H2o America · NASDAQ:HTO
H2o America — Q2 2026 Earnings Presentation
29 slides from H2o America's earnings presentation, 2026
Slide 1: Second Quarter 2026 Financial Results & Update Presentation
Second Quarter 2026 Financial Results & Update 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 22
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 H2O America and its subsidiaries that are based on current expectations, estimates, forecasts, and projection
Slide 4: Welcome
Welcome Andrew Walters Chief Executive Officer 44
Slide 5: Well Positioned After 1H 2026
Well Positioned After 1H 2026 ▪ Strong Q2 results have us well-positioned to execute on our financial plan ▪ Q2’26 GAAP diluted EPS of $0.62; Adjusted diluted EPS of $0.721 ▪ YTD’26 GAAP diluted EPS of $1.12; Adjusted diluted EPS of $1.231 ▪ Filed general rate case applications in Connecticut and Ma
Slide 6: Financial Update
Financial Update Ann Kelly Chief Financial Officer and Treasurer 66
Slide 7: 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 8: 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 9: 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 10: 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 11: Financing & Credit Metric Update
Financing & Credit Metric Update ▪ Equity Issuances: • No additional 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 needs ◦
Slide 12: Regulatory and Acquisition Updates
Regulatory and Acquisition Updates Bruce A. Hauk President and COO 12 12
Slide 13: 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 14: 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 15: 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 16: SJWC Water Supply & Affordability
SJWC Water Supply & Affordability ▪ Customer affordability has been, and is, of paramount importance ▪ Currently, $0.42 of every dollar our SJWC customers pay goes to paying the pass-through charges to Valley Water for purchased water and groundwater extraction fees • Valley Water sets its own rates
Slide 17: We protect what's precious.
We protect what's precious. ry0 America
Slide 18: Appendix
Appendix HO America
Slide 19: Customer Bill Affordability
Customer Bill Affordability 1as of 12/31/25, MHI = 2023 US Census weighted average of median household income for zip codes served based on data available through ESRI, escalated to 2025 based on state- specific U.S. Census historical data. Bill data is based on actual average residential customer u
Slide 20: Key Statistics by State
Key Statistics by State 1 The authorized capital structure and return on equity shown are those of the largest division of MWC, the Biddeford and Saco division. This return on equity and capital structure will be used for any future Water Infrastructure Surcharge (“WISC”) calculations for all divisi
Slide 21: Key Regulatory Filings
Key Regulatory Filings * AMI = Advanced Metering Infrastructure; GRC = General Rate Case; WICA = Water Infrastructure Conservation Adjustment; WISC = Water Infrastructure Surcharge; FMV = Fair Market Value 21
Slide 22: Pending General Rate Cases
Pending General Rate Cases 22
Slide 23: CapEx + Quadvest = Attractive Rate Base Growth
CapEx + Quadvest = Attractive Rate Base Growth • 2026-30 capex budget of $2.7B1, 2 plus the addition of Quadvest drives a projected 13% rate base CAGR 5-year CapEx Budget1 ($ in millions) Projected Year-end Rate Base ($ in billions) 1 Includes expenditures for cloud-based systems recorded as deferre
Slide 24: 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 25: Quadvest Acquisition Overview
Quadvest Acquisition Overview Transaction Brings Growth, Relationships, and Reliable Service ▪ Provides water and sewer service in Southeast Texas for nearly 50 years through two operating entities, Quadvest LP and Quadvest Wholesale LLC ▪ Over 54,000 active connections and over 87,000 connections u
Slide 26: Transaction Strengthens H2O America's 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 27: Transaction Enhances Strategic Profile
Transaction Enhances Strategic Profile ▪ Creates second largest regulated private Texas water and wastewater utility Enhances Scale ▪ Strengthens H2O’s objective to strategically diversify the business, extend exposure to fast-growing regions, and enhance service nationwide ▪ Strong Texas economic d
Slide 28: 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 29: 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