California Water Service Group reports $65.41M net income for Q3 2026

Cover page 2 changes

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For the quarterly period ended June September 30, 2026

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As of July 20, October 19, 2026, there were 61,839,101 62,876,955 shares of the registrant s common stock outstanding.

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Financial statements 21 changes

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Customers, net 72,315 56,322

Other, net 48,327 49,004

Regulatory assets 334,709 339,865

Utility plant $ 6,182,880 6,297,996 $ 5,909,242

Less accumulated depreciation and amortization ( 1,371,706 1,367,753 ) ( 1,329,652 )

Net utility plant 4,811,174 4,930,243 4,579,590

Cash and cash equivalents 43,445 45,117 51,820

Restricted cash 45,697 45,834 45,553

Customers, net 80,740 56,322

Short-term regulatory assets 91,122 86,507 72,511

Other, net 37,202 49,004

Accrued and unbilled revenue, net 56,695 64,122 39,674

Materials and supplies 18,334 18,360 19,784

Taxes, prepaid expenses, and other assets 31,250 29,697 19,760

Total current assets 407,185 407,579 354,428

Regulatory assets 320,115 339,865

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Other 364,833 360,219

TOTAL ASSETS $ 5,954,964 $ 5,671,165

Other 379,373 360,219

Total other assets 736,605 736,551 737,147

TOTAL ASSETS $ 6,074,373 $ 5,671,165

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Capitalization 320 changes

Retained earnings 749,745 729,276

Common stock, $ 0.01 par value; 136,000 shares authorized, 61,839 62,877 and 59,638 outstanding on June September 30, 2026 and December 31, 2025, respectively

Additional paid-in capital 1,070,262 1,121,845 973,454

Retained earnings 794,184 729,276

Accumulated other comprehensive loss ( 13,152 12,768 ) ( 13,922 )

Noncontrolling interest 2,619 2,639 2,571

Total equity 1,810,092 1,906,529 1,691,975

Long-term debt, net 1,471,948 1,472,021 1,471,968

Total capitalization 3,282,040 3,378,550 3,163,943

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Accounts payable 201,432 175,729

Accrued interest 13,115 12,976

Regulatory liabilities 903,905 929,814

Current maturities of long-term debt, net 590 316 2,270

Short-term borrowings 205,000 175,000 130,000

Accounts payable 207,633 175,729

Short-term regulatory liabilities 94,248 89,889 25,458

Accrued other taxes 3,744 12,635 6,048

Accrued interest 23,309 12,976

Other accrued liabilities 62,541 66,068 65,683

Total current liabilities 580,670 574,850 418,164

Deferred income taxes 466,636 473,399 450,946

Regulatory liabilities 920,323 929,814

Pension 95,191 95,677 94,226

Advances for construction 211,191 213,334 210,638

Contributions in aid of construction 305,106 307,951 297,016

Other long-term liabilities 110,225 110,289 106,418

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TOTAL CAPITALIZATION AND LIABILITIES $ 5,954,964 6,074,373 $ 5,671,165

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Three Months Ended June 30, Six Months Ended June 30,

Operating revenue $ 308,596 $ 264,954 $ 523,169 $ 468,927

Water production costs 91,843 85,503 163,172 148,494

Administrative and general 36,221 33,317 69,907 67,491

Other operations 45,144 31,695 76,377 60,531

Maintenance 9,150 9,043 17,516 16,711

Depreciation and amortization 29,536 36,029 69,500 71,985

Income tax expense 13,872 6,915 13,946 7,950

Property and other taxes 11,931 10,643 23,688 21,611

Total operating expenses 237,697 213,145 434,106 394,773

Three Months Ended September 30, Nine Months Ended September 30,

Operating revenue $ 332,168 $ 311,235 $ 855,337 $ 780,162

Water production costs 102,103 102,703 265,275 251,197

Administrative and general 35,010 36,237 104,917 103,728

Other operations 37,512 33,455 113,889 93,986

Maintenance 9,428 9,812 26,944 26,523

Depreciation and amortization 34,708 36,118 104,208 108,103

Income tax expense 17,726 10,639 31,672 18,589

Property and other taxes 13,003 11,656 36,691 33,267

Total operating expenses 249,490 240,620 683,596 635,393

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Non-regulated revenue 6,241 4,911 11,462 9,992

Non-regulated expenses ( 3,579 ) ( 2,868 ) ( 9,036 ) ( 6,334 )

Other components of net periodic benefit credit 2,288 4,589 6,260 9,389

Net other income 5,319 6,778 9,743 13,287

Interest expense 20,809 17,464 40,428 33,973

Net interest expense 19,765 16,537 38,316 32,189

Non-regulated revenue 5,917 5,349 17,379 15,341

Non-regulated expenses ( 9,121 ) ( 2,456 ) ( 18,157 ) ( 8,790 )

Other components of net periodic benefit credit 3,010 4,548 9,270 13,937

Allowance for equity funds used during construction 2,085 1,898 4,164 3,695 2,478 2,145 6,642 5,840

Income tax expense on other income and expenses ( 1,716 612 ) ( 1,752 1,960 ) ( 3,107 3,719 ) ( 3,455 5,415 )

Net other income 1,672 7,626 11,415 20,913

Interest expense 20,170 18,113 60,598 52,086

Allowance for borrowed funds used during construction ( 1,044 1,216 ) ( 927 988 ) ( 2,112 3,328 ) ( 1,784 2,772 )

Net interest expense 18,954 17,125 57,270 49,314

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Basic $ 0.94 $ 0.71 $ 1.01 $ 0.93

Diluted $ 0.93 $ 0.71 $ 1.01 $ 0.93

Basic $ 1.05 $ 1.03 $ 2.07 $ 1.96

Diluted $ 1.05 $ 1.03 $ 2.07 $ 1.96

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Basic 60,357 59,574 60,030 59,542

Diluted 60,434 59,629 60,105 59,590

Basic 62,393 59,585 60,826 59,557

Diluted 62,502 59,653 60,913 59,615

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Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

Net income $ 65,396 $ 61,116 $ 125,886 $ 116,368

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Comprehensive income

Amortization of defined benefit pension plans, net of tax of $ 148 149 , $ 60 , $ 298 447 , and $ 120 180 , respectively

Other comprehensive income, net of tax 385 384 154 770 308 1,154 462

Comprehensive income 65,780 61,270 127,040 116,830

Comprehensive loss attributable to noncontrolling interest ( 12 ) ( 114 ) ( 24 ) ( 361 )

Comprehensive income attributable to California Water Service Group $ 65,792 $ 61,384 $ 127,064 $ 117,191

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Six Months Ended June 30,

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and 240 more changes in the filing

Forward-looking statements 133 changes

This quarterly report, including all documents incorporated by reference, contains forward-looking statements within the meaning established by the Private Securities Litigation Reform Act of 1995 (the PSLRA). The forward-looking statements are intended to qualify under provisions of the federal securities laws for safe harbor treatment established by the PSLRA. Forward-looking statements in this quarterly report are based on currently available information, expectations, estimates, assumptions and projections, and our management s beliefs, assumptions, judgments and expectations about us, the water utility industry and general economic conditions. These statements are not statements of historical fact. When used in our documents, statements that are not historical in nature, including words like will, would, expects, intends, plans, believes, may, could, estimates, assumes, anticipates, projects, progress, predicts, hopes, targets, forecasts, should, seeks, indicates, or variations of these words or similar expressions are intended to identify forward-looking statements. Examples of forward-looking statements in this quarterly report include, but are not limited to, statements describing our intention, indication or expectation regarding our financial performance, dividends or targeted payout ratio, our expectations, anticipations or beliefs regarding governmental, legislative, judicial, administrative or regulatory timelines, regulatory compliance, decisions, approvals, authorizations, requirements or other actions, the anticipated closing and timing of acquisition of Nexus Water Group s (Nexus) Nevada and Oregon systems, and the remaining membership interests in BVRT Utility Holding Company LLC (BVRT) and expected benefits resulting from such transactions, rate amounts, cost recovery or refunds, expected impact of certain per- and polyfluoroalkyl substances (PFAS) regulations, our expected or estimated revenue, our intentions regarding recovery billing, our expectations regarding regulatory asset and operating revenue recognition, estimates of, or expectations regarding, capital expenditures, funding needs or other capital requirements, obligations, contingencies or commitments, our expectations regarding water sources, our beliefs regarding adequacy of water supplies, our anticipation regarding renewing water supply contracts and estimated water prices, estimates and assumptions relating to our significant accounting policies, such as deferred revenue or assets or refund of advances, our expectations or assumptions regarding employee benefit plans and stock-based compensation and estimated contributions to our pension plans and other postretirement benefit plans, our estimated annual effective tax rate and expectations regarding tax benefits, our intentions regarding use of net proceeds from any future equity or debt issuances or borrowings, our ability to complete the issuance of the notes and bonds described in this report on the expected timing or at all, our expectations, intentions or anticipations regarding our sources of funding, capital structure, including authorized return on equity, cost of debt and rate of return, or capital allocation plans, our intentions regarding growth opportunities or our expectations regarding the amount, timing, and use of settlement proceeds relating to certain PFAS-contamination claims. The forward-looking statements are not guarantees of future performance. They are based on numerous assumptions that we believe are reasonable, but they are open to a wide range of uncertainties and business risks. Consequently, actual results or outcomes may vary materially from what is contained in a forward-looking statement.

Factors which may cause actual results or outcomes to be different than those expected or anticipated include, but are not limited to:

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the impact of stagnating or worsening business and economic conditions, including inflationary pressures, general economic slowdown or a recession, changes in tariff policy, the interest rate environment, changes in monetary policy, adverse capital markets activity or macroeconomic conditions as a result of geopolitical conflicts, including ongoing conflicts in Ukraine and the Middle East, and the prospect of shutdowns of the U.S. federal government;

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For the six nine months ended June September 30, 2026, there were no material changes in the methodology for computing critical accounting estimates, no additional accounting estimates met the standards for critical accounting policies, and there were no material changes to the important assumptions underlying the critical accounting estimates.

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Net income attributable to California Water Service Group for the six three months ended June September 30, 2026 was $60.5 $65.4 million or $1.01 $1.05 earnings per diluted common share, compared to net income of $55.5 $61.2 million or $0.93 $1.03 earnings per diluted common share for the six three months ended June September 30, 2025. The $5.0 $4.2 million increase in net income was due to an increase in operating revenue of $54.3 $21.0 million primarily as a result of the cumulative adjustment for the impacts of the 2024 CA GRC, retroactive due to January 1, 2026 and rate increases and new customers, partially offset by a decrease in customer usage. The operating revenue increase was partially offset by an increase in operating expenses of $39.3 $8.9 million. The operating expense increase was primarily due to increases in water production costs of $14.7 million, administrative and general expense of $2.4 million, other operations expense of $15.8 $4.1 million, and operating income tax expense of $6.0 $7.1 million, and property and other taxes of $1.3 million. These operating expense increases were partially offset by a decrease decreases in administrative and general expense of $1.2 million and depreciation and amortization expenses of $2.5 $1.4 million. Additionally, net other income decreased by $3.5 $6.0 million and net interest expense increased by $6.1 $1.8 million.

Net income attributable to California Water Service Group for the three nine months ended June September 30, 2026 was $56.5 $125.9 million or $0.93 $2.07 earnings per diluted common share, compared to net income of $42.2 $116.7 million or $0.71 $1.96 earnings per diluted common share for the three nine months ended June September 30, 2025. The $14.3 $9.2 million increase in net income was due to an increase in operating revenue of $43.6 $75.1 million primarily as a result of the cumulative adjustment for the impacts of California Water Service Company s (Cal Water) general rate case (GRC) filed on July 8, 2024 the 2024 CA GRC, retroactive to January 1, 2026, and rate increases and new customers, partially offset by a decrease in customer usage. The operating revenue increase was partially offset by an increase in operating expenses of $24.6 $48.2 million. The operating expense increase was primarily due to increases in water production costs of $6.3 million, administrative and general expense of $2.9 $14.1 million, other operations expense of $13.4 $19.9 million, and operating income tax expense of $7.0 $13.1 million and property and other taxes of $3.4 million. These operating expense increases were partially offset by a decrease in depreciation and amortization expenses of $6.5 $3.9 million. Additionally, net other income decreased by $1.5 $9.5 million and net interest expense increased by $3.2 $8.0 million.

For the three months ended June September 30, 2026, operating revenue increased $43.6 $21.0 million, or 16.5%, 6.7%, to $308.6 $332.2 million as compared to $265.0 $311.2 million for the three months ended June September 30, 2025.

For the six nine months ended June September 30, 2026, operating revenue increased $54.3 $75.1 million, or 11.6%, 9.6%, to $523.2 $855.3 million as compared to $468.9 $780.2 million for the six nine months ended June September 30, 2025.

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Three Months Ended June 30, Six Months Ended June 30,

Net change due to rate changes, Monterey-Style Water Revenue Adjustment Mechanism (M-WRAM), and other (1) $ 14,969 $ 29,505

Customer usage increase 4,098 890

Net operating revenue change $ 43,642 $ 54,242

Three Months Ended September 30, Nine Months Ended September 30,

Net change due to rate changes, new customers, and other (1) $ 25,940 $ 55,798

Interim Rates Memorandum Account (IRMA) revenue (2) 15,325 15,325 329 15,654

Customer usage decrease (4,410) (3,874)

Deferred revenue recognition (3) 9,250 8,522 (927) 7,596

Net operating revenue change $ 20,932 $ 75,174

1. The net change due to rate changes, M-WRAM, new customers, and other for the three months ended June September 30, 2026 was primarily due to rate increases and new customers of $11.6 $22.1 million and the recognition of Drought Response Memorandum Account (DREMA) related revenue of $3.9 million (see DREMA in Regulatory Matters below for more details). For the six nine months ended June September 30, 2026, the net change due to rate changes, M-WRAM, new customers, and other was primarily due to rate increases and new customers of $23.3 $51.9 million and an increase in accrued and unbilled the recognition of DREMA related revenue of $3.9 million.

2. Due to the delay in the resolution of the 2024 CA GRC, the CPUC authorized Cal Water to track in an IRMA the variances between actual customer billings and those that would have been billed assuming the 2024 CA GRC had been implemented on January 1, 2026. Such variances are recorded as regulatory balancing account revenue. The 2024 CA GRC was approved in April of 2026 and final rates for the 2024 CA GRC were not implemented as in the second half of June 30, 2026; as a result, Cal Water recorded IRMA revenue of $15.3 million in for the second quarter of 2026 of periods in which $9.2 million the 2024 CA GRC was attributable yet to the first quarter of 2026. be implemented.

3. Deferred revenue consists of amounts that are expected to be collected from customers beyond 24 months following the end of the accounting period in which the sales transaction occurred. Deferred revenue for the three and six nine months ended June September 30, 2026 decreased was recognized due to changes in the amount expected to be collected beyond 24 months. as new surcharges have been implemented to collect previously deferred balances.

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For the six months ended June 30, 2026, total operating expenses increased $39.3 million, or 10.0%, to $434.1 million, as compared to $394.8 million for the six months ended June 30, 2025.

For the three months ended June September 30, 2026, total operating expenses increased $24.6 $8.9 million, or 11.5%, 3.7%, to $237.7 $249.5 million, as compared to $213.1 $240.6 million for the three months ended June September 30, 2025.

For the nine months ended September 30, 2026, total operating expenses increased $48.2 million, or 7.6%, to $683.6 million, as compared to $635.4 million for the nine months ended September 30, 2025.

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Water production costs increased $6.3 decreased $0.6 million, or 7.4%, 0.6%, for the three months ended June September 30, 2026 as compared to the same period in 2025. primarily due to an increase in wholesale rates.

Water production costs increased $14.7 $14.1 million, or 9.9%, 5.6%, for the six nine months ended June September 30, 2026 as compared to the same period in 2025, primarily due to an increase in wholesale rates, partially offset by a decrease in customer usage.

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Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

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Purchased water $ 70,886 $ 67,225 $ 3,661 $ 124,155 $ 116,228 $ 7,927

Purchased power 13,993 11,895 2,098 24,057 20,205 3,852

Pump taxes 6,964 6,383 581 14,960 12,061 2,899

Total $ 91,843 $ 85,503 $ 6,340 $ 163,172 $ 148,494 $ 14,678

Purchased water $ 80,781 $ 81,872 $ (1,091) $ 204,936 $ 198,100 $ 6,836

Purchased power 17,318 15,142 2,176 41,375 35,347 6,028

Pump taxes 4,004 5,689 (1,685) 18,964 17,750 1,214

Total $ 102,103 $ 102,703 $ (600) $ 265,275 $ 251,197 $ 14,078

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Three Months Ended June 30, Six Months Ended June 30,

Well production 52 % 53 % 52 % 52 %

Purchased 42 % 41 % 41 % 43 %

Three Months Ended September 30, Nine Months Ended September 30,

Well production 51 % 52 % 51 % 52 %

Purchased 43 % 42 % 42 % 42 %

Surface 4 % 4 % 4 % 2 3 %

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Administrative and general expenses increased $2.4 decreased $1.2 million for the six three months ended June September 30, 2026 as compared to the same period in 2025. The increase decrease was primarily due to a $3.5 $1.0 million increase decrease in consulting services employee related costs and a $1.3 $0.6 million increase reduction related to the recovery of previously incurred Drought Memorandum Account (DRMA) costs (see DRMA in other general corporate expenses. Regulatory Matters below for more details). These increases decreases were partially offset by a $2.6 $0.5 million decrease increase in employee related costs. other general corporate expenses.

Administrative and general expenses increased $2.9 $1.2 million for the three nine months ended June September 30, 2026 as compared to the same period in 2025. The increase was primarily due to a $1.6 $3.5 million increase in consulting services and a $1.7 $1.8 million increase in other general corporate expenses. These increases were partially offset by a $3.4 million decrease in employee related costs and a $0.6 million reduction related to the recovery of previously incurred DRMA costs.

Other operations expenses increased $13.4 $4.1 million for the three months ended June September 30, 2026 as compared to the same period in 2025. The increase was primarily due to the recognition of $7.9 million of costs associated with recognized deferred revenue, an increase of $2.1 $2.8 million in conservation program expenses, an increase of $0.7 $1.7 million in miscellaneous office expenses, an increase in bad debt expense of $0.7 million, water transmission and distribution costs, and an increase of $0.6 $0.9 million in software miscellaneous office expenses. and an increase of $0.6 These increases were partially offset by a $2.3 million reduction related to the recovery of previously incurred PFAS Memorandum Account (PFAS MA) costs (see PFAS MA in labor expense. Regulatory Matters below for more details) and a $1.1 million reduction related to the recovery of previously incurred DRMA costs.

Other operations expenses increased $15.8 $19.9 million for the six nine months ended June September 30, 2026 as compared to the same period in 2025. The increase was primarily due to the recognition of $8.0 $8.1 million of costs associated with recognized deferred revenue, an increase of $2.6 $5.5 million in conservation program expenses, an increase of $1.3 $2.0 million in software expenses, water transmission and distribution costs, and an increase of $1.0 $1.5 million in labor expense. and an increase These increases were partially offset by a $2.3 million reduction related to the recovery of $0.5 previously incurred PFAS MA costs and a $1.1 million in water treatment expenses. reduction related to the recovery of previously incurred DRMA costs.

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Depreciation and amortization expense decreased $6.5 $1.4 million and $2.5 $3.9 million for the three and six nine months ended June September 30, 2026, respectively, as compared to the same periods in 2025. The decreases were primarily due to lower depreciation rates in California, which were approved in the 2024 CA GRC.

Operating Income Tax Expense

Operating income tax expense increased $7.0 $7.1 million and $6.0 $13.1 million for the three and six nine months ended June September 30, 2026, respectively, as compared to the same periods in 2025. The increases were primarily due to increases in the effective tax rate due to reductions in Tax Cuts and Jobs Act refunds of excess deferred federal income taxes and increases in pre-tax operating income, which primarily resulted from the 2024 CA GRC decision in the second quarter of 2026.

Property and Other Taxes

Property and other taxes increased $1.3 million and $3.4 million for the three and nine months ended September 30, 2026, respectively, as compared to the same periods in 2025. The increases were primarily due to utility plant placed in service in 2025.

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Net other income decreased $1.5 $6.0 million for the three months ended June September 30, 2026, as compared to the same period in 2025. The decrease was primarily due to a $2.3 $3.9 million reduction associated with our non-qualified benefit plan investment gains, a $1.5 million reduction in other components of net periodic benefit credit, and an increase of $1.4 million in acquisition-related expenses. These decreases in net other income were partially offset by a $1.5 million gain associated with our non-qualified benefit plan investments and a $0.6 million gain associated with our Company-owned life insurance.

Net other income decreased $3.5 $9.5 million for the six nine months ended June September 30, 2026, as compared to the same period in 2025. The decrease was primarily due to a $3.1 $4.7 million reduction in other components of net periodic benefit credit, and an increase of $2.7 $4.1 million in acquisition-related expenses These and a $3.0 million reduction associated with our non-qualified benefit plan investment gains. The decreases in net other income were partially offset by a $0.9 million gain associated with our non-qualified benefit plan investments and a $0.6 million gain associated with our Company-owned life insurance policies.

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Net interest expense increased $3.2 $1.8 million and $6.1 $8.0 million for the three and six nine months ended June September 30, 2026, respectively, as compared to the same periods in 2025. The increases were primarily due to higher average outstanding borrowings, partially offset by lower interest rates.

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The California Public Utilities Commission (CPUC) approved a decision on April 30, 2026 in the 2024 CA GRC (Decision 26-04-045) affecting its Cal Water s Class A districts in California (consisting of all regulated systems except Grand Oaks, a small Class D system). The decision marked the end of an extensive review of Cal Water s water system improvement plans, costs, and rates. The decision, as issued, adopts a revised version of the proposed decision issued on April 29, 2026, to change rates to increase 2026 revenues by approximately $90.5 million retroactive to January 1, 2026. It also potentially increases revenues by approximately $43.2 million for 2027 and $48.9 million for 2028, subject to the CPUC s earnings test and inflationary adjustments.

The decision authorizes Cal Water to invest approximately $1.45 billion from 2024 through 2027 to upgrade infrastructure, such as water quality projects to help protect customers from existing and newly regulated contaminants; pipes and other infrastructure to keep pumping and delivering water reliably; equipment to keep water flowing during power outages and shutoffs; cyber and physical security improvements to help protect employees, customers, and facilities; and water supply initiatives to secure long-term sustainability of water sources. It also authorizes up to $229 $229.0 million of infrastructure projects that may be submitted for recovery via the CPUC s advice letter process.

The decision also authorizes key revenue stabilization mechanisms, including continuation of the Monterey-Style Revenue Adjustment Mechanism (M-WRAM), a higher percentage of revenue collected in fixed charges, and a new reinstates the annual Sales Reconciliation Mechanism. In addition, it includes provisions that allow for recovery of certain costs through balancing accounts and other regulatory mechanisms designed to mitigate volatility in customer usage and uncertain costs.

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The 2024 CA GRC was approved in April of 2026 and rates based on the 2024 CA GRC were first implemented in most districts as of July 1, 2026; as a result, Cal Water calculated and recorded a net regulatory asset of $15.3 million and a corresponding increase to revenue for the difference between final rates and interim rates for the first six months of 2026. Cal Water also recorded a regulatory liability of $1.3 million and a corresponding increase to regulatory assets for Customer Assistance Program and Rate Support Fund program credits that would have been given to customers had the rate case been approved on time.

The IRMA will remain open until the true-up between interim rates and final rates is fully amortized through surcharges and/or credits on customer bills.

In March and May of 2026, Cal Water also submitted rate base offset advice letters requesting revenue increases of $1.5 million and $9.9 million, respectively, for additional capital projects completed in its Class A water systems. Cal Water implemented new rates incorporating all the items discussed above (GRC revenue increases and various offsets) on July 1, 2026 for most of its ratemaking areas, and expects to implement implemented new rates on August 1, 2026 and October 1, 2026 for a small subset of its ratemaking areas.

In June of 2025, Cal Water filed a motion requesting authority to increase rates by inflation on January 1, 2026 (interim rates) and for the establishment of an IRMA in the event the CPUC did not issue a final decision for the 2024 CA GRC in time for new rates to be implemented on January 1, 2026. In October of 2025, the CPUC granted Cal Water s motion for interim rates and the establishment of the IRMA. In November of 2025, Cal Water filed an advice letter implementing a three percent increase in interim rates for most districts, and creation of the IRMA, effective as of January 1, 2026. The IRMA tracks the difference between interim rates and the final rates that were approved pursuant to the CPUC s final decision on the 2024 CA GRC during the period in which final rates are yet to be implemented. The 2024 CA GRC was approved in April of 2026 and final rates based on the 2024 CA GRC were implemented in the second half of 2026.

In September of 2026, Cal Water submitted an advice letter requesting approval to recover a net $14.2 million tracked in the IRMA. The net balance included $15.7 million to be recovered for the difference between final rates and interim rates. This difference was recorded as a net regulatory asset with a corresponding change to revenue. The net recovery also included $1.5 million to be refunded for Rate Support Fund and Customer Assistance Program credits that would have been given to customers had the rate case been approved on time. This difference was recorded as a net regulatory liability and does not impact revenue. The advice letter was approved and the new surcharges/surcredits were implemented on October 1, 2026. The surcharges and surcredits are generally being billed/refunded over 12 months.

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In September of 2026, Cal Water submitted an advice letter to request offsets for increases in purchased water costs and pump taxes totaling $10.7 million. The new rates were implemented on October 1, 2026.

In June of 2026, Cal Water submitted an advice letter requesting surcharges to bill for the M-WRAM related undercollections for 2025 for its regulated districts with tiered residential rates. The advice letter was approved and $26.1 million is being recovered from customers in the form of 12- and 24-month surcharges. The new rates were implemented on July 1, 2026. These new surcharges are in addition to surcharges authorized in prior years which that have not yet expired.

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In May of 2026, Cal Water submitted an advice letter and was approved to amortize the CEBA, HCBA and PCBA from the 2021 CA GRC that tracked the difference between the costs authorized in customer rates and actual costs incurred for the period of 2023-2025. For the CEBA, $4.8 million is expected to be being refunded to customers in the form of one-time or 12-month surcredits as actual conservation program costs during 2023-2025 were lower than authorized costs in customer rates. For the HCBA, $4.2 million is expected to be being refunded to customers in the form of one-time or 12-month surcredits as actual employee and retiree medical costs during 2023-2025 were lower than authorized costs in customer rates. For the PCBA, $17.9 million is expected to be being refunded to customers in the form of one-time or 12-month surcredits as actual costs for employee pension benefits during 2023-2025 were lower than adopted costs in customer rates. The new credits for these accounts were implemented on July 1, 2026.

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In August of 2026, Cal Water was approved to recover $1.9 million of incremental drought-related costs incurred from January 2023 to August 2024 tracked in the DRMA. The new surcharges were implemented on October 1, 2026.

In August of 2026, Cal Water was approved to recover a net $3.9 million of revenue changes as a result of the activation of Rule 14.1 and Schedule 14.1 of Cal Water s Water Use Restrictions of its Water Shortage Contingency Plan for the period from January 2023 to August 2024. The new surcharges were implemented on October 1, 2026.

In September of 2026, the CPUC approved a decision adopting a settlement agreement related to the PFAS application that Cal Water submitted in June of 2025. Cal Water is authorized a total capital budget of $113.1 million, net of litigation settlement proceeds after deducting fees and expenses, for PFAS treatment projects in 2026 and 2027. Cal Water will be able to use the tier 2 advice letter process for recovery of these capital costs. The decision also authorized the amortization of incremental costs tracked in the PFAS MA of $2.5 million through December 31, 2024. The new surcharges are expected to be implemented on January 1, 2027.

Water Cost of Capital Mechanism (WCCM)

The WCCM automatically adjusts the rate of return when the Moody s Utilities Bond Index fluctuates between cost of capital applications. In October of 2026, Cal Water evaluated the WCCM for 2027 and determined that it was not triggered. Since the WCCM was not triggered, there will be no change to Cal Water s 10.27% return on equity for 2027.

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Washington Water Service Company (Washington Water) 2025 East Pierce and Legacy Water Systems General Rate Case GRC

On In September 25, of 2025, Washington Water filed a tariff update with the Washington Utilities and Transportation Commission (UTC) for the East Pierce and Legacy water systems to increase revenues by $4.9 million. The general rate increase includes recovery of expenses and capital expenditures. A settlement with UTC staff and the Washington Public Counsel was reached and filed before the UTC In May the third quarter of 2026, a final decision is expected to be implemented in the second half was issued authorizing a revenue increase of $4.1 million. The new base rates were effective on October 1, 2026.

Hawaii Water Service Company (Hawaii Water) 2025 Kapalua General Rate Case GRC and 2026 Request for Water Production Regulatory Asset

In November of 2025, Hawaii Water filed a rate case with the State of Hawaii Public Utilities Commission (HPUC) to increase revenue in its Kapalua water and wastewater systems by $2.2 million. The request seeks to recover increases in purchased water costs, higher operating expenses, and the cost of completed capital investments. In October of 2026, a final decision was issued to increase water and wastewater revenues by a combined $1.9 million. The new rates if approved, are expected to be were effective in the fourth quarter of on October 21, 2026.

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Texas Water Service Company

Hawaii Water 2026 Kona Water GRC

In August of 2026, Hawaii Water filed a GRC with the HPUC requesting an annual revenue increase of $2.7 million for its Kukio water and wastewater systems. The request seeks to recover costs of capital investment, inflation and overall cost increases since the prior GRC.

TWSC, Inc. (Texas Water) 2024 GRC

In June of 2024, BVRT filed a general rate case GRC for 5 utilities with the Public Utility Commission of Texas (PUCT). Consumer advocates reviewed the filing and filed their submitted reports in April and May of 2025, and BVRT filed a its rebuttal testimony in June of 2025. A comprehensive settlement was reached and The initial phase of the new interim rates was implemented on July 25, 2025, and the second phase of the interim rates was implemented on October 1, 2026. Subsequently, a comprehensive settlement agreement was reached, establishing the framework for the final rates. The final PUCT approval of the settlement agreement is pending.

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and 53 more changes in the filing

Controls and procedures 2 changes

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Our management, with the participation of our Chief Executive Officer and our Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of June September 30, 2026. Based on that evaluation, our management, including our Chief Executive Officer and Chief Financial Officer, have concluded that our disclosure controls and procedures were effective at the reasonable assurance level.

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There have been no changes in our internal control over financial reporting during the second third quarter of 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Risk factors 6 changes

Except as disclosed below, there have been no material changes to the Company s risk factors set forth in Part I, Item 1A of the 2025 Annual Report on Form 10-K.

Settlement provisions contained in our forward sale agreements subject us to certain risks.

We have entered into forward sale agreements with certain forward purchasers. Each forward purchaser has the right to accelerate the forward sale agreement to which it is a party with respect to all or a portion of the transaction underlying such forward sale agreement and require us to physically settle shares of common stock on a date specified by such forward purchaser under specified conditions. A forward purchaser s decision to exercise its right to accelerate settlement will be made irrespective of our interests, including our need for capital, and the issuance of shares would result in dilution to our earnings per share.

The forward price we expect to receive upon physical settlement will be subject to adjustment on a daily basis based on a specified floating interest rate factor less a spread. If the specified floating interest rate factor is less than the applicable spread on any day, the interest rate factor will result in a daily reduction of the forward price. In addition, the forward price will be subject to decrease on certain dates by the amount per share of dividends we expect to declare on our common stock during the term of such forward sale agreement.

Except under certain circumstances and conditions, we will generally have the right, in lieu of physical settlement, to elect cash or net share settlement in respect of any or all of the shares subject to a forward sale agreement. If we elect to cash or net share settle, we expect the relevant forward purchaser or one of its affiliates to purchase shares of our common stock in secondary market transactions to unwind its hedge. If the price of our common stock at which these purchases are made exceeds the applicable forward price, we will either pay the forward purchaser an amount in cash equal to such difference or deliver to the forward purchaser a number of shares having a market value equal to such difference, and any such difference could be significant. In addition, these purchases could cause the price of our common stock to increase above the price that would have prevailed in the absence of those purchases (or prevent a decrease in such price), thereby increasing the amount of cash or the number of shares that we may owe such forward purchaser upon settlement.

If we file for or consent to bankruptcy or insolvency proceedings, or a petition is presented for our winding-up or liquidation, any forward sale agreement that is then in effect will automatically terminate and we would not receive the forward price per share in respect of any shares of our common stock not previously settled under such forward agreement.

Exhibits 5 changes

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10.1 Forward Sale Agreement, dated August 25, 2026, between C alifornia Water Service Group and Robert W. Baird & Co. Incorporated, in its capacity as a Forward Purchaser

10.2 Forward Sale Agreement, dated Au gust 28 , 2026, between California Water Service Group and Morgan Stanley & Co. LLC, in its capacity as a Forward Purchaser

10.3 Forward Sale Agreement, dated September 2, 2026, between California Water Service Group and Wells Fargo Bank, National Association, in its capacity as a Forward Purchaser

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Pursuant to the requirement requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

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July 30, October 29, 2026 By: /s/ James P. Lynch

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