California Water Service Group · NYSE:CWT
California Water Service — Q4 2025 Earnings Presentation
22 slides from California Water Service's earnings presentation, Feb 26, 2026
Slide 1: Q4 and YE 2025 Earnings & Strong Start to 2026
Q4 and YE 2025 Earnings & Strong Start to 2026 February 26, 2026
Slide 2: Today's Speakers
Today’s Speakers Marty Kropelnicki James Lynch Greg Milleman Shilen Patel Chairman & CEO Sr. Vice President, CFO & Treasurer VP, Rates & Regulatory Affairs Chief Business Development Officer & VP 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: Kicking Off Our Centennial Year with Good News on Regulatory and Business Development Fronts
Kicking Off Our Centennial Year with Good News on Regulatory and Business Development Fronts Acquisition Acquisition Regulatory Nevada and Oregon BVRT Utilities Rate Case Activity Executed agreement to Reached agreement to purchase 2024 California General Rate purchase Nexus Water outstanding minori
Slide 5: First, Let's Wrap Up 2025
First, Let’s Wrap Up 2025 1 2 3 Increased 4 5 6 Retained ROE of Received Maintained S&P annual dividend approval to Global rating of Invested record 10.27% until Q4 and full-year by 10.71%; paid $517.0 million January 2028*- increase 2026 A+/Stable – one 2025 financial 323rd in water system one of t
Slide 6: Q4 Results Negatively Impacted by Wet Weather
Q4 Results Negatively Impacted by Wet Weather Q4 2025 vs. Q4 2024 (in millions, except EPS) $250 $25 $0.40 $220.0 $222.2 $19.7 $0.33 $200 $20 $0.30 $150 $15 $11.5 $0.20 $0.19 $100 $10 $0.10 Q4 2024 Q4 2025 Q4 2024 Q4 2024 Q4 2025 Q4 2025 $50 $5 $0 $0 $0.00 Operating Revenue Net Income Diluted EPS 6
Slide 7: Diluted EPS Bridge – Q4 2024 to Q4 2025 Results
Diluted EPS Bridge – Q4 2024 to Q4 2025 Results $1.20 $0.08 $1.00 $0.15 $0.48 $0.80 $0.60 $0.40 -$0.59 $0.33 -$0.10 -$0.09 $0.19 $0.20 -$0.07 $0.00 Rate Increases and Lower Purchased Water Conservation Expense Interest Expense Increase Regulatory Account Volumes Partially Offset Increase Changes by
Slide 8: YE 2025 Financial Results Impacted by Q4 Wet Weather, Third Year of CA Rate Case Cycle
YE 2025 Financial Results Impacted by Q4 Wet Weather, Third Year of CA Rate Case Cycle 2024 GAAP Results 2025 vs. 2024 Non-GAAP* Results (in millions, except EPS) (in millions, except EPS) $1,200 $150 $2.50 $1,200 $128.2 $2.25 $2.15 $2.16 $1,050 $1,036.8 $1,000.1 $126.8 $1,000 $949.3 $125 $2.00 $900
Slide 9: Diluted EPS Bridge 2024 to 2025 Results
Diluted EPS Bridge 2024 to 2025 Results 2024 vs. 2025 Non-GAAP 2024* Diluted EPS to 2025 GAAP Diluted EPS Bridge $3.50 $3.50 $0.16 $3.25 $0.89 $3.00 -$0.27 $3.00 -$0.19 $2.50 -$0.18 $2.16 -$0.13 $2.15 $2.50 -$0.12 -$0.04 $2.00 -$0.13 $2.15 $2.00 $1.50 $1.50 $1.00 $0.50 $1.00 2024 GAAP $0.00 $0.50 20
Slide 10: Infrastructure Investment Improves Reliability and Sustainability, Powers Long-Term Earnings Growth
Infrastructure Investment Improves Reliability and Sustainability, Powers Long-Term Earnings Growth in capital investment outpaces depreciation (in millions) $800 Capital Investment Depreciation $760 2025-2027 TOTAL $690 CapEx $700 4x $600 $500 $471 $517 DEPRECIATION $400 $384 $328 $299 $293 $300 $2
Slide 11: Earnings Performance Driven Capital Investment/Rate Base Growth
Earnings Performance Driven Capital Investment/Rate Base Growth (in billions) Rate base estimated to reach over $3.3 billion by 2027 $4.00 $3.50 $3.35 $2.93 $3.00 $2.64 $2.50 $2.39 $2.20 $2.01 $2.00 $1.87 $1.61 $1.50 $1.24 $1.26 $1.00 $0.50 $0.00 2018 2019 2020 2021 2022 2023 2024 2025 2026* 2027* *
Slide 12: Additional Financial Highlights
Additional Financial Highlights Strategic M&A investment expected to At year-end, Company had $51.8M in Continue to maintain focus primarily on tuck-in acquisitions unrestricted cash and $45.6M in restricted Liquidity strong liquidity profile as Group progresses Nexus and BVRT cash; approximately $4
Slide 13: Acquisition Bolsters Our Position as Leader in Western U.S., Provides Platform for Additional Growth
Acquisition Bolsters Our Position as Leader in Western U.S., Provides Platform for Additional Growth Acquiring Nexus Water ~36,000 ~$109M Group’s operations in Total equivalent residential connections serving an Increased consolidated year-end 2025 rate base Nevada and Oregon estimated 115,000 peopl
Slide 14: Combined Company Highlights
Combined Company Highlights WA Nevada OR • 26,466 total equivalent residential connections: 19,919 water / 6,547 wastewater NV • 6 utility systems across three counties CA • Largest investor-owned water/wastewater utility in Nevada • Regulated by Public Utilities Commission of Nevada (PUCN) NM TX Or
Slide 15: Strategic Rationale
Strategic Rationale Geographic diversification into Nevada and Oregon enhances regulatory and financial balance Acquires rate-base-driven growth platform with customer growth and capex investment opportunities Both states operate under hybrid ratemaking frameworks, supporting ongoing infrastructure
Slide 16: Acquiring the remaining outstanding membership interests of BVRT in Texas
Acquiring the remaining outstanding membership interests of BVRT in Texas Group has entered into agreement to purchase remaining membership interests in BVRT 7 19,000+ BVRT-owned regulated Total connected & committed utilities in high-growth areas customers in 2025 Would become sole owner of 7 subsi
Slide 17: Proposed Decision on 2024 California General Rate Case Expected by the end of Q1
Proposed Decision on 2024 California General Rate Case Expected by the end of Q1 Key 2026 dates $1.6B Authorized 3.0% interim rate increase goes into effect Comments due from parties Extension deadline for final decision; Commissioners can vote as early as 30 days after Investment proposed in Cal Wa
Slide 18: Other Regulatory Updates
Other Regulatory Updates In November 2025, Hawaii Water filed a rate case with the Hawaii HI In September 2025, Washington Water filed a rate WA PUC for a $2.2 million annual revenue increase to recover higher case with the Washington Commission for a $4.9 million operating expenses and the cost of
Slide 19: Our Focus in 2026 and Beyond
Our Focus in 2026 and Beyond • Finalizing transactions and integrating new utilities in TX, NV, and OR • Implementing 2024 CA GRC, proactively pursuing rate relief in WA, NM, and HI, and preparing to file 2027 CA GRC • Pursuing growth opportunities in new high-growth areas • Continuing to invest in
Slide 20: Appendix
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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 Year Ended (in thousads, except per share amounts) 2025 2024 Reported GAAP Operating Revenue $1,000,140 $1,036,806 Adjustments: 2023 interim rate relief related to the 2021 California GRC recorded in 2024 — ($87,482) Adjusted Operating Revenue (non-GAAP)
California Water Service Group — Q4 2025 Earnings Presentation on 6ix