Short answer
CALIFORNIA WATER SERVICE GROUP (CWT) filed its fiscal 2025 10-K annual report with the SEC on Feb 27, 2026. It reported revenue of $964M (+6.4% year over year) and net income of $128M.
- Top risk flagged: Regulatory risk: CPUC delay on 2024 California General Rate Case (GRC) decision causing financial and operational uncertainty
FY2025 key financial metrics · XBRL
- Revenue
- $964M
- +6.4% YoY
- Net income
- $128M
- −32.8% YoY
- Operating margin
- 17.7%
- −7.2 pp YoY
- EPS (diluted)
- $2.15
- −33.8% YoY
- ROE
- 7.6%
- −4.1 pp YoY
- Operating cash flow
- $303M
- +4.0% YoY
Source: XBRL data from the CALIFORNIA WATER SERVICE GROUP (CWT) FY2025 10-K on SEC EDGAR. USD.
CALIFORNIA WATER SERVICE GROUP FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business: Regulated water utility services funded partly by developer-funded construction projects
- New emphasis: Developer-funded construction expenditures with refundable advances over 40 years
- Strategic shift: Increase in long-term debt ratio to 46.5% from 40.3%, equity ratio down to 53.5% from 59.7%
- Quantitative metric: Construction work in progress stable around $260 million, return on average equity declined to 7.7% from 12.5%
- Noteworthy: Acquisition agreement in November 2025 for remaining BVRT membership interests at $45 million, pending approvals
Management Discussion & Analysis
- Revenue $1,000.1M in 2025, down $36.7M (-3.5%) YoY from $1,036.8M in 2024 due to lower customer usage and absence of 2024 IRMA revenue
- Operating expenses increased $18.0M driven by water production costs +$11.5M (38.8% of total costs), administrative expenses +$2.1M, other ops +$11.6M, depreciation +$12.5M, offset by income tax expense down $24.7M
- Net income $128.2M in 2025, down $62.6M (33%) from $190.8M in 2024; EPS $2.15 vs $3.25 prior year
- Best segment: Water production costs $322.2M, up 3.7%, with purchased water expenses +$11.7M driven by 6.9% rate increase; worst segment: absence of $88.6M IRMA revenue impact in 2025
- Net interest expense $66.5M up $9.1M (15.9%), driven by higher borrowings; no direct cash flow or capital allocation figures disclosed in text
- Management highlights regulatory risks with 2021 CA GRC impacts; no direct forward guidance provided but notes potential cost pressure from climate change regulations on power costs and ongoing regulatory rate recovery mechanisms
Risk Factors
- Regulatory risk: CPUC delay on 2024 California General Rate Case (GRC) decision causing financial and operational uncertainty
- Geopolitical/macroeconomic risk: Assembly Bill 367 in California requires backup energy and emergency plans for fire suppression starting 7/1/2030 in Ventura County
- Operational risk: Accelerated land movement in Rancho Dominguez District causing infrastructure damage and inverse condemnation lawsuits
- Competitive risk: EPA’s finalized PFAS maximum contaminant levels (MCLs) require $269.1 million capital investment for treatment by 2029 compliance deadline
- Financial risk: CPUC may deny recovery of inverse condemnation damage awards, exposing Cal Water to unrecoverable liabilities
Generated from the filing text; verify against the original. How to read a 10-K
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