The CPUC final decision on the 2024 CA GRC tomorrow (April 30) is the dominant catalyst — approval as revised would add ~$90.5M to 2026 revenue, a 10.9% increase. The weak Q1 EPS is backward-looking and largely expected given the GRC delay. Watch for the final decision language on revenue stabilization mechanisms and any modifications to the revised PD. The Nexus acquisition adds long-term growth optionality but is secondary to the regulatory outcome.
Price Chart
Executive Summary
CWT reported Q1 2026 EPS of $0.07, a 68% decline from $0.22 in Q1 2025, and a 70% miss vs the $0.23 consensus. Revenue rose 5.2% to $214.6M, but net income fell 70% to $4.0M due to higher water production costs, depreciation, and interest expense. The stock's reaction will be dominated by the CPUC's expected final decision on the 2024 CA GRC on April 30, which authorizes $90.5M in 2026 revenue increases — a material positive that partially offsets the weak quarter.
Key Financial Metrics
Key Facts
- Q1 2026 EPS $0.07 vs consensus $0.23 (miss of -69.6%) and vs $0.22 in Q1 2025
- Q1 2026 revenue $214.6M vs consensus $210.3M (beat of +2.0%) and vs $204.0M in Q1 2025 (+5.2% YoY)
- Net income fell to $4.0M from $13.3M YoY, a 70% decline
- CPUC revised PD authorizes $90.5M revenue increase in 2026 (+10.9%), plus $43.2M in 2027 and $48.9M in 2028
- Final CPUC decision expected April 30, 2026; Q1 results exclude any GRC benefit
- Company announced $218M acquisition of Nexus Water Group systems in Nevada and Oregon (~36,000 customer equivalents)
- Dividend increased 8% to $1.34 annualized; 325th consecutive quarterly dividend
- Infrastructure investment of $129.4M in Q1 2026, up from $110.1M in Q1 2025
Financial Impact
EPS miss of -$0.16 vs consensus; revenue beat of +$4.3M; pending $90.5M annual revenue increase from GRC
Risk Factors
- CPUC final decision may modify the revised PD, reducing authorized revenue increases
- Water production costs rose 13.2% YoY, pressuring margins if not fully recovered through rates
- Short-term borrowings increased to $230M from $130M at year-end 2025, indicating higher leverage
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3284398 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 30, 2026 9w ago | Press Release | $50.50 $50.09 | ▼ −0.81% | ▼ −4.78% | $45.96 (−8.99%) |
Jun 16, 2026 15w ago | Court Ruling | $45.45 $50.01 | ▲ +10.03% | ▲ +9.83% | $45.96 (+1.12%) |
May 27, 2026 18w ago | Insider Cluster | $43.82 $49.08 | ▲ +12.00% | ▲ +15.15% | $45.96 (+4.88%) |
May 20, 2026 19w ago | 8-K | $43.21 $45.29 | ▲ +4.81% | ▲ +4.48% | $45.96 (+6.36%) |
May 1, 2026 22w ago | 424B5 | $42.72 $43.86 | ▲ +2.67% | ▼ −2.97% | $45.96 (+7.59%) |
May 1, 2026 22w ago | 8-K | $42.03 $43.86 | ▲ +4.35% | ▼ −0.94% | $45.96 (+9.34%) |
Apr 30, 2026 22w ago | 8-K | $41.91 $45.10 | ▲ +7.60% | ▲ +2.37% | $45.96 (+9.65%) |
Apr 30, 2026 22w ago | Press Release | $41.91 $45.10 | ▲ +7.60% | ▲ +2.37% | $45.96 (+9.65%) |
Mar 20, 2026 28w ago | Insider Cluster | $43.57 $46.85 | ▲ +7.52% | ▼ −1.79% | $45.96 (+5.48%) |
Mar 18, 2026 28w ago | 8-K | $42.94 $44.81 | ▲ +4.36% | ▼ −1.68% | $45.96 (+7.04%) |
US Market Status
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