H2o America · NASDAQ:HTO
H2o America — Q3 2025 Earnings Presentation
34 slides from H2o America's earnings presentation, Oct 28, 2025
Slide 1: Third Quarter 2025 Financial Results Presentation
Third Quarter 2025 Financial Results 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: Welcome
Welcome Jonathan Reeder ▪ Senior Director of Treasury and Investor Relations ▪ Previously equity research analyst at Wells Fargo Securities ▪ Two decades of experience covering utility stocks ▪ Aligned with commitment to culture, service, and investor outreach 5
Slide 6: Delivering on Strategy in 3Q
Delivering on Strategy in 3Q ▪ Creating Long-Term Shareholder Value ▪ $1.27 adjusted diluted earnings per share (non-GAAP)1 in 3Q, an 8% increase vs. 3Q 2024 ▪ Regulatory Progress ▪ Connecticut Water’s Water Infrastructure and Conservation Adjustment (WICA) application approved ▪ Texas Water files S
Slide 7: Financial Update
Financial Update Ann Kelly Chief Financial Officer and Treasurer 77
Slide 8: Financial Highlights
Financial Highlights 3Q Diluted Earnings per Share (EPS) $1.27 GAAP/$1.27 Adjusted (Non-GAAP) YTD 2025 Diluted EPS $2.48 GAAP/$2.53 Adjusted (Non-GAAP) Narrowing 2025 Adjusted EPS Guidance Range1 $2.95 – $3.00 Affirming Diluted EPS Growth Rate2 through 2029 anchored off 2022A ($2.43) Expect EPS CAGR
Slide 9: Adjusted Diluted EPS Increased by 8% Compared to 3Q 2024
Adjusted Diluted EPS Increased by 8% Compared to 3Q 2024 *See Appendix for H2O America’s disclosures for non-GAAP financial measures. 9
Slide 10: Revenue Increased by 7% Compared to 3Q 2024
Revenue Increased by 7% Compared to 3Q 2024 10
Slide 11: Water Production Expenses Increased 3% from 3Q 2024
Water Production Expenses Increased 3% from 3Q 2024 11
Slide 12: Other Operating Expenses Increased 9% from 3Q 2024
Other Operating Expenses Increased 9% from 3Q 2024 12
Slide 13: YTD 2025 Adjusted Diluted EPS Bridge
YTD 2025 Adjusted Diluted EPS Bridge* *See Appendix for H2O America’s disclosures for non-GAAP financial measures. 13
Slide 14: 2025 YTD Financing Activity & Effective Tax Rate
2025 YTD Financing Activity & Effective Tax Rate ▪ Approximately $108 million in gross equity proceeds raised through our ATM program to fund growth and capital investment YTD 2025 ▪ $370 million in bank lines of credit; $126 million drawn, leaving $244 million available; 5.42% average borrowing rat
Slide 15: Regulatory and Acquisition Updates
Regulatory and Acquisition Updates Bruce A. Hauk President and COO 15 15
Slide 16: Regulatory Progress
Regulatory Progress Connecticut Water: ▪ $3.1 million revenue increase in WICA, effective October 1, 2025 ▪ Application filed on July 30, 2025; approved as filed on September 24, 2025 Maine Water: ▪ Progress on rate unification application ▪ Revenue-neutral rate design proposal, including affordabil
Slide 17: Substantial Capital Plan Drives Earnings Growth
Substantial Capital Plan Drives Earnings Growth Planned CapEx by State Timely Recovery Through 6.6% Net Utility Plant Growth 2025 - 20291 ($M) Regulatory Mechanisms in Forecasted 2025 - 20292 $1,042 $496 $389 Forward-Looking Infrastructure Test Year Recovery Mechanism $117 Traditional Recovery ~25%
Slide 18: Progress on Quadvest
Progress on Quadvest ▪ Fair Market Value (FMV) determination expected in December with the Public Utilities Commission of Texas approval filing shortly thereafter ▪ We plan to disclose FMV in early 2026 ▪ Closing expected mid-2026 ▪ Robust active connection growth & pipeline Active Connections 18
Slide 19: Progress on Cibolo Valley Wastewater Plant
Progress on Cibolo Valley Wastewater Plant ▪ 1,500 active wastewater connections ▪ More than 250 connections under contract pending development ▪ Using FMV ▪ Closing expected in 4Q 2026 19
Slide 20: Sensible Sustainability
Sensible Sustainability ▪ America’s Greenest Companies 2026 ▪ Second consecutive year ▪ Must meet the European Union’s stringent sustainability criteria ▪ 2024 Sustainability Report Highlights: ▪ 43% reduction in Scope 1 and Scope 2 greenhouse gas emissions ▪ 73% increase in solar generation ▪ 85.2%
Slide 21: Welcome
Welcome New Connecticut PURA Commissioners: ▪ Thomas Wiehl, Chair ▪ Janice Beecher ▪ Holly Cheeseman ▪ Everett Smith III 21
Slide 22: We protect what's precious.
We protect what's precious. ry0 America
Slide 23: Appendix
Appendix HO America
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 47,000 active connections and over 89,000 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 (2024A) Quadvest (2024A) Quadvest (2029E) 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: Transaction and Financing Details
Transaction and Financing Details ▪ Meaningfully accretive to EPS growth targets ▪ Dilutive to EPS at closing and 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 • Transact
Slide 28: 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 ▪ Party to class action settlements with PFAS manufacturers ▪ Have received $24.9 million in legal settl
Slide 29: 2024/25 Key Filings
2024/25 Key Filings Revenue Revenue State Docket # Type* Filing Date Order Date Status Requested Approved Comments (annualized) (annualized) Step increases 3.91% 2025, CA 24-01-001 GRC 01/02/24 Alternate Proposed 2.55% in 2026, and 2.98% in 12/19/24 $103M $53.1M 2027, and $450M 3-year capital Decisi
Slide 30: YTD Revenue Increased by 10% Compared to YTD 2024
YTD Revenue Increased by 10% Compared to YTD 2024 30
Slide 31: YTD Water Production Expenses Increased 9% from YTD 2024
YTD Water Production Expenses Increased 9% from YTD 2024 31
Slide 32: YTD Other Operating Expenses Increased 9% from YTD 2024
YTD Other Operating Expenses Increased 9% from YTD 2024 32
Slide 33: 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 34: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ▪ 3Q and 2025 year-to-date Three months ended September 30, Nine months ended September 30, 2025 2025 2025 2024 2025 2024 Reported GAAP Net Income $ 45,132 38,652 $ 86,358 71,047 Adjustments: (Gain)/loss on sale of real estate investments1 (273) 60 (273)