Cal Water (CWT) Q4 2025 Earnings Call Transcript
The Motley Fool
by newsfeedback@fool.com (Motley Fool Transcribing)February 26, 2026
AI-Generated Deep Dive Summary
Cal Water (CWT) reported stable full-year earnings per share for 2025 despite challenges in Q4, where net income fell significantly due to weather-related declines in demand. The company’s revenue reached $1 billion for the year, marking a 5.4% increase over 2024. However, Q4 saw a $14.6 million drop in consumption driven by wet and cold conditions, leading to reduced earnings. Despite this, Cal Water demonstrated strong financial management with record-breaking capital expenditures of $517 million, up 19.8% from the previous year, including $235 million projected for PFAS-related investments.
The company made strategic moves in Q4, acquiring Nexus Water’s Nevada and Oregon operations and securing full ownership of its Texas utilities through the acquisition of BVRT Holdings’ minority interest. These deals expanded Cal Water’s geographic presence and regulatory footprint. Additionally, the company announced a 10.7% increase in its annual dividend for 2025 and an additional 8% boost for 2026, marking its 324th consecutive quarterly dividend payment. This consistent growth underscores Cal Water’s commitment to shareholder returns.
Cal Water also highlighted challenges, including affordability concerns and regulatory scrutiny over rate-setting. The company’s interim rate increase in California was implemented after delays, and management emphasized the need for careful cost recovery strategies. Despite these hurdles, Cal Water maintained strong liquidity, with $51.8 million in unrestricted cash, $45.6 million in restricted cash, and significant credit line availability.
The company’s performance reflects its focus on infrastructure expansion, customer growth, and strategic acquisitions. With over 19,000 committed customers in Texas alone and potential long-term opportunities, Cal Water is positioning itself for sustained growth. However, the risks of weather-related revenue fluctuations and regulatory pressures remain critical considerations for investors.
This earnings call underscores Cal Water’s ability to navigate financial challenges while investing heavily in its future through capital expenditures and acquisitions. For investors, this highlights the company’s stability, growth potential, and commitment to delivering returns despite external factors.
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Originally published on The Motley Fool on 2/26/2026