California Water Service Group Reports 16.5% Revenue Growth in Q2 2026

California Water Service Group reported significant financial performance improvements in its latest quarterly filing, with operating revenue for the second quarter of 2026 reaching $308.6 million, a 16.5% increase from $264.9 million in the same period last year. For the first half of 2026, revenue totaled $523.2 million, up 11.6% from $468.9 million in the first half of 2025. The increase in revenue was primarily attributed to adjustments related to the California Water Service Company's general rate case, which was retroactively effective from January 1, 2026, and other rate increases.

Net income attributable to California Water Service Group for the second quarter was $56.5 million, or $0.93 per diluted share, compared to $42.2 million, or $0.71 per diluted share, in the prior year. For the first six months, net income was $60.5 million, or $1.01 per diluted share, compared to $55.5 million, or $0.93 per diluted share, in the same period of 2025. The increase in net income was driven by higher operating revenue, although it was partially offset by a rise in operating expenses, which increased by $24.6 million in the second quarter and $39.3 million in the first half of the year.

Operationally, the company reported a customer count of 61,839,101 shares of common stock outstanding as of July 20, 2026. The company also noted an increase in water production costs, which rose by 7.4% in the second quarter due to higher wholesale rates. Additionally, administrative and general expenses increased, reflecting higher consulting and corporate costs. The company’s total assets grew to $5.95 billion as of June 30, 2026, compared to $5.67 billion at the end of 2025, indicating a solid operational foundation.

Strategically, California Water Service Group is pursuing growth through acquisitions, including the planned purchase of Nexus Water Group’s water and wastewater systems in Nevada and Oregon for approximately $218 million, and the acquisition of remaining membership interests in BVRT Utility Holding Company for $45 million. The company has also been active in addressing regulatory requirements, particularly concerning PFAS contamination, and expects to invest significantly in compliance measures.

Looking ahead, California Water Service Group anticipates continued revenue growth driven by regulatory adjustments and customer demand. The company plans to maintain a balanced approach to financing its capital expenditures through a mix of debt and equity, with estimated utility capital expenditures for 2026 projected between $580 million and $640 million. The company remains focused on enhancing its infrastructure and ensuring compliance with evolving regulatory standards while managing operational costs effectively.