Economic Overview - The U.S. economy contracted by 0.3% in the first quarter of 2025, marking the first quarter of negative growth since Q1 2022 and missing analysts' expectations of 0.4% growth [3] - Consumer confidence fell by 7.9 points to 86 in April, reaching a five-year low, indicating a lack of investor confidence in the economy [6] Trade and Tariffs - Concerns are rising that President Trump's tariffs could negatively impact economic health, despite a temporary 90-day pause on tariffs that led to a 41.3% increase in imports for the quarter, while exports only grew by 1.8% [4][6] Consumer Behavior - Consumer spending has slowed as individuals are saving more in anticipation of tougher economic conditions, alongside a significant decline in federal expenditures contributing to sluggish GDP figures [5] Dividend-Paying Stocks - In light of economic uncertainty, investing in dividend-paying stocks is recommended as they tend to provide steady income and stability [2][7] - Atkore Inc. (ATKR) announced a dividend of $0.33 per share with a dividend yield of 2%, having increased its dividend once in the past five years with a payout ratio of 12% [9][8] - Enact Holdings, Inc. (ACT) declared a dividend of $0.21 per share and has a dividend yield of 2.07%, having increased its dividend six times in the past five years with a payout ratio of 16% [11][10] - Pool Corporation (POOL) announced a dividend of $1.25 per share with a dividend yield of 1.64%, having increased its dividend six times in the past five years and a payout ratio of 46% [13][12] - American Water Works Company, Inc. (AWK) declared a dividend of $0.83 per share with a dividend yield of 2.08%, having increased its dividend six times in the past five years and a payout ratio of 57% [15][14]

Core Insights - California Water Service Group (CWT) reported first-quarter 2025 adjusted earnings of 22 cents per share, exceeding the Zacks Consensus Estimate of 16 cents by 37.5%, but down 81.8% from 1.21 in the same quarter last year [1] - Total operating revenues were $204 million, surpassing the Zacks Consensus Estimate of $180 million by 13.2%, yet decreased 24.7% from $270.7 million in the prior-year quarter [2] - Total operating expenses were $181.6 million, a decrease of 5.8% from $192.9 million in the year-ago quarter, with water production costs down by $1.2 million [3] Financial Performance - Net operating income was reported at $22.3 million, significantly lower than $77.9 million from the previous year [3] - Net interest expenses increased to $15.7 million, up 4.1% from $15 million in the prior-year quarter [4] - As of March 31, 2025, cash and cash equivalents stood at $44.5 million, down from $50.1 million as of December 31, 2024, while net long-term debt was $1.1044 billion, slightly down from $1.1046 billion [5] Market Position - CWT currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook in the market [6] - Upcoming earnings reports from competitors include American States Water (AWR) on May 7, with an estimated earnings increase of 12.9%, and Essential Utilities Inc. (WTRG) on May 12, with an estimated earnings increase of 9.6% [7][8]

Core Viewpoint - Middlesex Water Company reported a decrease in net income and diluted EPS for Q1 2025 compared to the same period in 2024, primarily due to a one-time recovery in the previous year, despite growth in operating revenue and customer base [2][3]. Financial Performance - Net income for Q1 2025 was $9.5 million, with diluted EPS of $0.53, down from $10.7 million and $0.59 in Q1 2024 [2][9]. - Operating revenue increased to $44.3 million, up $3.8 million from $40.5 million in the same quarter last year, driven by rate increases, higher consumption, and customer growth [3][14]. - Operating expenses rose to $32.7 million, an increase of approximately $2.0 million from $30.7 million in Q1 2024, mainly due to higher variable production costs and increased weather-related main break activity [4][14]. Growth Initiatives - The company completed the acquisition of Ocean View water utility assets for approximately $4.6 million, expanding its customer base by serving around 900 customers in Sussex County, Delaware [5][9]. - Middlesex plans to invest approximately $93 million in 2025 to upgrade and enhance its water and wastewater utility infrastructure, having already invested about $19 million in Q1 2025 [7][11]. Rate Applications and Revenue - Middlesex filed a third Distribution System Improvement Charge (DSIC) rate application expected to generate $1.9 million in annual revenues starting June 2025, in addition to existing revenues from previous DSIC filings [6][11]. Dividend Declaration - The Board of Directors declared a second quarter cash dividend of $0.34 per common share, to be paid on June 2, 2025, marking 52 consecutive years of dividend increases [10][11].

Financial Data and Key Metrics Changes - For Q1 2025, operating revenue was $274 million, an increase from $270.7 million in Q1 2024. Adjusted for interim rate relief, revenue increased by 13% over non-GAAP 2024 revenue of $180.5 million [8][9] - Net income attributed to the group was $13.3 million or $0.22 per diluted share, compared to $69.9 million or $1.21 per diluted share in Q1 2024. Adjusted for interim rate relief, net income increased by 225% over non-GAAP income of $4.1 million [9][10] - Capital investments during the quarter totaled $110.1 million, consistent with the record quarter reported in Q1 2024 [10][11] Business Line Data and Key Metrics Changes - The company reported significant investments in water infrastructure, with a focus on maintaining and replacing water systems. The capital investment program is expected to lead to a compounded annual rate base growth of approximately 11.7% if approved [10][11] - The approval of two advice letters contributed to earnings per share, with one recovering drought expenses and the other related to the Palos Verdes pipeline project [9][10] Market Data and Key Metrics Changes - The company reported a strong snowpack in California at 99% of normal for April, which is expected to support water supply through the summer months. Major reservoirs remain above historical averages [21][22] - In Hawaii, a settlement was reached in the Kannapali General Rate Case, increasing revenue by $1.1 million [20] Company Strategy and Development Direction - The company is focused on maintaining a strong liquidity profile, with $44.5 million in unrestricted cash and $315 million available on credit lines as of March 31, 2025 [11][12] - The growth strategy includes ongoing greenfield development in Texas and evaluating domestic M&A opportunities, with a primary focus on rate base growth [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the progress of the 2021 general rate case, noting that discussions with advocates and the commission are moving forward on schedule [14][24] - The company is cautious about potential market volatility and inflation impacts on costs, emphasizing the importance of managing controllable expenses [23][44] Other Important Information - The Board of Directors approved a quarterly dividend of $0.30 per share, representing a 10.7% increase from the previous year [13] - The company is actively managing wildfire risks as the fire season begins, focusing on infrastructure investments to mitigate potential impacts [27] Q&A Session Summary Question: Insights on the California GRC and key points of contention - Management indicated that while a global settlement was not reached, discussions are ongoing to identify non-contentious areas for submission to the judge [30][31] Question: Comparison of the current GRC with the previous one - Management noted that the current GRC is progressing more positively than the previous one, with better engagement from the commission and advocates [38][40] Question: Managing costs amid market volatility - Management acknowledged the uncertainty regarding tariffs and supply chain impacts but expressed optimism based on past experiences managing costs during COVID [43][45] Question: Factors driving better-than-expected Q1 results - Management attributed the positive results to effective budget management, a more accurate water mix in the rate case, and favorable expense timing [55][57] Question: Potential for a global settlement in the GRC - Management stated that while a global settlement is not guaranteed, there is still hope for reaching agreements on undisputed items as the process moves forward [64][66] Question: Status of the ATM program renewal - Management confirmed that the ATM program is in the process of renewal, with announcements expected in early spring [72][73]

Core Viewpoint - American Water Works Company (AWK) reported strong first-quarter 2025 results, with operating earnings per share (EPS) of $1.05, exceeding estimates and showing a year-over-year improvement of 10.5% from $0.95 [1] Financial Performance - Total revenues for the quarter reached $1.14 billion, surpassing the Zacks Consensus Estimate of $1.02 billion by 11% and increasing 12.9% from $1.01 billion in the previous year [2] - Operating expenses totaled $771 million, up 12.6% from $685 million a year ago, primarily due to increased operating and maintenance costs [4] - Operating income was reported at $371 million, reflecting a 13.8% increase from $326 million in the prior year [4] Segment Performance - Net revenues from regulated businesses were $1.04 billion, marking a 13% year-over-year increase [3] - Other net revenues amounted to $93 million, up 12% year over year [3] Growth Initiatives - The company added 2,150 customers through three completed acquisitions as of April 30, 2025, with 18 pending acquisitions expected to add 37,400 customers [5] - New rates effective January 1, 2025, are projected to increase revenues by $161 million for the full year, with potential additional revenue of $384 million from pending rate cases [5] Financial Position - Cash and cash equivalents stood at $114 million as of March 31, 2025, compared to $96 million at the end of 2024 [6] - Total long-term debt increased to $13.32 billion, up 6.4% from $12.51 billion at the end of 2024 [6] - Cash flow from operating activities was $331 million, down from $382 million in the same period last year [6] Long-Term Guidance - AWK reiterated its 2025 EPS guidance of $5.65-$5.75, with a Zacks Consensus Estimate of $5.72 [7] - The company aims for long-term earnings and dividend growth in the range of 7-9% and plans to invest approximately $3.3 billion in 2025 [7] - Capital expenditure is projected to be between $17-$18 billion for 2025-2029 and $40-$42 billion for 2025-2034 [8]

Financial Data and Key Metrics Changes - For Q1 2025, operating revenue was $204 million, compared to $270.7 million in Q1 2024, reflecting a decrease due to interim rate relief recorded in the previous year [8] - Net income attributed to the group was $13.3 million or $0.22 per diluted share, down from $69.9 million or $1.21 per diluted share in Q1 2024 [9] - Adjusted for interim rate relief, Q1 revenue increased by 13% over non-GAAP 2024 revenue of $180.5 million, and net income increased by 225% over non-GAAP income of $4.1 million [10] Business Line Data and Key Metrics Changes - Capital investments during the quarter totaled $110.1 million, consistent with the record quarter reported in Q1 2024 [11] - The company expects annual capital expenditures to increase over the next five years due to ongoing infrastructure needs [12] Market Data and Key Metrics Changes - As of March 31, 2025, the company had $44.5 million in unrestricted cash, $45.7 million in restricted cash, and $315 million available on credit lines, indicating a strong liquidity profile [12] Company Strategy and Development Direction - The company is focused on rate base growth, targeting a compounded annual growth rate of approximately 11.7% [12] - The ongoing greenfield development in Texas is progressing well, with a focus on the South Austin corridor [23] - The company is also evaluating domestic M&A opportunities as a supplemental growth strategy [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the progress of the 2021 general rate case, noting that discussions with the California Public Advocates are ongoing [14][15] - The company is managing controllable expenses tightly due to market volatility and inflation, while maintaining a focus on capital execution [22][23] - Management is optimistic about the water supply situation in California, with strong snowpack and reservoir levels above historical averages [20][21] Other Important Information - The Board of Directors approved a quarterly dividend of $0.30 per share, representing a 10.7% increase from the previous year [13] - The company received regulatory approvals for various projects, including the Palos Verdes Peninsula Water Reliability Project, which is the largest in the company's history [17][18] Q&A Session Summary Question: Key points of contention in the California GRC - Management indicated that they cannot disclose specific details due to ongoing settlement discussions but are identifying non-contested areas for submission to the judge [28][30] Question: Comparison of the current GRC to the previous one - Management noted that the current GRC is progressing better than the previous one, with more positive engagement from the commissioner and advocates [36][39] Question: Managing costs amid market volatility - Management stated that it is too early to predict the impact of tariffs and supply chain issues but remains optimistic based on past experiences managing supply constraints [41][42] Question: Drivers behind better-than-expected Q1 results - Management attributed the positive results to effective budget management, a more accurate water mix in the rate case, and higher customer usage [51][55] Question: Potential for a global settlement in the GRC - Management expressed uncertainty about achieving a global settlement but remains hopeful as they proceed with the hearings [60][62]

Core Viewpoint - California Water Service Group reported its financial results for Q1 2025, highlighting a strong start to the year despite challenges from prior rate relief decisions and ongoing regulatory processes [1][4]. Financial Highlights - Q1 2025 net income attributable to the Group was $13.3 million, or $0.22 per diluted share, a decrease of $56.6 million and $0.99 per share compared to Q1 2024 [6][25]. - Operating revenue for Q1 2025 was $204.0 million, down $66.7 million from $270.7 million in Q1 2024, but up $23.5 million compared to non-GAAP revenue of $180.5 million for Q1 2024 [6][8]. - Operating expenses decreased to $181.6 million in Q1 2025 from $192.9 million in Q1 2024, with water production costs down by $1.2 million [8][25]. Regulatory Activity - The 2024 California General Rate Case (GRC) is progressing on schedule, with ongoing discussions and evidentiary hearings expected in May 2025 [11][13]. - Cal Water proposed to invest over $1.6 billion in infrastructure improvements from 2025-2027, with planned rate increases of 17.1% in 2026, 7.7% in 2027, and 8.1% in 2028 [11][12]. Dividend Information - The Group declared its 321st consecutive quarterly dividend of $0.30 per share, contributing to an expected annual dividend yield of $1.24 per share [18]. - The company has increased its dividend for 58 consecutive years, with a five-year compound annual growth rate of 7.7% [18]. Liquidity and Capital Investment - As of March 31, 2025, the Group had cash and cash equivalents of $90.1 million, with $45.7 million restricted, and a short-term borrowing capacity of $315 million [10]. - Capital investments during Q1 2025 were $110.1 million, slightly ahead of the same period last year [10].

Financial Data and Key Metrics Changes - Earnings per share (EPS) for Q1 2025 were $1.05, an increase of nearly 11% compared to $0.95 in Q1 2024, affirming the company's full-year EPS guidance of 8% growth [7][12] - Consolidated reported earnings were $1.50 per share, up $0.10 per share versus the same period in 2024, with revenues higher by $0.44 per share due to authorized rate increases and acquisitions [13][14] - Operating costs increased by $0.15 per share, primarily due to employee-related costs and acquisition-related expenses [14] Business Line Data and Key Metrics Changes - The company achieved a constructive settlement in the general rate case in Missouri, with an annualized revenue increase of $63 million expected [15] - In Virginia, a settlement approved a $15 million annualized increase in water and wastewater revenues [15] Market Data and Key Metrics Changes - The company continues to expect to grow its dividend at 7% to 9% per year, in line with its EPS growth target [11] - The total debt to capital ratio was 58%, within the target of less than 60%, with strong credit ratings affirmed by S&P and Moody's [21] Company Strategy and Development Direction - The company aims for long-term earnings and dividend growth of 7% to 9%, driven by a capital investment program targeting approximately $3.3 billion in 2025 [10][22] - The company is focused on infrastructure investments, particularly in PFAS remediation and lead service line replacement, while maintaining a strong regulatory and operational execution [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute financial and operational plans, with no expected material impact from recent tariff-related announcements [20] - The company highlighted the need for significant investments in U.S. water infrastructure, estimating a total of $625 billion over the next twenty years [29] Other Important Information - The Board approved an increase in the quarterly cash dividend from $0.765 to $0.825 per share, marking an 8.2% increase [11] - The company is well-positioned for growth through acquisitions, with approximately 37,000 customer connections under agreement [26] Q&A Session Summary Question: Thoughts on pulling forward 2026 equity issuance - Management stated there are no plans to pull forward equity issuance and will evaluate the market as needed [37] Question: Acquisition outlook under potential recession - Management expects a continuous flow of acquisition opportunities, potentially driven by recession or reduced federal funding [38] Question: Update on California rate case - Management did not disclose the percentage increase for the California rate case and confirmed a separate proceeding for cost of capital [43][44] Question: Update on California desalination project - Management confirmed that the last major permit approval was received, and they expect to break ground on the desalination project this year [49] Question: Legislative progress and opportunities - Management did not quantify the opportunities from legislative changes but noted they would help earned returns in each state [56]

Financial Data and Key Metrics Changes - Earnings per share for Q1 2025 were $1.05, an increase of nearly 11% compared to $0.95 in Q1 2024 [7] - Consolidated reported earnings were $1.5 per share, up $0.10 per share versus the same period in 2024 [13] - Revenues increased by $0.44 per share, primarily due to authorized rate increases and organic customer growth [13] Business Line Data and Key Metrics Changes - Operating costs increased by $0.15 per share, driven by employee-related costs and acquisitions [14] - Depreciation increased by $0.11 per share and financing costs increased by $0.10 per share, both as expected to support investment growth [14] Market Data and Key Metrics Changes - The company achieved an annualized revenue increase of $63 million in Missouri, with new rates expected to take effect on May 31, 2025 [15] - In Virginia, an annualized increase of $15 million in water and wastewater revenues was approved [16] Company Strategy and Development Direction - The company affirmed long-term targets for earnings and dividend growth at 7% to 9%, driven by 8% to 9% rate base growth [10] - The Board approved an increase in the quarterly cash dividend from $0.765 to $0.825, an 8.2% increase [11] - The company is focused on infrastructure investments and acquisitions to support growth, with a capital investment goal of approximately $3.3 billion in 2025 [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 EPS guidance, representing 8% annual growth [20] - The company noted that recent tariff-related announcements are not expected to materially impact 2025 plans or financial results [21] - The management highlighted the need for significant investments in U.S. water infrastructure, estimating a total need of $625 billion over the next twenty years [30] Other Important Information - The company is well-positioned for growth through acquisitions, with about 37,000 customer connections under agreement [28] - The American Society of Civil Engineers rated the nation's drinking water systems a C- and wastewater systems a D+, indicating a dire need for infrastructure investment [30] Q&A Session Summary Question: Thoughts on pulling forward 2026 equity issuance - The company has no plans to pull forward equity issuance and will issue equity when needed [39] Question: Acquisition outlook under potential recession - The company expects a continuous flow of acquisition opportunities, potentially driven by recession or reduced federal funding [40] Question: Update on California desalination project - The company expects to break ground on the desalination project this year, which is separate from the rate case [52] Question: Legislative progress and opportunities - The company has not quantified the opportunities from legislative changes but noted they will help earned returns [61]

Financial Performance & Guidance - The company reported Q1 2025 EPS of $1.05, driven by higher revenue on increased rate base and 2024 rate case outcomes[11] - The company is affirming its 2025 EPS guidance of $5.65-$5.75, representing 8% EPS growth at the midpoint over weather-normalized 2024 EPS of $5.27[14, 33] - The company successfully executed an $800 million long-term note offering in February with an annual interest rate of 5.250%, due in 2035[11, 56] - The company projects an annual 2025 cash dividend per share of $3.2475, with a total dividend payout ratio of 58%[19] Capital Investments & Rate Base - The company invested $518 million in infrastructure improvements and acquisitions in Q1 2025[11, 38] - The company estimates its rate base to be $22.4 billion as of March 31, 2025[38, 60] - The company plans to invest $36-$37 billion in its systems over the next ten years (2025-2034)[48] Regulatory & Legislative Updates - The company announced a dividend increase of 8.2% in April, aligning with its long-term target[11, 15] - The company has new rates effective in Illinois, Tennessee, Virginia, and California, and a constructive settlement filed in the Missouri rate case, reflecting an annualized revenue increase of $63 million compared to the revised request of $107 million[11, 26] - The company completed rate cases that will add $1 million in additional authorized revenue in Tennessee and $15 million in Virginia[27] Acquisitions & Growth - The company has approximately 37,400 customer connections under agreement across 18 acquisitions in 6 states, with a total value of $162 million[41] - The company closed 3 acquisitions in 3 states with approximately 2,150 customer connections[41, 69] - The company has an acquisition pipeline of more than 1.5 million connections[42, 48]