H2O America Q2 2026: Adjusted EPS of $0.72, Quadvest Approval Recommended, PFAS Settlements Received
HTO sits 47% above its 52-week low of $43.75.
Summary
H2O America reported Q2 2026 adjusted EPS of $0.72 on revenue of $210.5M. The Quadvest acquisition received a staff recommendation for approval from Texas regulators, and the company collected $11M in PFAS settlement proceeds.
Key Events · Earnings and Guidance · HTO
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Q2 2026 Adjusted EPS of $0.72
Adjusted diluted EPS came in at $0.72, down slightly from $0.75 in Q2 2025, excluding merger and acquisition costs. GAAP diluted EPS was $0.62, compared with $0.71 a year ago, reflecting a higher share count following the March 2026 equity offering.
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Revenue Growth of 6%
Operating revenue reached $210.5 million, driven by rate increases, customer growth, and higher water production cost pass-throughs.
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Quadvest Acquisition Advances
On July 9, 2026, PUCT Staff recommended approval of the $483.6 million Quadvest regulated business acquisition, a critical step toward closing the $540 million total transaction.
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PFAS Settlements Add $11 Million
The company received $11.0 million in cash from PFAS contamination litigation settlements during Q2 2026, with an additional $5.7 million expected over the next seven years.
Analysis · HTO · Energy & Transportation
A solid quarter for H2O America, with revenue climbing 6% and adjusted EPS reaching $0.72, supported by rate increases and customer growth. The Quadvest acquisition cleared a key regulatory hurdle when PUCT staff recommended approval, moving the $540M deal closer to closing. PFAS litigation settlements added $11M in cash, bolstering the balance sheet. The company maintained its dividend and has ample liquidity to fund its capital plan. While GAAP EPS declined due to a higher share count from the March equity offering, the underlying regulated utility business remains on track.
At the time of this filing, HTO was trading at $64.25 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $2.7B. The 52-week trading range was $43.75 to $67.09. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.