SJW Group's Strong Q1 2025 Results Highlight Growth Potential
SJw Group Financial Highlights for the First Quarter of 2025
SJw Group has announced its financial results for the first quarter of 2025, showcasing impressive growth as the company continues to make strategic investments in water infrastructure. The first quarter of 2025 saw reported diluted earnings per share (EPS) reaching $0.49, reflecting a 36% increase compared to the prior year. Similarly, the adjusted diluted EPS was $0.50, marking a 39% year-over-year increase.
Strong Infrastructure Investments and Dividend Declaration
During this quarter, SJw Group allocated $78.2 million towards infrastructure projects, paving the way for a projected total capital expenditure of $473 million for the year, considering the natural seasonality of construction activities. The company also declared a cash dividend of $0.42 per share on common stock, indicating commitment to returning value to shareholders.
Operational Performance
The net income reported, calculated according to Generally Accepted Accounting Principles (GAAP), was $16.6 million, a significant 41% increase compared to $11.7 million recorded in the same quarter last year. Operating revenues for the first quarter totaled $167.6 million, compared to $149.4 million in the previous year—a 12% growth. This boost can be attributed to rate increases and higher customer usage, driving up revenues by $18.2 million.
Overview of Operating Expenses
Operating expenses were recorded at $131.7 million, an 8% increase from $121.5 million in the prior year. Notably, increased water production expenses accounted for the bulk of this rise, resulting primarily from higher charges for purchased water and groundwater extraction.
Regulatory Developments and Rate Changes
In January 2025, new rates were implemented for San Jose Water, introduced under its general rate case decision approved by the California Public Utilities Commission. This decision allows for a revenue increase of $53.1 million over a three-year cycle, which is crucial for the infrastructure investments that SJw Group is undertaking. The approval also includes greater revenue recovery through service charges, aiming to align actual usage with authorized amounts.
Future Guidance and Growth Plans
SJw Group is affirming its adjusted diluted EPS guidance for 2025 at a range between $2.90 to $3.00. The company expects to achieve long-term EPS growth between 5% to 7% through to 2029. With these projections, the company is emphasizing its financial stability and commitment to sustainable growth initiatives that are expected to benefit all stakeholders.
Commitment to Sustainability and Customer Service
Eric W. Thornburg, the company’s CEO, expressed confidence in the company’s strategic approach, highlighting the importance of investing in strong relationships with stakeholders. This focus on customer service and operational efficiency underlie the company's business model, as SJw Group aims to meet and exceed customer expectations.
Long-standing Dividend Policy
SJw Group has an impressive history of paying dividends, continuing to do so for over 80 consecutive years. The annual dividend amount has increased for 57 consecutive years, which places the company in an elite category among dividend-paying firms.
Contact Information for Investors
For further inquiries, please reach out to the following contacts at SJw Group:
Andrew F. Walters
Chief Financial Officer and Treasurer
408.279.7818
Andrew.Walters@ctwater.com
Daniel J. Meaney
Director of Investor Relations
860.664.6016
Daniel.Meaney@ctwater.com
Frequently Asked Questions
What are the recent earnings per share (EPS) for SJW Group?
The reported diluted EPS for SJW Group in Q1 2025 is $0.49, marking a 36% increase over the previous year.
How much has SJW Group invested in infrastructure for this quarter?
SJw Group has invested $78.2 million in infrastructure during the first quarter of 2025.
What is the upcoming dividend for SJW Group shareholders?
SJW Group has declared a cash dividend of $0.42 per share of common stock, payable to shareholders of record.
What regulatory approvals have recently been obtained?
SJW Group secured a general rate case decision allowing for a revenue increase of $53.1 million and a capital plan over three years.
How does SJW Group plan to maintain its growth?
SJw Group aims to achieve long-term EPS growth of 5% to 7% through strategic capital investments and enhancing operational efficiency.
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