California Water Service Group Reports Strong Second Quarter 2026 Financial Results

Earnings
โดย GlobeNewswire·Read original
Summary · why it matters

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.

Impact on stocks 1

Climate Adaptation & Water▲ · 1 stocks

Theme Impact 1

Off-coverage companies 1

Nexus Water GroupPrivate▲ Positive
Capitalrelevance

Acquisition target Nexus Water Group is being acquired at a planned price, implying value for its owners.

Related news

▼

RBC Downgrades Mueller Water to Underperform on Municipal Spending Slowdown

RBC Capital downgraded Mueller Water Products to Underperform from Sector Perform and cut its price target to $21 from $30, sending shares down 3.2% in Thursday's trading. Analyst Jeffrey Reive said the consensus expectation for 4% FY 2027 revenue growth does not reflect the combined headwinds of fading federal stimulus, hydrant backlog normalization, and ongoing residential softness. Reive considers Mueller one of the most exposed stocks in RBC's coverage to a slowdown in municipal water spending, since its core valve and hydrant business is tied to municipal project activity and funding availability, and he believes it lacks the structural buffer against near-term funding shifts that peers such as Badger Meter or Veralto possess. He said his concern is not with execution but with expected pressure from a falloff in federal stimulus that is fully reflected in consensus estimates, adding that the hydrant backlog workdown supporting FY 2026 revenue growth is unlikely to repeat, which he sees as a $35M headwind with limited offsets as residential construction still tries to find a bottom.
BMIMWAVLTO
Climate Adaptation & Water ▼
Seeking Alpha·1dRead more →

CenterPoint Energy Replaces US$2.40 Billion Credit Facility With US$2.20 Billion Five-Year Revolver

CenterPoint Energy, Inc. replaced its prior US$2.40 billion unsecured revolving credit facility with a new five-year senior unsecured revolving credit facility of US$2.20 billion in September 2026. The new facility includes swingline loan and standby letter of credit subfacilities, extendable maturities, and a covenant capping the company's debt-to-capitalization ratio at 67.5%. It also carries a built-in covenant adjustment that temporarily allows higher leverage if large, securitizable natural-disaster restoration costs arise in its service territory. The refreshed facility modestly tightens leverage capacity while adding disaster-related flexibility, and the company also completed Phase Two of the Greater Houston Resiliency Initiative. CenterPoint Energy's narrative projects $11.4 billion in revenue and $1.6 billion in earnings by 2029, with a $46.12 fair value estimate implying 20% upside.
CNP
Climate Adaptation & Water
Simply Wall St·1dRead more →

Illinois American Water Closes $770,000 Venice Wastewater Acquisition

Illinois American Water has completed its acquisition of the City of Venice wastewater collection system for $770,000. The deal, approved by the Illinois Commerce Commission on June 24, 2026, adds approximately 500 wastewater collection service customers and expands the company's wastewater operations in the Metro East area near St. Louis. Illinois American Water plans to make $2.6 million in capital investments and improvements in the Venice wastewater collection system over the next five years, covering rehabilitation or replacement of wastewater mains and manholes, lift station improvements, and control and security enhancements at pump and lift stations. Venice Mayor Phillip White Jr. said the sale places the collection system into the professional hands of Illinois American Water, while company President Rebecca Losli said the team looks forward to leveraging its operational experience and long-term commitment to infrastructure investment. Prior to the acquisition, Venice customers received transportation and wastewater treatment services from Illinois American Water; they will now receive wastewater collection, transportation and treatment services.
AWK ▲
Climate Adaptation & Water
PR Newswire·2dRead more →
© 2026 MarketDXNews