H2O America 3Q 2026: Revenue $250.2M, EPS $0.99— 10-Q Summary

What happened

H2O America reported third-quarter 2026 revenue of $250.2M, up 4%, while net income fell 4.6% to $43M and diluted EPS dropped 22% to $0.99. Higher rates added $16.3M, partly offset by lower consumption.

Confirmed

Global impact / market context

Profit fell even as revenue grew, because higher rates did not fully offset lower water use and regulatory adjustments. That squeezes the profit per sale, which means less earnings from each dollar billed, even as the company keeps spending on its utility network.

Analyst inference

The company is expanding through the roughly $542.7M Quadvest asset purchase in Houston while investing $304.1M in utility projects through September, with $440M projected for the full year. That spending needs funding, so cash available and borrowed money matter.

Analyst inference

What to watch

1. Rate cases remain pending in Connecticut and Maine, while rate adjustments already took effect in California, Connecticut and Maine in 2026; outcomes will shape future revenue from customer bills. Confirmed
2. Watch whether the roughly $542.7M Quadvest acquisition, closed October 1, adds revenue and customer growth in Houston, and whether integration costs stay contained. Proposed
3. Track full-year capital spending toward the $440M projection and any change in water supply costs from weather, since both affect cash available and future borrowing needs. Analyst inference

Evidence

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