H2O AMERICAHTO
H2O AMERICA Segments Disclosure
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 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 Chair and Chief Executive Officer; the Chief Financial Officer and Treasurer; the President and Chief Operating Officer; the President of Shared Services and Senior Vice President and Chief Administrative Officer; and the Vice President and General Counsel. However, ultimate decision-making authority rests with the Chair and 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 the 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. Considering the sale of the Tennessee properties, as discussed in Note 2, which were part of the Real Estate Services segment, management has updated its segment presentation and has recast the prior periods presented to conform with the current period presentation. 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 year ended December 31, 2025 | |||||||||||||||||||||||
Reportable Segment | |||||||||||||||||||||||
| Water Utility Services | Other Services (1) | Unallocated Corporate (2) | Consolidated | ||||||||||||||||||||
| Operating revenue | $ | 787,099 | 13,491 | — | 800,590 | ||||||||||||||||||
Less: | |||||||||||||||||||||||
| Production expenses | 305,460 | 5,701 | — | 311,161 | |||||||||||||||||||
| Administrative and general | 119,665 | 1,306 | 5,027 | 125,998 | |||||||||||||||||||
| Maintenance | 30,124 | 2,771 | — | 32,895 | |||||||||||||||||||
| Property taxes and other non-income taxes | 37,521 | 47 | 118 | 37,686 | |||||||||||||||||||
| Depreciation and amortization | 114,286 | 121 | 916 | 115,323 | |||||||||||||||||||
| Interest on long-term debt and other interest expense | 51,463 | — | 21,112 | 72,575 | |||||||||||||||||||
| Provision (benefit) for income taxes | 19,928 | 1,371 | (8,944) | 12,355 | |||||||||||||||||||
| Other (3) | (6,531) | (587) | (2,863) | (9,981) | |||||||||||||||||||
| Net income (loss) | $ | 115,183 | 2,761 | (15,366) | 102,578 | ||||||||||||||||||
| Capital expenditures | $ | 519,753 | — | — | 519,753 | ||||||||||||||||||
| For the year ended December 31, 2024 | |||||||||||||||||||||||
Reportable Segment | |||||||||||||||||||||||
| Water Utility Services | Other Services (1) | Unallocated Corporate (2) | Consolidated | ||||||||||||||||||||
| Operating revenue | $ | 732,580 | 15,859 | — | 748,439 | ||||||||||||||||||
| Less: | |||||||||||||||||||||||
| Production expenses | 286,763 | 5,259 | — | 292,022 | |||||||||||||||||||
| Administrative and general | 97,420 | 2,632 | 5,778 | 105,830 | |||||||||||||||||||
| Maintenance | 29,249 | 2,052 | — | 31,301 | |||||||||||||||||||
| Property taxes and other non-income taxes | 35,223 | 317 | 388 | 35,928 | |||||||||||||||||||
| Depreciation and amortization | 111,709 | 253 | 893 | 112,855 | |||||||||||||||||||
| Interest on long-term debt and other interest expense | 47,485 | 521 | 23,384 | 71,390 | |||||||||||||||||||
| Provision (benefit) for income taxes | 17,134 | 1,569 | (9,733) | 8,970 | |||||||||||||||||||
| Other (3) | (920) | 191 | (3,095) | (3,824) | |||||||||||||||||||
| Net income (loss) | $ | 108,517 | 3,065 | (17,615) | 93,967 | ||||||||||||||||||
| Capital expenditures | $ | 377,208 | 29 | — | 377,237 | ||||||||||||||||||
| For the year ended December 31, 2023 | |||||||||||||||||||||||
Reportable Segment | |||||||||||||||||||||||
| Water Utility Services | Other Services (1) | Unallocated Corporate (2) | Consolidated | ||||||||||||||||||||
| Operating revenue | $ | 652,045 | 18,318 | — | 670,363 | ||||||||||||||||||
| Less: | |||||||||||||||||||||||
| Production expenses | 251,898 | 4,302 | — | 256,200 | |||||||||||||||||||
| Administrative and general | 93,255 | 2,777 | 2,624 | 98,656 | |||||||||||||||||||
| Maintenance | 23,972 | 1,757 | — | 25,729 | |||||||||||||||||||
| Property taxes and other non-income taxes | 33,469 | 926 | 80 | 34,475 | |||||||||||||||||||
| Depreciation and amortization | 104,329 | 646 | 893 | 105,868 | |||||||||||||||||||
| Interest on long-term debt and other interest expense | 42,743 | 329 | 23,072 | 66,144 | |||||||||||||||||||
| Provision (benefit) for income taxes | 11,293 | 2,213 | (7,550) | 5,956 | |||||||||||||||||||
| Other (3) | (4,279) | (121) | (3,252) | (7,652) | |||||||||||||||||||
| Net income (loss) | $ | 95,365 | 5,489 | (15,867) | 84,987 | ||||||||||||||||||
| Capital expenditures | $ | 288,627 | 24,244 | — | 312,871 | ||||||||||||||||||
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(1) The “Other Services” category includes the accounts of H2O America Land Co, Chester Reality, 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 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 as of December 31:
| 2025 | 2024 | ||||||||||
Water Utility Services (reportable segment) | $ | 5,054,235 | 4,567,182 | ||||||||
| Other Services | 26,707 | 25,053 | |||||||||
| Unallocated Corporate | 68,624 | 66,074 | |||||||||
| Total assets | $ | 5,149,566 | 4,658,309 | ||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2018 | Feb 27, 2019 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.