Regulated Water & Wastewater Utilities

Filter Vision Public Company Limited, or FVC, has announced a strategic adjustment across its four core business groups to accelerate revenue recognition in the second half of 2026, after its second-quarter 2026 results showed a clear recovery. Sales and service revenue came in at 111.42 million baht, up 10.15% from the same period a year earlier, with net profit from continuing operations of 4.41 million baht, a rise of 1,675%, while gross profit margin increased to 34.10%. For the first six months of 2026, total sales and service revenue reached 468.36 million baht, up 122.21% from the same period a year earlier. The highlight was the industrial estate development and full-service utilities business, which succeeded in selling land in Phase 2 of the World Lamphun Industrial Estate project under one contract worth a total of 611.49 million baht, with ownership transfer and revenue recognition expected within the fourth quarter of 2026. On the medical services side, KT Medical Service Public Company Limited, or KTMS, plans to expand its dialysis centres by three to five branches and add roughly 36 to 64 dialysis machines during the third quarter of 2026. The industrial and water systems business group has trading product orders from 16 customers worth 3.12 million baht, plus water system installation work, automatic drinking water dispensers, services and maintenance contracts for another 22 projects worth a combined 5.23 million baht. The commercial and residential business group has orders for ice machine system installation on two projects worth a combined 32.32 million baht, with revenue also expected to be recognised in the second half of 2026.

California Water Service Group reported second-quarter 2026 operating revenues of $308.6 million, up 16.5% year over year, with net income rising to $56.5 million from $42.2 million. Increased customer consumption contributed $4.1 million to quarterly revenues. On Sept. 14, the company announced the start of a water-supply reliability and fire-protection project in Willows, CA, and on Sept. 10 its subsidiary Washington Water received regulatory approval for a settlement allowing an annual revenue increase of $4.1 million. California Water Service Group is also pursuing the acquisition of Nexus Water Group's Nevada and Oregon systems, expected to add approximately 36,000 customer-equivalent residential units and about $109 million of rate base, and plans to invest $627 million in 2026 to support infrastructure upgrades and rate-base growth.

Chongqing Water Group released its 2026 interim report. In the first half, operating revenue reached 3.631 billion yuan, up 1.54 percent year on year. Net profit attributable to the parent company was 495 million yuan, up 4.61 percent. Recurring net profit was 418 million yuan, up 2.32 percent. Net cash flow from operating activities was 972 million yuan, up 7.24 percent. Sewage treatment revenue came to 2.346 billion yuan, up 8.98 percent, with gross margin up 2.65 percentage points. Tap water supply revenue was 848 million yuan, down slightly by 2.94 percent. The company is actively advancing integration of water supply assets, and its ABCP issuance has been accepted for registration by the National Association of Financial Market Institutional Investors. It also completed rotation of 347,000 water meters, renovated 27.6 kilometres of ageing pipelines, and put intelligent aeration control systems into operation. The board elected Wang Xiaojun as chairman of the sixth board of directors. He previously served as general manager of Taiji Group, chairman of Tongjunge, and general manager of Sanfeng Environment, and was transferred to Chongqing Water Group in August this year.

California American Water has submitted written testimony to the State Water Resources Control Board supporting a temporary suspension of the cease-and-desist order that has limited new water connections on the Monterey Peninsula since 2009. The company said successful expansion of Aquifer Storage and Recovery and continued regulatory progress on the desalination project mean the region is on a path toward better water security, allowing flexibility for the community while maintaining key protections for the Carmel River. California American Water president Sarah Leeper urged a cautious and strategic approach until Monterey has a permanent, drought-resilient water supply, warning that lifting the order without appropriate guardrails could increase demand and put decades of Carmel River restoration at risk during future droughts. The California Public Utilities Commission last summer confirmed Monterey could face an annual shortfall of 815 million gallons by 2050, and the company continues to focus on the three-part Monterey Peninsula Water Supply Project including Aquifer Storage and Recovery, water recycling, and desalination. The public will have an opportunity to provide comment to the Water Board on November 5, 2026.

Global Water Resources announced that its recently settled rate case for its largest water utility, GW-Santa Cruz, contemplates net increased revenues of approximately $1.9 million effective November 1, 2026. The company reported second quarter 2026 total revenue of $17.8 million, up 24.8% year over year, while net income was $2.7 million, or $0.10 per diluted share. Total active service connections increased 5.8% to 69,429 as of June 30, 2026. Management noted that higher depreciation and inflationary costs continue to pressure earnings, and it has started working on rate reviews for four additional utilities with filings anticipated in the first half of 2027.

The Cabinet has approved a budget of 7.2 billion baht for the Royal Irrigation Department to carry out the Khlong Wang Tanod reservoir project in Chanthaburi province, aiming to enhance water security in the Eastern Economic Corridor. The project will have a capacity of 99.50 million cubic metres, supplying water to an irrigation area of over 87,700 rai. It is one of 38 key projects under the water resource development plan to support the EEC, with a seven-year implementation plan from fiscal year 2027 to 2033. The Cabinet also instructed strict compliance with laws and environmental measures, and approved in principle for the Royal Irrigation Department to collaborate with the Community Organizations Development Institute on the Ban Mankong Rural housing project to assist those affected. The Royal Irrigation Department forecasts that water demand in the EEC area will rise from 2.888 billion cubic metres in 2027 to over 3.5 billion cubic metres in 2037. Currently, there are 58 large and medium-sized reservoirs with a combined capacity of approximately 2.5 billion cubic metres. If all projects are completed by 2037, the additional water supply could reach 909 million cubic metres.

American Water Works reported adjusted earnings per share of $1.61 for the second quarter of 2026, up from $1.49 a year earlier, and affirmed its full-year adjusted EPS guidance of $6.02 to $6.12. The company cited higher revenues from authorized rate increases and flat operations and maintenance costs as key drivers. Capital investments reached $1.8 billion year-to-date, and the company closed the Nexus Water Group acquisition ahead of schedule, adding 47,000 customer connections. A Pennsylvania rate case resulted in a $75 million annualized revenue increase, while new rate filings in Kentucky and Missouri seek additional annual revenues of $18 million and $179 million, respectively. The pending merger with Essential Utilities remains on track to close by the end of the first quarter of 2027, with state approvals already secured in Kentucky, Ohio, and Virginia.

California Water Service Group reported strong second quarter 2026 results, with net income rising to $56.5 million, or $0.93 per diluted share, compared to $42.2 million, or $0.71 per diluted share, in the same period last year. Revenue increased to $308.6 million from $265.0 million, driven in part by $15.3 million in interim rates memorandum account revenue related to the delayed 2024 California General Rate Case, $9.2 million of which pertained to the first quarter of 2026. The final decision on the 2024 California General Rate Case, received at the end of April, authorizes rate adjustments expected to increase company-wide revenue by $90.5 million in 2026, $43.2 million in 2027, and $48.9 million in 2028, and approves approximately $1.45 billion of pre-approved infrastructure investments through 2027. Operating expenses rose to $237.7 million from $213.1 million, with higher water production costs and other operations expenses partially offset by a $6.5 million decrease in depreciation and amortization due to lower California depreciation rates approved in the rate case. The company invested a record $147 million in infrastructure during the quarter and continues to make progress on its planned $218 million acquisition of Nexus Water Group's systems in Nevada and Oregon, which is expected to add about 36,000 customer equivalent residential units and approximately $109 million of rate base.

The Office of the National Water Resources has confirmed that there is sufficient water supply for water management this year, even though the Meteorological Department forecasts that El Niño will intensify to a very strong level from October to December 2026. The four main dams in the Chao Phraya River Basin had a combined usable water volume of 17.245 billion cubic meters as of November 1, 2025, which is higher than the 4.247 billion cubic meters recorded during the El Niño period in 2015. It is projected that as of November 1, 2026, the usable water volume will be 12.105 billion cubic meters. The ONWR has also instructed all agencies to prepare without complacency, especially in areas outside irrigation zones, while urging farmers to cultivate according to plans and calling on all sectors to conserve water. At the same time, it has ordered inspections of waterway obstructions to improve drainage efficiency in line with measures for the 2026 rainy season.

California Water Service Group plans to invest $1.45 billion through 2027 in water quality, system reliability, power-outage resilience, cybersecurity and long-term water supply projects, following approval from the California Public Utilities Commission for its subsidiary Cal Water. The decision allows the company to increase annual revenues by $90.5 million in 2026, $43.2 million in 2027 and $48.9 million in 2028. CWT expects infrastructure and other capital investments to support a more than 11.1% compound annual rate base growth, with the rate base projected to exceed $3.2 billion by 2027. The company plans to invest $627 million in 2026 and $667 million in 2027 to support rate base expansion and sustainable long-term earnings growth. The Zacks Consensus Estimate for 2026 and 2027 EPS indicates a year-over-year increase of 19.07% and 7.03%, respectively.

The Pennsylvania Public Utility Commission has approved a rate adjustment for Pennsylvania American Water, authorizing an annual revenue increase of approximately $74.9 million. The decision supports critical infrastructure improvements including replacing aging infrastructure, expanding PFAS treatment, and eliminating lead service lines, while maintaining a focus on affordability and customer assistance. PUC Chairman Stephen M. DeFrank commended the company's efforts to assist troubled water and wastewater systems through acquisitions, receiverships, and infrastructure investments, noting these represent a public benefit. Pennsylvania American Water, a subsidiary of American Water, serves more than 2.5 million people across the Commonwealth.

Pennsylvania American Water has been awarded grants and low-interest loans totaling $64,106,000 from the Pennsylvania Infrastructure Investment Authority, known as PENNVEST, to support water infrastructure improvement projects in Allegheny, Cumberland and Susquehanna counties. The funding includes a $2,694,306 grant and a $6,205,694 loan to replace approximately 575 lead and galvanized lead-impacted water service lines in Dormont Borough, Allegheny County, with the loan carrying a 1.00% interest rate over 25.25 years. A PFAS treatment project at the Silver Spring Water Treatment Plant in Cumberland County, which serves about 85,000 people across 12 municipalities, received a $2,447,879 grant and a $27,758,121 loan, with interest terms of 1.743% for the first five years and 2.179% for the remainder of the 20-year loan period. In Susquehanna County, a $25,000,000 loan will fund construction of a new water treatment plant in Harmony Township to replace aging infrastructure serving more than 4,200 customers, with interest at 1.00% for the first five years and 1.743% thereafter over 20 years. Since July 2024, PENNVEST has awarded Pennsylvania American Water more than $261.6 million in total funding, including $29 million in grants and $231 million in low-interest loans, to advance water and wastewater infrastructure across the state.

The fair value estimate for American Water Works Company has increased from US$135.55 to US$138.73 per share, reflecting adjustments to revenue growth, net profit margin, and future P/E multiple assumptions. Analysts are weighing mixed regulatory outcomes and expectations around the Essential Utilities merger approvals, with Huntington initiating coverage at Outperform with a US$148 price target and UBS raising its target to US$150, while Truist cut its target to US$130 and BofA reduced its target to US$134. The company outlined an approximately US$48 billion wastewater and water infrastructure capital plan over the next decade, and Missouri American Water filed a rate request seeking about US$179 million in additional annual revenue to support roughly US$1.6 billion in planned investments. American Water also completed the US$6.4 million acquisition of Hopewell Borough's water system, serving around 930 customers, and plans about US$7 million of investments over five years targeting PFAS, lead line replacement, and regulatory compliance.

A new statewide survey finds 77% of California voters are more likely to support a gubernatorial candidate who prioritizes improving water reliability and affordability. The poll, conducted by the Association of California Water Agencies and FM3 Research, shows support across party lines, including 83% of Democrats, 77% of Independents, and 67% of Republicans. Other findings reveal 93% say safe and reliable water supplies are critical to addressing California’s goals, 88% think the state needs to modernize water infrastructure to protect clean drinking water, and 87% believe infrastructure construction must be accelerated to prepare for droughts, floods, and changing climate conditions. ACWA’s Vision for Our Water Future initiative aims to elevate water as a top priority for the next governor and state officials.

American Water, the largest regulated water and wastewater utility company in the U.S., announced the release of its Wastewater Solutions white paper, highlighting the company's industry leadership in delivering positive environmental results for communities. The white paper examines several wastewater systems acquired by its local state operations across the company's national footprint, detailing a multi-year approach to infrastructure upgrades, operational improvements, and compliance oversight that helped bring newly acquired systems back into compliance while addressing long-standing environmental risks and balancing customer affordability. Among the systems featured is the Village of Godfrey in Illinois, which Illinois American Water acquired in 2019, with Mayor Mike McCormick stating the sale will serve residents well today and in the future. Over the next 10 years, American Water plans to invest approximately $48 billion in capital improvements to its systems, including infrastructure renewal, water quality, resiliency, technology, and water and wastewater system acquisitions. President and CEO John Griffith emphasized that with much of the nation's wastewater infrastructure decades old, reliable systems are essential to protecting public health and the environment, and that sustained infrastructure investment is dedicated to providing safe, clean, reliable, and affordable services.

Jefferies upgraded Xylem to Buy from Hold and raised its price target to $140 from $130, citing the stock's underperformance relative to the broader industrial sector despite stable demand and improving margins. The firm noted that Xylem has yet to fully reflect improving cyclical conditions, unlike industrial peers with direct data center exposure that have seen significant valuation expansion. Jefferies also highlighted Xylem's broad exposure across the entire water value chain and its recurring revenue base supported by long-term utility spending. Separately, Xylem announced a landmark agreement with Dow to design, build, and operate advanced water systems at Dow's large-scale industrial complex in Fort Saskatchewan, Alberta, supporting the Path2Zero project, with the system expected to be operational by August 2028.

California Water Service has completed its purchase of Palm Mutual Water Company's water system assets and will now serve its customers through the Bakersfield District. The system serves an estimated 250 residents through 63 residential customer connections and is located two miles from Cal Water's Northeast Bakersfield Treatment Plant. Cal Water already served Palm Mutual through a master meter interconnection and plans to upgrade the system's infrastructure over time. The acquisition was approved by the California Public Utilities Commission in December 2025. Cal Water's Bakersfield District already serves about 445,600 people through approximately 120,000 service connections.

American Water Works Company has completed its acquisition of Hopewell Borough's water system and launched a public water efficiency campaign in Pennsylvania in response to regional drought concerns. The company plans to invest US$7 million over five years in the borough to replace lead and galvanized steel lines and address PFAS contamination. The Hopewell deal expands American Water Works' regulated customer base, while the drought campaign aims to manage volume risk and supply constraints. These moves highlight the utility's focus on infrastructure investment and operational resilience amid tightening water quality standards and weather-related challenges.

Pennsylvania American Water is urging customers to practice wise water use as hotter, drier conditions raise drought concerns across the commonwealth. Approximately 30% of Pennsylvania is experiencing abnormally dry conditions, with 15 counties under drought watch and four under drought warning, according to the U.S. Drought Monitor and the state Department of Environmental Protection. The company recommends watering early or late to minimize evaporation, using rain barrels, checking sprinklers, and fixing household leaks, noting that 10% of homes have leaks wasting 90 gallons or more per day. Customers can monitor usage through the MyWater portal.

The California State Lands Commission voted to approve California American Water's application for a lease of state lands that are part of its Monterey Peninsula desalination project. The lease covers the construction and use of four new subsurface slant wells and the conversion and use of one existing subsurface slant well for the proposed desalination plant. The approval follows a three-year review that included extensive community input through environmental justice outreach and tribal consultation. The desalination plant is a key component of the Monterey Peninsula Water Supply Project's three-pronged plan to restore regional water supplies and reduce dependence on the Carmel River, with the California Public Utilities Commission having projected a water supply deficit of 815 million gallons per year by 2050.

Five Missouri American Water drinking water treatment plants have received national recognition from the Partnership for Safe Water at the Directors and Presidents levels for achieving water quality excellence. The Central, Meramec, North, and South plants in St. Louis County, along with the Joplin Water Treatment Plant, each earned 25-year Directors Awards. The awards were announced by the American Water Works Association and honor efforts to continuously optimize treatment plant and distribution system operation and performance. Missouri American Water President Rich Svindland said the company takes seriously its responsibility to provide safe, clean, and reliable tap water that meets or surpasses state and federal standards. The Partnership for Safe Water is a voluntary program with just over 400 surface water treatment plants participating nationally, designed to increase protection against microbial contamination through treatment optimization.