California Water Service(US:CWT)2025-07-31 13:16Financial Performance - Q2 2025 net income was $42.2 million, or diluted earnings per share of $0.71, representing a 3.9% increase from Q2 2024 net income of $40.6 million[6]. - Q2 2025 revenue increased by $20.7 million, or 8.5%, to $265.0 million compared to $244.3 million in Q2 2024, with customer water usage up 5.0% contributing an additional $7.0 million[7]. - Year-to-date (YTD) 2025 revenue decreased by $46.1 million, or 9.0%, to $468.9 million compared to $515.0 million YTD in 2024, but increased by 9.7% compared to YTD 2024 non-GAAP revenue[10]. - Operating revenue for Q2 2025 was $264.954 million, an increase from $244.299 million in Q2 2024, representing an increase of 8.3%[27]. - Net income attributable to California Water Service Group for Q2 2025 was $42.168 million, compared to $40.551 million in Q2 2024, reflecting a growth of 4.0%[27]. - The company reported a net operating income of $51.809 million for Q2 2025, compared to $48.166 million in Q2 2024, reflecting a growth of 5.4%[27]. - Reported GAAP Revenue for Q2 2025 was $264,954 million, an increase from $244,299 million in Q2 2024, while the six-month revenue decreased from $515,048 million in 2024 to $468,927 million in 2025[29]. - Adjusted Revenue (non-GAAP) for Q2 2025 was $264,954 million, compared to $247,083 million in Q2 2024, with a six-month increase from $427,566 million in 2024 to $468,927 million in 2025[29]. - Reported GAAP Net Income for Q2 2025 was $42,168 million, slightly up from $40,551 million in Q2 2024, while the six-month net income decreased from $110,468 million in 2024 to $55,499 million in 2025[29]. - Adjusted Net Income (non-GAAP) for Q2 2025 was $42,168 million, compared to $42,384 million in Q2 2024, with a six-month increase from $46,488 million in 2024 to $55,499 million in 2025[29]. - Reported GAAP Diluted Earnings Per Share for Q2 2025 was $0.71, up from $0.70 in Q2 2024, while the six-month EPS decreased from $1.90 in 2024 to $0.93 in 2025[29]. - Adjusted Diluted Earnings Per Share (non-GAAP) for Q2 2025 was $0.71, compared to $0.73 in Q2 2024, with a six-month increase from $0.81 in 2024 to $0.93 in 2025[29]. Capital Investments and Expenses - Capital investments for the six months ending June 30, 2025, were $229.5 million, up 7.0% from $214.4 million YTD in 2024[14]. - Operating expenses for Q2 2025 increased by $17.0 million, or 8.7%, to $213.1 million compared to Q2 2024, primarily due to increased water production costs[9]. - Operating expenses for Q2 2025 totaled $213.145 million, up from $196.133 million in Q2 2024, an increase of 8.7%[27]. Assets and Liabilities - Total assets as of June 30, 2025, were $5.399 billion, up from $5.180 billion as of December 31, 2024, indicating an increase of 4.2%[26]. - Net utility plant increased to $4.335 billion as of June 30, 2025, from $4.159 billion at the end of 2024, a growth of 4.2%[26]. - Total current liabilities rose to $686.080 million as of June 30, 2025, compared to $538.364 million at the end of 2024, an increase of 27.5%[26]. Dividends and Shareholder Returns - The company declared its 322nd consecutive quarterly dividend of $0.30 per share, reflecting a five-year compound annual dividend growth rate of 7.7%[20]. - Dividends per share increased to $0.30 in Q2 2025 from $0.28 in Q2 2024, marking a growth of 7.1%[27]. Legal and Regulatory Matters - The company received $10.6 million from the first installment of PFAS litigation settlement proceeds, with additional installments expected in the future[19]. - The 2024 California General Rate Case proposes to increase total revenue by $140.6 million, or 17.1%, in 2026, and includes a Low-Use Water Equity Program to assist lower-income customers[15]. Operational Developments - An agreement was signed to own and operate the Silverwood wastewater and recycled water systems, expected to serve over 15,000 customer connections upon full development[18]. - As of June 30, 2025, the company's cash and cash equivalents totaled $96.1 million, with an additional short-term borrowing capacity of $240 million[12]. Financial Adjustments - The company is adjusting its financial measures to exclude the effects of 2023 interim rate relief, providing a clearer view of its 2025 performance compared to 2024[28].