AI Earnings Predictions for H2O America (HTO)

EX-99.1

2 exhibit991-2q2026.htm

EX-99.1

Document

EXHIBIT 99.1

H2O America Announces Second Quarter 2026 Financial Results

•Second quarter 2026 reported diluted EPS of $0.62 and adjusted diluted EPS (non-GAAP)1 of $0.72, as compared to reported and adjusted diluted EPS in the second quarter of 2025 of $0.71 and $0.75, respectively

•Year-to-date 2026 reported diluted EPS of $1.12 and adjusted diluted EPS (non-GAAP)1 of $1.23, as compared to reported and adjusted diluted EPS in the same period of 2025 of $1.20 and $1.25, respectively

•Reiterate all aspects of financial guidance, including 2026 standalone adjusted diluted EPS guidance of $3.08-$3.181 (excluding the impacts of the pending Quadvest acquisition and the financing thereof)

•$206.9 million2 invested in infrastructure during the first half of 2026

•Key milestones reached in Quadvest approval process; anticipate closing end of third/early fourth quarter of 2026; active Quadvest connections up 10%, or 5,400, in 2026 while connections under contract and pending development has grown 14%, or nearly 12,000 connections

•Declared $0.44 cash dividend per share of common stock

SAN JOSE, Calif. — July 27, 2026 — H2O America (NASDAQ: HTO) today reported financial results for the second quarter of 2026.

"Our strong second quarter results have our company in an excellent position midway through 2026 to deliver on our full year guidance and we remain committed to our longer-term financial targets," said chair and chief executive officer, Andrew F. Walters. "During the second quarter, our teams made substantial progress towards obtaining Texas regulatory approval for the regulated portion of the Quadvest acquisition. In addition, a great deal of thought and effort went into the general rate cases that we filed in Connecticut and Maine seeking the recovery of more than $180 million of combined investments that are not yet recognized in rates. The regulatory and operational focus of our team is unwavering as we execute on our growth strategy while providing our customers and the communities that we are honored to serve with the high quality service they deserve. The hard work and shared passion that my fellow partners here at H2O America exhibit each and every day make it all possible and I could not be more proud."

Second Quarter 2026 Operating Results

Net income prepared in accordance with GAAP for the second quarter ended June 30, 2026 was $26.6 million, an 8% increase compared to $24.7 million in the same quarter last year. GAAP diluted EPS for the quarter of $0.62 decreased versus $0.71 in the prior year quarter.

Adjusting for costs associated with merger, acquisition and integration activities and non-utility real estate transactions, H2O America's adjusted net income (non-GAAP)1 in the second quarter of 2026 was $30.7 million, an increase of 17% compared to $26.2 million in the prior year quarter. Adjusted diluted EPS (non-GAAP) for the quarter of $0.72 slightly decreased versus $0.75 in the prior year quarter.

For both GAAP and adjusted results, while our underlying net income grew during the 2026 period, this was more than offset by the higher share count as a result of leveraging our at-the-market (ATM) program throughout 2025 and our common stock issuance in early March of 2026. A full reconciliation of GAAP net income to adjusted net income for the quarter ended June 30, 2026 is included in the tables at the end of this news release.

Operating revenue for the second quarter was $210.5 million, compared to $198.3 million for the same quarter last year, a 6% increase. The increase was driven primarily by rate increases of $14.5 million across all of our states but primarily in California and Connecticut. This was partially offset by a decrease of $1.7 million due to regulatory mechanism adjustments.

Operating expenses for the second quarter were $167.7 million, up 9% compared to $154.4 million for the same quarter last year. This change in operating expenses primarily reflects:

•An increase in water production expenses of $4.6 million compared to the same quarter last year primarily attributable to increases in average per unit costs for purchased water and groundwater extraction, partially offset by lower usage.

•An increase in depreciation and amortization expense of $3.4 million associated with utility plant additions placed in service compared to the same quarter last year.

1

•An increase in all other operating expenses of $5.3 million compared to the same quarter last year primarily attributable to a net increase in general and administrative expenses driven by increased merger and acquisition costs, increased outsourced services costs, increased employee-related costs and increased maintenance agreement costs.

The effective consolidated income tax rates for the second quarter of 2026 and 2025 were approximately 13% and 16%, respectively. The lower effective tax rate for the second quarter of 2026 was primarily due to higher flow t

EX-99.1

2 exhibit991-1q2026.htm

EX-99.1

Document

EXHIBIT 99.1

H2O America Announces First Quarter 2026 Financial Results

•First quarter 2026 reported diluted EPS of $0.49 and adjusted diluted EPS (non-GAAP)1 of $0.50, consistent with reported and adjusted diluted EPS in the first quarter of 2025

•Reiterate 2026 standalone adjusted diluted EPS guidance of $3.08-3.181 (excludes the impacts of the pending Quadvest acquisition and the financing thereof)

•Reiterate long-term adjusted diluted EPS CAGR target of 6-8%; expect to deliver a non-linear CAGR at or above the top end of the 6-8% range over the 2026-30 period (includes the impacts of the pending Quadvest and Cibolo Valley acquisitions and the financing thereof)

•No change to our 2026 capital expenditure budget of $483 million (excludes the impact of Quadvest) or our $2.7 billion plan over the 2026-30 period (includes Quadvest)

•Quadvest approval process underway; anticipate closing during the second half of 2026; active Quadvest connections up 5%, or 2,800, from year-end 2025 while the backlog grew 6%, or 5,000 connections

•Declared $0.44 cash dividend per share of common stock

SAN JOSE, Calif. — April 28, 2026 — H2O America (NASDAQ: HTO) today reported financial results for the first quarter of 2026.

"Our strong first quarter of 2026 results were consistent with our internal expectations and reflective of the positive regulatory outcomes our team has achieved in recent years," said chair and chief executive officer, Andrew F. Walters. "We made progress executing on our planned $483 million of infrastructure investments in 2026 needed to continue to provide the high quality, reliable service that our customers deserve. Longer-term, we remain steadfast in our commitment to deliver on the 2026-30 financial plan that we rolled out at the end of February, including achieving a 5-year EPS CAGR at or above the top end of our 6-8% target, while continuing to work constructively with regulators and legislators in all four of our states to recover critical water infrastructure investments made. Further, the $700 million equity raise that we completed in early March, which included a $400 million forward component, addresses our forecasted equity needs through 2027. Based on these accomplishments, I believe our company is poised for long-term success."

First Quarter 2026 Operating Results

Net income prepared in accordance with GAAP for the first quarter ended March 31, 2026 was $19.0 million, a 15% increase compared to $16.6 million in the same quarter last year. GAAP diluted EPS for the quarter of $0.49 was unchanged versus $0.49 in the prior year quarter.

Adjusting for merger and acquisition activities and real estate transactions, H2O America's adjusted net income (non-GAAP) in the first quarter of 2026 was $19.4 million, an increase of 16% compared to $16.7 million in the prior year quarter. Adjusted diluted EPS (non-GAAP) for the quarter of $0.50 was unchanged versus $0.50 in the prior year quarter.

The difference between GAAP net income and adjusted net income for the quarter ended March 31, 2026 was due to expenses incurred for merger and acquisition activities of $0.5 million, net of tax and gain on the real estate transactions of $0.1 million. A full reconciliation of GAAP net income to adjusted net income for the quarter ended March 31, 2026 is included in the tables at the end of this news release.

Operating revenue for the first quarter was $183.3 million, compared to $167.6 million for the same quarter last year, a 9% increase. The increase was driven primarily by rate increases of $11.8 million, primarily in California, Connecticut, and Texas as well as higher customer usage of $2.0 million.

Operating expenses for the first quarter were $145.9 million, up 11% compared to $131.7 million for the same quarter last year. This change in operating expenses primarily reflects:

•An increase in water production expenses of $7.5 million compared to the same quarter last year primarily attributable to increases in average per unit costs for purchased water and groundwater extraction, higher customer usage, and increases in water production balancing and memorandum accounts primarily relating to the Full Cost Balancing Account ("FCBA") partially offset by decreases in costs as a result of increased availability of surface water; and

1

•An increase in other operating expenses of $6.7 million compared to the same quarter last year primarily due to increases in depreciation and amortization for new utility plant placed in service, increased maintenance, employee-related costs and higher non-labor administrative and general expenses.

The effective consolidated income tax rates for the first quarter of 2026 and 2025 were approximately 15% and 17%, respectively. The lower effective tax rate for the three months ended March 31, 2026 was primarily due to higher flow through tax benefits.

Capital Expenditures

Through March 31, 2026, H2O America has

EX-99.1

2 exhibit991-4q2025.htm

EX-99.1

Document

EXHIBIT 99.1

H2O America Announces 2025 Financial Results and Updated Five-Year Plan

•2025 reported diluted EPS were $2.92 versus $2.87 in 2024. On an adjusted (non-GAAP) basis, 2025 diluted EPS of $2.99 came in near the top of our upwardly narrowed $2.95 to $3.001 guidance range, compared to $2.95 in 2024

•Establish a 2026-30 capital expenditures budget of $2.7 billion, a 31% increase over the prior five-year plan, to fund needed infrastructure replacement, PFAS remediation, additional water supplies, and investments in the Quadvest, L.P. system following the anticipated mid-2026 close

•Initiate 2026 standalone adjusted diluted EPS guidance of $3.08-3.181 (excludes the impacts of the pending Quadvest acquisition and the financing thereof)

•Increase long-term adjusted diluted EPS CAGR target to 6-8%; expect to deliver a non-linear CAGR at or above the top end of the 6-8% range over the 2026-30 period (includes the impacts of the pending Quadvest and Cibolo Valley acquisitions and the financing thereof)

•Quadvest approval process underway; continue to anticipate a mid-2026 close; active Quadvest connections up 16%, or 7,400 connections, during 2025

•Declared a $0.44 cash dividend per share of common stock in January 2026, a 4.8% increase over the December 2025 dividend level

SAN JOSE, Calif. — February 25, 2026 — H2O America (NASDAQ: HTO) today reported financial results for 2025. Reported diluted EPS for 2025 were $2.92 versus $2.87 in 2024. On an adjusted (non-GAAP) basis, 2025 diluted EPS of $2.99 came in near the top end of our upwardly narrowed $2.95 to $3.001 guidance range, compared to $2.95 in 2024.

“Our performance in 2025 reflects our team's continued focus on delivering sustainable growth and long-term value,” said chair and chief executive officer, Andrew F. Walters. “We built on an exceptionally strong 2024 and delivered 2025 adjusted diluted EPS at the top end of our guidance. We continued to work constructively with regulators and legislators in all four of our states to recover critical water infrastructure investments made, including securing approval for new or enhanced mechanisms in Connecticut, Maine and Texas that will help further reduce regulatory lag. We also made meaningful strategic progress by announcing and advancing the Quadvest and Cibolo Valley water and wastewater system acquisitions, which will significantly expand our presence in Texas."

Continued Walters, “The combination of elevated infrastructure investment needs across our systems for decades to come and the strategic benefits of our pending Texas acquisitions gives us increased confidence in our ability to provide safe, reliable and affordable service to our customers while delivering attractive, sustainable 6-8% long-term EPS growth to shareholders."

Updated Five-Year Capital Expenditures Forecast

In 2025, H2O America invested $501 million in infrastructure and water supply, which exceeded our upwardly revised 2025 capital expenditures guidance of $486 million2 and represents a 41% increase over 2024 spend of $354 million.

H2O America plans to invest $483 million in capital in 2026 (excluding the impact of Quadvest) and a total of $2.7 billion2 over the 2026-30 period (including the impacts of Quadvest and Cibolo Valley) to build and maintain its water and wastewater operations, subject to regulatory approvals and availability of funding. Our new five-year plan represents an approximate 31% increase compared to our 2025-29 budget and is driven by (1) increased pipeline replacement work as we progress towards our goal of replacing 1% of our distribution pipe annually, (2) an updated estimate of approximately $400 million to install treatment for per- and polyfluoroalkyl substances (PFAS) and (3) investments in the Quadvest, L.P. system, following the anticipated mid-2026 close.

1

Transformative Texas Growth

Texas Water Company (TWC) and Texas Water Operation Services continue to progress through the regulatory process for their previously announced $540 million acquisition of Quadvest. We continue to anticipate a mid-2026 close.

In late December 2025, TWC received the appraised fair market values (FMV) from the three Public Utility Commission of Texas (PUCT)-appointed appraisers for the assets of Quadvest, L.P., a regulated investor-owned water and wastewater utility operating in the Houston metro area. In accordance with Texas' FMV statute, the purchase price of $483.6 million will serve as the ratemaking rate base. The Sale-Transfer-Merger (STM) application was filed with the PUCT in January 2026 to request approval of TWC’s acquisition of the Quadvest, L.P. assets and certification of the value of the rate base.

Quadvest continues to achieve its anticipated customer growth. Total active connections grew 16%, or 7,400 connections, in 2025 which brings Quadvest's total active connections to 54,400 as of December 31, 2025. In addition, the backlog of c