Q2 2026 H2O America(Dover) Earnings Call Transcript
Key Points
- H2O America (HTO) reported strong second quarter 2026 results with earnings of $0.62 per share on a GAAP diluted basis and $0.72 per share on an adjusted diluted basis.
- The company is on track to meet its standalone 2026 adjusted diluted EPS guidance of $3.08 to $3.18 and its long-term EPS CAGR target of 6% to 8%.
- H2O America (HTO) is making significant infrastructure investments, with $207 million invested in the first half of 2026, representing 43% of its full-year CapEx budget.
- The company is progressing well with regulatory approvals, including the anticipated closing of the Quadvest acquisition by the end of the third quarter or early fourth quarter.
- H2O America (HTO) is focused on maintaining customer affordability while investing in necessary infrastructure, aiming to keep water bills below 2.25% of median household income.
- The company's adjusted diluted EPS for the second quarter of 2026 was slightly lower than the same period in 2025, at $0.72 compared to $0.75.
- Higher share count due to equity issuance in early 2026 led to a dilution impact, reducing EPS by a net $0.06.
- H2O America (HTO) faced higher water production expenses and operating expenses, including a $0.20 increase in depreciation and amortization.
- The company is dealing with rising water supply costs, particularly in California, where Valley Water's rates have increased significantly over the past decade.
- There are concerns about the sustainability of Valley Water's projected rate increases, which could impact customer affordability in the long term.
Good day, everyone, and thank you for standing by. Welcome to H2O America 2026 second quarter financial results call. (Operator Instructions) Please be advised that today's conference is being recorded. It is my pleasure to hand the conference over to Jonathan Reeder.
()-
Thank you, operator. Welcome to the second quarter of 2026 financial results conference call for H2O America. My name is Jonathan Reeder, and I am the Senior Director of Treasury and Investor Relations for H2O America. Presenting today will be Andrew Walters, Chair of the Board and Chief Executive Officer; Ann Kelly, Chief Financial Officer and Treasurer; and Bruce Hauk, President and Chief Operating Officer. For those who would like to follow along, slides accompanying our remarks are available on our website at h2o-america.com.
Before we begin today, I would like to remind you that this presentation and related materials posted on our website may contain forward-looking
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
