California Water Service Reports Lower Earnings Amid Wet Weather

The latest update is out from California Water Service ( (CWT) ).

On February 25, 2026, California Water Service Group reported that fourth-quarter 2025 net income fell 42% year on year to $11.5 million on slightly lower revenue of $220 million, as unusually wet December weather in California reduced customer consumption and unbilled revenue while operating expenses rose. For full-year 2025, net income declined 32.8% to $128.2 million and reported revenue slipped 3.5% to $1.0 billion, though on a non-GAAP basis the company posted modest earnings and revenue growth once the impact of delayed 2021 California rate relief booked in 2024 is excluded.

Despite the earnings pressure, management highlighted 2025 as a milestone year, with a record $517 million invested in water infrastructure, completion of rate cases in Hawaii and Washington adding $5.1 million in authorized revenue and new financing via $170 million of notes and $200 million of bonds. The company also continued its expansion strategy by agreeing to acquire Nexus Water Group’s Nevada and Oregon subsidiaries for about $218 million, pursuing full ownership of BVRT Utility Holding Company’s Texas utilities, and securing rights to own and operate wastewater and recycled water systems for a major development in San Bernardino County, while lifting its annual dividend by 10.71% and signaling that a proposed decision in its key 2024 California General Rate Case could arrive within weeks, a ruling that will be central to future earnings and customer rates.

The most recent analyst rating on (CWT) stock is a Hold with a $48.00 price target. To see the full list of analyst forecasts on California Water Service stock, see the CWT Stock Forecast page.

Spark’s Take on CWT Stock

According to Spark, TipRanks’ AI Analyst, CWT is a Neutral.

The score is driven by solid profitability and a stable balance sheet, reinforced by a constructive earnings outlook (capex investment, successful refinancing, PFAS recoveries, and Texas growth). Offsetting factors are weaker cash flow conversion and a mostly neutral technical setup with the stock below longer-term moving averages, while valuation and the dividend are supportive but not deeply compelling.

To see Spark’s full report on CWT stock, click here.

More about California Water Service

California Water Service Group is a publicly traded regulated water utility holding company whose subsidiaries provide regulated and non-regulated water and wastewater services to more than 2.1 million people across California, Hawaii, New Mexico, Washington and Texas. Its common stock trades on the New York Stock Exchange under the symbol CWT, and it invests heavily in water system infrastructure and related utility operations in these regional markets.

The company operates through California Water Service, Hawaii Water Service, New Mexico Water Service, Washington Water Service and Texas Water Service, with a business model centered on regulated returns, periodic general rate cases and long-term capital programs. Its focus on infrastructure upgrades, acquisitions and rate-case management underpins both earnings performance and dividend growth for shareholders.

Average Trading Volume: 392,235

Technical Sentiment Signal: Buy

Current Market Cap: $2.76B

See more insights into CWT stock on TipRanks’ Stock Analysis page.