer base and operational capacity [6] Stock Performance - CWT shares have increased by 0.3% over the past month, outperforming the industry's growth of 0.01% [9]