H2O America Reports Q3 2026 Results with Revenue Growth Amidst Diluted EPS Decline
H2O America (HTO) reported third-quarter 2026 operating revenue of $250.2 million, a 4% increase driven by rate relief and higher pass-through water supply costs. Despite the revenue growth, GAAP diluted earnings per share fell to $0.99 from $1.27 in the prior year, primarily due to increased operating expenses and a significantly higher weighted average share count following recent equity issuances. The company is navigating a period of heavy capital investment and expansion, including the Quadvest and Cibolo Valley acquisitions. While management has narrowed its full-year standalone adjusted EPS guidance to $3.10–$3.16, they maintain a long-term target of 6% to 8% EPS CAGR through 2035. Strategic focus remains on infrastructure development in Texas and addressing PFAS remediation costs in California.
Tickers: $HTO
Topics: acquisitions capital investment earnings report EPS guidance revenue growth