H2O America (SJW) investor relations material

Executive summary

• Q3 2026 diluted EPS was $0.99 GAAP and $1.04 adjusted; 9M EPS was $2.13 GAAP and $2.30 adjusted.

• Quadvest closed October 1, 2026, for $542.7M cash consideration, expanding water and wastewater operations in greater Houston.

• The long-term adjusted EPS CAGR target remains 6%–8%; the 2026–30 plan targets growth at or above the upper end of that range.

Financial highlights

• Q3 revenue was $250.2M, up 4% YoY; operating expenses rose 8% to $189.7M, and operating income fell to $60.5M from $64.6M.

• Q3 GAAP net income was $43.0M versus $45.1M; adjusted net income was $45.2M versus $45.5M. Diluted EPS was $0.99 GAAP and $1.04 adjusted, versus $1.27 for both measures.

• 9M revenue was $644.0M, up 6%; GAAP net income was $88.6M versus $86.4M, and adjusted net income was $95.3M versus $88.4M.

• 9M diluted EPS was $2.13 GAAP and $2.30 adjusted, versus $2.48 and $2.53; higher weighted-average shares weighed on EPS.

• YTD adjusted EPS included a net $0.17 headwind from the March equity raise, partly offset by interest income and savings.

Outlook and guidance

• Standalone FY2026 adjusted diluted EPS guidance narrowed to $3.10–$3.16 from $3.08–$3.18; the midpoint remains $3.13 and excludes acquisitions and related financing.

• FY2026 adjusted diluted EPS guidance including Quadvest, Cibolo Valley and related financing is $2.91–$2.97.

• Quadvest is expected to become accretive beginning in 2028; 2026–30 adjusted EPS CAGR is expected at or above the 6%–8% target range.

• The 2026–30 plan targets 13% rate-base CAGR from estimated year-end 2025 rate base of $2.8B, supported by a $2.7B capital budget and Quadvest.

• The 2026 utility capital budget is $440M, excluding ~$25M of capitalizable cloud-computing costs; five-year utility CapEx is projected at $2.568B, including ~$400M for PFAS treatment.