CALIFORNIA WATER SERVICE GROUP has recently released its 10-Q report. Through its subsidiaries, the company provides regulated water utility services in California, Washington, New Mexico, Hawaii, and Texas, serving about 500,000 customer connections across 20 districts. It also provides non-regulated water-related services, including system operations, meter reading, billing, recycled water distribution, antenna-site leasing, and wastewater collection and treatment, and it was founded in 1926 and is based in San Jose, California.
Item 2 shows a quarter and half-year period shaped by rate relief, higher water costs, and a delayed California rate case. For the three months ended June 30, 2026, net income attributable to California Water Service Group rose to $56.5 million, or $0.93 per diluted share, from $42.2 million, or $0.71, a year earlier; for the six months, net income increased to $60.5 million, or $1.01 per diluted share, from $55.5 million, or $0.93. Operating revenue climbed 16.5% in the quarter to $308.6 million and 11.6% in the first half to $523.2 million, driven mainly by rate increases, a $15.3 million interim rates memorandum account revenue item in the quarter, and deferred revenue recognition.
Operating expenses also moved higher. Total operating expenses increased 11.5% in the quarter to $237.7 million and 10.0% in the six months to $434.1 million. Water production costs rose to $91.8 million in the quarter from $85.5 million, with purchased water at $70.9 million, purchased power at $14.0 million, and pump taxes at $7.0 million; for the six months, water production costs reached $163.2 million, up from $148.5 million.
The revenue mix in the quarter included $15.0 million from rate changes, Monterey-Style Water Revenue Adjustment Mechanism activity, and other items; $15.3 million from IRMA revenue; $4.1 million from higher customer usage; and $9.3 million from deferred revenue recognition. For the six months, those same categories contributed $29.5 million, $15.3 million, $0.9 million, and $8.5 million, respectively. On the cost side, the company said the higher water production expense was primarily tied to wholesale rates. As a result of these announcements, the company's shares have moved -1.56% on the market, and are now trading at a price of $50.925. Check out the company's full 10-Q submission here.
