Financial Data and Key Metrics Changes - In Q4 2025, revenue was $220 million, a slight decrease from $222 million in Q4 2024. Net income for the quarter was $11.5 million, or $0.19 per diluted share, compared to $19.7 million, or $0.33 per diluted share in the prior year [10][11] - For the full year 2025, operating revenue was $1 billion, compared to $1.37 billion in 2024. However, when compared to non-GAAP 2024 revenue of $949.3 million, revenue increased by $50.8 million or approximately 5.4% [12] - Net income attributed to the group was $128.2 million, down from $190.8 million in 2024, but increased by $1.4 million or 1% when compared to non-GAAP 2024 income [12][13] Business Line Data and Key Metrics Changes - The company invested a record $517 million into infrastructure systems in 2025, including $52.3 million in Q4 alone, representing a 19.8% increase over construction levels in 2024 [8][14] - The company maintained an A+ stable credit rating from S&P, one of the highest-rated credit utilities in North America [9] Market Data and Key Metrics Changes - The company experienced a significant weather impact in December 2025, which negatively affected financial results due to exceptionally wet and cold weather across California [7][10] - The company implemented a 3% interim rate increase in California in January 2026, following a delay in the rate case decision [9][10] Company Strategy and Development Direction - The company announced the acquisition of Nevada and Oregon operations from Nexus Water, which will expand its geographical footprint and regulatory diversification [4][20] - The company is focused on timely completion of acquisitions and regulatory activities, including the 2024 rate case in California and other rate cases in different states [37][39] - The primary growth engine is the reinvestment of existing capital into the rate base, with a target of maintaining a 10% year-over-year increase in capital expenditures [38][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the regulatory environment, noting that the current case is being prioritized by the commission, which is expected to lead to more timely decisions in the future [45][52] - The company is committed to maintaining affordable rates while ensuring the reliability and quality of water services, especially in light of rising costs in California [39][52] Other Important Information - The company declared its 324th consecutive quarterly dividend of $0.33 per share and announced an intended annual dividend of $1.34 per share for 2026, marking the 59th consecutive increase [17][18] - The company plans to spend between $50 million and $70 million on PFAS programs in 2026, in addition to ongoing capital investments [63][64] Q&A Session Summary Question: Is the delay of cases something that should be expected as a new norm? - Management indicated that recent efforts by the California Water Association have focused on educating commissioners about the impacts of delays, leading to a more timely process for future cases [48][50] Question: What are the regulatory mechanisms in Oregon and Nevada? - Management highlighted that Nevada has a reasonable commission allowing phased-in statewide rates and a hybrid rate environment, while Oregon also has a hybrid system with mechanisms for interim rates [56][57] Question: Update on PFAS funding and plans? - Management confirmed ongoing plans to comply with new MCLs for PFAS, with significant investments planned for 2026 to enhance water quality and safety [63][64]

Financial Data and Key Metrics Changes - In Q4 2025, revenue was $220 million, a slight decrease from $222 million in Q4 2024. Net income for the quarter was $11.5 million, or $0.19 per diluted share, compared to $19.7 million, or $0.33 per diluted share in the prior year [10][11] - For the full year 2025, operating revenue was $1 billion, compared to $1.37 billion in 2024. When compared to non-GAAP 2024 revenue of $949.3 million, revenue increased by $50.8 million, or approximately 5.4% [12] - Net income attributed to the group was $128.2 million, down from $190.8 million in 2024, but increased by $1.4 million, or 1%, when compared to non-GAAP 2024 income [12][13] Business Line Data and Key Metrics Changes - The company invested a record $517 million into infrastructure systems in 2025, including $52.3 million in Q4 alone, representing a 19.8% increase over construction levels in 2024 [8][14] - The company maintained an A+ stable credit rating from S&P, one of the highest-rated credit utilities in North America [9] Market Data and Key Metrics Changes - The company experienced a significant consumption decline due to weather impacts, with $12.7 million in consumption decrease in 2025, of which $14.6 million occurred in Q4 [11] - The company received approval for a 3% interim rate increase in California, implemented in January 2026 [9] Company Strategy and Development Direction - The company announced the acquisition of Nevada and Oregon operations from Nexus Water, expanding its geographical footprint and regulatory diversification [4][20] - The company plans to continue pursuing growth opportunities in high-growth areas and strategic acquisitions that meet investment criteria [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the timely completion of the 2024 California General Rate Case, highlighting proactive engagement with regulators [33][52] - The company is committed to maintaining affordable rates while ensuring capital replacement and infrastructure investment [39] Other Important Information - The company declared its 324th consecutive quarterly dividend of $0.33 per share and announced an intended annual dividend of $1.34 per share for 2026, representing an 8.1% increase over 2025 [17][18] - The company plans to spend between $50 million and $70 million on PFAS programs in 2026, in addition to ongoing capital expenditures [64] Q&A Session Summary Question: Is the delay of cases something that should be expected as a new norm? - Management indicated that recent efforts by the California Water Association have focused on educating commissioners about the impacts of delays, leading to more timely case processing [48][49] Question: What are the regulatory mechanisms in Oregon or Nevada? - Management highlighted that Nevada has a reasonable commission allowing phased-in statewide rates and a hybrid rate environment, while Oregon has similar mechanisms for interim rates and construction work in progress [56][57] Question: Update on PFAS funding and plans? - Management confirmed ongoing plans for PFAS upgrades, with $20 million spent in 2025 and an expected $50 million to $70 million in 2026, emphasizing the importance of water quality [63][64]

Financial Data and Key Metrics Changes - The company reported earnings per share (EPS) of $2.20 for 2025, exceeding the guidance range of $2.07-$2.11, and representing significant growth from the previous year's non-GAAP EPS of $1.97 [6][12][18] - Revenues increased by 18.6%, rising from approximately $2.1 billion in 2024 to nearly $2.5 billion in 2025, with regulatory recoveries contributing $177.6 million to this increase [12][13] - Operating and maintenance (O&M) expenses rose by 8.9% year-over-year, totaling an increase of $52.3 million, driven by higher employee-related costs and increased production costs [14] Business Line Data and Key Metrics Changes - The water business executed a $450 million PFAS capital plan, deploying over 50 advanced treatment systems across Pennsylvania and North Carolina [9] - The natural gas segment achieved the installation of its 100,000th Intelis meter in 2025, contributing to operational efficiency [9] - The company completed three municipal acquisitions in 2025, adding over 12,700 new customers and showcasing its growth strategy [21] Market Data and Key Metrics Changes - The company experienced customer growth that added $5.6 million in revenue, although lower water volumes due to wetter weather offset this growth by $8.6 million [13] - Regulatory recoveries totaled $101.5 million in 2025, with $92.6 million related to the water and wastewater business [20] Company Strategy and Development Direction - The company is focused on maintaining a strong balance sheet, improving cash flow, and delivering consistent dividend growth while keeping the payout ratio between 60% and 65% [24] - The merger with American Water is expected to close in the first quarter of 2027, with the company optimistic about leveraging combined resources for business development [5][21] - The company reaffirmed its long-term goal of delivering 5%-7% EPS growth from 2024 through 2027, excluding non-recurring items [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the regulatory relationships built over the years, which are expected to facilitate a constructive outcome for the merger [5] - The company emphasized its commitment to sustainability and affordability, balancing investments in infrastructure with customer bill impacts [11][25] - Management highlighted the importance of maintaining high-quality service while managing operating costs amid national discussions on affordability [11] Other Important Information - The company was recognized as one of Newsweek's America's Most Responsible Companies for the fifth consecutive year and named to USA Today's America's Climate Leaders for the third consecutive year [10] - The company plans to invest $1.7 billion in regulated infrastructure in 2026, reflecting its commitment to enhancing service reliability [25] Q&A Session Summary Question: What would the non-GAAP 2025 be with adjustments? - Management did not specify the exact number but indicated that the results remained favorable to the guidance range [30][31] Question: Timing for the next round of Pennsylvania rate cases? - Management suggested that filings would occur relatively quickly, following a historical two-year cadence [32] Question: Could regulatory activity be combined with merger sign-off? - Management clarified that rate cases and regulatory activities are considered separate dockets and will be adjudicated separately [40][41] Question: Options for the bankruptcy exit for Chester? - Management discussed the implications of the Supreme Court ruling and potential negotiations regarding assets related to the Chester Water Authority [44][46]

Financial Data and Key Metrics Changes - In Q4 2025, revenue was $220 million, a slight decrease from $222 million in Q4 2024. Net income for the quarter was $11.5 million, or $0.19 per diluted share, compared to $19.7 million, or $0.33 per diluted share in the prior year [11][12] - For the full year 2025, operating revenue was $1 billion, compared to $1.37 billion in 2024. When compared to non-GAAP 2024 revenue of $949.3 million, revenue increased by $50.8 million, or approximately 5.4%. Net income attributed to the group was $128.2 million, compared to $190.8 million in 2024, reflecting a 1% increase when compared to non-GAAP 2024 income [13][14] Business Line Data and Key Metrics Changes - The company invested a record $517 million into infrastructure systems in 2025, including $52.3 million in Q4 alone, representing a 19.8% increase over construction levels in 2024 [9][15] - The company maintained an A+ stable credit rating from S&P, one of the highest-rated credit utilities in North America [10] Market Data and Key Metrics Changes - The company experienced a significant weather impact in December 2025, which negatively affected financial results, particularly in California due to exceptionally wet and cold weather [8][11] - The company received approval for a 3% interim rate increase in California, implemented in January 2026, following a delay in the rate case decision [10][12] Company Strategy and Development Direction - The company announced the acquisition of Nevada and Oregon operations from Nexus Water, which will expand its geographical footprint and solidify its position in the Western U.S. water industry [4][22] - The company plans to continue pursuing growth opportunities in high-growth areas and strategic acquisitions that align with its capital investment strategy [40][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the timely completion of the 2024 California General Rate Case, highlighting proactive engagement with regulators and a focus on affordability for customers [35][56] - The company is committed to addressing PFAS regulations and has allocated significant capital for related projects, with plans to spend between $50 million and $70 million in 2026 [66][68] Other Important Information - The company declared its 324th consecutive quarterly dividend of $0.33 per share and announced an intended annual dividend of $1.34 per share for 2026, representing an 8.1% increase over 2025 [19][20] - The company maintains a strong liquidity profile with $51.8 million in unrestricted cash and $45.6 million in restricted cash, along with approximately $470 million available on bank lines of credit [18] Q&A Session Summary Question: Is the delay of cases something that should be expected as a new norm? - Management indicated that recent efforts by the California Water Association have focused on educating commissioners about the impacts of delays, leading to a more timely process for future cases [51][56] Question: What are the regulatory mechanisms in Oregon or Nevada? - Management highlighted that Nevada has a reasonable commission allowing phased-in statewide rates and a hybrid rate environment, while Oregon has mechanisms for interim rates and construction work in progress [59][60] Question: Update on PFAS funding and plans? - Management confirmed ongoing plans to address PFAS regulations, with significant spending allocated for treatment and infrastructure improvements, emphasizing the importance of water quality [66][68]

Core Insights - Kentucky American Water is investing approximately $630,000 to upgrade critical water infrastructure in Lexington [1] - The investment involves replacing about half a mile of aging water main [1] - The upgrades aim to ensure continued reliability, water quality, and fire protection for customers [1]

Q4 and YE 2025 Earnings & Strong Start to 2026 February 26, 2026 Today's Speakers Marty Kropelnicki Chairman & CEO James Lynch Sr. Vice President, CFO & Treasurer Greg Milleman VP, Rates & Regulatory Affairs Shilen Patel Chief Business Development Officer & VP TWSC, Inc. 2 Forward-Looking Statements and Other Important Information This presentation contains forward-looking statements within the meaning established by the Private Securities Litigation Reform Act of 1995 ("PSLRA"). The forward-looking stateme ...

Core Insights - New Jersey American Water announced an investment of over $781 million in 2025 for statewide infrastructure upgrades, a significant increase from approximately $520 million in 2024, reflecting the company's commitment to improving water service reliability and quality [1][1][1] Investment Details - The investment of $781 million aims to enhance safe, clean, reliable, and affordable water service for over 190 communities in New Jersey [1][1] - This investment is expected to create more than 12,490 jobs statewide [1][1] - Since 2010, the company has invested over $6 billion in infrastructure and capital improvements, updating aging systems and replacing or installing more than 1,094 miles of water main [1][1] Specific Improvements for 2025 - Water Treatment and Production System Improvements: A total of $78.6 million will be allocated for enhancements at water treatment facilities, including the conversion of the Jumping Brook Water Treatment Plant and installation of PFAS removal equipment [1][1] - Wastewater Treatment and System Improvements: Over $70 million will be invested in wastewater treatment facilities, including the rehabilitation of 15,000 feet of sanitary sewer mains in Lakewood Township and addressing inflow and infiltration for approximately 70,000 feet of pipe in Long Hill [1][1] Company Overview - American Water is the largest regulated water and wastewater utility company in the U.S., serving approximately 14 million people across 14 states and 18 military installations [1][1] - New Jersey American Water, a subsidiary of American Water, is the largest regulated water utility in New Jersey, providing services to about 2.9 million people [1][1]

Core Insights - H2O America reported a diluted EPS of $2.92 for 2025, a 2% increase from $2.87 in 2024, with adjusted diluted EPS at $2.99, near the top of the guidance range of $2.95 to $3.00 [1][6][15] Financial Performance - The company achieved a net income of $102.6 million in 2025, reflecting a 9% increase from $94.0 million in 2024 [15] - Operating revenue for 2025 was $800.6 million, a 7% increase compared to $748.4 million in 2024, driven by rate increases and new customer revenues [17] - Operating expenses rose to $623.1 million, an 8% increase from $577.9 million in 2024, primarily due to higher production and administrative costs [18] Capital Expenditures and Investments - H2O America invested $501 million in infrastructure and water supply in 2025, a 41% increase from $354 million in 2024, exceeding the revised guidance of $486 million [3] - The company plans to invest $483 million in 2026 and a total of $2.7 billion from 2026 to 2030, marking a 31% increase over the previous five-year budget [4][6] Strategic Acquisitions - The company is progressing with the $540 million acquisition of Quadvest, expected to close in mid-2026, which will significantly enhance its presence in Texas [5][8] - H2O America also announced the acquisition of Cibolo Valley wastewater treatment assets, further expanding its Texas operations [9] Regulatory Developments - H2O America is actively working with regulators to recover critical water infrastructure investments and has secured approvals for new mechanisms in Connecticut, Maine, and Texas to reduce regulatory lag [2][21][29] Growth Projections - The company has set a long-term adjusted diluted EPS growth target of 6-8%, with expectations of achieving a non-linear CAGR at or above the top end of this range over the 2026-30 period [10][12][13] - The anticipated growth is supported by increased capital investments and strategic acquisitions, with a standalone adjusted diluted EPS guidance for 2026 set at $3.08-3.18 [10][11] Dividend Information - H2O America declared a quarterly cash dividend of $0.44 per share, a 4.8% increase from the previous dividend, with an expected annualized dividend of $1.76 per share for 2026 [31][32]

Core Viewpoint - California Water Service Group reported solid Q4 and year-end 2025 results, impacted by wet weather conditions in Q4 2025, with a significant decrease in net income and operating revenue compared to the previous year [1][2][4]. Q4 Financial Results - Q4 2025 net income decreased by $8.2 million, or 42%, to $11.5 million, translating to $0.19 per diluted share, compared to $19.7 million, or $0.33 per diluted share in Q4 2024 [2]. - Q4 2025 revenue decreased by $2.2 million, or less than 1.0%, to $220.0 million, compared to $222.2 million in Q4 2024 [2]. Full Year 2025 Financial Results - Full year 2025 net income decreased by $62.6 million, or 32.8%, to $128.2 million, or $2.15 per diluted share, compared to $190.8 million, or $3.25 per diluted share in full year 2024 [4]. - Full year 2025 operating revenue decreased by $36.7 million, or 3.5%, to $1.0 billion, compared to $1.04 billion in full year 2024 [4]. - Rate changes contributed $69.6 million in revenue, while customer consumption decreased revenue by $12.7 million [4]. Operating Expenses - Q4 2025 operating expenses increased by $4.5 million, or 2.3%, to $194.4 million, compared to $189.9 million in Q4 2024 [4]. - Full year 2025 operating expenses increased by $18.0 million, or 2.2%, to $829.8 million, compared to $811.8 million in 2024 [4]. Non-GAAP Financial Information - Non-GAAP financial measures indicate that full year 2025 revenue increased by $50.7 million, or 5.4%, when adjusted for the impact of the delayed 2021 California GRC [5][16]. - Adjusted net income for full year 2025 was $128.2 million, compared to $126.8 million in 2024 when excluding the impact of interim rate relief [17]. Key Milestones and Future Outlook - The company invested a record $517.0 million in water system infrastructure in 2025, a 9.8% increase over 2024 [10]. - The company anticipates receiving a Proposed Decision on its 2024 California General Rate Case soon, which could lead to a final decision by April 9, 2026 [6][7].

Core Viewpoint - Grupo Rotoplas S.A.B. de C.V. has received the "Hecho en México" certification, which validates the domestic origin of its production processes and enhances its market positioning in the water solutions industry [1] Group 1: Certification and Market Impact - The "Hecho en México" certification confirms that Rotoplas' manufacturing meets national value-added requirements and quality standards [1] - This recognition strengthens the trust that Mexican families and businesses place in Rotoplas, reflecting the company's commitment to the development of the Mexican industry [1] Group 2: Company Overview - Grupo Rotoplas is a leading provider of water solutions in the Americas, with over 45 years of experience and 18 plants across 14 countries [1] - The company offers a diverse portfolio that includes 27 product lines, a services platform, and an e-commerce business [1]