At a glance
H2O America is worth $2.99B, about 21 times its fiscal 2025 earnings. Revenue grew 9.4% to $805.6M in fiscal 2025, with 12.7% kept as profit; over 5 years it has grown 8.0% a year. It pays a 2.82% dividend yield, raised every year for at least 9 years, and returned $242.4M to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +29.5% over the past year with dividends reinvested, against +11.5% for the S&P 500.
The business in plain English
H2O America, called SJW Group until May 2025, is a holding company that owns regulated water utilities in four states. San Jose Water Company serves the metropolitan San Jose, California area. Connecticut Water Company and Maine Water Company serve customers across those two states. The Texas Water Company serves seven counties between San Antonio and Austin and provides wastewater service in two of them.
Most revenue comes from selling water at prices set by state regulators. Those rates are meant to cover operating costs, pay for replacing pipes and plants, and give shareholders a fair return. As of December 31, 2025, the allowed return on equity (the profit regulators permit on the owners' stake) was 9.81% in California and 9.30% in Connecticut. The utilities form one reporting segment, Water Utility Services. Smaller 'Other Services' include contract water and sewer work, a service arrangement with the City of Cupertino, and real estate. Revenue was $805.6 million in fiscal 2025, but the 10-K gives no clean split by state or segment.
The company's strategy includes buying other water systems. In July 2025 it agreed to buy Quadvest's Texas water and sewer businesses for base prices of $483.6 million and $56.4 million. As of the 10-K filed February 26, 2026, the deal was waiting for approval from Texas regulators. The drawbacks: rate increases need regulators' approval, and the business is concentrated in California, Texas and Connecticut.
Price history
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HTO +29.5% over the year to Oct 28, 2026, total return with dividends reinvested.
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was $253.2M, up 4% from a year earlier, and net income was $43.0M (-4.6%).
- For fiscal 2025, revenue was $805.6M (+9.4% year over year; +8.0% a year from FY2020 to FY2025) with a 12.7% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +8.0% good |
|---|---|
| Operating margin | 22% good |
| Return on equity (FY2025) | 6.7% weak |
| Return on assets (FY2025) | 2% weak |
| Net cash (cash minus debt) | $-1.32B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $549.3M | $61.5M | — |
| FY2021 | $559.6M | $60.5M | — |
| FY2022 | $586.9M | $73.8M | — |
| FY2023 | $678.2M | $85.0M | — |
| FY2024 | $736.3M | $94.0M | — |
| FY2025 | $805.6M | $102.6M | — |
Valuation snapshot
| Market value | $2.99B |
|---|---|
| P/E ratio | 21.2 |
| Dividend yield | 2.82% |
Rank among 1514 US companies
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| HTO price data to Oct 28, 2026 | +29.1% | +29.5% | — | — | — |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +29.1% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 4 open-market purchases ($6.3M) and 1 sales ($102K).
| Date | Insider | Type | Value |
|---|---|---|---|
| Apr 10, 2026 | GIP ATLAS Holdings Ltd 10% owner | buy | $3.0M |
| Apr 10, 2026 | ATLAS Infrastructure Partners (UK) Ltd. 10% owner | buy | $3.0M |
| Jul 7, 2026 | ATLAS Infrastructure Partners (UK) Ltd. 10% owner | buy | $173K |
| Jul 1, 2026 | ATLAS Infrastructure Partners (UK) Ltd. 10% owner | buy | $130K |
| Jul 1, 2026 | ATLAS Infrastructure Partners (UK) Ltd. 10% owner | sell | $102K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 14.8% | Sep 30, 2026 |
| ATLAS Infrastructure Partners (UK) Ltd. | 11.17% | Sep 21, 2026 |
| Future Fund Board of Guardians | 6.2% | Mar 3, 2026 |
| AMUNDI | 4.78% | Dec 31, 2025 |
| STATE STREET CORPORATION | 4% | Mar 31, 2025 |
What could go wrong
- Quadvest acquisition may fall short. In July 2025 it agreed to buy Quadvest’s Texas water and sewer businesses for base prices of $483.6 million and $56.4 million. Regulatory conditions, delays or a hard integration could shrink the benefits.
- Concentrated in California, Texas and Connecticut. With its business concentrated in these states, trouble in any one could weigh heavily on results. It also operates in areas exposed to wildfires and other natural disasters.
- Regulators control prices and returns. Commissions in California, Connecticut, Maine and Texas decide what it can charge and earn. Lower allowed returns, slow rate decisions or refusals to let it recover spending would hurt earnings.
- Water supply and contamination problems. Water supplies depend on factors beyond its control. A contamination event could disrupt service and bring lawsuits, and new or stricter environmental rules could raise operating costs.
- Heavy debt and big spending needs. Total debt was about $1.89 billion as of September 30, 2026. The company warns it may lack the cash or market access to fund system spending, and added debt could raise borrowing costs.
- Dividend depends on subsidiaries and the board. H2O America needs cash from its utilities to pay dividends, which the board can change. Ring-fencing measures keep Connecticut Water Service and its Maine unit separate, and they limit the parent’s influence over them.
Recent events
- Quarterly results released
- Acquisition or sale of assets completed; Investor presentation or announcement
- Quarterly results released
- Executive or board change
- Shareholder vote results
- Quarterly results released
- Major agreement signed; Investor presentation or announcement; Other company announcement
- Quarterly results released
- Other company announcement
- Executive or board change
For income and retirement investors
H2O America has raised its dividend at least nine years in a row through 2025, and the true streak may be longer. Dividends per share rose from $1.28 in 2020 to $1.68 in 2025, about 5.6% a year. Dividends paid in 2025 equaled 57.2% of net income, and the yield was 2.82% as of October 28, 2026. The company bought back no shares from 2021 through 2025. Its share count instead rose 62% between October 2021 and October 2026, so profits are spread across more shares.
The price record for HTO covers only about 1.5 years. It does not show how the shares held up in the 2008 financial crisis, the 2020 COVID crash or the 2022 bear market. In the year to October 28, 2026, the largest drop from a peak was 14%. Single stocks carry more risk than diversified funds because no other holdings cushion one company’s setbacks.
Questions investors ask
Is H2O America the same company as SJW Group?
Yes. SJW Group changed its corporate name to H2O America in May 2025, and its shares trade on Nasdaq under the symbol HTO. The holding company was first incorporated as SJW Corp. in California in 1985 and is now a Delaware corporation. It still owns the same regulated water utilities: San Jose Water Company, Connecticut Water Company, Maine Water Company and The Texas Water Company.
How does H2O America make money?
It sells water service, plus some wastewater service in Texas, at prices set by state regulators in California, Connecticut, Maine and Texas. Rates are meant to cover operating costs, pay for replacing infrastructure and give shareholders a fair return. As of December 31, 2025, allowed returns on shareholders’ equity ranged from 9.30% in Connecticut to 9.81% in California, and management estimated 10.88% for Texas. Revenue was $805.6 million in 2025 and net income was $102.6 million.
Does H2O America raise its dividend every year?
Yes, so far. It has raised its dividend at least nine years in a row through 2025, and the true streak may be longer. Dividends per share grew from $1.28 in 2020 to $1.68 in 2025, about 5.6% a year. Dividends paid in 2025 equaled 57.2% of net income, and the yield was 2.82% as of October 28, 2026. Future increases aren’t guaranteed. The board decides, and the parent relies on cash from its utility subsidiaries.
What is H2O America’s Quadvest acquisition?
It is a July 7, 2025 agreement to buy Quadvest’s water and sewer businesses in Texas. The Texas Water Company agreed to pay a base price of $483.6 million for the regulated utility business, and another subsidiary agreed to pay $56.4 million for the wholesale business, before adjustments. Under Texas’ fair market value law, the $483.6 million becomes the rate base, the amount the utility can earn a return on. The 10-K, filed February 26, 2026, expected Texas regulators to approve the deal by mid-2026.
How much debt does H2O America have?
About $1.89 billion as of September 30, 2026, against $573 million of cash and investments and $2.2 billion of shareholder equity. That leaves net debt of about $1.32 billion. Water utilities commonly borrow to pay for pipes and treatment plants, and regulators approve a target mix of debt and equity, such as 45% debt and 55% equity in California. The company warns that its added debt could reduce its flexibility and raise its borrowing costs.