H2O America (SJW) Q3 2025 earnings summary

Executive summary

• Q3 2025 delivered strong results with adjusted EPS of $1.27, up 8% year-over-year, and net income of $45.1M, up 17%; year-to-date adjusted EPS reached $2.53, a 14% increase.

• Revenue grew 7% in Q3 and 10% year-to-date, driven by rate increases, higher usage, and customer growth.

• Advanced Texas expansion with Quadvest and Cibolo Valley acquisitions, both expected to close by mid-to-late 2026, pending regulatory approvals.

• Recognized as one of America's Greenest Companies for the second year, achieving a 43% reduction in Scope 1 and 2 emissions since 2019.

• Significant infrastructure investment and regulatory engagement continued, supporting long-term growth.

Financial highlights

• Q3 2025 adjusted diluted EPS: $1.27 (up 8%); year-to-date adjusted EPS: $2.53 (up 14%).

• Q3 2025 revenue: $240.6M, up from $225.1M in Q3 2024; year-to-date revenue: $606.4M, up from $550.6M.

• Water production expenses rose 3% in Q3 and 9% YTD; other operating expenses increased 9% in both periods.

• Operating income for Q3 was $64.6M; year-to-date operating income was $144.4M.

• Raised $108M in equity YTD; $126M drawn on $370M credit lines; new long-term notes issued at 6.08%-6.68% rates.

Outlook and guidance

• 2025 adjusted EPS guidance narrowed to $2.95–$3.00, targeting the upper half of the original range.

• Reaffirmed 5%-7% EPS CAGR through 2029, expecting to deliver at the top half of the range, excluding Quadvest impact.

• CapEx plan for 2025 increased to $486M, with $1.9B planned over five years, including $300M for PFAS treatment.

• Management expects to meet customer demand for water supply in all service areas for the remainder of 2025.