H2O America Q1 Revenue Up 9% to $183.3M, EPS Flat at $0.49
First quarter revenue rose 9% to $183.3 million on $11.8 million of rate hikes, while GAAP diluted EPS held steady at $0.49. Net income increased 15% to $19.0 million, adjusted EPS stayed at $0.50, and H2O America reiterated full-year adjusted EPS guidance of $3.08–3.18 with a $483 million capex plan.
1. Q1 Financial Results
H2O America reported GAAP net income of $19.0 million, up 15% from $16.6 million a year earlier, while GAAP diluted EPS remained unchanged at $0.49. On a non-GAAP basis, adjusted net income rose 16% to $19.4 million with adjusted diluted EPS flat at $0.50.
2. Operating Performance
Operating revenue climbed 9% to $183.3 million, driven by $11.8 million of approved rate increases and higher customer usage. Operating expenses increased 11% to $145.9 million, reflecting $7.5 million higher water production costs and $6.7 million in depreciation, maintenance and administrative expenses; the effective tax rate improved to 15%.
3. Infrastructure Investments and Guidance
Through March 31, H2O invested $85.3 million in infrastructure, and it plans $483 million of capital expenditures in 2026 and $2.7 billion through 2030. The company reiterated standalone adjusted EPS guidance of $3.08–3.18 for 2026 and reaffirmed its long-term EPS CAGR target of 6–8%.
4. Quadvest Acquisition Update
The $540 million Quadvest acquisition advanced as the Texas regulatory application was deemed complete, triggering a 120-day approval timeline. H2O expects to close in the second half of 2026; Quadvest’s active connections rose 5% to 2,800 with a 6% increase in backlog.