H2O America (HTO) Earnings: Q3 2026 Results

The quarter ended September 30, 2026 and H2O America published the results on October 26, 2026. Revenue and diluted EPS are shown against Q3 2025, the same quarter a year earlier, which takes seasonal swings out of the comparison. H2O America reports EPS two ways: GAAP, under the accounting rules every US filer follows, and adjusted diluted EPS (non-GAAP), which leaves out items the company considers outside its operating results. The release reconciles the two, and when they diverge, the reconciliation says why.

• Revenue on this page is H2O America's total operating revenue, $250.2 million. It is net of balancing and memorandum account and regulatory mechanism adjustments, so it is lower than the $253.2 million of revenue from contracts with customers in the 10-Q.
• H2O America closed its acquisition of Quadvest, a Houston-area water and wastewater utility, on October 1, 2026, after the quarter ended, for $542.7 million in cash.

Source: H2O America Q3 2026 earnings release, October 26, 2026. Also in the Form 10-Q for the quarter ended September 30, 2026. Figures as reported; checked against the release on November 10, 2026.

How H2O America splits revenue in its own release, under its own labels, for Q3 2026 against Q3 2025. Indented lines are parts of the line above them.

• H2O America's Water Utility Services revenue was $246 million in Q3 2026, up 4% from $236 million in Q3 2025, 98% of total revenue.
• H2O America's Other Services revenue was $4.6 million in Q3 2026, up 6% from $4.3 million in Q3 2025, 2% of total revenue.

Segment lines are the figures writers cite most often, because they show where the growth in a quarter came from. Companies redraw their segments from time to time and restate the prior year to match, so a year-ago figure here can differ from the one printed a year ago. When that has happened, the note above says so.

From the earnings release

In its Q3 2026 release, H2O America said:

“The company is narrowing standalone 2026 adjusted diluted EPS guidance to $3.10-$3.16”

“With the close of the Quadvest acquisition on October 1, we are providing 2026 adjusted diluted EPS guidance of $2.91-$2.97, which incorporates the anticipated impacts of Quadvest and the pending Cibolo Valley acquisitions, including the financings thereof.”

“We also affirm our non-linear, long-term adjusted diluted EPS CAGR target of 6-8%, anchored off of 2025's adjusted diluted EPS of $2.99.”

Source: H2O America Q3 2026 earnings release, Oct 26, 2026.

This is the company's own guidance as of Oct 26, 2026, quoted as given. Walnut does not make forecasts of its own. Analyst estimates for the coming quarters are on the HTO forecast page.

Revenue and diluted EPS for the last 5 quarters. Each date links to that quarter's release.

GAAP operating revenue and diluted EPS, each as first reported in that quarter's release. Water demand is seasonal, so the third quarter is usually H2O America's largest.

We do not hold a confirmed date for H2O America's next report. Companies post the date on their investor relations site a few weeks ahead, usually with the time of the conference call.

Each quarter keeps its own page with the figures as reported, so a link to one stays pointed at the same numbers after the next report.

• Q3 2026 (this page), reported Oct 26, 2026

H2O America, formerly SJW Group, is a regulated water utility, and nearly all of its revenue comes from one reportable segment. Water Utility Services had $245.6 million of operating revenue in Q3 2026, up from $236.2 million, and Other Services, which includes the City of Cupertino service concession, real estate and contract water and sewer work, had $4.6 million. (H2O America Form 10-Q, Q3 2026, Oct 26, 2026)

Its utilities serve approximately 409,000 water and wastewater service connections and a population of over 1.6 million in California, Connecticut, Maine and Texas. San Jose Water Company is the largest, with approximately 232,000 connections serving approximately one million people in Santa Clara County, California. (H2O America Form 10-Q, Q3 2026, Oct 26, 2026; H2O America Form 10-K, 2025, Feb 26, 2026)

Prices, which state regulators set, drove the increase. Operating revenue rose 4% to $250.2 million, and H2O America says rate increases added $16.2 million, nearly half of it for higher pass-through water costs, mainly in California and Connecticut. Lower customer consumption took away $4.1 million and regulatory mechanism adjustments $2.6 million. (H2O America Q3 2026 earnings release, Oct 26, 2026)

Texas will grow as a share of the business. H2O America closed the Quadvest acquisition in the greater Houston area on October 1, 2026 for $542.7 million in cash. Quadvest had 62,200 active connections at September 30, 2026, up 7,700 in the first nine months, and more than 98,000 connections under contract and pending development. H2O America expects Texas to go from 8% of its customer base at year-end 2025 to 26% by 2029. (H2O America Q3 2026 earnings release, Oct 26, 2026)

H2O America earned $43.0 million, or $0.99 per diluted share, in Q3 2026, down from $45.1 million, or $1.27. Net income fell 5%, but EPS fell further because of a higher share count from its at-the-market program in 2025 and a common stock issuance in early March 2026. Diluted weighted average shares were 43,478,365, against 35,643,826 a year earlier. (H2O America Q3 2026 earnings release, Oct 26, 2026)

Adjusted diluted EPS (non-GAAP) was $1.04. It excludes expense for merger, acquisition and integration activities ($3.8 million before tax, $0.06 a share), a $1.2 million gain on sale of real estate investments and a non-recurring tax adjustment tied to the acquisitions. (H2O America Q3 2026 earnings release, Oct 26, 2026)

Operating expenses rose 8% to $189.7 million. Water production expenses were up $5.0 million on higher per-unit costs for purchased water and groundwater extraction, and depreciation and amortization rose $3.7 million as utility plant was placed in service. The effective income tax rate was 11% in both years' third quarters. (H2O America Q3 2026 earnings release, Oct 26, 2026)

Diluted EPS divides net income by the weighted average number of shares outstanding in the quarter, plus the shares that options and other equity awards could add. Buybacks shrink that count and lift EPS for the same profit; share issuance and stock awards enlarge it.

H2O America gives full-year EPS guidance in its release. With Q3 2026 it narrowed standalone 2026 adjusted diluted EPS guidance, which excludes Quadvest, the pending Cibolo Valley acquisition and their financing, to $3.10 to $3.16, keeping the $3.13 midpoint. Including those deals, it initiated 2026 adjusted diluted EPS guidance of $2.91 to $2.97, because the acquisitions are initially dilutive until a consolidated Texas general rate case, which it expects to file in the first half of 2027. (H2O America Q3 2026 earnings release, Oct 26, 2026)

H2O America affirmed a long-term adjusted diluted EPS growth target of 6% to 8% a year from 2025's $2.99, and cut its 2026 company-funded capital plan to about $465 million from $483 million, mainly because more capital at its Texas subsidiary is developer-funded. It keeps a $2.7 billion capital plan for 2026 to 2030. (H2O America Q3 2026 earnings release, Oct 26, 2026)

A consensus figure is the average of the models published by the analysts who cover H2O America, collected by a data provider and revised up to the day of the report. A quarter that lands above it says how expectations were set as much as how the business did, and the share price on the day also reflects the guidance and the lines no consensus covers.

The consensus figures on this page are Yahoo Finance's, as pulled on the date shown. Each comes with the number of analysts behind it; the smaller that number, the more one revised estimate can move the average.

The figures below are the ones H2O America's own release and filings put weight on for Q3 2026, with the latest reported value for each.

What the quarter means for a holding is a separate question from what it reported. The case for and against owning HTO is on is HTO a buy or a sell?, what analysts expect next is on the HTO forecast, and what the company does is on the H2O America (HTO) stock page.

Every number on this page can be traced to a document H2O America published. Checking one takes a couple of minutes, and it is worth doing before you quote a figure anywhere.

• The results release is the document linked in the source line above. Companies publish it on their investor relations site at the moment results go out, and it carries the headline tables: revenue, operating income, net income and EPS for the quarter and the year-ago quarter.
• The same release is filed with the SEC as Exhibit 99.1 to a Form 8-K under Item 2.02, usually on the day of the report. The SEC copy does not change after the fact, which makes it the safer thing to link when you cite a number.
• The quarterly report (Form 10-Q) follows within a few weeks and carries the full financial statements, the segment note and management's discussion of what changed. The fourth quarter is covered by the annual report (Form 10-K) instead.
• Restated comparisons are flagged in the notes on this page. When a company redraws its segments or changes how it adjusts EPS, it restates the year-ago column, so the year-ago figure in a new release can differ from the one printed a year ago. This page always uses the comparison in the newer release, because that is the like-for-like one.

A walk-through of every line in a release, with what each one tells you, is in how to read an earnings report.