H2O America(DE:76W)
€54.500.00 (0.00%)
DE:76W
H2O America earnings date
€54.50
At close:0.00 (0.00%)
H2O America (76W) Q3 2026 Earnings Report
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DE:76W Q3 2026 EPS Results
- Actual EPS
- EUR 0.94
- Consensus EPS
- EUR 1.01
- Beat/Miss
- Missed by -EUR 0.06
- One Year Ago EPS
- EUR 1.15
DE:76W Q3 2026 Revenue Results
- Actual Revenue
- EUR 227.00M
- Expected Revenue
- EUR 234.08M
- Beat/Miss
- Missed by -EUR 7.09M
- YoY Revenue Growth
- +4.02%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/26/2026
- Time
- After Close
- Conference Call
- Monday, October 26, 2026
DE:76W Upcoming Earnings
H2O America's next earnings date is estimated for February 18, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
DE:76W Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was broadly constructive and growth-oriented. Management reported results consistent with expectations, reaffirmed long-term growth targets, closed Quadvest, highlighted strong Texas customer growth, advanced multiple rate cases, and maintained its long-term capital plan and liquidity. These positives were offset by year-over-year adjusted EPS declines, higher operating and water supply costs, equity-related dilution, acquisition-related 2026 and expected 2027 dilution, a Texas revenue reduction, and regulatory and housing-market risks. Highlights significantly outweighed the lowlights.
Company Guidance
H2O America narrowed standalone 2026 adjusted diluted EPS guidance to $3.10-$3.16 per share, preserving the $3.13 per share midpoint, and provided 2026 adjusted diluted EPS guidance including Texas acquisitions and financings of $2.91-$2.97, or roughly 6% dilution from the midpoint of standalone guidance versus the previously communicated 10%-20% range of expectation; 2027 dilution could be in the 10%-20% range compared to the standalone plan. The company reiterated its long-term EPS CAGR target of 6%-8%, expects a nonlinear EPS CAGR over the 2026 to 2030 period at or above the top end of its 6%-8% long-term organic EPS growth target, and expects the $2.7 billion 2026 to 2030 capital investment budget and Quadvest to drive a 13% rate base CAGR off its year-end 2025 estimated rate base of $2.8 billion; full year 2026 company-funded capital investment is approximately $465 million, down from $483 million, with $766 million of total planned Texas CapEx over the 2026 to 2030 period.
- Quarterly and Year-to-Date GAAP EarningsH2O America reported third-quarter 2026 diluted EPS of $0.99 and year-to-date diluted EPS of $2.13. Management said the results were consistent with internal expectations and supportive of 2026 guidance and long-term financial growth targets.
- Long-Term Earnings Growth Targets ReaffirmedThe company reaffirmed its 2026-2035 plan and long-term EPS CAGR target of 6%-8%. It expects nonlinear EPS CAGR over 2026-2030 at or above the top end of its 6%-8% long-term organic EPS growth target.
- Quadvest Acquisition ClosedH2O America closed its acquisition of Houston-based Quadvest on October 1, describing it as a significant milestone in its strategy to build a stronger utility portfolio. Management expects the acquisition to begin contributing accretion in 2028 and highlighted Quadvest's experienced team, development pipeline, and community relationships.
- Strong Quadvest Customer Growth and Development PipelineQuadvest had approximately 62,200 active connections at the end of September, up 14% in 2026 after growing 16% during 2025. Connections under contract and pending development totaled 98,300, up 13% from 87,000 at year-end 2025, despite approximately 7,700 connections converting to active customers during the first nine months of 2026.
- Texas Growth Platform ExpandingManagement expects Quadvest's active customers, continued conversion of contracted connections, Cibolo Valley, and existing Hill Country operations to help increase Texas from 8% of the consolidated customer base today to 26% by 2029. The company said it is excited about its long-term growth potential in Texas.
- Cibolo Valley Acquisition ProgressThe PUCT approved the Cibolo Valley sale, transfer, and merger filing in mid-September, and the company expects to close the acquisition on November 2.
- Rate Cases Advancing in Connecticut and MaineThe Connecticut general rate case completed evidentiary hearings, with a proposed decision anticipated in mid-December and a final decision slated for late January 2027. Connecticut Water is seeking a $28.8 million annual revenue increase to recover approximately $145 million of infrastructure investments made between its last rate case and the end of 2026. Maine Water is seeking a $9.5 million annual revenue increase to recover approximately $36 million of infrastructure investments made or expected through the end of 2026, with new rates expected by May 2027.
- California PFAS Remediation and AMI ProgressSan Jose Water continues pursuing approval and recovery outside the general rate case process for a planned $176 million ion exchange PFAS remediation project at Williams Station. Evidentiary hearings are expected in late January, with a proposed decision anticipated during the second quarter of 2027. The company's AMI project remains on track for completion around the end of 2026.
- Wildfire Resilience Legislation Passed in CaliforniaCalifornia Senate Bill 1153 passed both chambers unanimously and was signed by Governor Newsom in late September. The law requires certain urban retail water suppliers in high or very high fire hazard severity zones to include incident-specific wildfire response procedures in disaster preparedness plans and clarifies water utilities' wildfire liability limitations.
- Revenue Growth and Rate ReliefYear-to-date higher revenues contributed $0.95 per share to the EPS result. Approximately $0.64 per share was driven by rate relief, primarily from California's prior general rate case and infrastructure surcharges in Connecticut, Maine, and Texas. Customer growth contributed an additional $0.03 per share.
- Adjusted Net Income Increased Year to DateAdjusted net income was 8% higher through September 30, 2026, compared with the same period in 2025. The company also reported a lower effective income tax rate of 14% for the first nine months of 2026 versus 16% in the same period of 2025, primarily due to higher flow-through tax benefits.
- Substantial Capital Investment Plan MaintainedThe company invested $325 million in company-funded infrastructure improvements during the first nine months of 2026. Although the 2026 company-funded capital investment plan was adjusted to approximately $465 million from $483 million, management said the difference shifts into 2027-2030, with no change to the $766 million total planned Texas CapEx for 2026-2030 or the consolidated five-year capital budget of $2.7 billion.
- Rate Base Growth and Regulatory RecoveryThe 2026-2030 financial plan remains based on a $2.7 billion capital investment budget and the addition of Quadvest, which are expected to drive a 13% rate base CAGR from the estimated year-end 2025 rate base of $2.8 billion. Management said roughly 80% of planned 2026-2030 capital investments qualify for timely regulatory recovery.
- Strong Liquidity and Financing FlexibilityThe company settled nearly 6.5 million shares under its $400 million, two-year forward equity agreement, generating $330 million in proceeds, in addition to $290 million of net equity proceeds received in March. H2O America had $169 million available under $370 million of bank lines of credit and an A- credit rating. Management said it expects to delever its balance sheet and strengthen credit metrics over the five-year plan.
- Cybersecurity and Operational Resilience InvestmentsManagement emphasized the need to continue investing in cybersecurity for IT and operational technology because of evolving vulnerabilities and nation-state activity. H2O America is participating in the Alliance for Critical Infrastructure, which brings together roughly 50 companies across six lifeline sectors to strengthen physical and cyber resilience.
- Affordability and Service CommitmentsManagement said affordability remains a top priority and that rates across all jurisdictions are below 1% as a percentage of median household income. The company has affordability tariffs in three of its four jurisdictions and plans to consider an affordability tariff for ratepayer assistance in Texas.
- Longstanding Dividend Record and Customer ReachH2O America provides reliable service and high-quality water to more than 1.7 million people across four states. The company has paid a dividend for more than 80 consecutive years and increased it in each of the past 58 years.
DE:76W Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 18, 2027 | 2026 (Q4) | 0.60- | 0.42 | ― | ― |
| Oct 26, 2026 | 2026 (Q3) | 1.010.94 | 1.15 | -18.11% (-0.21) | |
| Jul 27, 2026 | 2026 (Q2) | 0.630.65 | 0.64 | 1.41% (+0.01) | |
| Apr 28, 2026 | 2026 (Q1) | 0.450.45 | 0.44 | 2.04% (+0.01) | |
| Feb 25, 2026 | 2025 (Q4) | 0.460.42 | 0.62 | -32.35% (-0.20) | |
| Oct 27, 2025 | 2025 (Q3) | 1.071.15 | 1.06 | 8.55% (+0.09) | |
| Jul 28, 2025 | 2025 (Q2) | 0.630.64 | 0.58 | 10.94% (+0.06) | |
| Apr 28, 2025 | 2025 (Q1) | 0.320.44 | 0.33 | 36.11% (+0.12) | |
| Feb 26, 2025 | 2024 (Q4) | 0.510.62 | 0.54 | 15.25% (+0.08) | |
| Oct 28, 2024 | 2024 (Q3) | 1.061.06 | 1.03 | 3.54% (+0.04) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
