California Water Service Group · NYSE:CWT
California Water Service — Q2 2025 Earnings Presentation
22 slides from California Water Service's earnings presentation, Jul 31, 2025
Slide 1: Second Quarter 2025 Earnings Presentation
Second Quarter 2025 Earnings Presentation July 31, 2025
Slide 2: Today's Speakers
Today’s Speakers Marty Kropelnicki James Lynch Shilen Patel Chairman & CEO Sr. Vice President, CFO & Treasurer Chief Business Development Officer and Vice President, TWSC, Inc. 2
Slide 3: Forward-Looking Statements and Other Important Information
Forward-Looking Statements and Other Important Information This presentation contains forward-looking statements within the meaning established by the Private Securities Litigation Reform Act of 1995 (“PSLRA”). The forward-looking statements are intended to qualify under provisions of the federal se
Slide 4: Recent Highlights
Recent Highlights 1 Strong performance 2 Invested $119.4M 3 Advanced the 4 Signed agreements to add up to 5 Received first PFAS 6 through first half in Q2 2024 in new 15,000+ new Maintained of 2025; while 2024 California settlement utility plant, General Rate Case wastewater payment for industry lea
Slide 5: Consistent Financial Results in Q2 2025
Consistent Financial Results in Q2 2025 (in millions, except EPS) Q2 2025 vs. Q2 2024 Non-GAAP* Q2 2024 GAAP $300 $50 $1.00 $300 $265.0 $42.2 $42.4 $244.3 $250 $247.1 $250 $40 $0.80 $0.71 $0.73 $200 $200 $30 $0.60 $150 $0.80 $0.70 $150 $0.60 $100 $20 $0.40 $0.40 $100 $50 $40.6 $0.20 Non-GAAP Non-GAA
Slide 6: Diluted EPS Q2 2024 to Q2 2025
Diluted EPS Q2 2024 to Q2 2025 Non-GAAP Q2 2024 to Q2 2025 EPS Bridge* Q2 2024 GAAP vs. Q2 2025 $1.00 $0.80 $0.70 $0.71 $0.60 $0.40 Q2 2024 GAAP Q2 2025 $0.20 $0.00 Diluted EPS *As a result of the delayed 2021 California GRC decision, interim rate relief related to 2023 was recorded in Q1 2024 and f
Slide 7: Strong Financial Results YTD 2025
Strong Financial Results YTD 2025 (in millions, except EPS) YTD 2025 vs. YTD 2024 Non-GAAP* YTD 2024 GAAP $500 $60 $55.5 $1.00 $0.93 $600 $468.9 $515.0 $427.6 $0.81 $500 $50 $46.5 $0.80 $400 $400 $2.50 $40 $2.00 $1.90 $300 $0.60 $300 $1.50 $30 $200 $200 $0.40 $1.00 $110.5 $20 $100 $0.50 Non-GAAP Non
Slide 8: Diluted EPS YTD 2024 to YTD 2025
Diluted EPS YTD 2024 to YTD 2025 Non-GAAP YTD 2024 to YTD 2025 EPS Bridge* YTD 2024 GAAP vs. YTD 2025 $2.00 $1.90 $1.80 $1.60 $1.40 $1.20 $1.00 $0.93 YTD 2024 GAAP $0.80 $0.60 YTD 2025 $0.40 $0.20 $0.00 Diluted EPS *As a result of the delayed 2021 California GRC decision, interim rate relief related
Slide 9: Capital Investment & Depreciation
Capital Investment & Depreciation Growth in capital investment outpaces depreciation 2025-2027 TOTAL (in millions) Cap-Ex $800 $760 Capital Investment Depreciation $690 4x $700 $610 $600 $500 $471 DEPRECIATION $384 $400 $328 $299 $293 $272 $274 Cap-Ex $300 Q2 2025 YTD 2025 $200 $119.4M $229.5M $100
Slide 10: Regulated Rate Base Growth
Regulated Rate Base Growth Estimated to achieve over $3.3 billion by 2027 (in billions) $4.00 $3.50 $3.35 $2.93 $3.00 $2.58 $2.34 $2.50 $2.20 $2.01 $1.87 $2.00 $1.61 $1.50 $1.24 $1.26 $1.00 $0.50 $0.00 2018 2019 2020 2021 2022 2023 2024 2025* 2026* 2027* *2025-2027 rate base estimates include amount
Slide 11: Liquidity Profile
Liquidity Profile Group maintains strong liquidity profile to execute capital plan and strategic M&A investments (in millions) $500 $450 • Expect to have adequate resources to support capital $400 investment and growth $350 • Credit facilities of $600M that can be expanded up to $300 $800M; faciliti
Slide 12: Dividend Program
Dividend Program Strong history of returning cash to shareholders Consecutive 322nd $0.30 Quarterly Dividend in $1.40 Amount of $1.24 $1.20 $1.12 Announced Annual $1.00 $1.04 58th $1.20 Increase Expected to Yield 2025 $1.00 $0.92 Annual Dividend of $0.80 One-Time Special $0.04 $1.24 Dividend Brings
Slide 13: 2024 California General Rate Case
2024 California General Rate Case Key updates since filing: LUWEP Application proposes Low-Use • Settlement discussions took place during the month of April. • Hearings before the Administrative Law Judge (“ALJ”) occurred in May 2025. Water Equity Program that would • After the hearings, the ALJ req
Slide 14: PFAS Update: Regulatory
PFAS Update: Regulatory Extended compliance timeline EPA maintains PFOA/PFOS limits proposed EPA will keep MCLs for PFOA and A rule expected this fall would PFOS at 4 ppt while reconsidering extend PFOA/PFOS compliance standards for other PFAS compounds. deadline from 2029 to 2031, with finalization
Slide 15: PFAS Update: Group
PFAS Update: Group Remains PFAS project Aligned with Settlement reached with groundwater committed to timeline shifts regulatory responsible party investment approach Group continues Some well Cal Water phased Group is party to four separate class-action investing in replacements will investment str
Slide 16: Silverwood Development
Silverwood Development Agreement: Cal Water signed agreements in June 2025 with affiliate of DMB Development to own/operate wastewater and recycled water systems of new master-planned, mixed-use community currently under construction in San Bernardino County. Beginning: Upon completion of the wastew
Slide 17: BVRT Capital Group & BVRT Water Resources
Group & BVRT Water Resources Strategic expansion into high-growth areas leveraging Group’s deep experience 2021 Group invested in BVRT Water Resources, a privately owned regional water & sewer utility BVRT New utility incubator for Group, investing in & growing greenfield water & sewer utilities 7 G
Slide 18: BVRT Update
BVRT Update 19,000+ 20,000+ Connected and Committed Customers Total connected & Additional likely committed customers in existing Growth customers in 2025 service areas 20,000 100,000+ Additional potential customers near 15,000 existing service areas 14,000 10,000 10,000 Regulatory Update • In June
Slide 19: 2024 Sustainability Report
2024 Sustainability Report Protecting the Planet Serving Customers • Reduced Scope 1 and 2 greenhouse gas emissions by • Conducted more than 615,000 water quality tests and 23.5% over base year 2021. achieved 100% compliance. • Invested nearly $3 million on emissions-reducing energy • Donated over $
Slide 20: Appendix
Appendix
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures The Company’s revenue, net income, and diluted earnings per share are prepared in accordance with Generally Accepted Accounting Principles (GAAP) and represent amounts reported on filings with the Securities and Exchange Commission. Adjusted revenue, net income, and dilut
Slide 22: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 3 Months Ended June 30, YTD Ended June 30, (in millions, except per share amounts) 2025 2024 2025 2024 Reported GAAP Operating Revenue $264,954 $244,299 $468,927 $515,048 Adjustments: 2023 interim rate relief related to the 2021 California GRC recorded i
California Water Service Group — Q2 2025 Earnings Presentation on 6ix