H2O America Raises Capex Plan 31% To $2.7B, EPS Hits Top Guidance
H2O America reported 2025 adjusted diluted EPS of $2.99, near the top of its $2.95–3.001 guidance range, up from $2.95 in 2024. The company set a $2.7 billion 2026–30 capex plan (31% higher), raised its long-term EPS CAGR target to 6–8% and guided 2026 EPS at $3.08–3.18.
1. 2025 Financial Results
H2O America reported 2025 diluted EPS of $2.92 (GAAP) and $2.99 (adjusted), topping its $2.95–3.001 guidance range and up from $2.95 in 2024. The company declared a $0.44 per share cash dividend, representing a 4.8% increase over its December 2025 payout.
2. Five-Year Capex Plan
The board approved a $2.7 billion capital expenditure budget for 2026–30, a 31% increase versus the prior plan, to fund annual pipeline replacement, an estimated $400 million for PFAS treatment, additional water supplies and critical infrastructure upgrades.
3. Texas Acquisitions Progress
H2O America expects to close its $540 million Quadvest purchase by mid-2026 at a $483.6 million rate base, following PUCT appraisals. Quadvest added 7,400 connections (16%) in 2025, with a backlog of 87,000, and is projected to grow Texas from 7% to 26% of customers by 2029; the Cibolo Valley wastewater deal will add 1,500 connections.
4. 2026 Guidance and Long-Term Targets
The company issued standalone 2026 adjusted EPS guidance of $3.08–3.18, excluding pending acquisitions and financing. It also raised its long-term adjusted EPS CAGR target to 6–8%, aiming to deliver growth at or above the high end over 2026–30, inclusive of Quadvest and Cibolo Valley contributions.