H2O America Announces Third Quarter 2025 Financial Results

Core Insights - H2O America reported strong financial results for Q3 2025, with net income increasing by 17% year-over-year to $45.1 million and diluted EPS rising by 9% to $1.27, reflecting the company's focus on sustainable growth and strategic acquisitions [3][5][21]. Financial Performance - Net income for Q3 2025 was $45.1 million, a 17% increase from $38.7 million in Q3 2024 [3]. - Diluted EPS for the quarter was $1.27, up from $1.17 in the prior year, marking a 9% increase [3]. - Adjusted net income (non-GAAP) for Q3 2025 was $45.5 million, also a 17% increase compared to $39.0 million in the same quarter last year [3][4]. - Operating revenue for Q3 2025 reached $240.6 million, a 7% increase from $225.1 million in Q3 2024, driven by rate increases and higher customer usage [5][10]. - Operating expenses for Q3 2025 were $175.9 million, a 6% increase from $166.7 million in the same quarter last year [6][11]. Year-to-Date Results - Year-to-date net income through September 30, 2025, was $86.4 million, a 22% increase compared to $71.0 million in the same period of 2024 [9]. - Year-to-date operating revenue was $606.4 million, a 10% increase from $550.6 million in the same period last year [10]. - Year-to-date operating expenses were $462.0 million, up 9% from $423.8 million in the same period last year [11]. Strategic Initiatives - The company is advancing its acquisition of Quadvest and has reached an agreement to acquire the Cibolo Valley wastewater system, which will enhance its presence in Texas [2][13][15]. - H2O America secured regulatory approvals for a $3.1 million annualized revenue increase in Connecticut [2][18]. - Active connections increased by 11.5%, or 5,400 connections, between December 31, 2024, and September 30, 2025 [14]. Capital Expenditures - H2O America has invested $357.8 million in infrastructure through September 30, 2025, which is approximately 74% of its increased capital expenditures forecast of $486.0 million for 2025 [12]. Dividend Information - The Board of Directors declared a quarterly cash dividend of $0.42 per share, payable on December 1, 2025, with an expected annualized dividend of $1.68 per share for 2025, compared to $1.60 per share in 2024 [23][24].