H2o America (HTO)
NASDAQ:HTO
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Earnings Data
Report Date
Jul 23, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.69Last Year’s EPS
0.71Same Quarter Last Year
Moderate Buy
Based on 6 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized several strong strategic and financial positives: a very successful $700M equity raise, underlying net income growth of ~15%, reaffirmed full-year guidance, a detailed $2.7B five-year capital plan with ~80% expected to qualify for regulatory recovery, and concrete progress on QuadVest and other regulatory filings. Offsetting items include EPS dilution from a higher share count leaving EPS flat despite net income growth, rising operating and water production costs, significant near-term project costs (PFAS remediation, Texas investments), and timing/regulatory risk around the QuadVest closing and future Texas rate cases. On balance, the highlights — particularly the oversubscribed equity financing, strong liquidity, affirmed guidance, and visible regulatory recovery mechanisms — materially outweigh the headwinds.Company Guidance
Quarterly EPS and Underlying Net Income Growth
GAAP diluted EPS of $0.49 and adjusted diluted EPS of $0.50 for Q1 2026; underlying net income grew roughly 15% year-over-year but EPS was unchanged versus 2025 due to higher share count.
Highly Successful Equity Offering
Executed an equity raise initially targeted at $550M and upsized to $700M (including greenshoe) after being more than five times oversubscribed; offering priced at a 2.6% discount and funded near-term acquisition and 2026–2027 capital needs.
Reaffirmed 2026 Guidance and Long-Term EPS Target
First quarter results were consistent with internal expectations and support standalone 2026 EPS guidance of $3.08 to $3.18; reiterated long-term organic adjusted EPS CAGR target of 6%–8% (aiming at or above the top end over 2026–2030).
Capital Investment Plan and Regulatory Recovery
Invested $85M in Q1 (18% of 2026 CapEx budget of $483M). Five-year capital plan of $2.7B (2026–2030), with roughly 80% of that expected to qualify for timely regulatory recovery; projected 13% rate base CAGR off year-end 2025 estimated rate base of $2.8B.
QuadVest Acquisition Progress and Growth Profile
QuadVest STM application filed and deemed administratively complete; purchase price/rate base certification request of $483.6M. QuadVest system had more than 57,200 active connections as of 03/31/2026 (5% increase in Q1 2026 and 16% growth in 2025). Pipeline increased by ~5,000 connections in 2026 despite converting ~2,800 to active, supporting Texas growth plans to increase Texas share of consolidated customers from ~8% today to ~26% by 2029.
Strong Liquidity and Capital Markets Position
Proceeds from equity offering used to pay down bank lines (full $370M available) and invested in cash equivalents; plan to remain out of equity markets through at least year-end 2027 and access $400M forward agreement for capital needs. S&P affirmed A- rating, providing access to capital markets.
Tax Rate and Earnings Quality
Effective income tax rate improved to ~15% in Q1 2026 from 17% in 2025, primarily due to higher flow-through tax benefits, contributing modestly to quarterly results.
Regulatory Filings Supporting Near-Term Revenue Recovery
Connecticut: WICA/WQTA revenue increases of roughly $3.3M effective 04/01/2026; Connecticut CWC planning a ~ $26M requested revenue increase in upcoming GRC. Maine: consolidated GRC filing requesting $9.5M annual increase to recover ~$36M of investments. California: filed for recovery of a $176M Williams Station PFAS remediation project (outside GRC).
Dividend Track Record
Company highlighted its long-term dividend commitment: paid dividend for more than 80 consecutive years and increased it for the past 58 consecutive years, signaling capital allocation discipline and shareholder focus.
HTO Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
HTO Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 28, 2026 | $58.81 | $57.23 | -2.68% |
Feb 25, 2026 | $54.76 | $53.59 | -2.14% |
Oct 27, 2025 | $49.80 | $48.09 | -3.45% |
Jul 28, 2025 | $46.22 | $46.91 | +1.51% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does H2o America (HTO) report earnings?
H2o America (HTO) is schdueled to report earning on Jul 23, 2026, After Close (Confirmed).
What is H2o America (HTO) earnings time?
H2o America (HTO) earnings time is at Jul 23, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is HTO EPS forecast?
HTO EPS forecast for the fiscal quarter 2026 (Q2) is 0.69.