H2O America reported a consolidated net income of $102.6 million for the fiscal year ending December 31, 2025, reflecting a 9% increase from $94.0 million in 2024. The company's total operating revenue rose to $800.6 million, up from $748.4 million in the previous year, driven primarily by rate increases in California and Connecticut, which contributed an additional $44.1 million in revenue. However, this growth was partially offset by higher administrative expenses, increased water production costs, and lower customer usage, particularly in California, where a voluntary 15% reduction in water consumption was implemented.
The company experienced significant operational changes, including the announcement of its acquisition of Quadvest, L.P. for $483.6 million, which is expected to enhance H2O America's operational scale and market presence in Texas. This acquisition, along with the purchase of Quadvest Wholesale, LLC for $56.4 million, is subject to regulatory approvals and is anticipated to close in mid-2026. H2O America also reported a customer base of approximately 400,128 across its water utility services, with a slight increase in customer counts compared to the previous year.
In terms of financial health, H2O America had total assets of $5.15 billion as of December 31, 2025, an increase from $4.66 billion in 2024. The company's long-term debt, net of current portions, stood at $1.87 billion, up from $1.71 billion the previous year. H2O America maintained a strong liquidity position with cash and cash equivalents totaling $20.7 million, compared to $11.1 million in 2024. The company also reported a significant increase in capital expenditures, totaling $520.1 million in 2025, primarily for utility plant improvements and infrastructure upgrades.
Looking ahead, H2O America anticipates continued growth driven by its strategic focus on regional regulated water utility operations and non-tariffed services. The company plans to invest approximately $458 million in capital expenditures in 2026, excluding amounts related to the Quadvest acquisition. H2O America is also preparing for regulatory changes, including new federal drinking water regulations concerning PFAS, which may require an estimated $400 million in capital expenditures for compliance. The company remains committed to maintaining its dividend policy, having declared dividends totaling $58.6 million in 2025, representing 57% of its net income.
About H2O AMERICA
SJW Group is a holding company providing water and wastewater services through its subsidiaries in California, Connecticut, Maine, and Texas. It operates public utilities serving residential, commercial, and municipal customers, focusing on water supply, treatment, distribution, and infrastructure management. The company emphasizes regulatory compliance, sustainable water sourcing, and community engagement, offering core utility services with competitive rates, strategic investments, and a commitment to safety and environmental standards.
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