SJW Group Announces 2024 Financial Results

Core Viewpoint - SJW Group reported strong financial performance for 2024, with significant year-over-year growth in earnings per share (EPS) and operating revenue, driven by strategic investments and regulatory outcomes that enhance value for customers and shareholders [2][3][5]. Financial Performance - Net income for 2024 was $94.0 million, or$2.87 diluted EPS, an increase of 11% from $85.0 million, or$2.68 diluted EPS in 2023 [3]. - Non-GAAP adjusted net income for 2024 was $96.8 million, or$2.95 non-GAAP diluted EPS, a 15% increase from $83.9 million, or$2.65 adjusted diluted EPS in 2023 [3][4]. - Operating revenue in 2024 reached $748.4 million, a 12$670.4 million in 2023, primarily due to rate increases and higher customer usage [5]. Operating Expenses - Operating expenses for 2024 were $577.9 million, up 11$520.9 million in 2023, driven by increased water production expenses and administrative costs [5][9]. - The effective consolidated income tax rates for 2024 and 2023 were approximately 9% and 7%, respectively, with the increase attributed to higher tax deficiencies related to share-based payments [6]. Capital Expenditures and Future Plans - SJW Group invested $353 million in infrastructure and water supply in 2024, exceeding the guidance of$332 million [14]. - The company plans to increase its five-year capital plan by 25% to $2.0 billion, focusing on infrastructure replacement and PFAS remediation [8][14]. Regulatory Updates - In California, the CPUC approved a settlement allowing San Jose Water to invest$450 million over three years, with a total revenue increase of $53.1 million [15]. - In Connecticut, a WICA surcharge increase was authorized, expected to generate an additional$4.3 million in annualized revenues [20]. Dividend Information - The company declared a quarterly cash dividend of $0.42 per share, representing a 5$2.90 to $3.00, with a long-term growth expectation of 5% to 7% through 2029 [28].