NYSE LISTED WTRG February 2024 Brian Dingerdissen Vice President Treasury, FP&A and Investor Relations 2 Forward Looking Statement This presentation contains in addition to historical information, forward looking statements based on assumptions made by management regarding future circumstances over which the company may have little or no control, that involve risks, uncertainties and other factors that may cause actual results to be materially different from any future results expressed or implied by such f ...

Core Insights - Core & Main Inc. (NYSE:CNM) is highlighted as a strong IPO stock to consider for investment, with Wells Fargo raising its price target to $65 from $57 while maintaining an Overweight rating, indicating positive sentiment despite market volatility anticipated in early 2026 [1] - RBC Capital also raised its price target for Core & Main to $63 from $62, maintaining an Outperform rating, but expressed caution regarding ongoing challenges in housing affordability and potential shifts in the repair and remodeling market later in the year [3] Market Conditions - Wells Fargo noted that builders are currently facing high risks following a recent market rally, suggesting that while product offerings are varied, they do not present particularly compelling investment opportunities at current stock levels [2] - The firm anticipates continued volatility in the sector, with homebuilders exhibiting the most caution, while distribution and building products OEMs are viewed more favorably due to attractive valuations [3] Company Overview - Core & Main Inc. specializes in distributing water, wastewater, storm drainage, and fire protection products and related services across the United States, indicating a focus on essential infrastructure needs [4]

Financial Performance - The company reported Q3 2025 operating revenues of $477 million, a 9.6% increase compared to $435.3 million in Q3 2024[27] - Net income for Q3 2025 was $92.1 million, a 32.7% increase from $69.4 million in Q3 2024[27] - Q3 2025 net income per share was $0.33, a 32% increase from $0.25 in Q3 2024[27] - Year-to-date 2025 operating revenues reached $1.7755 billion, a 19.8% increase compared to $1.4817 billion in YTD 2024[56] - Year-to-date 2025 net income was $483.7 million, a 17.8% increase from $410.6 million in YTD 2024[56] - Year-to-date 2025 net income per share was $1.73, a 15.3% increase from $1.50 in YTD 2024[56] Growth and Investment - The company reaffirms its long-term EPS and capital expenditure guidance[15] - The company expects to achieve GAAP earnings per share above the guidance range of $2.07-$2.11 for 2025 due to non-recurring benefits[39] - Infrastructure investments are projected to be approximately $7.8 billion from 2025-2029[24] - The company is investing $26 million in a data center in Western Pennsylvania, with revenues expected to commence in FY 2029[15, 19] Regulatory and Acquisition - Completed regulatory recoveries in 2025 are expected to increase annualized revenue by $101.526 million[41, 67] - Pending regulatory recoveries could further increase annualized revenue by $99.374 million[41, 69] - Since 2015, the company has acquired over 135,000 water and wastewater customers and approximately $550 million in rate base through M&A[44]

Group 1: Essential Utilities - Essential Utilities has a dividend yield of 3.50% and an annual dividend of $1.37, with a dividend increase track record of 32 years and a payout ratio of 58.80% [3][5] - The company reported a 35% year-over-year increase in GAAP EPS, driven by its gas and water businesses and operational efficiency, particularly in Texas [4] - Essential Utilities announced a 5.25% increase in its dividend, continuing its tradition of over three decades of dividend increases, indicating strong earnings growth potential [5] Group 2: Globe Life - Globe Life has a dividend yield of 0.77% and an annual dividend of $1.08, with a dividend increase track record of 20 years and a low payout ratio of 8.63% [7][10] - The company reported a net operating income of $271 million for the latest quarter, marking a 10% year-over-year improvement, and raised its full-year earnings guidance [8] - Globe Life has engaged in significant share buybacks, spending approximately $226 million in the second quarter and planning up to $650 million in repurchases through 2025 [9] Group 3: NetEase - NetEase has a dividend yield of 1.66% and an annual dividend of $2.27, with a payout ratio of 30.72% [11] - Despite facing potential downside of -9.5%, most analysts still view NetEase shares as a Buy, highlighting its successful games segment driven by popular titles [12]