H2o America · NASDAQ:HTO
H2o America — Q3 2026 Earnings Presentation
28 slides from H2o America's earnings presentation, Oct 27, 2026
Slide 1: Third Quarter 2026 Financial Results & Update Presentation
Third 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: 2026 On Track
2026 On Track ▪ Q3 results have us in position to deliver on our financial plan ▪ Q3’26 GAAP diluted EPS of $0.99; Adjusted diluted EPS of $1.041 ▪ YTD’26 GAAP diluted EPS of $2.13; Adjusted diluted EPS of $2.301 ▪ Narrowing FY2026 EPS guidance and affirming long-term financial growth targets ▪ Clos
Slide 6: Financial Update
Financial Update Ann Kelly Chief Financial Officer and Treasurer 66
Slide 7: Financial Highlights
Financial Highlights ▪ Standalone adjusted diluted EPS guidance Q3’26 GAAP diluted EPS of $0.99 while YTD’26 is $2.13 narrowed to $3.10-$3.161, 2 • YTD adjusted diluted EPS of $2.30 includes a $0.17 net headwind from the March Quadvest equity raise partially offset by interest income and savings ▪ I
Slide 8: Q3'26 Adjusted Diluted EPS Trails Q3'25 Due Primarily To Share Issuances
Q3’26 Adjusted Diluted EPS Trails Q3’25 Due Primarily To Share Issuances* Rate Increases $0.22 Change in Pass Through Surface Water Costs $0.19 Water $0.03 Depreciation $(0.09) Consumption Change in Investment Changes $(0.10) Usage $0.06 A&G $(0.04) income $0.02 Water Supply Property tax $(0.02) Tax
Slide 9: YTD'26 Adjusted Diluted EPS Trails YTD'25 Due To Share Issuances
YTD’26 Adjusted Diluted EPS Trails YTD’25 Due To Share Issuances* Rate Increases $0.64 Change in Pass Through Surface Water Costs $0.44 Water $0.09 Investment Consumption Change in Depreciation $(0.28) income $0.05 Changes $(0.05) Usage $0.02 A&G $(0.13) Tax $0.05 Regulatory Water Supply Costs $(0.4
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 ▪ 2026E & 2027E EPS including Quadvest ▪ Expect to fall below the ranges implied by our 6-8% CAGR ▪ $2.9
Slide 11: Financing & Credit Metric Update
Financing & Credit Metric Update ▪ Equity Issuances: • No additional common equity issuances expected through 2027 ◦ Settled 6.44 million shares under the $400 million, 2-year forward agreement for net proceeds of $330 million at the end of September to help fund Quadvest close ◦ 1.11 million shares
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 4/10/26 for cost recovery of Williams Station PFAS project outside of the GRC process. Estimated total capital cost is ~$176M. PD expected Q2 2027. • If approved, rates would adjust annually via rate base filing offsets Deferred Cost of Capita
Slide 14: Regulatory & Legislative Updates
Regulatory & Legislative Updates Maine Water: • First consolidated GRC filed 4/13/26; requests a $9.5M increase in annual revenues to recover ~$36M of investments Rate unification stipulation allows ◦ Progressing on time; we expect new rates effective by May 2027 the consolidation of 10 divisions •
Slide 15: Quadvest Update
Quadvest Update ▪ Quadvest acquisition closed on 10/1/26 following two key milestones: ▪ On 8/17, the PUCT issued an order in the Quadvest, L.P. Sale-Transfer-Merger (STM) application that approved the close of the regulated portion of the transaction ▪ Quadvest, L.P.’s Fair Market Value (FMV) deter
Slide 16: We protect what's precious.
We protect what's precious. ry0 America
Slide 17: Appendix
Appendix HO America
Slide 18: 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 19: Key Statistics by State (as of December 31, 2025)
Key Statistics by State (as of December 31, 2025) 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”) c
Slide 20: 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 20
Slide 21: Pending General Rate Cases
Pending General Rate Cases 21
Slide 22: 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 23: 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 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, L.P. and Quadvest Wholesale, LLC ▪ As of 9/30/2026, Quadvest has 62,200 active connections
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: Quadvest Transaction Enhances Strategic Profile
Quadvest 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 e
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 Nine months ended September 30, September 30, 2026 2025 2026 2025 Reported GAAP Net Income $ 43,044 45,132 $ 88,646 86,358 Adjustments: Gain on sale of real estate investments1 (1,152) (273) (1,324) (273) Expense for merger, acquisitio