Monitor the Quadvest acquisition timeline and regulatory approvals in Texas, as closing (expected H2 2026) will be a catalyst. The $700M equity raise removes near-term financing overhang. The flat EPS YoY and reaffirmed guidance suggest no near-term upside catalyst; the stock may trade range-bound until the next rate case or acquisition close.
Price Chart
Executive Summary
H2O America reported Q1 2026 GAAP diluted EPS of $0.49 (flat YoY) and adjusted diluted EPS of $0.50 (flat YoY), in line with consensus estimates. Revenue grew 9% YoY to $183.3M, beating the $176.3M consensus. The company reaffirmed its 2026 standalone adjusted diluted EPS guidance of $3.08-$3.18 and its long-term 6-8% CAGR target. The $700M equity raise completed in March addresses near-term funding needs. The stock is unlikely to move materially given in-line EPS and reaffirmed guidance.
Key Financial Metrics
Key Facts
- Q1 2026 GAAP diluted EPS of $0.49, flat YoY vs $0.49
- Q1 2026 adjusted diluted EPS (non-GAAP) of $0.50, flat YoY vs $0.50
- Q1 2026 operating revenue of $183.3M, up 9% YoY from $167.6M
- Revenue beat consensus of $176.3M by ~4%
- GAAP net income of $19.0M, up 15% YoY from $16.6M
- Reaffirmed 2026 standalone adjusted diluted EPS guidance of $3.08-$3.18
- Reaffirmed long-term adjusted diluted EPS CAGR target of 6-8%
- Completed $700M equity raise in early March 2026, including $400M forward component
- Quadvest acquisition progressing; PUCT deemed STM application administratively complete; closing expected H2 2026
- Declared quarterly dividend of $0.44 per share, 4.8% increase YoY
Financial Impact
Q1 revenue beat by ~$7M vs consensus; EPS in line; no guidance change
Risk Factors
- Quadvest acquisition delay or failure to close
- Regulatory lag in rate case approvals across California, Connecticut, Maine, and Texas
- Higher-than-expected operating expenses (up 11% YoY) pressuring margins
- Dilution from $700M equity raise (shares outstanding increased from 36.1M to 41.8M since Dec 2025)
- PFAS remediation costs ($176M estimated for California alone) may exceed expectations
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-027968 |
| Document: sjw-20260428.htm | 0001628280-26-027968 |
| Document: 0001628280-26-027968-index-headers.html | 0001628280-26-027968 |
| Document: 0001628280-26-027968-index.html | 0001628280-26-027968 |
| Document: 0001628280-26-027968.txt | 0001628280-26-027968 |
| 8-K Data (Synthetic) | 0001628280-26-027968 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 27, 2026 today | SC 13G/A | $61.04 | awaiting T+60 | — | $58.48 (−4.19%) |
Oct 26, 2026 1d ago | 8-K | $57.48 | awaiting T+60 | — | $58.48 (−1.74%) |
Oct 26, 2026 1d ago | Press Release | $58.48 | awaiting T+60 | — | $58.48 (+0.00%) |
Oct 13, 2026 14d ago | Press Release | $57.30 | awaiting T+60 | — | $58.48 (+2.06%) |
Oct 1, 2026 26d ago | Press Release | $60.20 | awaiting T+60 | — | $58.48 (−2.86%) |
Sep 22, 2026 5w ago | SC 13G/A | $62.20 | awaiting T+60 | — | $58.48 (−5.98%) |
Sep 21, 2026 5w ago | Press Release | $62.92 | awaiting T+60 | — | $58.48 (−7.06%) |
Aug 17, 2026 10w ago | Press Release | $63.30 | awaiting T+60 | — | $58.48 (−7.61%) |
Jul 13, 2026 15w ago | Insider Buy | $62.47 $58.18 | ▼ −6.87% | ▼ −10.86% | $58.48 (−6.39%) |
Jul 8, 2026 15w ago | Insider Buy | $61.33 $61.63 | ▲ +0.49% | ▼ −1.82% | $58.48 (−4.65%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers