H2o America · NASDAQ:HTO
H2o America — Q1 2026 Earnings Presentation
28 slides from H2o America's earnings presentation, Apr 29, 2026
Slide 1: First Quarter 2026 Financial Results & Update Presentation
First 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: A Good Start To 2026
A Good Start To 2026 ▪ Strong Q1 financial results consistent with internal expectations ▪ GAAP diluted EPS of $0.49; Adjusted diluted EPS of $0.501 ▪ Raised $700 million of equity to fund Quadvest acquisition and base capex through 2027 • Includes a $400 million equity forward component ▪ Affirming
Slide 6: Financial Update
Financial Update Ann Kelly Chief Financial Officer and Treasurer 66
Slide 7: Financial Highlights
Financial Highlights First Quarter 2026 Diluted EPS 2026 Standalone Diluted EPS Guidance $0.49 GAAP/$0.50 Adjusted (Non-GAAP) of $3.08-3.181 $2.7B 5-year CapEx Plan2 To renew and replace aging infrastructure, improve reliability and service quality, and comply with environmental regulations ~13% Rat
Slide 8: Q1'26 Adjusted Diluted EPS Flat Compared to Q1'25
Q1’26 Adjusted Diluted EPS Flat Compared to Q1’25* *See Appendix for H2O America’s disclosures for non-GAAP financial measures. 8
Slide 9: CapEx + Quadvest = Attractive Rate Base Growth
CapEx + Quadvest = Attractive Rate Base Growth • 2026-30 capex budget of $2.7B1 plus the addition of Quadvest drives a projected 13% rate base CAGR ◦ Through 3/31/26, we have invested $85.3 million1 in infrastructure (18% of FY2026 budget) Planned CapEx by State 2026-301 ($ in millions) Projected Ye
Slide 10: 6-8% Long-term EPS CAGR Guidance
6-8% Long-term EPS CAGR Guidance1 ▪ 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 ▪ 2026E & 2027E EPS including Quadvest ▪ Expect to fall below the rang
Slide 11: Financing & Credit Metric Update
Financing & Credit Metric Update ▪ Equity Issuances: • Raised $700 million in equity proceeds, including $400 million through an equity forward agreement • Provides the equity necessary to fund the Quadvest and Cibolo Valley acquisitions as well as our normal capex needs through 2027 ◦ Until Quadves
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: ▪ Stipulation in rate unification application approved Jan. ‘26; includes an affordability rate Rate unification stipulation allows • First consolidated WISC application filed 2/27/26; requests a $0.9M the consolidation of 10 divisions increase in annual
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 $483.6M will serve as the ratemaking rate base ▪ Sale-Transfer-Merger (STM) application deemed administratively complete by the Public Ut
Slide 16: Welcome
Welcome Texas PUCT Updates: ▪ Welcome Commissioner Rhode 16
Slide 17: We protect what's precious.
We protect what's precious. ry0 America
Slide 18: Appendix
Appendix HO America
Slide 19: Customer Bill Affordability
Customer Bill Affordability 1as of 12/31/25, MHI = 2023 US Census weighted average of median household income for zip codes served based on data available through ESRI, escalated to 2025 based on state- specific U.S. Census historical data. Bill data is based on actual average residential customer u
Slide 20: Key Statistics by State
Key Statistics by State 1 The authorized capital structure and return on equity shown are those of the largest division of MWC, the Biddeford and Saco division. This return on equity and capital structure will be used for any future Water Infrastructure Surcharge (“WISC”) calculations for all divisi
Slide 21: Key Regulatory Filings
Key Regulatory Filings * AMI = Advanced Metering Infrastructure; GRC = General Rate Case; WICA = Water Infrastructure Conservation Adjustment; WISC = Water Infrastructure Surcharge; FMV = Fair Market Value 21
Slide 22: Breaking Down the 2026-30 CapEx Plan
Breaking Down the 2026-30 CapEx Plan Nearly half of 2026-30 Planned CapEx by State Roughly 80% of 2026-30 budget is distribution 2026 - 20301 ($ in millions) budget qualify for timely system investments regulatory recovery2 * Other PP&E includes pump station and equipment, reservoir and tanks & othe
Slide 23: 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. 23
Slide 24: 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 25: 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 26: 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 27: 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 28: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Three months ended March 31, 2026 2025 Reported GAAP Net Income $ 19,013 16,551 Adjustments: (Gain)/loss on sale of real estate investments1 (172) — Expense for merger and acquisition activities1 730 254 Tax effect of above adjustments2 (156) (71) Adjust