CWT earnings analysis
What we found in CWT's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
California Water Service Group (CWT) reported Q1 2026 earnings with revenues of $214.6 million, slightly above the estimate of $211.7 million, but significantly missed EPS expectations at $0.07 compared to the forecasted $0.24. This quarter reflects a decrease in net income driven by rising operational costs, highlighting challenges in customer usage and water production costs.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Exceeds Expectations
- Q1 2026 revenue reached $214.6 million, exceeding the estimate of $211.7 million.
- Earnings Miss Estimates
- Diluted EPS was reported at $0.07, falling short of the consensus estimate of $0.24.
- Operating Expenses Increased
- Total operating expenses rose to $196.4 million, an increase of 8.1% year-over-year.
- 5.2% Revenue Growth YoY
- Operating revenue increased by $10.6 million, or 5.2%, compared to $204.0 million in Q1 2025.
- Capital Expenditures Increased
- Cash used for capital expenditures was $129.5 million, up from $110.1 million in the same quarter last year.
- Positive Cash Flow from Operations
- Generated cash flow from operations of $49.4 million, up from $38.4 million in Q1 2025.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Rising Operating Costs
- Total operating expenses increased by $14.8 million, largely due to higher water production costs.
- Regulatory Uncertainty
- Ongoing discussion regarding the approval of rate increases poses a risk to future revenue.
- Declining Customer Usage
- Decreased customer usage led to a negative impact on revenue despite rate increases.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.07
What they said about what is next.
No changes were made to forward guidance.
The filing reads about the same as the one before it.
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
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