H2O America Earnings Call Transcripts
Fiscal Year 2026
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Q1 2026 EPS met guidance, with net income up 15% year-over-year but flat EPS due to higher share count. A $700M equity raise funds acquisitions and CapEx through 2027, while robust infrastructure investment and regulatory progress support long-term growth and affordability.
Fiscal Year 2025
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Reported strong 2025 results with adjusted EPS of $2.99, record CapEx, and a 31% increase in the five-year CapEx plan. Raised long-term EPS growth target to 6–8% CAGR, with Quadvest acquisition set to drive significant Texas expansion and future earnings accretion.
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Q3 2025 saw 8% EPS growth and 7% revenue increase, driven by rate hikes and usage. CapEx was raised to $486M, with major Texas acquisitions progressing. Guidance was narrowed to the upper half of the range, and sustainability milestones were achieved.
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Q2 2025 saw a 14% year-over-year increase in adjusted EPS, strong revenue growth, and reaffirmed guidance. The Quadvest acquisition will expand Texas operations, with regulatory and legislative wins supporting future growth and capital recovery.
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The acquisition of Quadvest for $540M will make the combined entity the second largest investor-owned water utility in Texas, expanding its presence in high-growth markets and diversifying its portfolio. The deal is expected to be accretive to EPS by 2028, with integration targeted for mid-2026.
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Q1 2025 saw a 41% increase in net income and 12% revenue growth, driven by rate hikes and cost management. Guidance for 2025 EPS and long-term growth was reaffirmed, with major capital investments and regulatory progress across all regions.
Fiscal Year 2024
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2024 saw double-digit revenue and net income growth, a 25% increase in the five-year capital plan to $2 billion, and strong regulatory outcomes across all states. 2025 guidance targets $2.90–$3.00 EPS, with major investments in infrastructure, PFAS treatment, and system resiliency.
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Q3 2024 saw 10% revenue and 7% net income growth, driven by rate increases and infrastructure investment. Regulatory settlements, sustainability awards, and robust capital plans support a reaffirmed 2024 EPS guidance and long-term growth outlook.
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Q2 2024 saw 12% revenue and 13% net income growth, driven by rate increases and customer growth. Regulatory progress in California and Connecticut supports a reaffirmed 2024 EPS guidance of $2.66–$2.76, with a strong capital investment outlook and continued focus on infrastructure and affordability.