H2O America Q1 Earnings Call Highlights

3 weeks ago 14

MarketBeat

Wed, April 29, 2026 astatine 10:43 AM CDT 10 min read

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Key Points

H2O America reported Q1 EPS of $0.49 GAAP and $0.50 adjusted, results absorption says are successful enactment with expectations and enactment its standalone 2026 EPS guidance of $3.08–$3.18, though diluted EPS was unchanged year-over-year owed to a higher stock number from 2025 ATM enactment and a March 2026 equity issuance.
The institution upsized an equity offering to $700 million (more than 5 times oversubscribed astatine a 2.6% discount) to money the pending Quadvest woody and near-term capex, expects to debar further equity issuance done astatine slightest year-end 2027, has astir $370 million of slope capableness available, and retains an S&P recognition standing of A‑ with projected FFO-to-debt of 11%–12% done 2027.
Closing of the Quadvest acquisition (purchase terms $483.6 million) is present expected successful the 2nd fractional of 2026; the woody and backlog conversions should boost Texas customers (from 8% today) toward 26% by 2029, portion the institution plans $2.7 billion of capex for 2026–2030 and is pursuing aggregate regulatory filings (including a $176 million PFAS remediation petition successful California and complaint cases successful Connecticut, Maine, and Texas).
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H2O America (NASDAQ:HTO) reported first-quarter 2026 results that absorption said were successful enactment with interior expectations and supported the company’s full-year net outlook, portion besides detailing advancement connected financing, pending Texas acquisitions, and aggregate regulatory filings crossed its footprint.

First-quarter EPS dependable amid higher stock number

Chair and CEO Andrew Walters said the institution earned $0.49 per stock connected a GAAP diluted basis and $0.50 per stock connected an adjusted diluted basis successful the archetypal quarter. Walters said the results were “consistent with our interior expectations” and successful enactment of the company’s standalone 2026 EPS guidance of $3.08 to $3.18.

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CFO and Treasurer Ann P. Kelly said underlying nett income grew by astir 15% twelvemonth implicit year, but diluted net per stock were unchanged versus the archetypal 4th of 2025 due to the fact that of a higher stock count. Kelly attributed the accrued stock number to the company’s usage of its at-the-market programme successful 2025 and an equity issuance completed successful aboriginal March 2026.

Kelly walked done the year-over-year drivers of quarterly EPS, including a $0.41 per stock summation owed to higher revenue, partially offset by higher expenses and dilution from stock issuance. She said astir fractional of the gross benefit, oregon $0.20, came from complaint alleviation tied to wide complaint cases and infrastructure surcharges, chiefly successful California, Connecticut, and Texas. She besides cited $0.11 of higher gross tied to pass-through h2o proviso costs (offset successful h2o accumulation expense, with nary nett income impact) and $0.05 from higher usage, “largely owed to a hot, adust March crossed our California work territory.”

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