H2o America · NASDAQ:HTO
H2o America — Investor Presentation (September 2026)
62 slides from H2o America's investor presentation, September 2026
Slide 1: Investor Presentation
Investor Presentation September 2026
Slide 2: Forward-Looking Statements
Forward-Looking Statements Safe Harbor This presentation contains forward-looking statements within the meaning of the federal securities laws relating to future events and future results of H2O America and its subsidiaries that are based on current expectations, estimates, forecasts, and projection
Slide 3: Our Investment Thesis in Seven Slides
Our Investment Thesis in Seven Slides 3
Slide 4: Strategy for Continued Growth
Strategy for Continued Growth Capital Expenditures (CapEx) Invest in needed water/wastewater utility infrastructure while earning a return “of and on” that investment Plan to invest $2.7B1 over the 2026-30 period, subject to regulatory approval Leverage era of infrastructure replacement to del
Slide 5: CapEx + Quadvest = Attractive Rate Base Growth
CapEx + Quadvest = Attractive Rate Base Growth The 31% increase in our 5-year capex $2.7B capex budget plus the addition of Quadvest plan is driven by higher pipeline drives a projected 13% rate base CAGR off 2025A replacement work, PFAS compliance spend and elevated levels of planned resiliency and
Slide 6: Breaking Down the 2026-30 CapEx Plan
Breaking Down the 2026-30 CapEx Plan Nearly half of 2026-30 Planned CapEx by State Roughly 80% of 2026-30 budget is distribution 2026 - 20301 ($ in millions) budget qualify for timely system investments regulatory recovery2 * Other PP&E includes pump station and equipment, reservoir and tanks & othe
Slide 7: Affordable Customer Bills
Affordable Customer Bills Customer bills as a percentage of median household income1 San Jose Water Connecticut Water 0.9% 0.7% $1,662 $188,523 $841 $119,395 $0 $95,000 $190,000 $0 $95,000 $190,000 Avg Annual Water Bill MHI Avg Annual Water Bill MHI Maine Water Texas Water 0.5% 0.8% $452 $1,016 $100
Slide 8: Transformative Texas Acquisition
Transformative Texas Acquisition H2O America + Quadvest (2029E) ▪ Quadvest brings operational scale, a strong development pipeline, and increased exposure to one of U.S.’s fastest growing regions, Houston, TX1 ▪ Quadvest has experienced double-digit customer growth and we expect Quadvest to drive TX
Slide 9: 6-8% Long-term EPS CAGR Guidance
6-8% Long-term EPS CAGR Guidance1 ▪ Non-linear, 6-8% non-GAAP EPS growth rate ▪ Anchored off 2025A adjusted diluted EPS of $2.99 ▪ Long-term nature reflects sustainable organic growth beyond 2030 supported by decades of elevated investment needs ▪ 2026E & 2027E EPS including Quadvest ▪ Expect to fal
Slide 10: Financing & Credit Metric Update
Financing & Credit Metric Update ▪ Equity Issuances: • No additional common equity issuances expected through 2027 ◦ Our March 2026 equity raise, including the $400 million equity forward agreement, provides the equity needed to fund the Quadvest and Cibolo Valley acquisitions plus our normal capex
Slide 11: About Us
About Us HO America 11
Slide 12: National Pure-Play Water/Wastewater: Local Expertise
National Pure-Play Water/Wastewater: Local Expertise Our Mission We sustain life by delivering high-quality water and exceptional service while investing in the health and vitality of the communities we serve Market Data1 As of September 4, 2026, unless otherwise noted: $4.6B Total Enterprise Valu
Slide 13: Strategically Diverse Business Model
Strategically Diverse Business Model Economic, Weather and Regulatory Diversity Pure-Play Regulated Water/Wastewater Geographic Diversity $32.2M 28% 98% 2025 2025 $4.5M Water Utility Services Water Utility Services 4% vs. Net Income $6.9M Other Services1 2% by State 6% $71.6M 62% Regulated Unregul
Slide 14: Building Blocks for Delivering Value
Building Blocks for Delivering Value Shareholders Environment • Focus on core water and wastewater • Sustainability is at the core of our business • Maintain constructive regulatory relationships • Passionate about stewardship and the value of water • Leverage regulatory compact and promote • Protec
Slide 15: Key Investment Highlights
Key Investment Highlights 6-8% non-linear long-term diluted EPS growth rate anchored off 2025A adjusted diluted EPS of $2.99 Expect to be at or above the top end of 6-8% range for the 2026-30 period Invested $207M1 in water/wastewater infrastructure through Q2 2026; on track to achieve FY2026
Slide 16: Growth Strategy
Growth Strategy HO America
Slide 17: Strategy for Continued Growth
Strategy for Continued Growth Capital Expenditures (CapEx) Invest in needed water/wastewater utility infrastructure while earning a return “of and on” that investment Plan to invest $2.7B1 over the 2026-30 period, subject to regulatory approval A 31% increase over prior 5-year plan driven by (
Slide 18: Meaningful Ramp in Infrastructure Investment
Meaningful Ramp in Infrastructure Investment Record capital investment execution in H2O America CapEx 2025 ($ in millions) $501 Invested $207 million1 through Q2 $500 $4831 2026 (43% of FY2026 plan); on track to CAGR 20.5% 2019 – 2025 deliver on our $483 million1 budget $400 $354 Targeting $2.
Slide 19: CapEx + Quadvest = Attractive Rate Base Growth
CapEx + Quadvest = Attractive Rate Base Growth 5-year capex budget increased 31% $2.7B capex budget plus the addition of Quadvest drives a projected 13% rate base CAGR off 2025A 1Includes expenditures for cloud-based systems recorded as deferred assets 2Includes planned capital expenditures post-clo
Slide 20: Breaking Down the 2026-30 CapEx Plan
Breaking Down the 2026-30 CapEx Plan Nearly half of 2026-30 Planned CapEx by State Roughly 80% of 2026-30 budget is distribution 2026 - 20301 ($ in millions) budget qualify for timely system investments regulatory recovery2 * Other PP&E includes pump station and equipment, reservoir and tanks & othe
Slide 21: Key Capital Investments
Key Capital Investments PFAS Compliance Our 2026-30 CapEx estimate to comply with EPA’s maximum contaminant levels for per- and polyfluoroalkyl substances (PFAS) in drinking water is approximately $400 million ~$230M for Connecticut; ~$170M for California Timely recovery of CWC’s spend expecte
Slide 22: Acquisitions and Customer Growth
Acquisitions and Customer Growth 2010-2025 Customer Growth 25+ acquisitions by H2O America and subsidiaries 74% customer growth: ~175,000 connections Transformational growth with CTWS acquisition in 2019 Outsized Texas Growth Connection growth in Texas has more than quadrupled between 2006 a
Slide 23: H2O America to Significantly Expand and Diversify Footprint with Quadvest
H2O America to Significantly Expand and Diversify Footprint with TWC’s Transformative Acquisition of Quadvest Quadvest is one of the largest water and wastewater TWC existing service counties utilities in Texas with more than 59,000 active connections1 Quadvest existing service counties Quadvest
Slide 24: Texas Provides a Large and Growing Market Opportunity
Texas Provides a Large and Growing Market Opportunity Houston and surrounding counties have experienced significant growth over the past decade Quadvest operates mainly in the counties surrounding Houston, namely Montgomery, Liberty, Waller and Fort Bend Counties Liberty, Montgomery and Waller
Slide 25: Transaction Strengthens Position by Customer Connections Nationwide
Transaction Strengthens H2O America’s Position by Customer Connections Nationwide1 Standalone H2O H2O America + H2O America + America (2025A) Quadvest (2025A) Quadvest (2030E) Acquisition creates a more balanced portfolio of water utilities across California, Texas, Connecticut, and Maine 1Customer
Slide 26: Progress on Quadvest
Progress on Quadvest ▪ Quadvest L.P.’s Fair Market Value (FMV) determination received late Dec. ‘25 ▪ In accordance with Texas’ FMV statute, the purchase price of $483.6M will serve as the ratemaking rate base ▪ Sale-Transfer-Merger (STM) application ▪ Requests approval of the acquisition of Quadves
Slide 27: Quadvest Acquisition Overview
Quadvest Acquisition Overview Transaction Brings Growth, Relationships, and Reliable Service ▪ H2O America’s subsidiary, the Texas Water Company (“TWC”), along with its affiliate Texas Water Operation Services (“TWOS”), have agreed to acquire Quadvest ▪ Quadvest provides water and sewer service in S
Slide 28: Transaction Enhances Strategic Profile
Transaction Enhances Strategic Profile Creates second largest regulated private Texas water and wastewater utility Enhances Scale Strengthens H2O America’s objective to strategically diversify the business, extend exposure to fast-growing regions, and enhance service nationwide Strong Texas ec
Slide 29: Business Transformation
Business Transformation Pursuit of efficiency and operational excellence creates financial flexibility to support critical investment while moderating customer bills Business transformation via standardized, enterprise-wide platforms More efficient service for customers More resilient workfo
Slide 30: Geographic & Regulatory Diversity
Geographic & Regulatory Diversity 30
Slide 31: Leveraging Local Expertise to Meet Local Needs
Leveraging Local Expertise to Meet Local Needs Regulated Water/Wastewater San Jose Water Connecticut Water Maine Water Texas Water • 232,000 service • 109,000 water and • 34,000 service • 30,000 water/1,000 connections 3,000 wastewater connections wastewater connections service connections • Growth-
Slide 32: Constructive Regulatory Revenue Protection
Constructive Regulatory Revenue Protection California: Water Conservation Memorandum Account (WCMA) and Water Conservation Expense Memorandum Account (WCEMA) temporary revenue and expense protection mechanisms due to mandatory or voluntary water use restrictions, as authorized by the California Pu
Slide 33: Infrastructure Mechanisms Minimize Lag
Infrastructure Mechanisms Minimize Lag ~80% of capital invested between 2026-30 expected to be recovered through these mechanisms: California: Forward-looking general rate cases (GRC) with approved three-year capital budget Connecticut: Water Infrastructure and Conservation Adjustment (WICA) a
Slide 34: Regulatory & Legislative Updates
Regulatory & Legislative Updates San Jose Water: ▪ Filed on 4/10/26 for cost recovery of Williams Station PFAS remediation project outside of the GRC process. Estimated total capital cost is ~$176M Deferred Cost of Capital filing • If approved, rates would adjust annually via rate base filing offset
Slide 35: Regulatory & Legislative Updates
Regulatory & Legislative Updates Maine Water: • First consolidated WISC application approved, as filed, for a $0.9M increase in annual revenues effective 5/1/26 Rate unification stipulation allows • First consolidated GRC filed 4/13/26; requests a $9.5M increase in annual the consolidation of 10 div
Slide 36: Pending General Rate Cases
Pending General Rate Cases 36
Slide 37: Key Financial Highlights & Guidance
Key Financial Highlights & Guidance 37
Slide 38: Financial Highlights
Financial Highlights Q2’26 GAAP diluted EPS of $0.62 while YTD’26 is $1.12 On track in 2026 to deliver on: ▪ Standalone adjusted diluted EPS guidance of $3.08-3.181, 2 • Included in YTD adjusted diluted EPS of $1.23 is a $0.06 net headwind from the early March Quadvest equity raise partially offset
Slide 39: 6-8% Long-term EPS CAGR Guidance
6-8% Long-term EPS CAGR Guidance1 ▪ Non-linear, 6-8% non-GAAP EPS growth rate ▪ Anchored off 2025A adjusted diluted EPS of $2.99 ▪ Long-term nature reflects sustainable organic growth beyond 2030 supported by decades of elevated investment needs ▪ 2026E & 2027E EPS including Quadvest ▪ Expect to fal
Slide 40: Stable, Consistent Dividend Growth
Stable, Consistent Dividend Growth In January 2026, the Board announced Annual Dividends 2020 – 2026E a 4.8% increase in the annual dividend CAGR $1.76 $1.76 per share in 2026 vs. $1.68 in 2025 5.5% $1.68 $1.60 The $0.08 annual increase is consistent $1.52 with our recent annual increase caden
Slide 41: Strong Access to Capital Markets
Strong Access to Capital Markets S&P Credit Rating A- /negative $370M bank lines of credit1, $369M available as of 6/30/26 $123M in gross equity proceeds raised during 2025 under HTO’s at the market (ATM) program $300M of gross equity issued plus $400M priced under a forward agreement during
Slide 42: Financing & Credit Metric Update
Financing & Credit Metric Update ▪ Equity Issuances: • No additional common equity issuances expected through 2027 ◦ Our March 2026 equity raise, including the $400 million equity forward agreement, provides the equity needed to fund the Quadvest and Cibolo Valley acquisitions plus our normal capex
Slide 43: Environmental, Social & Governance
Environmental, Social & Governance 43
Slide 44: ESG Initiatives & Commitments
ESG Initiatives & Commitments ENVIRONMENTAL SOCIAL GOVERNANCE Dedicated Board Sustainability Customer Assistance Programs Human Rights Policy Committee Active Environmental Health and Safety Employee Ethics, Conduct and Use and Protection of 14,000 Acres Cybersecurity Training Committee
Slide 45: Commitment to Sustainability
Commitment to Sustainability Our annual sustainability report outlines our sustainability goals and strategies https://www.h2o-america.com/esg-sustainability Scope 1 and Scope 2 greenhouse gas (GHG) emissions1 cut 41% since 2019, on track to meet 50% reduction by 2030 Infrastructure investme
Slide 46: Force for Good
Force for Good H2O America named by Newsweek as one of ‘America’s Most Responsible Companies’ and ‘America’s Greenest Companies’ in 2025 and 2026 Must meet the European Union’s stringent sustainability criteria H2O America named by TIME as one of the top 50 companies in the World’s Most Impact
Slide 47: Governance and Oversight
Governance and Oversight Board of Directors Corporate Governance Receives briefings from the board’s Sustainability Committee at Policies regular board meetings Code of Conduct, including Whistleblower Policy Sustainability Committee of the Board Corporate Governance Policies Receives written re
Slide 48: Management & Board of Directors
Management & Board of Directors 48
Slide 49: Leadership Partners
Leadership Partners Ann Kelly Andrew Walters Chief Financial Officer and Chair and Chief Executive Officer Treasurer 25 years of utility experience 16 years of energy and utility experience Bruce Hauk Willie Brown President and Chief Operating Vice President, General Counsel Officer of H2O America 1
Slide 50: Board of Directors
Board of Directors Carl Guardino Mary Ann Hanley Director Since 2020 Director Since 2019 Andrew Walters Chair and Chief Executive Officer Committees: Committees: Director Since 2025 Executive Compensation Audit Nominating & Governance Nominating & Governance (Chair) Sustainability Sustainability Hea
Slide 51: Appendix
Appendix HO America 51
Slide 52: Q2'26 Adjusted Diluted EPS Trails Q2'25 Due To Share Issuance
Q2’26 Adjusted Diluted EPS Trails Q2’25 Due To Share Issuance* Rate Increases $0.22 Change in Pass Through Surface Water Costs $0.14 Water $(0.01) A&G $(0.03) Consumption Change in AFUDC $0.05 Changes $0.01 Usage $0.02 Maintenance $(0.01) Pension Water Supply Depreciation $(0.09) Non-Service Service
Slide 53: YTD'26 Adjusted Diluted EPS Trails YTD'25 Due To Share Issuance
YTD’26 Adjusted Diluted EPS Trails YTD’25 Due To Share Issuance* Rate Increases $0.41 Change in Surface Pass Through Water $0.06 Water Costs $0.25 AFUDC $0.07 Change in A&G $(0.08) Consumption Usage $(0.05) Pension Maintenance $(0.02) Non-Service Changes $0.06 Water Supply Costs $0.02 Costs $(0.20)
Slide 54: Key Statistics by State
Key Statistics by State As of December 31, 2025 California Connecticut Maine1 Texas Capital Structure and Authorized ROE Authorized capital structure (debt/equity) 45% / 55% 47% / 53% 49% / 51% 42% / 58%2 Authorized ROE 9.81%3 9.30% 9.50% 10.88%2 Rate Base Authorized rate base (in millions) $1,308 $
Slide 55: Key Regulatory Filings
Key Regulatory Filings Annual Revenue Annual Revenue State Docket # Type* Filing Date Order Date Status Comments Requested Approved Alternate Proposed Step increases 3.91% in 2025, 2.55% in 2026 CA 24-01-001 GRC 1/2/2024 12/19/2024 $103M $53.1M Decision approved & 2.98% in 2027; $450M 3-yr capital b
Slide 56: PFAS Update
PFAS Update ▪ Support U.S. EPA’s standards for PFAS in drinking water ▪ Will comply with the new regulations within the time frame specified by the EPA ▪ Approximate $400 million CapEx estimate for treatment ▪ Party to class action settlements with PFAS manufacturers ▪ Received $25.1 million in lega
Slide 57: Greenhouse Gas Emissions 2019 - 2024
Greenhouse Gas Emissions 2019 - 20241 1Our Scope 1 and Scope 2 emissions dropped 13% from 2023 to 2024 and have declined by 41% since the 2019 baseline. Our third-party assurance partner, accredited by the ANSI National Accreditation Board under ISO 14066, has audited our 2021, 2022, 2023 and 2024 i
Slide 58: Non-GAAP Financial Measures
Non-GAAP Financial Measures H2O America's net income and diluted EPS are prepared in accordance with GAAP and represent the earnings as reported to the Securities and Exchange Commission. Adjusted net income and Adjusted diluted EPS are non-GAAP financial measures representing GAAP earnings adjusted
Slide 59: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 Reported GAAP Net Income $ 26,589 24,675 $ 45,602 $ 41,226 Adjustments: (Gain)/loss on sale of real estate investments1 — — (172) — Expense for merger, acquisition and integration
Slide 60: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Three months ended December Twelve months ended December 31, 31, 2025 2024 2025 2024 Reported GAAP Net Income $ 16,220 22,920 $ 102,578 93,967 Adjustments: (Gain)/loss on sale of real estate investments1 — (397) (273) 572 Expense for merger and acquisiti
Slide 61: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures $ in millions Twelve Months Ended December 31, 2021 2022 2023 2024 2025 Funds From Operations (FFO) Operating Income $111.2 $131.0 $149.4 $170.5 $177.5 Depreciation and Amortization 94.4 104.4 105.9 112.9 115.3 Gain on sale of non-utility properties (7.5
Slide 62: We protect what's precious.
We protect what's precious. ry0 America