H2o America · NASDAQ:HTO
H2o America — Q4 2025 Earnings Presentation
33 slides from H2o America's earnings presentation, Feb 26, 2026
Slide 1: 2025 Financial Results & 5-Year Plan Update Presentation
2025 Financial Results & 5-Year Plan 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: A Successful 2025
A Successful 2025 ▪ Creating Long-Term Shareholder Value ▪ $2.92 reported diluted EPS in 2025 ▪ $2.99 adjusted diluted EPS (non-GAAP)1 in 2025 ▪ Near top end of upwardly narrowed $2.95-3.00 guidance ▪ Announced Transformative Quadvest Acquisition ▪ Achieved Constructive Regulatory & Legislative Outc
Slide 6: Thank You & Welcome
Thank You & Welcome Eric Thornburg ▪ Retired as non-executive chair of board effective January 31, 2026 ▪ Retired as CEO effective June 30, 2025 Nicholas Whitley ▪ Vice President of Business Development ▪ 20+ years of experience in corporate development, mergers and acquisitions, and infrastructure
Slide 7: Financial Update
Financial Update Ann Kelly Chief Financial Officer and Treasurer 77
Slide 8: Financial Highlights
Financial Highlights $2.92 GAAP/$2.99 Adjusted (Non-GAAP) $2.7B 5-year CapEx Plan2 Full year 2025 adjusted diluted EPS near top of 31% increase over previous plan upwardly revised $2.95-3.00 guidance ~13% rate base CAGR 2026 - 2030 To renew and replace aging infrastructure, improve reliability and s
Slide 9: 2025 Adjusted Diluted EPS Bridge
2025 Adjusted Diluted EPS Bridge* *See Appendix for H2O America’s disclosures for non-GAAP financial measures. 9
Slide 10: 31% Increase in 5-year CapEx Plan — Drives Attractive Rate Base Growth
31% Increase in 5-year CapEx Plan — Drives Attractive Rate Base Growth 31% increase driven by higher $2.7B capex budget plus the addition of Quadvest pipeline replacement work and PFAS drives a projected 13% rate base CAGR compliance spend as well as the inclusion of planned Quadvest capex 1Includes
Slide 11: Breaking Down the 2026-30 CapEx Plan
Breaking Down the 2026-30 CapEx Plan Nearly half of 2026-30 Planned CapEx by State Roughly 80% of 2026-30 budget is distribution 2026 - 20301 ($ in millions) budget qualify for timely system investments regulatory recovery2 * Other PP&E includes pump station and equipment, reservoir and tanks & othe
Slide 12: Adjusted Diluted EPS Bridge from 2025A to 2026 Guidance Midpoint
Adjusted Diluted EPS Bridge from 2025A to 2026 Guidance Midpoint* *See Appendix for H2O America’s disclosures for non-GAAP financial measures. 12
Slide 13: Long-term EPS CAGR Guidance Increased to 6-8%
Long-term EPS CAGR Guidance1 Increased to 6-8% ▪ Non-linear long-term 6-8% EPS growth rate ▪ Anchored off 2025A adjusted diluted EPS of $2.99 ▪ Reflects sustainable organic growth beyond 2030 supported by decades of elevated investment needs ▪ Previously, 5-7% off 2022 diluted EPS of $2.43, with exp
Slide 14: Financing & Credit Metric Update
Financing & Credit Metric Update ▪ Liquidity: $370 million in bank lines of credit; $283 million available as of 12/31/25 ▪ Equity Issuances • Raised $123 million in gross equity proceeds through our ATM program in 2025 • In 2026, we expect to issue the following equity or equity-like products: ◦ $3
Slide 15: Regulatory and Acquisition Updates
Regulatory and Acquisition Updates Bruce A. Hauk President and COO 15 15
Slide 16: Progress on Quadvest
Progress on Quadvest ▪ Quadvest L.P.’s Fair Market Value (FMV) Connection Growth Active and Under Contract/ Development Pending determination received late Dec. ‘25 12/31/24 to 12/31/25 ▪ In accordance with Texas’ FMV statute, the 150,000 136,000 141,400 purchase price of $483.6M will serve as the 1
Slide 17: Progress on Cibolo Valley
Progress on Cibolo Valley ▪ 1,500 active wastewater connections ▪ More than 250 connections under contract pending development ▪ Using FMV; STM application expected to be filed around April 2026 ▪ Closing expected Q4’26 17
Slide 18: Regulatory & Legislative Updates
Regulatory & Legislative Updates San Jose Water: ▪ 3rd 1-year deferral request of Cost of Capital approved on 11/18/25 ▪ 2nd advice letter for AMI project approved; $6.8M increase effective 7/1/25 Deferred Cost of Capital filing ▪ 2025-27 GRC’s 2nd year step rate increase of $17.2M effective 1/1/26
Slide 19: Regulatory & Legislative Updates
Regulatory & Legislative Updates Texas Water: ▪ Regulatory lag reducing laws passed in ‘25: ▪ Allows future/hybrid test years to be used in GRCs Expect smaller gap between ▪ Timeline to process SIC applications reduced to 60 days TWC’s allowed ROE and earned ▪ $5.1M SIC application filed 10/6/25; de
Slide 20: Customer Bill Affordability
Customer Bill Affordability 20
Slide 21: Welcome
Welcome California CPUC Updates: ▪ Congratulations President John Reynolds ▪ Welcome Commissioner Harada Texas PUCT Updates: ▪ Welcome Commissioner Johnson 21
Slide 22: We protect what's precious.
We protect what's precious. ryO America
Slide 23: Appendix
Appendix HO America
Slide 24: Q4’25 Adjusted Diluted EPS Decreased by 38% Compared to Q4’24
Q4’25 Adjusted Diluted EPS Decreased by 38% Compared to Q4’24* *See Appendix for H2O America’s disclosures for non-GAAP financial measures. 24
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: Transaction and Financing Details
Transaction and Financing Details ▪ Meaningfully accretive to EPS growth targets ▪ Dilutive to EPS after closing but accretive to EPS and credit metrics by 2028 • Transaction will be structured as a debt-free transaction, with purchase price of $540mm subject to customary closing adjustments • Trans
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 ▪ Approximate $400 million CapEx estimate for treatment ▪ Party to class action settlements with PFAS manufacturers ▪ Have received $25.1 million in
Slide 30: 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 31: 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 31
Slide 32: 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 33: 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 in