H2o America · NASDAQ:HTO
H2o America — Q1 2025 Earnings Presentation
32 slides from H2o America's earnings presentation, Apr 28, 2025
Slide 1: First Quarter 2025 Financial Results Presentation
First Quarter 2025 Financial Results Presentation
Slide 2: On Today's Call
On Today’s Call Eric W. Thornburg Andrew Walters Bruce A. Hauk Kristen A. Johnson Ann Kelly Chair, President Chief Financial Officer Chief Operating Officer Senior Vice President and Chief Accounting Officer and CEO and Treasurer Chief Administrative Officer 2
Slide 3: 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 SJW Group and its subsidiaries that are based on current expectations, estimates, forecasts, and projections
Slide 4: Delivering on Strategy
Delivering on Strategy Andrew Walters Chief Financial Officer and Treasurer 4
Slide 5: Delivering on Strategy in 1Q
Delivering on Strategy in 1Q • Regulatory Progress • On-time delivery of San Jose Water 2025 to 2027 general rate case effective January 1 • Connecticut Water’s Water Infrastructure and Conservation Adjustment (WICA), Water Revenue Adjustment (WRA), and reconciliation applications were approved • Ma
Slide 6: Work Smarter, Not Just Harder
Work Smarter, Not Just Harder • 2025: • Derisked regulatory calendar with general rate cases (GRCs) in two largest jurisdictions decided in 2024 • 34% increase in capital plan over 2024 actuals • Supply chain predominantly U.S. based • Seamless leadership transition with world-class talent • And bey
Slide 7: Financial Update
Financial Update Ann Kelly Chief Accounting Officer 7
Slide 8: Financial Highlights
Financial Highlights 1Q Diluted Earnings Per Share (EPS) $0.49 GAAP/$0.50 Adjusted Affirming 2025 Adjusted EPS Guidance Range1 $2.90 - $3.00 Affirming Growth Rate2 through 2029 in Top Half of Guidance Range based on 2022 EPS of $2.43 5% to 7% KT Water pump station #1 construction in Comal County, Te
Slide 9: 1Q 2025 Financial Results
1Q 2025 Financial Results IN MILLIONS 1Q 2025 1Q 2024 CHANGE except for earnings per share (EPS) Revenue $167.6 $149.4 12% increase GAAP Net Income $16.6 $11.7 41% increase Adjusted Net Income1 $16.7 $11.7 43% increase Diluted EPS $0.49 $0.36 36% increase Adjusted Diluted EPS1 $0.50 $0.36 39% increa
Slide 10: 1Q 2025 Adjusted Diluted EPS Bridge
1Q 2025 Adjusted Diluted EPS Bridge* *See Appendix for SJW Group’s reconciliations and disclosures for non-GAAP financial measures. 10
Slide 11: Revenue Increased by 12% Compared to 1Q 2024
Revenue Increased by 12% Compared to 1Q 2024 11
Slide 12: Water Production Expenses Increased 14% from 1Q 2024
Water Production Expenses Increased 14% from 1Q 2024 12
Slide 13: Other Operating Expenses Increased 4% from 1Q 2024
Other Operating Expenses Increased 4% from 1Q 2024 13
Slide 14: 2025 Financing Activity and Income Tax Rate
2025 Financing Activity and Income Tax Rate • Approximately $27 million in gross equity proceeds raised at the market to fund growth and capital investment in 1Q 2025 • $350 million bank lines of credit; $153 million drawn, leaving $197 million available • 5.47% average borrowing rate on credit adva
Slide 15: Affirming 2025 Guidance
Affirming 2025 Guidance 2025 Guidance Adjusted Diluted EPS (non-GAAP) $2.90 to $3.00 Equity Issuance, Excluding Acquisition Growth $120M - $140M1 2025 CapEx $473M2 • Long-term targets: • Growth rate: 5% - 7%, expect to be in the top half of the range3 • $2.0 billion4 5-year CapEx • FFO/debt: 12% by
Slide 16: State Updates
State Updates Bruce A. Hauk Chief Operating Officer 16
Slide 17: California Updates
California Updates 2025 – 2027 San Jose Water General Rate Case (GRC) • New rates effective on January 1, 2025 • $450 million CapEx plan over three years 2025 to 2027 GRC • $53.1 million increase in revenue over three years Step Increases • Greater revenue recovery through the service charge, and fu
Slide 18: Connecticut Updates
Connecticut Updates WICA • WICA increase and annual reconciliation approved by Public Drinking Water State Utilities Regulatory Authority (PURA), effective April 1, 2025 Revolving Fund Loan • Annualized revenue increase of $1.6 million, cumulative WICA 4.9% Application filed with PURA Water Revenue
Slide 19: Maine Updates
Maine Updates Unification of Rate Tariffs • Petition before the Maine Public Utilities Commission (MPUC) to unify the company’s 10 rate districts Rate Unification • Decision expected in 4Q 2025 Application General Rate Case Improve administrative • GRC in progress for Camden Rockland division effici
Slide 20: Texas Updates
Texas Updates • Drought conditions persisting in 2025 • Conservation measures in place Texas had the highest • 6,000 acre-feet of additional water supply expected population growth of any U.S. state in the 2020 Census; to be online by the end of 2026 Texas Water serves the rapidly growing area in th
Slide 21: Business Transformation
Business Transformation Kristen A. Johnson Senior Vice President and Chief Administrative Officer 21
Slide 22: Business Modernization
Business Modernization 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 workforc
Slide 23: Execution Strategy and Strong Leadership
Execution Strategy and Strong Leadership Kay R. New, Chief Human Resources Officer • Previously at AvanGrid 23
Slide 24: Culture of Safety
Culture of Safety Eric W. Thornburg Chair, President and CEO 24
Slide 25: Culture of Safety
Culture of Safety We Protect What’s Precious • Exceptional Safety Impact Award Winners 25
Slide 26: Questions
Questions 26
Slide 27: Closing Comments
Closing Comments 27
Slide 28: Appendix
2 : SW Group 28
Slide 29: 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 at EPA’s finalized maximum contaminant levels • Party to class action settlements with PFAS manufacturer
Slide 30: 2024/25 Regulatory Filings Pending and Approved
2024/25 Regulatory Filings Pending and Approved Revenue Revenue State Docket # Type* Filing Date Order Date Status Requested Approved Comments (Annualized) (Annualized) Step increases 3.91% 2025, 2.55% in CA 24-01-001 GRC 01/02/24 12/19/24 Alternate proposed decision $103M $53.1M 2026, and 2.98% in
Slide 31: Non-GAAP Financial Measures
Non-GAAP Financial Measures SJW Group'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 t
Slide 32: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Three months ended March 31, 2025 2024 Reported GAAP Net Income $ 16,551 11,699 Adjustments: Expense for merger and acquisition activities1 254 — Tax effect of above adjustments2 (71) — Adjusted Net Income (non-GAAP) $ 16,734 11,699 Reported GAAP Diluted