Slides
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2025 Financial Results & 5-Year Plan Update Presentation
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2 Andrew F. Walters Chief Executive Officer Bruce A. Hauk President and Chief Operating Officer 2 Ann P. Kelly Chief Financial Officer and Treasurer On Today’s Call
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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 projections about H2O America and its subsidiaries and the industries in which H2O America and its subsidiaries operate and the beliefs and assumptions of the management of H2O America. Some of these forward-looking statements can be identified by the use of forward-looking words such as “believes,” “expects,” “estimates,” “anticipates,” “intends,” “seeks,” “plans,” “projects,” “may,” “should,” “will,” “approximately,” “strategy,” or the negative of those words or other comparable terminology. These forward-looking statements are only predictions and are subject to risks, uncertainties, and assumptions that are difficult to predict. Therefore, actual results may differ materially and adversely from those expressed in any forward- looking statements. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions including, but not limited to, the following factors: (1) the risks associated with the proposed Quadvest and Cibolo Valley transactions, including, the risk of the proposed transactions not closing on the anticipated timeline, or at all, the ability to obtain required regulatory approvals, and the ability to successfully integrate Quadvest’s and Cibolo Valley's operations and realize the projected financial and other benefits of the proposed transactions; (2) the effect of water, utility, environmental and other governmental policies and regulations, including regulatory actions concerning rates, authorized return on equity, authorized capital structures, capital expenditures, PFAS and other decisions; (3) changes in demand for water and other services; (4) unanticipated weather conditions and changes in seasonality including those affecting water supply and customer usage; (5) the effect of the impact of climate change; (6) unexpected costs, charges or expenses; (7) our ability to successfully evaluate investments in new business and growth initiatives; (8) contamination of our water supplies and damage or failure of our water equipment and infrastructure; (9) the risk of work stoppages, strikes and other labor-related actions; (10) catastrophic events such as fires, earthquakes, explosions, floods, ice storms, tornadoes, hurricanes, terrorist acts, physical attacks, cyber-attacks, epidemic, or similar occurrences; (11) changes in general economic, political, legislative, business and financial market conditions; and (12) the ability to obtain financing on favorable terms, or at all (including the financing for the proposed transactions with Quadvest in a timely manner), which can be affected by various factors, including credit ratings, changes in interest rates, compliance with regulatory requirements, compliance with the terms and conditions of our outstanding indebtedness, and general market and economic conditions. The risks, uncertainties and other factors may cause the actual results, performance or achievements of H2O America to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Results for a quarter are not indicative of results for a full year due to seasonality and other factors. In addition, actual results, performance or achievements are subject to other risks and uncertainties that relate more broadly to our overall business, including those more fully described in our filings with the SEC, including our most recent reports on Form 10-K, Form 10-Q and Form 8-K. Forward-looking statements are not guarantees of future performance, and speak only as of the date made, and H2O America undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law. Forward-Looking Statements 3
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44 Welcome Andrew Walters Chief Executive Officer
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5 ▪ 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 Outcomes in All States ▪ Executed on a Record Amount of Capital Expenditures (CapEx) ▪ 2025 capex of $5012 million; 41% increase over our 2024 capex ▪ 4.8% Dividend Increase Announced Jan. 2026 1See Appendix for H2O America’s reconciliations for non-GAAP financial measures. 2Includes expenditures for cloud-based systems recorded as deferred assets. A Successful 2025
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6 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 investing; most recently with NW Natural Holdings (NWN) ▪ Committed to culture, service, and pursuing disciplined strategic growth opportunities
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77 Ann Kelly Chief Financial Officer and Treasurer Financial Update
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$2.92 GAAP/$2.99 Adjusted (Non-GAAP) Full year 2025 adjusted diluted EPS near top of upwardly revised $2.95-3.00 guidance Financial Highlights 8 1H2O America’s earnings guidance is subject to numerous risks and uncertainties, including, without limitation, those factors described in the “Forward-Looking Statements” on slide 3 and the “Risk Factors” section of the company’s annual and quarterly reports filed with the Securities and Exchange Commission (SEC). Because we are not able to predict certain potentially material items affecting diluted EPS on a GAAP basis, principally gains or losses on non-utility real estate transactions and expenses for merger and acquisition activities, we are unable to reconcile the fiscal year 2026 adjusted diluted earnings per share, a non-GAAP measure, to the diluted earnings per share, the most directly comparable measure in reliance of the “unreasonable efforts” exception set forth in the SEC rules. $2.7B 5-year CapEx Plan2 31% increase over previous plan ~13% rate base CAGR 2026 - 2030 To renew and replace aging infrastructure, improve reliability and service quality, and comply with environmental regulations Increasing Non-linear Long-term EPS Growth Rate to 6-8% (off 2025A) 8%+ EPS CAGR expected for the 2026-30 period 2 Includes expenditures for cloud-based systems recorded as deferred assets; TWC includes elevated level of planned investments in Texas following the anticipated closing of our pending acquisitions.
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9*See Appendix for H2O America’s disclosures for non-GAAP financial measures. 2025 Adjusted Diluted EPS Bridge*
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31% Increase in 5-year CapEx Plan — Drives Attractive Rate Base Growth 10 31% increase driven by higher pipeline replacement work and PFAS compliance spend as well as the inclusion of planned Quadvest capex $2.7B capex budget plus the addition of Quadvest drives a projected 13% rate base CAGR 1Includes expenditures for cloud-based systems recorded as deferred assets 2Includes planned capital expenditures for the pending Quadvest system acquisition (whereas the 2025-29 plan did not)
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Breaking Down the 2026-30 CapEx Plan 11 Planned CapEx by State 2026 - 20301 ($ in millions) Roughly 80% of 2026-30 budget qualify for timely regulatory recovery2 1Includes expenditures for cloud-based systems recorded as deferred assets; TWC includes elevated level of planned investments in Texas following the anticipated closing of our pending acquisitions. 2Based on budgeted investments or filings that qualify for infrastructure recovery mechanisms, including the recently enacted Water Quality Treatment Adjustment in Connecticut. * Other PP&E includes pump station and equipment, reservoir and tanks & other equipment Nearly half of 2026-30 budget is distribution system investments
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12*See Appendix for H2O America’s disclosures for non-GAAP financial measures. Adjusted Diluted EPS Bridge from 2025A to 2026 Guidance Midpoint*
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Long-term EPS CAGR Guidance1 Increased to 6-8% 1 H2O America’s earnings guidance is subject to numerous risks and uncertainties, including, without limitation, those factors described in the “Forward-Looking Statements” on slide 3 and the “Risk Factors” section of the company’s annual and quarterly reports filed with the Securities and Exchange Commission. Because we are not able to predict certain potentially material items affecting diluted EPS on a GAAP basis, principally gains or losses on non-utility real estate transactions and expenses for merger and acquisition activities, we are unable to reconcile the fiscal year 2026 adjusted diluted earnings per share, a non-GAAP measure, to the diluted earnings per share, the most directly comparable measure in reliance of the "unreasonable efforts" exception set forth in the SEC rules. 2 Includes expenditures for cloud based systems recorded as deferred asset. 13 ▪ 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 expectations to be in the top half of the range ▪ 2026E & 2027E EPS including Quadvest ▪ Expect to fall below the ranges implied by our 6-8% CAGR ▪ Overall 2026-30E EPS CAGR off ‘25A ▪ Expect to be at or above the top of 6-8% range driven by: • Updated 5-year capex budget of $2.7 billion2 • Anticipated Quadvest accretion beginning in 2028 • Achieving fair and timely regulatory outcomes
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Financing & Credit Metric Update 14 ▪ 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: ◦ $350-450 million for funding of Quadvest acquisition ◦ $100-125 million for normal capex needs plus Cibolo Valley deal ▪ Debt Issuances: • We expect to issue $100-200M of HoldCo & OpCo level debt for the Quadvest deal ▪ FFO/Debt: • 11.2% in 2025; above S&P downgrade threshold of 11% • 2026 financing plan designed to protect our ‘A’ category rating • Expect continued deleveraging throughout our 5-year plan
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15 Bruce A. Hauk President and COO 15 Regulatory and Acquisition Updates
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Connection Growth Active and Under Contract/ Development Pending 12/31/24 to 12/31/25 136,000 141,400 47,000 54,400 89,000 87,000 Active Contract and Pending 12/31/2024 12/31/2025— 25,000 50,000 75,000 100,000 125,000 150,000 Progress on Quadvest +16% 16 ▪ Quadvest L.P .’s Fair Market Value (FMV) determination received late Dec. ‘25 ▪ In accordance with T exas’ FMV statute, the purchase price of $483.6M will serve as the ratemaking rate base ▪ Sale-Transfer-Merger (STM) application filed with the Public Utilities Commission of T exas in Jan. ‘26 ▪ Requests approval of the acquisition of Quadvest L.P .’s assets and certification of the value of the rate base ▪ Closing expected mid-2026 ▪ Robust active connection growth & pipeline Active Connections
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Progress on Cibolo Valley 17 ▪ 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
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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 ▪ 2025-27 GRC’s 2nd year step rate increase of $17.2M effective 1/1/26 ▪ SJWC’s 2028-30 GRC will be filed early January 2027 Connecticut Water: ▪ Law passed in ‘25 authorizing Water Quality and Treatment Adjustment (WQTA) mechanism — nation’s first mechanism to recover capex needed to treat PFAS and emerging contaminants ▪ Initial WQTA filing made 1/22/26; requests $0.6M effective 4/1/26 ▪ $3.1M WICA revenue increase approved as filed, effective 10/1/25 ▪ New WICA filing made 1/26/26; requests $2.7M effective 4/1/26 ▪ CWC plans to file GRC in 2026; consistent with ~3-year cadence Regulatory & Legislative Updates 18 Deferred Cost of Capital filing maintains 9.81% ROE through 2027, absent WCCM adjustments WQTA allows for annual recovery of total capital invested; not limited to completed projects 7.5% annual cap 15% cap between GRCs
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Texas Water: ▪ Regulatory lag reducing laws passed in ‘25: ▪ Allows future/hybrid test years to be used in GRCs ▪ Timeline to process SIC applications reduced to 60 days ▪ $5.1M SIC application filed 10/6/25; decision expected mid-2026 ▪ Quadvest and Cibolo Valley FMV deals pending ▪ TWC plans to file combined TX GRC in early 2027 to recover significant water supply investments and recognize Quadvest’s rate base Maine Water: ▪ Stipulation in rate unification application approved Jan. ‘26; includes affordability rate • MWC plans to file a consolidated GRC near the end of March Regulatory & Legislative Updates 19 Expect smaller gap between TWC’s allowed ROE and earned ROE following planned GRC Rate unification stipulation allows the consolidation of 10 divisions into a single division and creates a needs-based financial assistance rate program
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Customer Bill Affordability 20
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Welcome 21 California CPUC Updates: ▪ Congratulations President John Reynolds ▪ Welcome Commissioner Harada Texas PUCT Updates: ▪ Welcome Commissioner Johnson
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Appendix 23
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24*See Appendix for H2O America’s disclosures for non-GAAP financial measures. Q4’25 Adjusted Diluted EPS Decreased by 38% Compared to Q4’24*
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Growth fueled by buildout of master planned communities by multiple home builders in one of America’s fastest growing regions 10% CAGR of connections over last five years supports projected double-digit customer growth rate over next five years Quadvest Acquisition Overview Transaction Brings Growth, Relationships, and Reliable Service 25 ▪ 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 under contract and pending development1. 64 subdivisions serving ~38,000 connections and pipeline of ~61,500 connections under contract Excellent relationships with leading developers in Houston region that will continue to drive future growth Quadvest LP (Regulated) Quadvest Wholesale (Utility-like) 5 subdivisions serving ~16,500 connections and ~25,500 under contract and pending future development Constructs, operates and maintains water and wastewater facilities under 30+-year contracts with Municipal Utility Districts Regulated water and wastewater utility; purchase price of $483.6mm Water and wastewater infrastructure services for municipal utilities and developers; purchase price of $56.4mm 1Customer connections as of 12/31/2025. This transaction was announced on July 8, 2025.
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Transaction Strengthens H2O America’s Position by Customer Connections Nationwide1 26 Acquisition creates a more balanced portfolio of water utilities across California, Texas, Connecticut, and Maine Standalone H2O America (2025A) H2O America + Quadvest (2025A) H2O America + Quadvest (2030E) 1Customer connections as of 12/31/2025. The Quadvest transaction was announced on July 8, 2025.
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Transaction Enhances Strategic Profile 27 Enhances Scale ▪ Creates second largest regulated private Texas water and wastewater utility ▪ Strengthens H2O’s objective to strategically diversify the business, extend exposure to fast-growing regions, and enhance service nationwide Increases Exposure to Constructive Texas Market ▪ Strong Texas economic development and growth will continue to support long-term growth for H2O America ▪ Strong relationships with housing developers and customers in Texas present significant capital investment opportunity to continue robust track-record of growth and on-going delivery of reliable and valuable water and wastewater services ▪ Constructive regulatory framework and associated mechanisms, incl. Fair Market Value and infrastructure recovery Customer Focus ▪ Well positioned to increase value for customers with improved operational excellence, customer service, and infrastructure investment, while maintaining commitment to local expertise ▪ Enhance reliability, customer value, and customer service through shared technology and operational best practices Continued Commitment to Communities and Employees ▪ Expanding Texas investments with over $750M planned across TWC and Quadvest over the next 5 years, strengthening our local roots and capacity to meet the state’s rapid growth. ▪ Company to retain a passionate, dedicated team of locally-based employees and leadership ▪ Shared foundation of values and community engagement expressed through charitable giving, employee volunteerism, and environmental stewardship
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▪ 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 • Transaction will be financed by combination of privately placed debt and equity from H2O America that allows the company to maintain its strong balance sheet and credit metrics, including: ▪ $350 – 450mm of H2O common equity & equity-like products ▪ $100 – 200mm of H2O and operating company debt ▪ Further recapitalization expected following our first rate case ▪ Closing expected mid-2026, subject to expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and approval from the Public Utilities Commission of Texas Transaction and Financing Details 28
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▪ 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 legal settlement proceeds in 2025 on behalf of SJWC ($17.0M), CWC ($7.6M) & MWC ($0.5M) customers 29 PFAS Update
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Key Statistics by State 30 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 divisions until the Maine Public Utilities Commission (“MPUC”) has authorized or approved a different return on equity structure in a different proceeding. 2 Estimated by management. 3 The approved Water Cost of Capital Mechanism (“WCCM”)-adjusted return on equity is 10.01% less a 20-basis point reduction due to the reimplementation of the Water Conservation Memorandum Account (“WCMA”). 4 An approximation of rate base that includes net utility plant not yet included in rate base pending rate case filings and outcomes.
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Key Regulatory Filings 31* AMI = Advanced Metering Infrastructure; GRC = General Rate Case; WICA = Water Infrastructure Conservation Adjustment; WISC = Water Infrastructure Surcharge; FMV = Fair Market Value
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Non-GAAP Financial Measures 32 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 adjusted to exclude the effects of non-utility real estate transactions and costs associated with mergers and acquisition activities, if any. These non-GAAP financial measures are provided as additional information for investors to evaluate the performance of H2O America's business activities excluding these items. Management also believes these non-GAAP financial measures help investors and analysts better understand our actual results compared to our guidance on a non-GAAP basis. H2O America uses adjusted net income and/or adjusted diluted EPS as the primary performance measurements when communicating with analysts and investors regarding our outlook and results. Adjusted net income and Adjusted diluted EPS are also used internally to measure performance. However, these non-GAAP financial measures may be different from non-GAAP financial measures used by other companies, even when the same or similarly titled terms are used to identify such measures, limiting their usefulness for comparative purposes. Further, these non- GAAP financial measures should be considered as a supplement to the financial information prepared on a GAAP basis rather than an alternative to the respective GAAP financial measures.
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33 Reconciliation of Non-GAAP Financial Measures 1 Included in the “Other, net” line on the condensed consolidated statements of comprehensive income. 2 Included in the “Administrative and general” line on the condensed consolidated statements of income. 3 The tax effect on all adjustments is calculated at the applicable statutory rate. Three months ended December 31, Twelve months ended December 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 investments1 ........................... — (397) (273) 572 Expense for merger and acquisition activities2 ........................... 416 3,032 3,464 3,393 Tax effect of above adjustments3 ................................................ (116) (737) (882) (1,148) Adjusted Net Income (non-GAAP) ................................................... $ 16,520 $ 24,818 $ 104,887 $ 96,784 Reported GAAP Diluted Earnings Per Share .................................... $ 0.45 0.68 $ 2.92 2.87 Adjustments: (Gain)/Loss on sale of real estate investments, net of tax .......... — (0.01) (0.01) 0.01 Expense for merger and acquisition activities, net of tax ........... 0.01 0.07 0.08 0.07 Adjusted Diluted Earnings Per Share (non-GAAP) .......................... $ 0.46 $ 0.74 $ 2.99 $ 2.95