H2O America narrowed its stand-alone 2026 adjusted diluted earnings-per-share guidance to $3. The company also introduced an acquisition-inclusive 2026 range of $2. Management said the acquisition-inclusive midpoint represents about 6% dilution to the stand-alone midpoint, less than the previously discussed 10%-20% range because Quadvest closed later than initially expected.
The Houston-area water and wastewater operator had 62,200 active connections on Sept. 30, up 14%, or 7,700 connections, during the first nine months of 2026. Its pipeline included 98,300 connections under contract or pending development, 13% above the 87,000 reported at the end of 2025 despite the conversion of thousands of pipeline connections into active customers.
The company reduced its 2026 company-funded capital investment plan to about $465 million from $483 million, primarily because developer-funded Texas investment was higher than expected. That change does not reduce the planned $766 million of Texas capital spending for 2026-30 or the consolidated five-year capital budget of $2. 7 billion. Management expects the Texas acquisitions and capital program to increase Texas’s share of the consolidated customer base from 8% at the end of 2025 to 26% by 2029, while Quadvest is expected to begin contributing to earnings accretion in 2028.
Regulatory timing remains central to the outlook. H2O America expects to file a combined Texas general rate case during the first half of 2027, after the later acquisition closing and increased requests for supporting documentation in recent filings. Connecticut’s pending rate case is scheduled for a proposed decision in mid-December, a final decision in January and effective rates in February 2027. The company plans to begin issuing 2027 guidance in February, including the effects of Quadvest and Cibolo Valley, and continues to expect 2027 dilution could fall within 10%-20% of its stand-alone plan.