At a glance
California Water Service Group is worth $2.96B, about 22 times its fiscal 2025 earnings. Revenue grew 6.4% to $963.7M in fiscal 2025, with 13.3% kept as profit; over 5 years it has grown 6.7% a year. It pays a 2.8% dividend yield, raised every year for at least 9 years, and returned $308.4M to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned −1.7% over the past year with dividends reinvested and −2.9% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 22.8% in the 2020 crash (S&P 500: 33.7%) and 31.5% in the 2022 bear market (S&P 500: 24.5%).
The business in plain English
California Water Service Group is a holding company that owns water utilities, with seven operating subsidiaries serving about two million people. Most of its work is getting water from source to tap. It produces or buys water, then stores, treats, tests and delivers it to homes, businesses, industry, public agencies and irrigation users. It also supplies water for fire protection. In some areas it collects and treats wastewater, including treatment that allows water to be recycled.
Most of the business is in California. Cal Water, the original company, began operating in 1926. It serves about 500,000 customer connections (individual service hookups) in 20 separate districts. In 2025, California accounted for about 89% of the group's customer connections and 91.2% of its $963.7 million in operating revenue. Smaller regulated utilities operate in Washington, New Mexico, Hawaii and Texas.
Most revenue comes from regulated water bills. State utility commissions, such as the California Public Utilities Commission (CPUC), approve the rates. Rates are meant to cover operating costs, pay for new and replacement infrastructure, and give the company a chance to earn a fair return on the money it has invested. In 2025, residential customers supplied 58.9% of revenue, businesses 20%, multi-family residential customers 8.7%, public authorities 5.7% and industrial users 3.2%. Non-regulated work, such as running other water systems, reading meters, billing and leasing antenna sites, made up a small slice.
Price history
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CWT -1.7% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Residential | $567.3M | 58.9% |
| Business | $192.7M | 20% |
| Multiple residential | $84.0M | 8.7% |
| Public authorities | $54.7M | 5.7% |
| Industrial | $31.0M | 3.2% |
| Non-regulated revenue from contracts with customers | $18.4M | 1.9% |
| Contract operating and maintenance revenue | $13.7M | 1.4% |
| Other non-regulated revenue | $4.7M | 0.5% |
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was $331.2M, up 5.4% from a year earlier, and net income was $65.4M (+6.8%).
- For fiscal 2025, revenue was $963.7M (+6.4% year over year; +6.7% a year from FY2020 to FY2025) with a 13.3% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +6.7% good |
|---|---|
| Operating margin | 17.7% good |
| Return on equity (FY2025) | 7.6% weak |
| Return on assets (FY2025) | 2.3% weak |
| Net cash (cash minus debt) | $-1.60B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $697.6M | $96.8M | — |
| FY2021 | $765.7M | $101.1M | — |
| FY2022 | $772.6M | $96.0M | — |
| FY2023 | $790.3M | $51.9M | — |
| FY2024 | $905.6M | $190.8M | — |
| FY2025 | $963.7M | $128.2M | — |
Valuation snapshot
| Market value | $2.96B |
|---|---|
| P/E ratio | 21.9 |
| Dividend yield | 2.8% |
Rank among 1514 US companies
Market value at each year end
California Water Service Group’s market value went from $1.63B at the end of 2016 to $2.96B on Oct 28, 2026, up 82%; since the end of 2025 it is up 15%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $2.96B | +14.8% |
| 2025 | $2.58B | -4.2% |
| 2024 | $2.70B | -9.9% |
| 2023 | $2.99B | -10.0% |
| 2022 | $3.32B | -12.1% |
| 2021 | $3.78B | +40.4% |
| 2020 | $2.69B | +8.5% |
| 2019 | $2.48B | +8.4% |
| 2018 | $2.29B | +5.2% |
| 2017 | $2.18B | +33.9% |
| 2016 | $1.63B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| CWT price data to Oct 28, 2026 | +11.3% | -1.7% | +1.7% | -2.9% | +6.6% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +11.3% |
| 2025 | -1.8% |
| 2024 | -10.6% |
| 2023 | -12.8% |
| 2022 | -14.1% |
| 2021 | +35.0% |
| 2020 | +6.6% |
| 2019 | +9.9% |
| 2018 | +7.1% |
| 2017 | +36.4% |
| 2016 | +49.2% |
| 2015 | -2.6% |
| 2014 | +9.7% |
| 2013 | +29.7% |
| 2012 | +4.1% |
| 2011 | +1.3% |
| 2010 | +4.6% |
| 2009 | -18.2% |
| 2008 | +29.5% |
| 2007 | -5.5% |
| 2006 | +8.5% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 9.4% over that stretch · deepest drop along the way 30.9%, back to its old high 1.7 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 14.8% over that stretch · deepest drop along the way 22.8%, back to its old high 9.7 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 24.3% over that stretch · deepest drop along the way 31.5%, not recovered by the end of the data |
Insider activity
Form 4 filings from 2025-10-30 to 2026-10-30 (25 read): 0 open-market purchases and 2 sales ($211K).
| Date | Insider | Type | Value |
|---|---|---|---|
| Aug 13, 2026 | Thomas M Krummel Director | sell | $186K |
| Sep 1, 2026 | Lester A Snow Director | sell | $25K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 17.1% | Jun 30, 2025 |
| Vanguard Portfolio Management | 7.23% | Mar 31, 2026 |
| AMUNDI | 5.32% | Sep 30, 2026 |
| Vanguard Capital Management | 5.28% | Mar 31, 2026 |
| T. Rowe Price Investment Management, Inc. | 5% | Dec 31, 2024 |
ETFs with the most weight in CWT
| PSCU Invesco S&P SmallCap Utilities & Communication Services ETF | 4.29% |
| CGW Invesco S&P Global Water Index ETF | 2% |
| AQWA Global X Clean Water ETF | 1.73% |
| TMDV ProShares Russell U.S. Dividend Growers ETF | 1.71% |
| CSB VictoryShares US Small Cap High Dividend Volatility Wtd ETF | 1.66% |
| OSCV Opus Small Cap Value ETF | 1.46% |
| FIW First Trust Water ETF | 1.42% |
| SIXS ETC 6 Meridian Small Cap Equity ETF | 1.21% |
What could go wrong
- Waiting on California regulators for rate increases. Prices are set by state regulators. As of the February 27, 2026 annual report, California regulators had not ruled on Cal Water's rate request filed July 8, 2024. Delayed or smaller increases can cut earnings.
- Most of the business is in California. California produced 91.2% of 2025 revenue. Drought can shrink supplies and push customers to conserve, and a state economic slump or policy change would affect almost the whole company.
- Wildfire and property-damage lawsuits. Under a legal principle called inverse condemnation, a utility can owe damages when its normal operations are found to harm private property. Wildfires and landslides raise this exposure, and insurance may not cover every loss.
- Stricter rules on PFAS and other contaminants. PFAS are long-lasting man-made chemicals. The EPA set enforceable limits on them in drinking water in 2024, and the company expects more regulation. Tighter standards raise treatment costs, and falling short could bring lawsuits.
- Big spending needs, funded by debt and shares. Replacing aging pipes and plants needs steady borrowing and new stock. Debt was $1.68 billion as of June 30, 2026. Shares outstanding rose 17.5% between September 2021 and July 2026, diluting existing owners.
- Acquisitions may stall or disappoint. Acquiring water systems is part of the growth plan. Deals for Nexus Water Group's Nevada and Oregon utilities and the remaining stake in BVRT, pending at the February 2026 annual report, could stall or underdeliver.
Recent events
- Quarterly results released
- Other company announcement
- Other company announcement
- Quarterly results released
- Other company announcement
- Shareholder vote results
- Investor presentation or announcement
- Other company announcement
- Quarterly results released
- Other company announcement
For income and retirement investors
The company has raised its dividend at least nine years in a row, through fiscal 2025, and the streak may be longer. Dividends per share grew from $0.85 in 2020 to $1.24 in 2025, about 7.8% a year. The 2025 dividend took 57.6% of earnings, though in 2023 the $1.04 dividend exceeded earnings of $0.91 a share. The yield was 2.8% as of October 28, 2026. Buybacks were small ($8.5 million over 2021–2025, versus $299.9 million in dividends), and shares outstanding rose 17.5% from September 2021 to July 2026.
In downturns the shares have fallen hard. They dropped 30.9% from October 2007 to October 2008, then recovered within two months. They fell 22.8% in the 2020 COVID crash and took about 9.7 months to recover from the March low. A 31.5% slide from January to June 2022 had not been recovered as of October 28, 2026. Single stocks carry more risk than diversified funds.
Questions investors ask
How does California Water Service Group make money?
Mostly by selling water to about two million people at rates set by state regulators. Commissions such as the California Public Utilities Commission approve prices meant to cover costs, pay for infrastructure and allow a fair return on invested capital. In 2025, the company's $963.7 million of operating revenue came 58.9% from residential customers, 20% from businesses, 8.7% from multi-family residential customers, 5.7% from public authorities and 3.2% from industrial users. Non-regulated services, such as running other water systems and billing, added a small amount.
Does California Water Service Group raise its dividend every year?
Yes, in every year of SEC data available. Data covering fiscal 2016 through 2025 shows at least nine increases in a row, and the true streak may be longer. The regular dividend grew from $0.85 a share in 2020 to $1.24 in 2025, about 7.8% a year. The 2025 dividend took 57.6% of earnings. The yield was 2.8% as of October 28, 2026. Past increases do not guarantee future ones.
What are the biggest risks of owning CWT stock?
Regulation and geography top the list. The company can raise prices only when state commissions approve, and decisions can come late or below what it asked for. California supplied 91.2% of 2025 revenue, so drought, wildfires and state policy matter a great deal. Replacing aging infrastructure takes heavy spending: total debt was about $1.65 billion against $45.1 million of cash as of September 30, 2026. Shares outstanding also rose 17.1% between February 2022 and October 2026, which spreads earnings across more shares.
What is Cal Water's 2024 general rate case?
It is Cal Water's request to the California Public Utilities Commission for new rates, filed July 8, 2024. A general rate case is the regular process in which a regulated utility asks for prices that cover its costs and planned investment. In its annual report filed February 27, 2026, the company said the CPUC had not issued a final decision. It added that the delay had caused uncertainty and could cause volatility in its results. Because California provides most of the revenue, the outcome carries a lot of weight.
How has California Water Service Group stock performed?
Modestly over the long run and weakly over the past five years. Based on share price, the stock returned about 6.6% a year over 10 years. Over five years it lost about 2.9% a year, a 14% total decline. Both figures are as of October 28, 2026. It fell in every calendar year from 2022 through 2025 and was up 11.3% for 2026 through October 28. By that date it still had not regained its January 2022 peak. It traded at 21.9 times 2025 earnings.