H2o America · NASDAQ:HTO
H2o America — Q2 2025 Earnings Presentation
30 slides from H2o America's earnings presentation, Jul 29, 2025
Slide 1: Second Quarter 2025 Financial Results Presentation
Second Quarter 2025 Financial Results Presentation
Slide 2: On Today’s Call
On Today’s Call Andrew F. Walters Ann P. Kelly Bruce A. Hauk Chief Executive Officer Chief Financial Officer and President and Treasurer Chief Operating Officer 2
Slide 3: Forward-Looking Statements
Forward-Looking Statements Safe Harbor This presentation This release 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, a
Slide 4: Welcome
Welcome Andrew Walters Chief Executive Officer 4
Slide 5: Exciting Next Chapter
Exciting Next Chapter ▪ Rebranded as H2O America with a new ticker (NASDAQ: HTO) ▪ Reflects our national platform, strong local presence, and dedicated focus on water and wastewater services ▪ Leadership transition ▪ Eric Thornburg, President and Chief Executive Officer, retired on June 30, 2025 ▪ A
Slide 6: Welcome Megan Mattern
Welcome Megan Mattern ▪ Principal Accounting Officer, Chief Accounting Officer, and Controller ▪ Previously at UGI International ▪ Two decades of experience in utility, energy, and infrastructure ▪ Aligned with commitment to culture, service, and communities 6
Slide 7: Delivering on Strategy in 2Q
Delivering on Strategy in 2Q ▪ Creating Long-Term Shareholder Value ▪ $0.71 diluted earnings per share (GAAP) and $0.75 adjusted diluted earnings per share (non-GAAP)1 in 2Q ▪ Regulatory Progress ▪ Reducing regulatory lag through legislation in Connecticut and Texas ▪ Ability to provide affordabilit
Slide 8: Financial Update
Financial Update Ann Kelly Chief Financial Officer and Treasurer 8
Slide 9: Financial Highlights
Financial Highlights 2Q Diluted Earnings per Share (EPS) $0.71 GAAP/$0.75 Adjusted (Non-GAAP) YTD 2025 Diluted Earnings per Share (EPS) $1.20 GAAP/$1.25 Adjusted (Non-GAAP) Affirming 2025 Adjusted EPS Guidance Range1 $2.90 – $3.00 Affirming Growth Rate2 through 2029 based on 2022 diluted EPS of $2.4
Slide 10: 2Q 2025 Adjusted Diluted EPS Bridge
2Q 2025 Adjusted Diluted EPS Bridge* Change in Adjusted EPS ($): 2Q 2025 – 2Q 2024 $0.57 $(0.27) $0.03 $0.75 $(0.19) $0.66 $(0.05) 2Q 2024 Revenue Water Production Expense Other Operating Expense Increase in number of Other 2Q 2025 shares *See Appendix for H2O America’s disclosures for non-GAAP fina
Slide 11: Revenue Increased by 13% Compared to 2Q 2024
Revenue Increased by 13% Compared to 2Q 2024 Change in Revenue ($M): 2Q 2025 – 2Q 2024 $4.9 $0.3 $1.6 $198.3 $6.7 $10.9 $(2.3) $176.2 2Q 2024 Rate Increases Pass-through Water Higher Usage Regulatory Customer Growth Other 2Q 2025 Cost Rate Increases Mechanisms 11
Slide 12: Water Production Expenses Increased 15% from YTD 2024
Water Production Expenses Increased 15% from YTD 2024 Change in Water Production Expenses ($M): 2Q 2025 – 2Q 2024 $2.7 $80.9 $8.0 $(0.3) $70.5 2Q 2024 Water Supply Costs Production Volume Other Production Costs and 2Q 2025 Regulatory Adjustments 12
Slide 13: Other Operating Expenses Increased 13% from 2Q 2024
Other Operating Expenses Increased 13% from 2Q 2024 Change in Other Operating Expenses ($M): 2Q 2025 – 2Q 2024 $3.7 $0.5 $73.5 $4.6 $(0.4) $65.1 2Q 2024 Higher customer credit loss Higher Admin and General Lower Maintenance Costs Other 2Q 2025 Costs 13
Slide 14: YTD 2025 Adjusted Diluted EPS Bridge
YTD 2025 Adjusted Diluted EPS Bridge* Change in Adjusted EPS ($): YTD 2025 – YTD 2024 $1.04 $(0.45) $1.25 $(0.27) $(0.01) $(0.08) $1.02 YTD 2024 Revenue Water Production Expense Other Operating Expense Interest Expense Increase in number of YTD 2025 shares *See Appendix for H2O America’s disclosures
Slide 15: 2025 YTD Financing Activity
2025 YTD Financing Activity ▪ Approximately $84 million in gross equity proceeds raised at the market to fund growth and capital investment YTD 2025 ▪ Guided target is equity issuance of $120 million to $140 million in 2025 ▪ $360 million in bank lines of credit; $161 million drawn, leaving $199 mil
Slide 16: Regulatory Updates
Regulatory Updates Bruce A. Hauk President and COO 16
Slide 17: Regulatory Progress across National Footprint
Regulatory Progress across National Footprint ▪ San Jose Water: $6.8 million revenue increase effective July 1, 2025, for $44 million spend in AMI Project (Advice Letter 617) ▪ Maine Water: $865,000 revenue increase authorized in the Camden Rockland division GRC effective July 1, 2025, and a SJWater
Slide 18: Legislative Milestones
Legislative Milestones Connecticut: ▪ Water Quality and Treatment Adjustment infrastructure recovery mechanism available July 1, 2025 Water Quality and ▪ Annual recovery of infrastructure spend to treat PFAS and emerging contaminants, first filing planned in 2026 Treatment Adjustment Texas Water: (W
Slide 19: Transformative Texas Acquisition
Transformative Texas Acquisition ▪ Quadvest brings operational scale, a strong development pipeline, and increased exposure to one of America’s fastest growing regions, Houston, TX1 ▪ We expect double-digit customer growth at Quadvest to drive Texas from 7% of our customer base today to 26% by 2029
Slide 20: Quadvest more than a 140,000 Connection Opportunity
Quadvest more than a 140,000 Connection Opportunity Connection Growth Active and Under Contract/Development Pending 12/31/24 to 6/30/25 150,000 141,400 136,000 100,000 89,000 90,900 4% 50,000 47,000 50,500 — 12/31/2024 6/30/2025 Active Contract and Pending 20
Slide 21: We protect what's precious.
We protect what's precious. ryO America
Slide 22: Appendix
Appendix HO America
Slide 23: Substantial Capital Plan Drives Earnings Growth
Substantial Capital Plan Drives Earnings Growth Planned CapEx by State Timely recovery through 6.6% Net Utility Plant Growth 2025 - 20291 ($M) regulatory mechanisms in Forecasted 2025 - 20292 $1,019 $504 $391 Forward-Looking Infrastructure Test Year Recovery Mechanism $117 Traditional Recovery ~25%
Slide 24: 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 ▪ $300 million CapEx estimate for treatment ▪ Party to class action settlements with PFAS manufacturers ▪ Received $6.4 million in legal settlement
Slide 25: 2024/25 Key Filings
2024/25 Key Filings Revenue Revenue State Docket # Type* Filing Date Order Date Status Requested Approved Comments (annualized) (annualized) Step increases 3.91% 2025, Alternate Proposed 2.55% in 2026, and 2.98% in CA 24-01-001 GRC 01/02/24 12/19/24 $103M $53.1M 2027, and $450M 3-year capital Decisi
Slide 26: Revenue Increased by 12% Compared to YTD 2024
Revenue Increased by 12% Compared to YTD 2024 Change in Revenue ($M): YTD 2025 – YTD 2024 $5.9 $0.6 $1.4 $365.9 $12.0 $22.8 $(2.4) $325.6 YTD 2024 Rate Increases Pass-through Water Higher Usage Customer Growth Regulatory Other YTD 2025 Cost Rate Increases Mechanisms 26
Slide 27: Water Production Expenses Increased 14% from YTD 2024
Water Production Expenses Increased 14% from YTD 2024 Change in Water Production Expenses ($M): YTD 2025 – YTD 2024 $5.2 $139.8 $13.6 $(1.3) $122.3 2Q 2024 Water Supply Costs Production Volume Other Production Costs and 2Q 2025 Regulatory Adjustments 27
Slide 28: Other Operating Expenses Increased 8% from YTD 2024
Other Operating Expenses Increased 8% from YTD 2024 Change in Other Operating Expenses ($M): YTD 2025 – YTD 2024 $5.6 $0.4 $0.8 $146.3 $4.7 $134.8 2Q 2024 Higher Admin and General Higher customer credit loss Higher Maintenance Costs Other 2Q 2025 Costs 28
Slide 29: 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 adjuste
Slide 30: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ▪ 2Q and 2025 year-to-date Three months ended June 30, 2025 Six months ended June 30, 2025 2025 2024 2025 2024 Reported GAAP Net Income ............................................................ $ 24,675 20,696 $ 41,226 32,395 Adjustments: Loss on sale