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California Water Q2 Earnings Surpass Estimates, Revenues Rise Y/Y

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Key Takeaways

  • CWT posted Q2 EPS of 71 cents, topping estimates by 54% and rising 1.4% year over year.
  • Revenues climbed 8.5% Y/Y to $265M, driven by increased usage and wholesale water rate hikes.
  • Net operating income rose to $51.8M from $48.2M despite a rise in interest costs.

California Water Service Group (CWT - Free Report) recorded second-quarter 2025 adjusted earnings of 71 cents per share, which beat the Zacks Consensus Estimate of 46 cents by 54.3%. The bottom line also increased 1.4% from the year-ago quarter’s figure of 70 cents.

CWT’s Total Revenues

Operating revenues totaled $265 million, which topped the Zacks Consensus Estimate of $226 million by 17.3%. The top line also climbed 8.5% from $244.3 million recorded in the prior-year quarter.

CWT’s Operational Update

Total operating expenses were $213.1 million, up 8.7% from the year-ago quarter’s level of $196.1 million. Water production costs increased $7.9 million due to a rise in wholesale water rates and increased customer usage.

CWT reported maintenance expenses of $9 million, up 2.9% year over year.

Net operating income was $51.8 million compared with the year-ago quarter’s reported figure of $48.2 million.

Net interest expenses were $16.5 million, up 17.9% from the prior-year quarter’s figure of $14 million.

CWT’s Financial Update

As of June 30, 2025, CWT had cash and cash equivalents of $50.5 million compared with $50.1 million as of Dec. 31, 2024.

As of June 30, 2025, its net long-term debt totaled $1,104 million compared with $1,104.6 million as of Dec. 31, 2024.

CWT’s Zacks Rank

California Water currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

American States Water (AWR - Free Report) is slated to report second-quarter 2025 results on Aug. 6, after market close. The Zacks Consensus Estimate for earnings is pegged at 92 cents per share, which indicates a year-over-year increase of 8.2%.

AWR’s long-term (three to five years) earnings growth rate is 5.7%. The Zacks Consensus Estimate for second-quarter sales stands at $169 million, which calls for a year-over-year rise of 8.8%.

Consolidated Water Co. Ltd (CWCO - Free Report) is set to report second-quarter 2025 results soon. The Zacks Consensus Estimate for earnings is pegged at 20 cents per share.

The Zacks Consensus Estimate for second-quarter sales stands at $32.7 million, which suggests year-over-year growth of 0.7%.

Recent Release

American Water Works Company (AWK - Free Report) posted second-quarter 2025 operating earnings per share of $1.48, which missed the Zacks Consensus Estimate of $1.49 by 0.7%.

Total quarterly revenues of $1.276 billion surpassed the Zacks Consensus Estimate of $1.154 billion by 10.6%. The top line also increased 11.1% from the year-ago figure of $1.149 billion.

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