Preheat oven to 325-degrees. Melt together butter and honey in a small saucepan over low heat. Add sugar; stir until sugar has dissolved, about 2 minutes. Remove from heat. Stir in 2 tablespoons water. Stir together oats, almonds, and coconut in a large bowl. Pour butter mixture over oat mixture; stir until combined.
Evenly spread out granola on a large rimmed baking sheet. Bake, stirring frequently, until golden brown, 25 to 30 minutes. Let cool completely on sheet on a wire rack. Store in airtight container at room temperature up to 2 weeks.