H2O America (SJW) Investor presentation summary

Investment and infrastructure

• Planned 2026-30 CapEx of $2.7B, up 31% from the prior five-year plan; drivers include pipeline replacement, PFAS treatment, and resiliency investments.

• Nearly half of planned CapEx is for distribution, primarily pipe replacement; ~80% qualifies for timely regulatory recovery mechanisms.

• Target replacing 1% of distribution pipelines annually, equivalent to nearly $175M in annual investment; 2026 standalone CapEx budget is $483M.

• Estimated PFAS compliance CapEx is ~$400M: ~$230M in Connecticut and ~$170M in California, subject to regulatory recovery.

Texas growth and Quadvest

• Quadvest purchase price is $540M, including $483.6M for the regulated business and $56.4M for wholesale; closing anticipated October 1, 2026.

• Quadvest had more than 59,000 active connections and 98,900 under contract or in development at June 30, 2026; Texas customer share is projected to rise from 8% to 26% by 2029.

• Quadvest is expected to be accretive in 2028; a combined Texas general rate case is expected in early 2027, with new rates effective in early 2028.

• The Quadvest acquisition, alongside the $2.7B CapEx plan, supports projected 13% rate base CAGR from 2025A.

Earnings and capital

• Long-term non-GAAP EPS CAGR target is 6-8%, anchored to 2025 adjusted diluted EPS of $2.99; 2026-30 growth is expected at or above the target range.

• Standalone 2026 adjusted diluted EPS guidance is $3.08-$3.18; Q2 2026 adjusted diluted EPS was $0.72 and YTD was $1.23.

• Quadvest dilution could be 10-20% against the standalone 2026 diluted EPS guidance midpoint of $3.13, with financing and D&A costs weighing before the 2027 Texas rate case.

• No additional common equity issuance is expected through 2027; $100-200M of debt is still expected for Quadvest, with timing flexible.