Financial Performance & Guidance - 2025 YTD EPS was $4.47, driven by higher revenue on increased rate base and rate case outcomes, up 9.0% vs 2024 on a weather-normalized basis[9] - 2025 EPS guidance is affirmed at $5.70 to $5.75, including $0.10 per share of incremental interest income from the amended HOS seller note[9] - 2026 EPS guidance is initiated at $6.02 to $6.12, assuming the HOS note is repaid around year-end 2025, reflecting consistent future earnings growth within a 7-9% range[12] - The company anticipates 8% EPS growth in 2026 (at midpoint) vs 2025 on a weather-normalized basis[28] Capital Investments & Funding - The company entered into equity forward agreements for approximately $1 billion, assuming settlement mid-year 2026 to fully satisfy 2026 equity needs[9, 35] - The company issued $900 million in senior notes in August 2025[9, 72] - The company plans for $2.5 billion of equity issuances in 2026-2030, including approximately $1 billion in 2026 covered by equity forward agreements[37] - The company's 5-year capital plan increased by $2 billion, with a total investment of $19 billion to $20 billion from 2026-2030[40, 41] - The company's 10-year capital plan increased by $6 billion, with a total investment of $42 billion to $43 billion from 2026-2035[40, 41] Acquisitions & Customer Growth - The company has acquisitions under agreement representing approximately 107,000 customer connections, totaling over $600 million[9, 52, 84] - The company closed acquisitions YTD as of October 29, 2025, representing approximately 17,500 customer connections[53, 83]

Core Viewpoint - 374Water Inc. is experiencing strong momentum in its AirSCWO technology deployments, particularly in waste destruction projects, which are expected to drive future growth and operational success [2][6]. Operational Highlights - The company initiated a biosolids destruction project in Orlando, which is anticipated to expand in scope upon successful completion [2]. - Progress was made in manufacturing the AS6 System for deployment to Orange County Sanitation in the latter half of 2025 [2]. - An AS6 System was successfully delivered to Clean Earth's facility in Detroit as part of a Department of Defense project aimed at PFAS waste destruction [3]. - The company deployed its technology in a project at Colorado School of Mines, focusing on PFAS waste destruction solutions [4]. - The first phase of a biosolids destruction demonstration in Orlando was completed, achieving non-detectable PFAS levels in effluent [7]. Financial Summary - For Q2 2025, revenue reached $600,000, a significant increase from $37,000 in the same period last year, primarily driven by waste destruction services and equipment manufacturing [9]. - Operating expenses rose by 45% to $4.4 million, attributed to increased compensation and administrative costs [9]. - The net loss for Q2 2025 was $4.6 million, compared to $2.9 million in the prior year [9]. - Cash and cash equivalents decreased to $2.1 million from $10.7 million at the end of 2024, with working capital also declining [11]. Strategic Developments - The company signed a Waste Destruction Services term sheet with a leading environmental solutions provider to enhance its operational capabilities [10]. - New board appointments include Stephen Jones and James Pawloski, who bring extensive industry experience to support the company's growth [5]. Future Outlook - The company anticipates completing the manufacturing of an AS1 system and launching initial Waste Destruction Services operations in the second half of 2025 [6]. - Continued advancements in the AirSCWO technology are expected to generate demand across municipal, federal, and industrial waste destruction markets [6].

Group 1 - The core recommendation for Xylem Inc. (NYSE: XYL) is a buy rating, driven by its exposure to structural water scarcity, aging infrastructure, and PFAS treatment themes, which create durable, non-discretionary demand [1] - Management's 80/20 transformation is yielding tangible margin gains, indicating effective operational improvements [1] - The investment strategy focuses on long-term investments while also considering short-term opportunities to uncover alpha, emphasizing a bottom-up analysis of individual companies' fundamentals [1] Group 2 - The investment duration is medium to long-term, aiming to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential [1]