California Water Service Group reported a net income of $42.2 million in Q2 2025, with $119.4 million invested in water system infrastructure. Revenue increased 8.5% to $265.0 million, while operating expenses rose 8.7% to $213.1 million. YTD revenue decreased 9.0% to $468.9 million, with net income at $55.5 million, a decrease of 49.8%.
Company Chairman, Martin A. Kropelnicki, credits solid financial performance to cost management and affordability focus. The 2024 California general rate case is progressing as planned. Q2 2025 revenue increased by $20.7 million, with a net income of $42.2 million. YTD 2025 revenue decreased by 9.0%, while net income was $55.5 million. In YTD 2024, a $64.0 million difference from GAAP to non-GAAP is due to 2023 interim rate relief related to the 2021 California GRC. Group’s cash and equivalents as of June 30, 2025, totaled $96.1 million with additional borrowing capacity of $240 million. Cal Water retained an A+/Stable rating from S&P in July 2025.
Cal Water submitted the 2024 CA GRC on July 8, 2024, proposing to invest over $1.6 billion from 2025-2027 in infrastructure improvements. The application seeks rate adjustments to increase revenue by 17.1% in 2026, 7.7% in 2027, and 8.1% in 2028. Progress on the triennial rate filing is on schedule with a final decision expected soon.
Cal Water signed an agreement on June 24, 2025, to own and operate wastewater systems for the Silverwood development in San Bernardino County. Approximately 500 wastewater connections will be served initially, with more than 15,000 connections expected at full development. Construction costs for phase one of the wastewater treatment facility range from $60.0 million to $70.0 million.
The Company settled four class-action lawsuits with companies like 3M and DuPont over PFAS contamination in drinking water. Settlement proceeds will offset capital expenditures required for compliance with PFAS regulations. The Company received $10.6 million from 3M in May 2025, with nine more installments expected. California Water Service Group is set to receive the second installment from 3M Company in late 2025, with more installments annually thereafter. The 2024 Sustainability Report highlights a 23.5% reduction in greenhouse gas emissions, compliance with water quality standards, and $1.1 million in donations to community organizations. The Group Board of Directors declared a $0.30 quarterly dividend and a special $0.04 dividend, marking 58 years of dividend increases. Stockholders are invited to a quarterly earnings teleconference on July 31, 2025, with access details provided. California Water Service Group provides water and wastewater services to over 2.1 million people in multiple states. Forward-looking statements in this news release outline expectations for financial performance, infrastructure investments, and more. The news article highlights various factors that may impact actual results for California Water Service Group, including regulatory actions, opposition to rate increases, environmental compliance changes, and natural disasters. The company also faces risks related to cybersecurity, labor relations, customer growth, and economic conditions. Investors are advised to consider these factors when evaluating the company’s performance.
Read more at GlobeNewswire. The US economy added 943,000 jobs in July, exceeding expectations of 870,000. The unemployment rate dropped to 5.4%, the lowest since the start of the pandemic. Average hourly earnings rose by 4% from a year ago. The strong job gains signal a robust recovery.: California Water Service Group Reports Second Quarter 2025