California Water Service Group Reports Second Quarter 2025 Results

Core Insights - California Water Service Group reported solid financial performance for Q2 2025, reflecting effective cost management and ongoing rate proceedings across multiple states [3][4] - The company continues to focus on capital delivery plans while ensuring safe and affordable water services for customers [4] Financial Highlights - Q2 2025 net income was $42.2 million, or $0.71 per diluted share, representing a 3.9% increase from Q2 2024's net income of $40.6 million, or $0.70 per diluted share [6][7] - Year-to-date (YTD) 2025 net income decreased by 49.8% to $55.5 million, or $0.93 per diluted share, compared to $110.5 million, or $1.90 per diluted share in YTD 2024 [7][14] - Q2 2025 revenue increased by $20.7 million, or 8.5%, to $265.0 million compared to $244.3 million in Q2 2024 [7] - YTD 2025 revenue decreased by $46.1 million, or 9.0%, to $468.9 million compared to $515.0 million in YTD 2024 [7] Capital Investments and Infrastructure - The company invested $119.4 million in water system infrastructure during Q2 2025 and $229.5 million YTD 2025, marking a 7.0% increase compared to YTD 2024 [6][12] - The 2024 California General Rate Case (GRC) is progressing on schedule, with proposed investments exceeding $1.6 billion from 2025 to 2027 [13][14] Regulatory and Legal Developments - The company executed an agreement to own and operate the Silverwood wastewater and recycled water systems, expected to serve approximately 500 connections initially, with full buildout projected to exceed 15,000 connections [16][17] - The company received $10.6 million from the first installment of PFAS litigation settlement proceeds, which will be used to offset capital expenditures for compliance with PFAS regulations [18] Sustainability and Dividends - The 2024 Sustainability Report highlighted a 23.5% reduction in Scope 1 and 2 greenhouse gas emissions from the 2021 baseline and 100% compliance with water quality standards [19][21] - The company declared its 322nd consecutive quarterly dividend of $0.30 per share, reflecting a 58-year history of dividend increases and a five-year compound annual growth rate of 7.7% [19][21]