H2O America

Good day and thank you for standing by. Welcome to the H2O America second 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'll need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I'd now like to hand the conference over to Ann Kelley, Chief Financial Officer and Treasurer. Please go ahead.

Thank you, Operator. Welcome to the second 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 the 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 a 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 October 20th, 2025. 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 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.

Welcome, everyone, and thank you for joining us. Before I begin, I would like to take a moment to acknowledge those impacted by the devastating flooding in the Texas Hill Country earlier this month. We are deeply saddened by the loss of so many lives. Our hearts go out to those affected, including our communities, our coworkers, our customers, and those who have lost loved ones. We also want to thank all of the first responders for their heroic efforts, as well as our entire Texas Water team, who continue to serve their neighbors with integrity and courage as they face concerns about the health and safety of their own loved ones. Now we'll turn to our second quarter updates. There have been many changes at our company since the first financial results update. In May, we rebranded SJW Group as H2O America and changed our ticker to HTO. The name and ticker better reflect who we are as a company. Water is now front and center in our name, which is fitting for one of America's largest investor-owned pure play water and wastewater utilities. It also reflects our national platform, and the strength we bring to our local utility operations so they can better serve their local customers. On June 30th, Eric Thornburg retired as president and CEO, leaving an impressive career that spanned more than four decades. He leaves an enduring legacy in the industry and at our company. We wish him the best. I was honored to step into the CEO role on July 1st. and was joined by Bruce Hawk as President and Chief Operating Officer, Kristen Johnson as President of Shared Services, Senior Vice President and Chief Administrative Officer, and Ann Kelly as our Chief Financial Officer and Treasurer. Just yesterday, we welcomed another highly accomplished leader to H2O America. Megan Mattern is our new Principal Accounting Officer, Chief Accounting Officer, and controller. She joins us from UGI International, where she recently served as Vice President and Chief Financial Officer. Megan brings two decades of experience in complex, regulated environments, spanning global energy, utilities, and infrastructure, making her an outstanding addition to our national leadership team. She shared her commitment to culture, service, and communities. At H2O America, we protect what's precious and we do it right, we do it together, and we do it with heart. I am pleased to share that our second quarter of 2025, we delivered strong financial results, including net income of 75 cents per share on an adjusted 14% increase over the second quarter of 2024. Our performance reflects our continued execution of our proven growth strategy, focus on investments in our infrastructure and our water systems across our national footprint, and constructive engagement and consensus building with key local stakeholders, all with an eye on affordability. Some highlights from the second quarter. We spearheaded legislation in Connecticut that was signed into law and will allow for faster recovery of PFAS investments and avoid rate shock for customers. We supported legislation in Texas that will similarly reduce how long it takes us to recover capital investments through infrastructure recovery mechanisms, and provided for a future test year in general rate cases. We championed a law in Maine that allows water utilities to offer affordability programs to customers. We requested and received approval in California to recover the capital invested in our advanced metering infrastructure project. And finally, Texas Water's second System Improvement Charge was approved by the Public Utilities Commission of Texas. I am also happy to share that we invested $207 million in water and wastewater utility infrastructure across all four states through June 30th, and we are on track to meet our $473 million capital plan for 2025. Just after the quarter ended, we announced an agreement to acquire QuadVest, water and wastewater utility serving greater Houston, Texas area, the second fastest growing metropolitan area in the country. We expect the acquisition to close by mid-2026, at which point our combined Texas water operation would become the second largest investor-owned water utility in Texas, serving seven of the 50 fastest growing counties in the United States, placing us in the top 2% of counties nationwide. QuadVest adds significant operational scale to both our Texas operations and H2O America, with a strong and growing developer pipeline of connections under contract and pending future development. We expect the transaction to be dilutive to earnings in 2026 and 2027 before becoming accretive in 2028 and meaningfully accretive to our long-term growth rate. Bruce will have more on the QuadVest acquisition and state regulatory matters later in the call. Overall, it's been a strong, strategic, and financial first half of the year with several milestones we're proud of. With that, I'll turn it over to Ann to walk us through our financial results.