v3.26.3
Segment Reporting
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
H2O America’s single reportable segment provides water utility and utility-related services to its customers through H2O America’s subsidiaries, SJWC, CWC, TWC, MWC, and Acequia, which are aggregated and referred to as “Water Utility Services.” Water Utility Services’ activities are water utility operations with both regulated and non-tariffed businesses. Other business activities that do not comprise separately reportable segments primarily include SJWC’s City of Cupertino service concession arrangement operations, property management and investment activity conducted by H2O America Land Company and Chester Realty, Inc., contract water and sewer operations and other water-related services provided by NEWUS and are referred to as “Other Services.”
H2O America’s operating segments have been determined based on information used by the chief operating decision maker. H2O America’s chief operating decision makers (“CODM”) include the Chief Executive Officer and Chair of the Board; the Chief Financial Officer and Treasurer; the President and Chief Operating Officer; and the Vice President and General Counsel. However, ultimate decision-making authority rests with the Chief Executive Officer. The CODM reviews financial information presented on a consolidated basis that is accompanied by certain disaggregated information about operating revenue, expenses, net income, and total assets. The CODM uses net income to assess the financial performance of the segments and allocate resources (including employees, financial, or capital resources) in the budgeting and forecasting process.
Previously, H2O America presented a separate reportable segment for Real Estate Services and also presented a disaggregation of regulated and non-tariffed activities within the Water Utility Services reportable segment. Under the current presentation, the activities of Water Utility Services previously presented as “non-tariffed” are generally presented as “Other Services” along
with the real estate activity. Certain allocated assets, such as goodwill, revenue and expenses have been included in the reportable segment amounts. Certain corporate costs and expenses are not allocated to Water Utility Services or Other Services and are shown separately to reconcile to the applicable consolidated amounts.

For the three months ended September 30, 2026
Reportable Segment
Water Utility ServicesOther Services (1)
Unallocated Corporate (2)
Consolidated
(In thousands)
Operating revenue$245,634 4,595 — 250,229 
Less:
Production expenses101,224 2,082 — 103,306 
Administrative and general30,951 209 4,281 35,441 
Maintenance7,333 1,014 — 8,347 
Property taxes and other non-income taxes10,014 50 104 10,168 
Depreciation and amortization32,216 31 231 32,478 
Interest on long-term debt and other interest expense13,428 115 4,618 18,161 
Provision (benefit) for income taxes6,010 135 (943)5,202 
Other (3)(5,058)(25)(835)(5,918)
Net income (loss)$49,516 984 (7,456)43,044 
Capital expenditures$130,369 — — 130,369 
For the three months ended September 30, 2025
Reportable Segment
Water Utility ServicesOther Services (1)
Unallocated Corporate (2)
Consolidated
(In thousands)
Operating revenue$236,222 4,328 — 240,550 
Less:
Production expenses96,411 1,909 — 98,320 
Administrative and general30,599 251 456 31,306 
Maintenance7,100 916 — 8,016 
Property taxes and other non-income taxes9,563 21 (68)9,516 
Depreciation and amortization28,505 30 230 28,765 
Interest on long-term debt and other interest expense12,600 — 5,298 17,898 
Provision (benefit) for income taxes5,743 591 (543)5,791 
Other (3)(1,435)(370)(2,389)(4,194)
Net income (loss)$47,136 980 (2,984)45,132 
Capital expenditures$153,212 — — 153,212 
For the nine months ended September 30, 2026
Reportable Segment
Water Utility ServicesOther Services (1)
Unallocated Corporate (2)
Consolidated
(In thousands)
Operating revenue$631,738 12,258 — 643,996 
Less:
Production expenses250,631 4,580 — 255,211 
Administrative and general86,608 627 11,639 98,874 
Maintenance20,952 3,226 — 24,178 
Property taxes and other non-income taxes27,975 128 43 28,146 
Depreciation and amortization96,132 91 695 96,918 
Interest on long-term debt and other interest expense41,425 184 13,342 54,951 
Provision (benefit) for income taxes17,881 866 (6,174)12,573 
Other (3)(13,080)(176)(2,245)(15,501)
Net income (loss)$103,214 2,732 (17,300)88,646 
Capital expenditures$344,813 — — 344,813 
For the nine months ended September 30, 2025
Reportable Segment
Water Utility ServicesOther Services (1)
Unallocated Corporate (2)
Consolidated
(In thousands)
Operating revenue$596,052 10,352 — 606,404 
Less:
Production expenses233,720 4,436 — 238,156 
Administrative and general82,317 1,063 4,481 87,861 
Maintenance20,848 2,137 — 22,985 
Property taxes and other non-income taxes27,278 (29)(32)27,217 
Depreciation and amortization85,022 91 684 85,797 
Interest on long-term debt and other interest expense38,358 — 15,934 54,292 
Provision (benefit) for income taxes17,755 1,100 (4,923)13,932 
Other (3)(4,305)(507)(5,382)(10,194)
Net income (loss)$95,059 2,061 (10,762)86,358 
Capital expenditures$369,615 — — 369,615 
______________________________
(1)    The “Other Services” category includes the accounts of H2O America Land Company, Chester Realty, Inc., SJWC’s Cupertino service concession arrangement operations, TWOS, TWR, and NEWUS, on a stand-alone basis.
(2)    The “Unallocated Corporate” category includes the accounts of H2O America, H2O America NE LLC, H2O America TX Holdings, Inc., CTWS, NWU, and Risk Solutions on a stand-alone basis.
(3)    Primarily comprised of pension non-service credit (cost) and items of miscellaneous non-operating income (expense).
H2O America’s assets for the Water Utility Services reportable segment and all other are as follows:
September 30, 2026December 31, 2025
(In thousands)
Water Utility Services (reportable segment)$5,475,573 5,054,235 
Other Services22,177 26,707 
Unallocated Corporate554,374 68,624 
Total assets$6,052,124 5,149,566