Overview

• Water utility's Q4 revenue fell

• Net income for Q4 decreased significantly due to wet weather in California

• Company invested record $517 mln in water infrastructure in 2025

Outlook

• Company expects Proposed Decision on 2024 California General Rate Case soon

• Company remains cautious about economic and regulatory uncertainties

Result Drivers

• WET WEATHER IMPACT - Declining customer consumption due to wet December weather decreased revenue by $14.6 mln

• RATE CHANGES - Rate changes added $12.1 mln to Q4 revenue, offsetting some declines

• INCREASED EXPENSES - Operating expenses rose due to higher conservation and depreciation costs

Company press release: ID:nGNXYrjrm

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the water & related utilities peer group is "buy."

• Wall Street's median 12-month price target for California Water Service Group is $51.00, about 10% above its February 24 closing price of $46.37

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 18 three months ago

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