cwt-20250930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 1-13883

CALIFORNIA WATER SERVICE GROUP

(Exact name of registrant as specified in its charter)


Delaware						77-0448994
(State or other jurisdiction						(I.R.S. Employer Identification No.)
of incorporation or organization)

1720 North First Street

San Jose, California 95112

(Address of principal executive offices)

408-367-8200

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class:

Trading Symbol(s)

Name of Each Exchange on Which Registered:

Common Stock, $0.01 par value per share

CWT

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ý No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in rule 12b-2 of the Exchange Act) Yes ☐ No ☒

As of October 20, 2025, there were 59,591,341 shares of the registrant’s common stock outstanding.

Table of Contents

TABLE OF CONTENTS


		Page
PART I	Financial Information	3
Item 1.	Financial Statements	3
	Condensed Consolidated Balance Sheets (unaudited) as of September 30, 2025 and December 31, 2024	3
	Condensed Consolidated Statements of Operations (unaudited) For the Three and Nine Months Ended September 30, 2025 and 2024	5
	Condensed Consolidated Statements of Comprehensive Income (unaudited) For the Three and Nine Months Ended Septem ber 30, 2025 and 2024	6
	Condensed Consolidated Statements of Cash Flows (unaudited) For the Nine Months Ended September 30, 2025 and 2024	7
	Notes to Unaudited Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosure about Market Risk	35
Item 4.	Controls and Procedures	35

PART II	Other Information	36
Item 1.	Legal Proceedings	36
Item 1A.	Risk Factors	36
Item 5.	Other Information	36
Item 6.	Exhibits	36
	Signature	37

Table of Contents

PART I—FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

The condensed consolidated financial statements presented in this filing on Form 10-Q have been prepared by management and are unaudited.

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATED BALANCE SHEETS

Unaudited (In thousands, except par value)


	September 30, 2025		December 31, 2024
ASSETS
Utility plant:
Utility plant	$	5,762,800	$	5,400,489
Less accumulated depreciation and amortization	(1,318,798)		(1,241,785)
Net utility plant	4,444,002		4,158,704
Current assets:
Cash and cash equivalents	75,990		50,121
Restricted cash	45,620		45,566
Receivables:
Customers, net	79,986		58,585
Regulatory balancing accounts	74,028		55,917
Other, net	19,418		33,976
Accrued and unbilled revenue, net	61,654		39,718
Materials and supplies	20,069		20,511
Taxes, prepaid expenses, and other assets	22,547		19,742
Total current assets	399,312		324,136
Other assets:
Regulatory assets	326,519		357,406
Goodwill	37,063		37,063
Other	312,521		302,974
Total other assets	676,103		697,443
TOTAL ASSETS	$	5,519,417	$	5,180,283

See Accompanying Notes to Unaudited Condensed Consolidated Financial Statements

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CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATED BALANCE SHEETS

Unaudited (In thousands, except par value)


	September 30, 2025		December 31, 2024
CAPITALIZATION AND LIABILITIES
Capitalization:
Common stock, $0.01 par value; 136,000 shares authorized, 59,591 and 59,484 outstanding on September 30, 2025 and December 31, 2024, respectively	$	596	$	595
Additional paid-in capital	970,960		966,975
Retained earnings	735,673		674,918
Accumulated other comprehensive loss	(6,755)		(7,217)
Noncontrolling interest	2,421		3,015
Total equity	1,702,895		1,638,286
Long-term debt, net	1,103,819		1,104,571
Total capitalization	2,806,714		2,742,857
Current liabilities:
Current maturities of long-term debt, net	72,490		72,422
Short-term borrowings	345,000		205,000
Accounts payable	188,176		167,533
Regulatory balancing accounts	23,443		22,648
Accrued other taxes	17,886		6,084
Accrued interest	19,478		8,406
Other accrued liabilities	63,446		56,271
Total current liabilities	729,919		538,364
Deferred income taxes	407,562		411,083
Regulatory liabilities	870,620		814,551
Pension	82,427		81,665
Advances for construction	210,412		202,614
Contributions in aid of construction	295,649		294,970
Other	116,114		94,179
Commitments and contingencies (Note 9)
TOTAL CAPITALIZATION AND LIABILITIES	$	5,519,417	$	5,180,283

See Accompanying Notes to Unaudited Condensed Consolidated Financial Statements

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CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited (In thousands, except per share data)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Operating revenue	$	311,235	$	299,563	$	780,162	$	814,611
Operating expenses:
Operations:
Water production costs	102,703		95,091		251,197		236,920
Administrative and general	36,237		35,453		103,728		103,091
Other operations	33,455		33,618		93,986		86,169
Maintenance	9,812		9,264		26,523		26,064
Depreciation and amortization	36,118		33,065		108,103		98,887
Income taxes	10,639		15,483		18,589		39,710
Property and other taxes	11,656		10,841		33,267		30,962
Total operating expenses	240,620		232,815		635,393		621,803
Net operating income	70,615		66,748		144,769		192,808
Other income and expenses:
Non-regulated revenue	5,349		4,133		15,341		14,744
Non-regulated expenses	(2,456)		(934)		(8,790)		(7,013)
Other components of net periodic benefit credit	4,548		4,451		13,937		12,062
Allowance for equity funds used during construction	2,145		1,691		5,840		5,252
Income taxes on other income and expenses	(1,960)		(1,939)		(5,415)		(4,566)
Net other income	7,626		7,402		20,913		20,479
Interest expense:
Interest expense	18,113		14,384		52,086		45,024
Allowance for borrowed funds used during construction	(988)		(788)		(2,772)		(2,358)
Net interest expense	17,125		13,596		49,314		42,666
Net income	61,116		60,554		116,368		170,621
Net loss attributable to noncontrolling interest	(114)		(126)		(361)		(527)
Net income attributable to California Water Service Group	$	61,230	$	60,680	$	116,729	$	171,148
Earnings per share:
Basic	$	1.03	$	1.03	$	1.96	$	2.93
Diluted	$	1.03	$	1.03	$	1.96	$	2.93
Weighted average shares outstanding:
Basic	59,585		58,931		59,557		58,321
Diluted	59,653		58,982		59,615		58,358

See Accompanying Notes to Unaudited Condensed Consolidated Financial Statements

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CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Unaudited (In thousands)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Net income	$	61,116	$	60,554	$	116,368	$	170,621
Other comprehensive income (loss):
Unrecoverable pension benefit plan costs, net of tax of $0, $3,823, $0, and $3,823, respectively	—		3,823		—		(9,840)
Amortization of defined benefit pension plans, net of tax of $60, $250, $180, and $250, respectively	154		48		462		643
Other comprehensive income (loss), net of tax	154		3,871		462		(9,197)
Comprehensive income	61,270		64,425		116,830		161,424
Comprehensive loss attributable to noncontrolling interest	(114)		(126)		(361)		(527)
Comprehensive income attributable to California Water Service Group	$	61,384	$	64,551	$	117,191	$	161,951

See Accompanying Notes to Unaudited Condensed Consolidated Financial Statements

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CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Unaudited (In thousands)


	Nine Months Ended September 30,
	2025		2024
Operating activities:
Net income	$	116,368	$	170,621
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	109,725		100,541
Change in value of life insurance contracts	(3,099)		(4,921)
Allowance for equity funds used during construction	(5,840)		(5,252)
Changes in operating assets and liabilities:
Receivables and accrued and unbilled revenue	(33,493)		(64,252)
Water Arrearages Payment Program cash received	—		83,

SEC Form 10-Q filed by California Water Service Group