H2O America

What H2O America does

H2O America (NASDAQ: HTO), formerly SJW Group, is a publicly traded holding company that operates a national portfolio of four regulated, investor-owned water and wastewater utilities — San Jose Water Company (California, since 1866), The Connecticut Water Company and The Maine Water Company (acquired via the 2019 acquisition of Connecticut Water Service, Inc.), and Texas Water Company / SJWTX, Inc. (Texas, incorporated 2005). The company serves more than 1.6 million people across California, Connecticut, Maine, and Texas through approximately 407,000–409,000 service connections, employing 822 water professionals across the enterprise.

The operating model is regulated utility service with rate-base recovery: revenue is generated primarily through retail water and wastewater tariffs set by state Public Utility Commissions (CPUC, PURA, MPUC, PUCT) via formal rate cases, supplemented by interim infrastructure surcharge mechanisms (WICA, WQTA, WRA, WISC, SIC) that accelerate recovery of completed capital projects between general rate cases. The technology stack is conventional for the sector: subsidiary-level SCADA/telemetry, advanced metering infrastructure (smart meters deployed at Texas Water), GIS-based asset management, cloud computing for financial and operational systems, and active PFAS ion-exchange treatment programs (San Jose Water's Williams Station project estimated at ~$176M, Connecticut Water's Avon facility activated February 2026).

The business model is dominated by recurring, regulated subscription-like revenue with usage-based pass-through components. FY2025 operating revenue was $800.6 million (+7% YoY) and Q1 2026 operating revenue was $183.3 million (+9% YoY). H2O America holds an A- S&P credit rating and has paid dividends for 80+ consecutive years with 58 consecutive years of annual dividend increases (Dividend King status). Management is targeting 13% annual rate base growth through 2030, supported by a $2.7B 2026-2030 capital expenditure plan (a 31% increase over the prior plan) and funded in part by a $700M equity offering completed in March 2026. Active inorganic expansion is centered on Texas via the announced $540M Quadvest acquisition and the Cibolo Valley wastewater acquisition.

Name

H2O America

Legal name

H2O America

Website

https://h2o-america.com

Company type

Public

Founded year

1866

Operating status

Operating

Headcount range

501–1,000 employees

Short description

H2O America (NASDAQ: HTO) is a publicly traded holding company operating four regulated water and wastewater utilities (San Jose Water, Connecticut Water, Maine Water, Texas Water) serving 1.6 million people across four U.S. states through ~409,000 connections, with $800.6 million in FY2025 revenue and a 58-year dividend growth streak.

Ownership category

akta.pro rank

Headquarters

HQ city

San Jose

HQ country

United States

HQ region

North America

Offices6 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Infrastructure, Personnel, Operations, Supply Chain, Technology or R&D, Others

Revenue model

1. Regulated Water and Wastewater Service Rates: Primary revenue stream — recurring, regulated rates charged to residential, commercial, and industrial customers for water and wastewater service across California, Connecticut, Maine, and Texas. Rates are set through state Public Utility Commission general rate cases and adjusted via interim mechanisms (WICA, WQTA, WRA, WISC, SIC). 2025 operating revenue was $800.6 million (7% YoY growth); Q1 2026 operating revenue was $183.3 million (9% YoY growth) driven primarily by $11.8M of rate increases across California, Connecticut, and Texas.
2. Pass-Through Water and Wastewater Costs: Customer billing includes pass-through recovery of purchased water, groundwater extraction charges, power costs, and other production expenses, recovered through balancing/memorandum accounts (e.g., Full Cost Balancing Account in California). Q4 2025 revenue included $6.6 million of higher pass-through water costs.
3. New Customer Connection Fees / Developer Contributions: Revenue from new water and wastewater service connections and infrastructure cost recovery from developers; supports organic customer growth (Quadvest added 7,400 connections in 2025 alone; active connections grew 16%).

Pricing tiers

Go-to-market motion1 record

Distribution channels5 records

Marketing channels7 records

Core offering

H2O America is a publicly traded holding company that delivers regulated retail water and wastewater utility services through four state-based, locally operated subsidiaries (San Jose Water Company in California, Texas Water Company, Connecticut Water Company, and Maine Water Company) serving 1.6 million people across approximately 407,000–409,000 service connections. Recurring revenue is generated through state Public Utility Commission-approved water and wastewater tariffs, with rate cases and interim infrastructure surcharge mechanisms (WICA, WQTA, WRA, WISC, SIC) enabling recovery of the $2.7 billion 2026–2030 capital expenditure plan.

Product overview

H2O America (NASDAQ: HTO) is a national investor-owned holding company that operates as a portfolio of four regional water and wastewater utility subsidiaries rather than a single unified product platform: San Jose Water Company in California, Connecticut Water Company, Maine Water Company, and Texas Water Company (SJWTX, Inc.). These four locally led and operated subsidiaries together serve more than 1.6 million people across approximately 407,000-409,000 service connections and employ 822 trusted water professionals, supported by shared corporate functions (including Information Technology, Cybersecurity, Human Resources, and Corporate Communications) and a centralized Force for Good Foundation for community-impact initiatives. The platform also encompasses specialized programs such as the Maine Water Water Residential Assistance Program (WRAP) affordability offering, and is being expanded through pending acquisitions including the Quadvest water and wastewater utility and Cibolo Valley wastewater plant in Texas.

Differentiator

Problem solved

Functional benefit

Brands

• Force for Good Foundation: Philanthropic foundation launched in 2024 by H2O America to support nonprofit organizations that help the communities served by its utilities.

Products and services

• San Jose Water Company Wholly owned subsidiary of H2O America providing regulated water service to approximately one million people through ~232,000 connections across 139 square miles in the metropolitan San Jose area; regulated by the California Public Utilities Commission (CPUC). Operates 395 employees.
• Texas Water Company (SJWTX, Inc.) Wholly owned subsidiary of H2O America providing regulated water service to approximately 77,000–88,000 people through 26,000–29,000 service connections across 268 square miles around Canyon Lake in western Comal County and southern Blanco County, Texas; regulated by the Public Utility Commission of Texas (PUCT). Operates 99 employees.
• Connecticut Water Company Wholly owned subsidiary of Connecticut Water Service, Inc. under H2O America providing regulated water service to more than 375,000 people through approximately 107,000 water connections and 3,000 wastewater connections across 60 Connecticut communities; regulated by the Connecticut Public Utilities Regulatory Authority (PURA). Operates 244 employees.
• Maine Water Company Wholly owned subsidiary of Connecticut Water Service, Inc. under H2O America providing regulated water service to approximately 85,000 people across 21 Maine communities spanning ~72 square miles through 34,000 connections; regulated by the Maine Public Utilities Commission (MPUC). Operates 84 employees.
• Water Residential Assistance Program (WRAP) Needs-based financial assistance rate program launched by Maine Water Company and compliant with Maine water affordability legislation. Residential customers meeting Low-Income Assistance Program eligibility for electricity qualify for a 22 percent discount on their total water bill.

Quantifiable outcome

• 43% reduction in GHG emissions since 2019
• +9 more outcomes

Segments5 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature5 records

Partnerships

Four partnerships are on record, tiered core — pending secondary texas acquisition, flagship — $540m transformative texas acquisition, internal and minor — municipal billing services contract.

• Cibolo Valley Wastewater (South Central Water Company)core — pending secondary texas acquisitionStrategic or Co-development Partner · 21 April 2026TWC filed the STM application with PUCT on April 21, 2026 to acquire the Cibolo Valley wastewater treatment plant and associated collection systems (serving 1,500+ wastewater connections within TWC's existing water service area) from South Central Water Company. Closing expected Q4 2026.
• Quadvest, L.P.flagship — $540m transformative texas acquisitionStrategic or Co-development Partner · 8 July 2025Pending $540M acquisition by Texas Water Company (TWC) and Texas Water Operation Services (TWOS) of Quadvest, a regulated investor-owned water and wastewater utility in the Houston metro area with 47,000+ active connections and 89,000+ under contract. PUCT STM application deemed administratively complete in April 2026; closing expected H2 2026. Will grow Texas from ~8% to ~26% of consolidated customer base by 2029. TWC plans to invest over $500M in Texas over five years.
• San Jose Water Company (subsidiary leadership appointments)internalOthersAppointments within San Jose Water subsidiary — Carmelitha Bordelon-Taylor as VP of regulatory affairs (effective May 29, 2026) and Colby Sneed as VP of operations (effective May 13, 2026).
• City of Biddeford, Maineminor — municipal billing services contractImplementation/ SI/ Consulting PartnerCity of Biddeford, Maine transitioned to leverage Maine Water's billing and customer service expertise to stabilize administrative processes for sewer billing for Biddeford wastewater customers, effective December 18, 2025.

Scale indicators10 records

Recent moves6 records

Expansion highlights7 records

Direct peers

• Artesian Resources Corporation: Investor-owned water and wastewater utility serving ~300,000 people on the Delmarva Peninsula. Comparable smaller-scale regulated water utility with similar dividend continuity focus and rate-case-driven earnings model.
• Middlesex Water Company: Investor-owned water and wastewater utility serving ~500,000 people in New Jersey, Delaware, Pennsylvania, and Connecticut. Smaller but directly comparable in regulated water-only utility model, dividend growth history, and rate-base growth strategy.
• American Water Works Company: Largest investor-owned water and wastewater utility in the United States, serving ~14 million people across 14 states. Direct peer to H2O America in regulated water utility operations, rate-base growth model, and dividend-paying utility holding company structure; several H2O America executives (Bruce Hauk, Nick O. Rowe) previously led operations at American Water.
• Essential Utilities (formerly Aqua America): Investor-owned water and natural gas utility serving ~5 million people across 10 states. Comparable to H2O America in multi-state regulated water franchise, rate-base growth, and dividend aristocrat status, with overlapping capex-driven growth thesis.
• California Water Service Group: Investor-owned water utility serving ~2 million people across California, Washington, New Mexico, Hawaii, and Texas. Direct peer especially relevant for H2O America's San Jose Water subsidiary given overlapping CPUC-regulated California operations and similar PFAS remediation exposure.
• American States Water Company: Investor-owned water and electric utility serving ~1 million people across California (Golden State Water) and military bases (Fort Bliss, others). Direct peer in California regulated water operations and military-contract water services; comparable scale to H2O America's San Jose Water subsidiary.

Broad incumbents

• SUEZ North America (now Veolia): Global water services provider operating municipal and industrial water/wastewater contracts in North America. Broad incumbent in water services with overlapping technology and operational expertise; H2O America's CIO Douwe Busschops previously held senior leadership roles at SUEZ Water North America.
• Veolia North America: Largest environmental services company in the world operating regulated and contracted water/wastewater assets across the U.S. Broad incumbent serving municipalities and industrial customers; comparable as a major water-services operator (H2O America's CIO Douwe Busschops previously led Veolia's Municipal Water Division).
• Liberty Utilities (parent: Algonquin Power): Regulated water, natural gas, and electric utility serving ~1 million customer connections across the U.S. Comparable as a multi-state regulated water utility operator; broader portfolio (including gas and electric) puts it in the broad incumbent category relative to H2O America's water-only focus.

Emerging players

• York Water Company: Investor-owned water utility serving ~200,000 people across Pennsylvania and Maryland, with a 200+ year operating history. Smaller, geographically focused water utility comparable in dividend continuity and regulated rate-base model but with a more limited geographic footprint than H2O America.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks7 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/h2oamerica

Compliance5 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles17 records

Subsidiaries5 records

Funding overview

Funding rounds1 record

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about H2O America