Financial Data and Key Metrics Changes - Q3 2025 revenue increased by $11.6 million, or 3.9%, to $311.2 million compared to $299.6 million in Q3 2024 [17] - Net income for the quarter was $61.2 million, or $1.03 per diluted share, consistent with the prior year [17] - Year-to-date operating revenue for 2025 was $780.2 million, a decrease of $34.4 million, or 4.2%, compared to $814.6 million for the first nine months of 2024 [20] - Year-to-date net income attributable to the Group was $116.7 million, a decrease of $54.4 million, or 31.8%, compared to $171.1 million in the same period in 2024 [20] Business Line Data and Key Metrics Changes - Capital investments for Q3 2025 were $135 million, up 14.8% year-over-year, and year-to-date investments totaled $364.7 million, representing a 9.8% increase compared to 2024 [11][23] - The company received an additional $24 million in net PFAS settlement proceeds during the quarter, bringing the year-to-date total recovery to about $35 million [13] Market Data and Key Metrics Changes - The company continues to expand in Texas, with an all-party settlement in Texas awaiting final Commission approval [12] - The South Austin market is projected to grow significantly, with a current population of 5 million expected to exceed 8 million by 2050 [32] Company Strategy and Development Direction - The company is focused on maintaining operational excellence and executing capital programs responsibly as it approaches its centennial year in 2026 [50] - The company is pursuing alternative water resources and partnerships to support growth in Texas, including a public-private partnership with the Guadalupe-Blanco River Authority [33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the California general rate case, noting improved communication and transparency from the Commission compared to previous cases [43][45] - The company is well-positioned to absorb inflationary pressures and maintain growth despite economic headwinds [78] Other Important Information - The company declared its 323rd consecutive quarterly dividend of $0.30 per share, representing a 10.71% increase [30] - The company has a strong liquidity profile with $76 million in unrestricted cash and $255 million available on bank lines of credit [24] Q&A Session Summary Question: Rate base growth projections - Management clarified that there is currently no partial settlement in California and they remain committed to their capital expenditure projections [54][56] Question: Impact of recent merger in Texas - Management stated that their growth strategy remains focused on organic growth and infrastructure reinvestment, despite the merger of competitors [72][74] Question: Planning for higher interest rates - Management indicated that they are well-positioned with long-term financing and have mechanisms in place to adjust for changes in the cost of capital [80][82]