H2O America 10-Q: Q3 EPS Falls to $0.99 on Higher Share Count; Quadvest Closed for $542.7M
HTO sits 31% above its 52-week low of $43.75.
Summary
H2O America's Q3 10-Q confirms diluted EPS of $0.99 versus $1.27 as the share count rose to 48.3 million, while revenue grew 4% to $250.2M and the $542.7M Quadvest acquisition closed October 1.
Key Events · Earnings and Guidance · HTO
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Q3 EPS Falls on Share Count
Diluted EPS was $0.99 versus $1.27 a year ago; adjusted diluted EPS $1.04 versus $1.27. Revenue rose 4% to $250.2M from $240.6M.
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Quadvest Closes for $542.7M
The acquisition closed October 1, 2026 for aggregate cash consideration of approximately $542.7 million: $480.9 million for Quadvest L.P. and $61.8 million for Quadvest Wholesale LLC.
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Equity Funded the Deal
6,439,308 shares were issued on forward purchase agreement settlement in Q3 for $330.0 million net proceeds; 1,107,862 forward shares remain outstanding. Shares outstanding reached 48,318,991 versus 36,118,242 at year-end 2025.
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Cash Jumps, Leverage Stays High
Cash and equivalents were $573.0 million at September 30 versus $20.7 million at December 31, 2025, alongside $1.88 billion of long-term debt. S&P's outlook is negative following the Quadvest announcement.
Analysis · HTO · Energy & Transportation
The headline numbers were already out today, but the full 10-Q shows what drove them: diluted EPS fell to $0.99 from $1.27 a year ago largely because the share count jumped to 48.3 million from 35.8 million, the cost of funding the Quadvest deal. Revenue still grew 4% to $250.2M and nine-month net income rose to $88.6M, so the utility base is expanding even as per-share earnings compress. The $542.7M Quadvest closing on October 1 is now on the books, funded by $330.0M of forward-settlement proceeds in Q3 plus earlier equity raises, leaving $573.0M of cash. The offsetting risk is leverage and ratings: S&P moved the outlook to negative in July 2025 on the acquisition, and long-term debt stands at $1.88B.
How filings like this one have moved
In the 30 days to Oct 27, 2026, 29.9% of the 1374 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.12%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, HTO was trading at $57.48 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $2.4B. The 52-week trading range was $43.75 to $67.09. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.