Image source: © 2025 Krish Capital Pty.Ltd

Highlights

  • Second quarter 2025 diluted EPS rose 11 percent to USD 0.71, with adjusted EPS up 14 percent.
  • Year-to-date capital investment reached USD 207.2 million, targeting full-year spend of USD 473 million.
  • Entered agreement to acquire Quadvest’s assets, expanding presence in the Houston region.

H2O America (NASDAQ: HTO) announced financial results for the second quarter of 2025, reporting diluted earnings per share (EPS) of USD 0.71, up 11 percent from the prior-year period. Adjusted diluted EPS (non-GAAP) was USD 0.75, representing a 14 percent increase. Net income for the quarter reached USD 24.7 million under GAAP and USD 26.2 million on an adjusted basis.

Year-to-date through June 30, 2025, the company reported diluted EPS of USD 1.20, an increase of 20 percent from the prior year, and adjusted diluted EPS of USD 1.25, up 23 percent. GAAP net income for the six-month period was USD 41.2 million, a 27 percent rise from the previous year. Operating revenue year-to-date grew 12 percent to USD 365.9 million, driven by rate increases and higher customer usage.

Infrastructure investment for the first half of 2025 totaled USD 207.2 million, representing 44 percent of the company’s planned full-year capital expenditure target of USD 473 million.

On July 7, 2025, H2O America entered into an agreement through its Texas Water subsidiary to acquire all assets of Quadvest, a water and wastewater utility in the Houston region. Quadvest’s active connections rose 7 percent to 50,500 as of June 30, 2025, while connections under contract and pending development increased 2 percent to 90,900.

The company reaffirmed its 2025 adjusted diluted EPS guidance of USD 2.90 to USD 3.00 and its long-term EPS growth objective of 5 to 7 percent annually through 2029, based on 2022 EPS of USD 2.43.

On July 25, 2025, H2O America declared a quarterly cash dividend of USD 0.42 per share, payable September 2, 2025, to shareholders of record on August 11, 2025. The annualized 2025 dividend is expected to be USD 1.68 per share, compared with USD 1.60 in 2024.

Regulatory updates in the second quarter included approvals in California for rate increases tied to infrastructure and water sourcing costs, the enactment of a new infrastructure recovery mechanism in Connecticut, and a final decision on a general rate case in Maine. In Texas, the company filed a Notice of Intent to Determine Fair Market Value for the Quadvest transaction and received approval for an additional USD 4.1 million in system improvement charge revenues.