California Water Service Group (NYSE:CWT) Q4 2025 Earnings call February 26, 2026 11:00 AM ET Company ParticipantsGreg Milleman - VP of Rates and Regulatory Affairs OfficerJames Lynch - SVP, CFO and TreasurerMarty Kropelnicki - Chairman, President and CEOShilen Patel - Chief Business Development Officer and VPConference Call ParticipantsDavis Sunderland - Equity Research AnalystOperatorLadies and gentlemen, thank you for standing by. My name is Desiree, and I will be your conference operator today. At this ...

Core Insights - American Water Works Company (AWK) reported fourth-quarter 2025 adjusted earnings per share (EPS) of $1.24, missing the Zacks Consensus Estimate of $1.28 by 3.1% but showing a 7.8% increase from $1.15 in the same quarter last year [1] - Total revenues for AWK in the fourth quarter reached $1.27 billion, exceeding the Zacks Consensus Estimate of $1.22 billion by 3.9% and reflecting a 5.8% increase from $1.2 billion year-over-year [2] - The company’s total revenues for 2025 were $5.14 billion, up from $4.68 billion in 2024, primarily due to authorized revenue increases from completed rate cases and infrastructure investments [2] Financial Performance - AWK's total operating expenses for Q4 were $866 million, an increase of 8.1% from $801 million in the previous year, driven by higher employee-related costs and production costs [4] - Operating income for the fourth quarter was $405 million, a slight increase of 1.3% from $400 million year-over-year [4] - Cash flow from operating activities in 2025 was $2.06 billion, compared to $2.05 billion in the previous year [5] Segment Performance - Regulated businesses' net revenues in 2025 were $4.7 billion, reflecting a year-over-year increase of 10.3% [3] - Other segments reported net revenues of $417 million in 2025, up 7.5% year-over-year [3] Long-Term Guidance - AWK affirmed its 2026 EPS guidance in the range of $6.02-$6.12, with the Zacks Consensus Estimate at the high end of this range [9] - The company plans to invest $3.7 billion in 2026 and expects long-term EPS growth of 7-9% and rate base growth of 8-9% [8][9] - For the long-term capital expenditure plan, AWK anticipates investments of $19-$20 billion from 2026 to 2030 and $46-$48 billion from 2026 to 2035 [10] Merger Update - On February 10, 2026, shareholders of American Water and Essential Utilities approved their merger-related proposals [6]

Key Takeaways AWR reported Q4 2025 EPS of 74 cents, up 32.1% year over year, with revenues rising 14.8%. American States Water posted 2025 EPS of $3.37, up 10.9%, on 10.52% higher annual revenues.AWR's Contracted Services EPS rose 45.5% on added construction work and resolved price adjustments. American States Water Company (AWR) reported fourth-quarter 2025 operating earnings per share (EPS) of 74 cents, up 32.1% from the year-ago quarter’s level of 56 cents.AWR reported 2025 adjusted earnings of $3.37 per ...

Core Insights - Nuance Investments, LLC increased its holdings in Lindsay Corporation by 133,190 shares during Q4 2025, with an estimated transaction value of $16.03 million [1] - The total position in Lindsay Corporation reached 178,571 shares, with a valuation change of $14.67 million due to trading activity and price movement [1] Company Overview - Lindsay Corporation is a leading provider of irrigation and infrastructure solutions, with a market capitalization of $1.43 billion and annual revenue of $665.90 million [5] - The company focuses on addressing critical needs in global agriculture and roadway safety through its diversified portfolio, which includes advanced irrigation technology and highway infrastructure products [5] Financial Metrics - As of February 10, 2026, shares of Lindsay Corporation were priced at $134.89, reflecting a 5.23% increase over the past year, although underperforming the S&P 500 by 9 percentage points [3] - The company's net income for the trailing twelve months (TTM) is $73.41 million [4] Investment Implications - After eight consecutive quarters of selling Lindsay stock, Nuance Investments reversed its strategy by significantly increasing its holdings, potentially capitalizing on a stock price drop of over 25% in Q4 [8]

Core Insights - Rogers Communications (RCI) reported fourth-quarter 2025 adjusted earnings of $1.08 per share, exceeding the Zacks Consensus Estimate by 10.2% and reflecting a year-over-year increase of 3.8% [1] - Total revenues reached $4.43 billion, surpassing the consensus mark by 1.31% and showing a 13% year-over-year growth [1] - In Canadian dollars, adjusted earnings rose 3.4% year over year to C$1.51 per share, while total revenues increased 13% to C$6.17 billion, primarily driven by growth in the Media segment [1] Segment Performance Wireless Segment - Wireless revenues, accounting for 48.1% of total revenues, decreased 0.4% year over year to C$2.97 billion, with service revenues rising 0.3% to C$2.06 billion and equipment revenues declining 1.2% to C$912 million [2] - Monthly mobile phone ARPU was C$56.4, down 2.8% year over year [2] Cable Segment - Cable revenues, representing 32.1% of total revenues, increased 0.1% year over year to C$1.98 billion, with service revenues growing 0.3% to C$1.97 billion, while equipment revenues fell 33.3% to C$10 million [5] - Retail Internet subscriber count reached nearly 4.497 million, reflecting a net increase of 224K subscribers year over year [5] Media Segment - Media revenues surged 126% year over year to C$1.24 billion, with segment operating expenses increasing 106.3% to C$1.02 billion, resulting in an adjusted EBITDA of C$221 million [9] Financial Metrics - Adjusted EBITDA increased 1% year over year to C$1.374 billion, with an adjusted EBITDA margin expanding by 40 basis points to 66.8% [4] - Operating costs rose 18.1% to C$3.48 billion, with operating costs as a percentage of revenues expanding 260 basis points to 56.4% [10] - Free cash flow was C$1.02 billion, up from C$829 million in the previous quarter, marking a year-over-year increase of 15.7% [13] Balance Sheet and Cash Flow - As of December 31, 2025, RCI had C$5.9 billion in available liquidity, down from C$6.4 billion as of September 30, 2025 [11] - The debt leverage ratio stood at 3.9 times, influenced by the MLSE transaction [12] - Cash flow from operating activities was C$1.65 billion, up 45.6% year over year [12] 2026 Guidance - For 2026, RCI expects total service revenues to grow between 3% and 5%, and adjusted EBITDA to rise between 1% and 3% [14] - Capital expenditure is projected to be C$3.3 billion to C$3.5 billion, slightly below prior guidance [14] - Free cash flow guidance has been raised to between C$3.3 billion and C$3.5 billion [14]

Group 1 - California Water Service Group (CWT) is recognized as one of the 14 Best Mid-Cap Dividend Stocks to Buy Now, indicating strong investment potential in the dividend space [1] - CWT has agreed to acquire the remaining ownership interests in BVRT Utility Holding Company LLC, which would make it the sole owner of BVRT's seven water and wastewater utility subsidiaries serving the Austin–San Antonio corridor [2][3] - The acquisition is part of CWT's strategy to enhance its investment and operations in Texas, with plans to file a change-of-control application with the Public Utilities Commission of Texas (PUCT) [3][4] Group 2 - CWT operates as a holding company providing water utility and related services across multiple states, including California, Washington, New Mexico, Hawaii, and Texas [4]

Core Insights - Investors often focus on the price-to-earnings (P/E) ratio for stock valuation, but this metric has limitations [1] - The EV-to-EBITDA ratio is considered a more comprehensive valuation metric, providing a clearer picture of a company's true value and earnings potential [2][4] Valuation Metrics - EV-to-EBITDA is calculated by dividing a company's enterprise value (EV) by its earnings before interest, taxes, depreciation, and amortization (EBITDA), offering a complete view of a company's valuation [4] - A lower EV-to-EBITDA ratio typically indicates a stock may be undervalued, making it attractive for acquisition targets [5] - Unlike P/E, EV-to-EBITDA can be applied to companies with negative net earnings but positive EBITDA, making it useful for evaluating highly leveraged firms [6] Limitations of EV-to-EBITDA - EV-to-EBITDA has its own limitations and should not be used in isolation; it varies across industries and is not suitable for comparing companies in different sectors [7] Screening Criteria for Bargain Stocks - Parameters for screening include: - EV-to-EBITDA ratio lower than the industry median [8] - P/E ratio lower than the industry median [8] - P/B ratio lower than the industry median [9] - P/S ratio lower than the industry median [9] - Estimated one-year EPS growth greater than or equal to the industry median [9] - Average 20-day volume greater than or equal to 50,000 [10] - Current price greater than or equal to $5 [10] - Zacks Rank of 1 or 2 [10] - Value Score of A or B [11] Selected Stocks - Industrial Logistics Properties Trust (ILPT) has a Zacks Rank of 1 and a Value Score of A, with an expected earnings growth rate of 20% for 2026 [11][12] - Plains GP Holdings (PAGP) also has a Zacks Rank of 1 and a Value Score of A, with an expected earnings growth rate of 27% for 2026 [12][13] - ASGN Incorporated (ASGN) holds a Zacks Rank of 2 and a Value Score of A, with an expected earnings growth rate of 10.1% for 2026 [13][14] - California Water Service Group (CWT) has a Zacks Rank of 2 and a Value Score of B, with an expected earnings growth rate of 8.3% for 2026 [14][15] - Dollar Tree, Inc. (DLTR) has a Zacks Rank of 2 and a Value Score of B, with an expected earnings growth rate of 12.4% for the current fiscal year [15][16]

由中央纪委国家监委宣传部与中央广播电视总台央视联合摄制的电视专题片《一步不停歇 半步不退让》，1月12日晚播出第二集《严惩政商勾 连腐败》。 反对腐败、建设廉洁政治，是我们党一贯坚持的鲜明政治立场，是党自我革命必须长期抓好的重大政治任务。要把严惩政商勾连腐败作为攻 坚战重中之重，坚决打击以权力为依托的资本逐利行为，坚决防止各种利益集团、权势团体向政治领域渗透。 罗保铭，十三届全国人大华侨委员会原副主任委员，曾长期在海南工作，先后担任省委副书记、省长、省委书记等职。审查调查发现，围绕 着他形成了一张错综复杂的政商勾连网络，多名商人老板、领导干部以及他的亲属，都参与其中。 十三届全国人大华侨委员会原副主任委员 罗保铭： 我的贪腐犯罪，给海南的营商环境是一个很大的损害，给海南的政治生态造成严重破坏， 也给党的事业、党的形象带来极大的损害。 转自：成都日报锦观 反腐大片曝光罗保铭贪腐细节 "带老板上任" 培植"老乡圈" 2025年12月，法庭以受贿罪判处罗保铭有期徒刑十五年。其政商圈子里的多名老板、领导干部等涉案人员，也受到了党纪国法的严惩。 政商关系错综复杂 职务调动时"带老板上任" 罗保铭仕途起步于天津，早在上世 ...

Core Viewpoint - California Water Service Group's unit, California Water Service, has received approval for a temporary interim rate revision allowing a 3% rate increase effective January 1, 2026, which is crucial for funding infrastructure upgrades to ensure reliable water delivery [1][2][10]. Group 1: Rate Increase Importance - The 3% rate increase is essential for California Water Service to continue investing in infrastructure, which is necessary for maintaining safe and reliable water services [2][5]. - Utility operations are capital-intensive, requiring regular investments to upgrade and maintain infrastructure to meet rising demand and prevent water wastage [3]. Group 2: Infrastructure Investment Needs - The U.S. water infrastructure is deteriorating, with significant investment needs estimated at $1.25 trillion over the next 20 years to maintain and upgrade systems [4]. - Aging infrastructure necessitates immediate investment to avoid accidents and ensure the delivery of potable water [3][4]. Group 3: Benefits of Rate Revision - The approval of new rates allows for higher revenue generation, which can be allocated towards infrastructure upgrades and improving customer service [5]. - Other water utilities, such as American Water Works Company and American States Water, have also benefited from rate increases, leading to significant revenue growth and enabling further infrastructure investments [6][7]. Group 4: Revenue Projections - Global Water Resources, Inc. anticipates an increase in annual revenues by $1.1 million due to approved water rates, with the increase phased in over three stages [8].

Group 1: ASR Program and Water Supply Management - California American Water, a unit of American Water Works, is implementing the Aquifer Storage and Recovery (ASR) Program to ensure a reliable water supply during dry months by capturing and treating excess rainwater [1][2] - The ASR Program is a cost-effective water resource management technique that allows for underground water storage during periods of abundance, avoiding evaporation losses and providing emergency supplies [3][11] - The program is expected to enhance customer retention and expand the customer base by meeting the rising demand for water [4] Group 2: Infrastructure Investments - The U.S. water and wastewater infrastructure is deteriorating, with frequent water main breaks leading to wastage and contamination [5] - American Water Works plans to invest $3.7 billion in infrastructure upgrades in 2026, with a long-term capital expenditure plan of $19-$20 billion from 2026 to 2030 and $46-$48 billion from 2026 to 2035 [6][11] - The Environmental Protection Agency estimates that $1.25 trillion will be needed over the next 20 years for maintaining and upgrading water systems [7] Group 3: Industry Investment Trends - Other water utilities, such as Essential Utilities and California Water Service Group, are also making significant investments to upgrade aging infrastructure [8] - Essential Utilities plans to invest $7.8 billion from 2025 to 2029 for rehabilitating its water and natural gas pipeline systems [9] - California Water Service Group intends to invest between $450 million and $550 million in 2025 to strengthen its operations and believes its underground water aquifers can meet future demand [10]