HTO
H2O America49.36
+0.49+1%
Dec 16, 4:00:00 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Q&A reaffirms plan, cautious on details
Q&A largely reaffirmed the prepared remarks' strong 5-year plan and elevated 6%-8% EPS growth target, with no contradictions or fresh initiatives. Management confirmed Quadvest's expected dilution through 2027 before 2028 accretion, but stayed non-specific on timing amid Texas rate case uncertainties. CapEx increases balance pipe replacements, PFAS treatment, and supply projects beyond acquisitions. Equity needs average $125M yearly for CapEx funding. Analysts probed M&A and rate trajectories; responses emphasized tuck-ins post-Quadvest and affordability focus without numbers. Q&A adds scant incremental color. Watch Texas outcomes.
Key Stats
Market Cap
1.77BP/E (TTM)
15.57Basic EPS (TTM)
3.17Dividend Yield
0.03%Recent Filings
8-K
Prices $609M stock offering
H2O America priced its $609M common stock offering at $53/share on March 3, 2026, issuing 3.9M shares directly while forward sellers borrowed and sold 7.5M more to underwriters J.P. Morgan and Wells Fargo; underwriters exercised their full option for 1.7M additional shares. Proceeds, paired with debt financing, target the unconditioned Quadvest Acquisition or general uses like repurchases. Forward contracts settle by March 2028. Physical settlement dilutes EPS.
8-K
Filed Quadvest financials
10-K
FY2025 results
H2O America posted FY2025 net income of $102.6M on $800.6M revenue, up 9% and 7% y/y, fueled by rate hikes across California, Connecticut, and Texas that added $44M while customer growth chipped in $1.5M; yet Q4 saw softer usage trends with SJWC down amid voluntary conservation. Water production costs climbed 2% to $311M on pricier pass-throughs and less surface water reliance, but margins held as regulatory mechanisms offset swings. Capex surged 39% to $490M, funding infrastructure amid $400M PFAS prep, with $185M long-term debt and $123M equity fueling the push; lines of credit sit at $87M of $370M capacity. No annual guidance issued. Quadvest delays risk Texas momentum.
8-K
2025 EPS up; capex jumps
H2O America reported 2025 GAAP diluted EPS of $2.92, up 2% from $2.87, with adjusted (non-GAAP, reconciled) EPS at $2.99 versus $2.95. It unveiled a $2.7B 2026-30 capex plan, up 31%, for infrastructure, PFAS remediation, and Quadvest integration post mid-2026 close. Guidance sets 2026 adjusted EPS at $3.08-3.18; long-term CAGR target rises to 6-8%. Quadvest awaits regulatory nod.
8-K
Quadvest FMV set at $483.6M
H2O America's Texas Water Company received the $483.6 million fair market value determination for Quadvest LP's Houston-area water and wastewater assets from PUCT appraisers on December 29, 2025. This sets the ratemaking rate base under Texas statute. TWC will file its PUCT application by mid-January. Close eyed for mid-2026, yet regulatory approval remains key.
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