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California Water Service Q3 revenue rises on rate hikes, customer growth

By Reuters News


Overview

  • US water utility's Q3 revenue rose 6.7% yr/yr

  • Q3 diluted EPS rose to $1.05 from $1.03 a year earlier

  • Revenue growth driven by rate changes, new customers, and regulatory approvals, partly offset by lower usage


Outlook

  • Company expects to close Nevada and Oregon acquisitions in Q4 2026

  • Company expects to invest $228 mln in PFAS treatment and well replacement projects

  • Company says it has resources to finance ongoing initiatives into H1 2027


Result Drivers

  • RATE CHANGES AND NEW CUSTOMERS - Co said Q3 revenue growth was driven by rate changes and new customers

  • LOWER USAGE - Co said decline in customer water usage offset revenue increases

  • REGULATORY APPROVALS - Co said regulatory approvals in Washington contributed to revenue growth


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Operating Revenue

$332.20 mln

$332.17 mln (3 Analysts)

Q3 EPS

$1.05

Q3 Net Income

$65.40 mln

Q3 Dividend

$0.34

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "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 $56.00, about 18.8% above its October 28 closing price of $47.15

  • The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 18 three months ago


Reuters Recommended Reads

  • Oct 28 - American Water Q3 results miss on higher costs

  • Oct 27 - Water solutions firm Xylem Q3 revenue misses on projects timing, cautious spending

  • Oct 27 - Guangdong Investment 9M revenue rises on water resources strength


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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