SJW Group Announces Strong Second Quarter 2024 Financial Results
San Jose, Calif. – SJW Group (NYSE: SJW) has reported its financial results for the second quarter ended June 30, 2024. The company's net income prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP) for the quarter was $20.7 million, or $0.64 diluted earnings per share (EPS), marking a 13% increase from the same quarter last year. Adjusting for real estate transactions, the company's non-GAAP adjusted net income was $21.3 million, or $0.66 per diluted share, representing a 14% increase from the prior year.
Operating revenue for the second quarter was $176.2 million, up from $156.9 million for the same quarter last year. Operating expenses for the quarter were $135.6 million, reflecting an 8% increase from the same quarter last year.
For the first half of 2024, net income prepared in accordance with GAAP was $32.4 million, an increase from $29.8 million in the same period of 2023. GAAP diluted EPS for the six months was $1.00, a 5% increase from the same period last year. Non-GAAP adjusted net income for the six months through June 30, 2024, was $33.0 million, compared to $28.8 million in the same period last year. Non-GAAP adjusted diluted EPS for the first six months was $1.02, marking an 11% increase from the same period last year.
Through the second quarter of 2024, SJW Group invested $158 million in infrastructure and water supply, out of its $332 million capital expenditures budget for the year. The company plans to invest more than $1.6 billion in capital over the next five years.
In terms of guidance, SJW Group updated its 2024 GAAP guidance to $2.66 to $2.76 diluted EPS, and reaffirmed its 2024 guidance range of $2.68 to $2.78 for adjusted diluted EPS (non-GAAP). Additionally, the company declared a quarterly cash dividend on common stock of $0.40 per share, payable on September 3, 2024, to shareholders of record at the close of business on August 5, 2024.
San Jose Water has reached an all-party settlement agreement in principle on almost all issues in its 2025 through 2027 general rate case application. The company's application proposed an increase over current authorized revenues of approximately $55.2 million, or 11.1%, in 2025; approximately $22.0 million, or 4.0%, in 2026; and approximately $25.8 million, or 4.5%, in 2027.
The company's strong operating performance and continued strategic execution position it well for future success as it delivers on its commitment to provide high-quality and reliable water service to customers and communities.
Following these announcements, the company's shares moved 1.3%, and are now trading at a price of $59.13. For more information, read the company's full 8-K submission here.
