H2O America Earnings Call Transcripts
Fiscal Year 2026
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Q3 adjusted diluted EPS was $1.04, and FY 2026 standalone guidance narrowed to $3.10-$3.16. Quadvest closed, while the five-year plan retains a $2.7B capital budget and targets 13% rate base CAGR.
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Q2 2026 adjusted EPS was $0.72, with YTD adjusted EPS at $1.23, both supporting full-year guidance. Major infrastructure investments and regulatory progress continue, with Quadvest and Cibolo Valley acquisitions on track. Water supply cost pressures and affordability remain key focus areas.
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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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2025 saw record CapEx, strong EPS growth, and a major Texas acquisition, with a 5-year plan targeting $2.7 billion in investments and a 6%-8% EPS CAGR. Regulatory wins and expanded customer assistance support growth, while Quadvest is expected to be accretive from 2028.
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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 a 10% revenue and 7% net income increase year-over-year, driven by rate hikes and infrastructure investment. Guidance for 2024 EPS was reaffirmed, with a five-year $1.6 billion capex plan and continued focus on regulatory, environmental, and affordability challenges.
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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.