H2O America Q4 FY2025 earnings call

• 2025 was strong strategically and financially, delivered diluted EPS of $2.92 and adjusted diluted EPS of $2.99 near top of guidance range. • Announced acquisition of Quadvest for $540 million, expected to add rate-making rate base. • Had constructive regulatory and legislative developments in states like California, Connecticut, Texas, Maine. • Invested $501 million in 2025 CapEx, exceeding revised budget, with 41% increase over 2024. • Increased quarterly dividend by 4.8%, annualized dividend in 2026 expected to be $1.76 per share. • Updated five-year CapEx budget to $2.7 billion with 13% rate-based CAGR expected.

No specific product segments detailed, but overall in 2025, full-year diluted EPS was $2.92, adjusted diluted EPS was $2.99 near the top end of guidance range. 2025 CapEx was $501 million exceeding revised budget, and five-year CapEx budget increased to $2.7 billion with 13% rate-based CAGR expected.

• 2026 standalone guidance is $3.08 to $3.18, excludes impacts of pending acquisitions. • Increased long-term EPS growth rate target to 6% to 8% based on elevated CapEx needs and organic growth plus QuadVest acquisition. • Near term, expect nonlinear EPS growth at or above top end of 6-8% range over 2026-2030 using 2025 adjusted diluted EPS as base. • QuadVest acquisition initially dilutive to EPS before new rates from Texas general rate case in 2027, expected accretive in 2028 and beyond.

• Q: Question on slide 13 about 6-8% EPS CAGR and when reaching 8% plus level.

A: Key driver is Texas rate case outcome, forecast accretion in 2028 but respect regulatory process. • Q: Question on M&A timeline and opportunities.

A: Focused on completing QuadVest acquisition now, will remain active on tuck-in acquisitions but no specific near-term groundbreaking deals. • Q: Question on CapEx increase and earnings trajectory.

A: CapEx increase from combination of QuadVest related, PFAS investment, 1% replacement and water supply energy, earnings trajectory influenced by rate case cadence in various jurisdictions. • Q: Question on equity issuance and earnings step up.

A: Equity issuance related to QuadVest and ongoing CapEx, earnings step up influenced by rate cases in different states including Texas and others.