California Water Service Group Reports Strong Q2 Earnings and Accelerated Infrastructure Investment
California Water Service Group (CWT) reported strong second-quarter earnings for 2026, with net income rising to $56.5 million or $0.93 per diluted share from $42 million a year earlier. Revenue increased to $308.6 million compared to $265 million in the prior-year period. The results were driven by retroactive IRMA revenue of $15.3 million, California rate changes, and deferred WRAM revenue recognition. The company also accelerated infrastructure investment, with capital expenditures reaching a record $276 million for the first half of 2026, including $147 million in Q2 alone. Management expects to spend approximately $155 million on PFAS treatment this year and anticipates its rate base could reach $3.5 billion by 2028. Regulatory activity remained active as the company reached a Washington rate-case settlement and continued pursuing acquisitions, including Nexus in Oregon and Washington. The firm aims to close these deals before year-end while maintaining strong liquidity and an A+ stable credit rating.
Tickers: $CWT
Topics: acquisitions capital_expenditures regulatory_activity utilities