H2O America

Good day and thank you for standing by. Welcome to the H2O America third quarter financial results call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Ann Kelley, Chief Financial Officer and Treasurer. Please go ahead.

Thank you, Operator. Welcome to the third quarter 2025 Financial Results Conference Call for H2O America. I will be presenting today with Andrew Walters, Chief Executive Officer, and Bruce Hawk, President and Chief Operating Officer. For those who would like to follow along, slides accompanying our remarks are available on our website at h2o-america.com. Before we begin today, I would like to remind you that this presentation and related materials posted on our website may contain forward-looking statements. These statements are based on estimates and assumptions made by the company in light of its experience, historical trends, current conditions, and expected future results, as well as other factors that the company believes are appropriate under the circumstances. Many factors could cause the company's actual results and performance to differ materially from those expressed or implied by the forward-looking statements. For description of some of the factors that could cause actual results to be different from statements in this presentation, we refer you to the financial results press release and to our most recent forms 10-K, 10-Q, and 8-K, filed with the Securities and Exchange Commission, copies of which may be obtained on our website. All forward-looking statements are made as of today and H2O America disclaims any duty to update or revise such statements. You will have an opportunity to ask questions at the end of the presentation. This webcast is being recorded and an archive of the webcast will be available until January 19th, 2026. You can access the press release and the webcast at H2O America's website. In addition, some of the information discussed today includes the non-GAAP financial measures of adjusted net income and adjusted diluted earnings per share that have not been calculated in accordance with the generally accepted accounting principles in the United States or GAAP. These non-GAAP financial measures should be considered as a supplement to the financial information prepared on a GAAP basis rather than an alternative to the respective GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are presented in the table in the appendix of our presentation. I will now turn the call over to Andrew.

Thank you, Anne. Welcome, everyone, and thank you for joining. Before we discuss our third quarter 2025 progress to date, I would like to share that earlier this month, we welcomed another highly accomplished leader to H2O America. Jonathan Reeder is our new Senior Director of Treasury and Investor Relations. Many of you know Jonathan from his time as an equity research analyst at Wells Fargo Securities, where he covered the utility sector, including leading the team's water utility coverage. Jonathan has a deep understanding of the industry from his more than two decades of experience covering utility stocks, making him an outstanding addition to our team. He shares our commitment to culture, service, and investor outreach, and we look forward to introducing him to many of you in the future. I am pleased to share that in the third quarter of 2025, we delivered strong financial results including net income of $1.27 per share on an adjusted or non-GAAP basis, an 8% increase over the third quarter of 2024. Our performance reflects our continued execution of our proven growth strategy, which focuses on making the much needed water infrastructure investments across our national footprint of systems while constructively engaging our key local stakeholders in a consensus-building process to provide timely regulatory recovery while maintaining customer affordability. Some highlights from the third quarter. Starting with the infrastructure surcharges, the application for Connecticut Water's infrastructure and conservation adjustment was approved as filed while Texas Water filed its third system improvement charge just after the quarter ended. I am also happy to share that we are trending ahead of the CAPEX plan we guided to earlier in 2025. We have invested $358 million in water and wastewater utility infrastructure across all four states through September 30th. This is 74% of our upwardly revised $486 million budget. Finally, on the M&A front, we announced two Texas deals. First was the transformational Quad Vest deal at the start of the third quarter, followed by the tuck-in acquisition of Cibolo Valley wastewater treatment plant and related collection system in Comal County, Texas, which was announced in late August. Bruce will provide updates on the Quad Vest deal approval process and year-to-date connection growth as well as share more on the Cibolo Valley wastewater treatment plant acquisition later in the call. Overall, it's been a strong year thus far, both strategically and financially, with more to come. With that, I will turn it over to Ann to walk through our financial results.