California Water Service Group · NYSE:CWT
California Water Service — Q1 2025 Earnings Presentation
17 slides from California Water Service's earnings presentation, May 1, 2025
Slide 1: First Quarter 2025 Earnings Presentation
First Quarter 2025 Earnings Presentation May 1, 2025
Slide 2: Today’s Speakers
Today’s Speakers Marty Kropelnicki James Lynch Chairman & CEO Sr. Vice President, CFO & Treasurer 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 start to 2025, 2 3 Favorable decisions in other regulatory matters, 4 Annual water supply The 2024 California including increased including authorized outlook is positive; CA General Rate Case customer usage, advice recovery of CA Drought average snowpack levels letter fil
Slide 5: Strong Financial Results in Q1 2025
Strong Financial Results in Q1 2025 (in millions, except EPS) Q1 2025 vs. Q1 2024 Non-GAAP* Q1 2024 GAAP $205 $204.0 $14 $13.3 $0.25 $300 $0.22 $270.7 $200 $12 $250 $0.20 $195 $10 $200 $190 $0.15 $150 $1.50 $8 $1.21 $185 $100 $1.00 $180.5 $6 $0.10 $69.9 $180 $4.1 $0.07 $50 $0.50 $4 $175 Non-GAAP Non
Slide 6: Diluted EPS Q1 2024 to Q1 2025
Diluted EPS Q1 2024 to Q1 2025 Non-GAAP Q1 2024 to Q1 2025 Bridge Q1 2024 GAAP vs. Q1 2025 $1.40 $1.21 $1.20 $1.00 $0.80 Q1 2025 $0.60 Q1 2024 GAAP $0.40 $0.22 $0.20 $0.00 Diluted EPS 6
Slide 7: Capital Investment & Depreciation
Capital Investment & Depreciation Growth in capital investment outpaces depreciation (in millions) 2025-2027 TOTAL $800 Capital Investment Depreciation $750 CapEx $700 $600 $660 $655 4x DEPRECIATION $500 $400 $299 $293 $328 $384 $471 $300 $259 $272 $274 $229 $177 $200 Q1 2025 CapEx $110.1M $100 $77
Slide 8: 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 amounts
Slide 9: 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 cash to support capital investment and growth $400 $350 • Credit facilities of $600M that can be expanded up to $300 $800M; facilities ma
Slide 10: Dividend Program
Dividend Program Strong history of returning cash to shareholders Consecutive 321st $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 11: 2024 California General Rate Case
2024 California General Rate Case LUWEP Key updates since filing: • California Public Advocates issued its report with Cal Water providing rebuttal testimony. Application proposes Low-Use • Settlement discussions took place during the month of April. Water Equity Program that would $1.6B decouple re
Slide 12: Regulatory Updates
Regulatory Updates Escalation Increase Requests Other CA Regulatory Updates Hawaii Rate Cases • As part of the 2021 California GRC decision, Cal Palos Verdes Peninsula Water Reliability Project: Hawaii Water Service – 2024 Ka’anapali General Water was authorized to request 2025 Rate Case escalation
Slide 13: Annual Water Supply Update
Annual Water Supply Update California Hawaii Washington & & New Mexico • Statewide snowpack at 99% of • West Maui remains in drought; • No significant water supply normal, with regional levels targeted conservation efforts concerns anticipated in ranging from 85% to 120% as of underway with local pa
Slide 14: The Year Ahead
The Year Ahead Continue to Continue to Stay keenly execute our Lead water progress on 2024 focused on capital investment Provide our industry efforts to Execute strategic California GRC and expense plan, which customers with recover PFAS growth through work towards a management as includes projects
Slide 15: Appendix
Appendix
Slide 16: 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 17: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures (in millions, except per share amounts) Three Months Ended March 31, 2025 2024 Reported GAAP Operating Revenue $203,973 $270,749 Adjustments: 2023 interim rate relief related to the 2021 California GRC recorded in 2024 - ($90,266) Adjusted Operating Reve
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