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H2O America (SJW) investor relations material
H2O America Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q3 2025 delivered strong financial results, with adjusted diluted EPS of $1.27, up 8% year-over-year, and net income up 17% to $45.1 million; YTD adjusted EPS rose 14% to $2.53, with net income up 22% to $86.4 million, driven by rate increases and customer growth.
Revenue grew 7% in Q3 to $240.6 million and 10% YTD to $606.4 million, supported by rate increases, higher usage, and customer growth.
Announced acquisitions of Quadvest and Cibolo Valley wastewater plant to expand Texas presence, with regulatory approvals pending and closings expected by mid-2026 and Q4 2026, respectively.
Recognized as one of America's greenest companies for the second year, achieving a 43% reduction in Scope 1 and 2 emissions from the 2019 baseline and increasing solar generation by 73%.
Advanced sustainability, regulatory engagement, and infrastructure investment across multiple states.
Financial highlights
Q3 2025 adjusted diluted EPS: $1.27 (up 8%); YTD adjusted EPS: $2.53 (up 14%); Q3 net income: $45.1 million (up 17%); YTD net income: $86.4 million (up 22%).
Q3 2025 revenue: $240.6 million (up 7%); YTD revenue: $606.4 million (up 10%).
Water production expenses rose 3% in Q3 and 9% YTD; other operating expenses increased 9% in both periods, mainly from higher G&A, pension, and wage costs.
Cash flow from operations for the nine months ended September 30, 2025, was $181.3 million, up from $154.1 million in 2024.
Declared a $0.42 per share cash dividend for Q3, with annualized dividend expected to reach $1.68 per share in 2025.
Outlook and guidance
2025 adjusted diluted EPS guidance narrowed to $2.95–$3.00, the upper half of the original range.
Reaffirmed 5%–7% EPS CAGR through 2029, expecting to deliver at the top half of the range, excluding pending Quadvest acquisition.
2025 capital spend plan increased to $486 million, primarily for accelerated metering infrastructure deployment and PFAS treatment.
Estimated $1.9 billion in utility capital expenditures over the next five years, including $300 million for PFAS treatment.
Management expects to meet customer demand for water supply in all service areas for the remainder of 2025.
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