Financial Data and Key Metrics Changes - Adjusted earnings per share (EPS) for 2025 were $5.64, an increase of 8.9% from $5.18 in 2024 [4][10] - Revenues increased by $1.70 per share, driven by authorized rate increases and acquisitions [10] - Operating costs increased, with O&M expenses up by $0.42 per share, primarily due to employee-related costs and higher production costs [11] Business Line Data and Key Metrics Changes - The company invested over $3 billion in infrastructure in 2025 to enhance service reliability and quality [5] - The company completed six rate cases in 2025, with significant revenue increases authorized [11][12] Market Data and Key Metrics Changes - The company serves approximately 14 million people, maintaining residential water bills under 1% of median household income [5][20] - The company has 104,000 customer connections under agreement heading into 2026, indicating growth in customer base [6][21] Company Strategy and Development Direction - The company is focused on addressing aging infrastructure and water quality challenges while ensuring affordability for customers [8] - A definitive merger agreement with Essential Utilities was announced, expected to close by the end of Q1 2027, which aims to enhance service offerings [6][9] Management's Comments on Operating Environment and Future Outlook - Management affirmed 2026 EPS guidance of $6.02-$6.12, representing an expected 8% growth compared to 2025 [7][14] - The company is committed to responsible investments and operational efficiencies to support customer affordability and regulatory compliance [15][20] Other Important Information - The company plans to issue approximately $2.5 billion in external equity from 2026 to 2030 to fund growth [15][17] - The company maintains a strong financial position with an A-rated credit rating and stable outlook from S&P and Moody's [17] Q&A Session Summary Question: What are the plans for the People's Gas business post-merger? - The company will review strategic alternatives for People's after the merger closes, with proceeds potentially used for debt repayment and business reinvestment [24] Question: What is the 2025 realized FFO to debt? - The company typically does not disclose FFO to debt but suggests it can be calculated from financial statements [25] Question: Expectations for settlements in Pennsylvania, New Jersey, and Illinois rate cases? - The company is progressing as expected in rate cases and is open to constructive settlements [26] Question: Key approvals remaining for Nexus? - The company has received approvals in several states for Nexus but still requires approvals in about five states [29] Question: How does affordability scrutiny affect rate cases in Pennsylvania? - Rate cases are driven by necessary investments, and the company does not foresee changes in the current pace of filings [34] Question: How does the New Jersey rate case timing interact with the BPU study? - The New Jersey case is also driven by system investments, and the company maintains that its bills remain below 1% of median household income [36]

Financial Data and Key Metrics Changes - Adjusted earnings per share (EPS) for 2025 were $5.64, an increase of 8.9% from $5.18 in 2024 [4][11] - Revenues increased by $1.70 per share, driven by authorized rate increases and acquisitions [11] - Operating costs increased, with O&M expenses up by $0.42 per share, primarily due to employee-related costs and higher production costs [12] Business Line Data and Key Metrics Changes - The company invested over $3 billion in infrastructure in 2025 to enhance service reliability and quality [5] - The company completed six rate cases in 2025, with significant revenue increases authorized [12][13] Market Data and Key Metrics Changes - The company serves approximately 14 million people, maintaining residential water bills under 1% of median household income [5][20] - The company has 104,000 customer connections under agreement heading into 2026, indicating growth in customer base [6][22] Company Strategy and Development Direction - The company is focused on addressing aging infrastructure and water quality challenges while ensuring customer affordability [9] - A definitive merger agreement with Essential Utilities was announced, expected to close by the end of Q1 2027, aimed at enhancing service offerings [6][10] Management's Comments on Operating Environment and Future Outlook - Management affirmed 2026 EPS guidance of $6.02-$6.12, representing an expected 8% growth [8][17] - The company is committed to responsible investments and operational efficiencies to support customer affordability and regulatory compliance [17][20] Other Important Information - The company repaid a $795 million secured seller note, aligning with 2026 guidance assumptions [18] - The company maintains a total debt to capital ratio of 59% and aims to keep it below 60% [19] Q&A Session Summary Question: What are the plans for the People's Gas business post-merger? - The company will review strategic alternatives for People's after the merger closes, with proceeds potentially used for debt repayment and reinvestment [26] Question: What was the 2025 realized FFO to debt? - The company typically does not disclose FFO to debt but suggests it can be calculated from financial statements [27] Question: Expectations for settlements in Pennsylvania, New Jersey, and Illinois rate cases? - The company is open to settlements if they are constructive and beneficial, with cases progressing as expected [28] Question: Key approvals remaining for Nexus? - The company has received approvals in several states but still requires approvals in about five states, with no current challenges [32] Question: How does affordability scrutiny affect rate cases in Pennsylvania? - Rate cases are driven by necessary investments, and the company does not foresee changes in the current pace of filings [37] Question: How does the New Jersey rate case timing interact with the BPU study? - The New Jersey case is also driven by system investments, and the company believes its rates remain affordable compared to other utilities [40]

2025 Fourth Quarter & Year-End Earnings Conference Call February 19, 2026 Aaron Musgrave Vice President, Investor Relations 2 FORWARD-LOOKING STATEMENTS Safe Harbor This presentation includes forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. They are not guarantees or assurances of any outcomes, financial results, levels of activity, performance or achievements, and readers are cautioned not to ...

South Africa’s government gave the continent’s biggest bulk-water supplier an urgent license to take more water from a key river system that feeds its richest province to help stabilize supplies amid shortages https://t.co/naIiKwERTK ...

Core Viewpoint - American Water Works Company, Inc. is highlighted as a top infrastructure stock following the approval of its merger with Essential Utilities, which is expected to enhance its market position and operational scale [1][2][3]. Group 1: Merger Details - The merger between American Water Works and Essential Utilities was approved with at least 99% of American Water's shares and nearly 95% of Essential Utilities' shares voting in favor [2]. - This all-stock, tax-free merger will create the largest regulated water and wastewater utility in the U.S., serving over 4.7 million connections across 17 states, with the combined entity retaining the American Water name and headquartered in Camden, New Jersey [3]. - The merger is anticipated to close by the end of Q1 2027, pending necessary regulatory approvals [3]. Group 2: Financial Outlook - BofA Securities upgraded American Water's stock rating from Underperform to Neutral and raised its price target from $117 to $139, citing the stock's undervaluation compared to electric and gas utilities [4]. - The firm believes the merger will help address customer bill burdens and support the earnings per share (EPS) expansion outlook, emphasizing the value of American Water's long-term pipeline upgrades [5]. - American Water operates over 54,500 miles of pipeline infrastructure, providing services to approximately 14 million people across 24 states [6].

Core Insights - California Water Service Group celebrates its 100-year anniversary while reflecting on its philanthropic efforts, donating over $1.88 million to local organizations in 2025 [1][2] Philanthropic Contributions - Contributions supported various beneficiaries, including at-risk youth, disadvantaged communities, first responders, veterans, and healthcare organizations [2] - Specific donations included $186,000 to nine fire departments through the 2025 Firefighter Grant Program, $80,000 in scholarships to 13 students, and over $100,000 to aid fire relief efforts in Los Angeles [2] Community Engagement - The company emphasizes its role beyond being a water provider, highlighting employee involvement in community support and volunteer projects [3][4] - Approximately half of the company's employees participated in the annual Season of Service, contributing their time to community projects [4] Company Overview - California Water Service Group is the largest regulated water utility in the western United States, serving over 2.1 million people across multiple states [5] - The company is committed to enhancing the quality of life for customers, communities, employees, and stockholders through responsible investments in infrastructure and sustainability initiatives [6]

Core Viewpoint - American Water Works Company reported strong financial results for 2025, achieving adjusted earnings per share (EPS) of $5.64, a significant increase from $5.18 in 2024, and affirmed its 2026 EPS guidance range of $6.02 to $6.12, highlighting the benefits of its pending merger with Essential Utilities [1][2][3] Financial Performance - 2025 GAAP earnings were $5.69 per share, compared to $5.39 per share in 2024, with fourth quarter 2025 GAAP earnings remaining stable at $1.22 per share [1] - Adjusted earnings for the fourth quarter of 2025 were $1.24 per share, up from $1.15 per share in 2024, reflecting an overall increase in adjusted earnings for the year [1][2] - The company invested $3.2 billion in regulated operations in 2025, focusing on infrastructure improvements and completing 18 acquisitions across seven states [1][2] Revenue and Expenses - Operating revenues increased by $61 million and $427 million for the fourth quarter and full year 2025, respectively, primarily due to authorized revenue increases from completed rate cases and infrastructure proceedings [2] - Operating expenses rose by $36 million and $260 million for the fourth quarter and full year 2025, respectively, driven by higher employee-related costs and increased production costs [2][3] Merger and Future Guidance - The merger with Essential Utilities was overwhelmingly approved by shareholders, which is expected to enhance scale and growth potential for both companies [1] - The company affirmed its long-term financial targets, including an EPS and dividend growth rate target of 7-9% [1][2] Dividends - A quarterly cash dividend of $0.8275 per share was declared, payable on March 3, 2026, to shareholders of record as of February 10, 2026 [2]

Core Viewpoint - American States Water Company reported a diluted earnings per share of $0.74 for Q4 2025, a slight decrease from $0.75 in Q4 2024, reflecting a $0.01 per share decline due to impacts from final decisions in water and electric general rate cases reported in Q4 2024 [1]. Financial Performance - The diluted earnings per share for the quarter ended December 31, 2025, was $0.74, compared to $0.75 for the same quarter in the previous year, indicating a decrease of $0.01 per share [1].

Core Insights - Select Water Solutions reported consolidated revenue of $1.4 billion for the full year 2025, with a fourth quarter revenue of $347 million, reflecting a year-over-year revenue decline from $1.5 billion in 2024 [1][2] - The company achieved a net income of $21 million for 2025, down from $35.5 million in 2024, while Adjusted EBITDA increased to $260 million from $258.4 million in the previous year [2][3] - The Water Infrastructure segment generated $313 million in revenue for 2025, an 8% increase year-over-year, while the Chemical Technologies segment saw a 19% revenue growth to $308 million [1][2] Financial Performance - Full year 2025 gross profit was $202.4 million, down from $219.5 million in 2024, with a total gross margin of 14.4% compared to 15.1% in 2024 [2][3] - Fourth quarter 2025 revenue was $346.5 million, slightly lower than $349 million in Q4 2024, with a net loss of $2.1 million compared to a net income of $2.3 million in Q3 2025 [2][3] - Adjusted EBITDA for Q4 2025 was $64.2 million, up from $56.2 million in Q4 2024, indicating strong operational performance despite the net loss [2][3] Segment Performance - The Water Infrastructure segment reported revenues of $81.2 million in Q4 2025, up from $76.8 million in Q4 2024, with a gross margin before D&A of 54.1% [3][4] - The Water Services segment generated $178.3 million in Q4 2025, down from $209.3 million in Q4 2024, but showed a gross margin improvement to 19.6% [3][4] - The Chemical Technologies segment achieved record revenues of $87 million in Q4 2025, significantly higher than $62.9 million in Q4 2024, with a gross margin before D&A of 20.3% [3][4] Strategic Developments - The company announced multiple new long-term contracts for water infrastructure projects, adding significant capacity and acreage commitments, including 15 million barrels of minimum volume commitments [1][4] - Select Water Solutions is expanding its infrastructure footprint with new projects in the Northern Delaware Basin, including pipeline construction and disposal capacity enhancements [4] - The company anticipates a revenue growth of 20% to 25% in the Water Infrastructure segment for 2026, supported by ongoing construction and new project awards [2][3] Cash Flow and Capital Expenditures - Cash flow from operations for 2025 was $214.7 million, down from $234.9 million in 2024, while net capital expenditures increased to $279.3 million from $157.3 million in the previous year [3][4] - The company is targeting net capital expenditures of $175 million to $225 million for 2026, focusing on growth capital projects within the Water Infrastructure segment [2][3] Balance Sheet and Capital Structure - As of December 31, 2025, total cash and cash equivalents were $18.1 million, with total borrowings of $320 million under its sustainability-linked credit facility [3][4] - The company reported total liquidity of $163.6 million as of December 31, 2025, an increase from $134.8 million in 2024 [3][4]

Core Insights - The U.S. Environmental Protection Agency has selected the Mojave Groundwater Bank – Northern Pipeline Project to apply for a low-interest loan of up to $194 million under the WIFIA program, aimed at funding capital costs for significant water infrastructure projects [1] - The project is expected to enhance water supply flexibility and drought resilience for millions of Californians by interconnecting the Colorado River and California State Water Project systems [1] - The company plans to finance the project through a combination of equity capital, government grants, municipal financing, and low-interest debt programs, including WIFIA [1] Funding and Financial Structure - The EPA has reserved $194 million for the Northern Pipeline Project, allowing the company to advance its application through the WIFIA underwriting process [1] - The company is also in discussions with private equity investors to secure up to $400 million for the project, alongside a $51 million investment from Lytton Rancheria as part of a larger $450 million equity capital raise [1] - The financing strategy includes seeking additional WIFIA funding for the Southern Pipeline and other project components [1] Project Overview - The Mojave Groundwater Bank is a conjunctive-use groundwater storage project located in southeastern California, designed to store an estimated 30 million acre-feet of groundwater [1] - The project is approved to provide a reliable annual supply of up to 75,000 acre-feet per year, in addition to one million acre-feet of imported water storage capacity [1] - The project aims to address the impacts of climate change on clean water access through innovative water supply, storage, pipeline, and treatment solutions [1]