California Water Service Acquires Nexus Water for $218 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 25 2026
0mins
Should l Buy CWT?
California Water Service announced that it has reached an agreement to purchase Nexus Water Group's Nevada and Oregon water and wastewater systems, adding approximately 36,000 equivalent residential connections and a combined rate base of approximately $109M at December 31, 2025. "This is a great way to kick off our centennial year. We started out serving four small California communities in 1926, and with this acquisition, we will serve roughly two million people through approximately 584,000 service connections in seven western states. We look forward to completing the transaction and integrating the systems in a way that provides opportunities for employees and excellent service to customers," said chairman and CEO Martin Kropelnicki. The purchase price of approximately $218M which is subject to typical closing adjustments, will be funded with working capital and existing debt and equity facilities. The company expects to complete the transaction by the end of 2026.
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Analyst Views on CWT
Wall Street analysts forecast CWT stock price to rise
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 45.780
Low
51.00
Averages
51.00
High
51.00
Current: 45.780
Low
51.00
Averages
51.00
High
51.00
About CWT
California Water Service Group is a holding company that provides water utility and other related services in California, Washington, New Mexico, Hawaii and Texas through its subsidiaries. Its business is conducted through its operating subsidiaries and provides utility services. Its business consists of the production, purchase, storage, treatment, testing, distribution, and sale of water for domestic, industrial, public, and irrigation uses, and the provision of domestic and municipal fire protection services. It provides wastewater collection and treatment services, including treatment which allows water recycling. It also provides non-regulated water-related services under agreements with municipalities and other private companies. The non-regulated services include full water system operation, meter reading, and billing services. Non-regulated operations also include the lease of communication antenna sites, lab services and promotion of other non-regulated services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Dividend Growth: The company announced a 10.7% dividend increase for 2025, with an additional 8.1% planned for 2026, marking the 59th consecutive year of dividend increases, reflecting strong cash flow and commitment to shareholder returns.
See More
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See More
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- Revenue Decline: The company's Q4 revenue of $219.98 million represents a 1.0% year-over-year decrease, falling short of market expectations by $19.12 million, reflecting challenges in the water utility sector and demand fluctuations.
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- Quant Rating Insights: Seeking Alpha's Quant Rating on California Water Service indicates a cautious market outlook on its future performance, which may influence stock price movements and investor decisions.
See More
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- Firefighter Grant Program: The company allocated $186,000 through its 2025 Firefighter Grant Program to nine fire departments, demonstrating its commitment to community safety and strengthening partnerships with local emergency services.
- Educational Support Initiatives: California Water Service Group provided $80,000 in scholarships to 13 students pursuing higher education, facilitating their academic journeys and furthering community educational development.
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See More
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- Corporate Responsibility Commitment: The company emphasizes enhancing quality of life for customers and communities by investing in water infrastructure and sustainability initiatives, reflecting its strong commitment to social responsibility.
- Service Coverage: As the largest regulated water utility in the western United States, California Water Service serves over 2.1 million people across California, Hawaii, New Mexico, Washington, and Texas, showcasing its leadership in the water sector.
- Centennial Service Celebration: This year marks the 100th anniversary of California Water Service, highlighting its long-standing commitment to water service and contributions to the community.
See More
