SJW Group (NYSE: SJW) has reported its financial results for the third quarter ending September 30, 2024. The company delivered $1.17 of GAAP diluted earnings per share (EPS) for the quarter, marking a 7% increase from the same period last year. When considering adjusted diluted EPS (non-GAAP), the figure was $1.18 for the quarter, reflecting a year-over-year increase of 4%. Operating revenue for the third quarter was $225.1 million, up from $204.8 million in the same quarter last year, driven primarily by rate increases of $17.0 million, particularly in California and Connecticut.
The company's net income prepared in accordance with GAAP for the quarter was $38.7 million, representing a 7% increase compared to the same quarter last year. Adjusted net income (non-GAAP) for the third quarter of 2024 was $39.0 million, reflecting a 4% increase compared to the prior-year period. SJW Group invested $252 million in infrastructure through the third quarter of 2024, approximately 76% of its 2024 capital budget.
For the nine months through September 30, 2024, SJW Group's net income prepared in accordance with GAAP was $71.0 million, or $2.18 diluted EPS, an 8% increase from the same period last year. The non-GAAP adjusted net income for the same period was $72.0 million, or $2.21 non-GAAP diluted EPS, marking an 11% increase from the prior-year period.
Operating revenue year-to-date was $550.6 million compared to $499.0 million for the same period last year, primarily driven by rate increases in California, higher customer usage, and customer growth in Texas. Operating expenses for the first nine months of 2024 were $423.8 million, up 10% compared to the same period last year.
Through the first nine months of 2024, SJW Group invested $252 million in infrastructure and water supply. The company plans to invest more than $1.6 billion in capital over the next five years to build and maintain its water and wastewater operations.
In regulatory updates, SJW Group filed a settlement agreement with the California Public Utilities Commission, enabling it to invest $450 million over the next three years in drinking water infrastructure. In Connecticut, the company received authorization for a $4.3 million increase in annualized revenues for completed projects. In Maine, SJW Group filed a GRC application for the Camden-Rockland division with the Maine Public Utilities Commission, and in Texas, it filed an application to increase annual revenue from its system infrastructure charge surcharges.
SJW Group was recognized by Newsweek as one of "America's Greenest Companies 2025" and was acknowledged by the Hartford Courant as a top regional workplace. The company reaffirmed its 2024 GAAP guidance of $2.65 to $2.75 diluted EPS and its adjusted diluted EPS guidance (non-GAAP) range of $2.68 to $2.78. It also reiterated its non-linear long-term diluted EPS growth of 5% to 7%. Following these announcements, the company's shares moved 2.8%, and are now trading at a price of $58.02. Check out the company's full 8-K submission here.
