H2O America
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H2O America (SJW) investor relations material

H2O America Q4 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2025 earnings summary26 Feb, 2026

Executive summary

  • Reported 2025 diluted EPS of $2.92 and adjusted diluted EPS of $2.99, near the top end of guidance, up from $2.95 in 2024, reflecting strong strategic and financial execution.

  • Announced transformative Quadvest acquisition, expected to add $483.6 million to rate base and significantly expand Texas operations, along with Cibolo Valley acquisition.

  • Achieved constructive regulatory and legislative outcomes across all states, including new mechanisms for PFAS recovery and rate case deferrals.

  • Invested a record $501 million in CapEx in 2025, a 41% increase over 2024, exceeding guidance.

  • Increased quarterly dividend by 4.8%, marking the 58th consecutive annual increase, with a $0.44 per share dividend declared for January 2026.

Financial highlights

  • 2025 adjusted diluted EPS: $2.99, up from $2.95 in 2024; 2026 standalone EPS guidance: $3.08–$3.18, excluding Quadvest and Cibolo Valley impacts.

  • Five-year CapEx plan increased 31% to $2.7 billion for 2026–2030, supporting a projected 13% rate base CAGR.

  • Annualized dividend for 2026 expected at $1.76 per share.

  • Operating revenue rose 7% to $800.6 million in 2025, with net income up 9% to $102.6 million.

  • Operating expenses increased 8% to $623.1 million, mainly due to higher water production and administrative costs.

Outlook and guidance

  • Long-term adjusted diluted EPS CAGR target raised to 6%–8%, anchored off 2025 adjusted EPS of $2.99, with expectations to reach the top end over 2026–2030.

  • Five-year plan targets $2.7 billion in CapEx and a 13% rate base CAGR through 2030.

  • Quadvest acquisition expected to be dilutive to EPS in 2026–2027, accretive from 2028 onward.

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Frequently asked questions

SJW Group is a water utility company engaged in the production, purchase, storage, and distribution of water. It operates regulated water systems in California, Texas, Connecticut, and Maine, serving residential, commercial, and industrial customers. The company also manages wastewater systems and invests in infrastructure to support water quality and service reliability. It is headquartered in San Jose, California, and its shares are listed on the NYSE.

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