2025 reported diluted EPS were $2.92 versus $2.87 in 2024. On an adjusted (non-GAAP) basis, 2025 diluted EPS of $2.99 came in near the top of our upwardly narrowed $2.95 to $3.001 guidance range, compared to $2.95 in 2024Establish a 2026-30 capital expenditures budget of $2.7 billion, a 31% increase over the prior five-year plan, to fund needed infrastructure replacement, PFAS remediation, additional water supplies, and investments in the Quadvest, L.P. system following the anticipated mid-2026 closeInitiat ...

Group 1: Investment Potential - H2O America (NASDAQ:HTO) is identified as one of the best dividend stocks to buy, with an average price target suggesting a 27% upside and a Street high indicating a 38% upside [1][3] - The company reported a GAAP net income of $45.1 million for Q3 2025, reflecting a 17% increase compared to the prior-year quarter [3] Group 2: Recent Developments - H2O America's subsidiary, San Jose Water Company, along with three other water utilities, received approval to extend their 2026 Cost of Capital filing until May 1, 2027, which is expected to reduce administrative processing costs [2] - The company is making progress in expanding its presence in Texas through the acquisition of Quadvest and the Cibolo Valley wastewater system [3] Group 3: Financial Performance - For Q3 2025, H2O America reported diluted EPS of $1.27 and operating revenue of $240.6 million, marking increases of 9% and 7% respectively compared to the same quarter last year [3]

Core Viewpoint - H2O America, through its subsidiary San Jose Water Company, has received approval from the California Public Utilities Commission (CPUC) to defer its 2026 Cost of Capital filings to May 1, 2027, providing clarity and stability for customers through 2027 [1][3]. Summary by Sections Cost of Capital Filings - The Joint Parties, including San Jose Water Company, requested a one-year postponement of their Cost of Capital (COC) filings originally due on May 1, 2026, which has now been granted [2]. - The last COC decision was made on June 29, 2023, and the Joint Parties had previously received deferments for 2025 and 2026 [2]. Regulatory Approval and Mechanisms - The approval from CPUC allows the Water Cost of Capital Mechanism (WCCM) to remain in effect until January 1, 2028, which adjusts the Return on Equity (ROE) based on the Moody's Aa Utility Bond Index [3][7]. - San Jose Water's current ROE of 9.81% will remain unchanged through 2027 unless adjusted by the WCCM, reflecting a reduction from the CPUC-approved base ROE of 10.01% due to the Water Conservation Memorandum Account (WCMA) [4][7]. Company Overview - H2O America is a major investor-owned water utility in the U.S., serving over 1.6 million people and focusing on sustainable operations and community engagement [5].