H2O America(NASDAQ) HTO

H2O America provides clean drinking water to homes and businesses. It also manages wastewater systems for many local communities. These services help people meet their basic everyday needs.

Where the Water Flows

• Water Utility Services: Regulated production, treatment, and distribution of water to over 1.6 million people in four states.
• Wastewater Operations: Collection and disposal of sewage through approximately 4,000 regulated service connections in specific regions.
• Non-regulated Services: Maintenance of water systems, antenna site leasing, and contract sewer operations for various clients.
• Protection Plans: Specialized coverage like the Linebacker plan for public drinking water customers in Connecticut and Maine.

Growing Beyond Its Roots

• Agreed to acquire regulated and wholesale water systems in Houston, Texas, for $540 million.
• Issued $70 million in senior notes in Nov. 2025 to fund regional utility operations and infrastructure.
• Completed an underwritten common stock offering in March 2026, generating $290.2 million in net proceeds.
• Rebranded from SJW Group to H2O America in May 2025 to reflect its expanding nationwide footprint.

What Sets H2O America Apart

The company maintains a diverse water supply from groundwater wells, surface runoff, and reclaimed sources to manage drought risks. It holds a long-term track record of operational stability with 58 consecutive years of annual dividend increases.

The Numbers for 2026

• Operating revenue reached $393.8 million in the six-month period ended June 30, 2026, up 8% year over year.
• Net income was $45.6 million in the six-month period ended June 30, 2026, up 11% year over year.
• Long-term debt totaled $1.9 billion as of June 30, 2026, supporting ongoing infrastructure modernization.
• Budgeted capital expenditures for 2026 are approximately $458 million for upgrading pipes, mains, and treatment facilities.

Bottom Line

H2O America has evolved from a local utility into a multi-state operator through infrastructure investment and strategic expansion. Its shift into fast-growing regions like Houston demonstrates a clear path for future utility plant growth.