Tue, Apr 29, 8:56 PM (24 days ago)
**SJW Group (SJW) Q1 2025 Financial Performance Summary** **Financial Health and Performance Metrics:** - **Revenue:** SJW reported $167,599,000 in operating revenue for Q1 2025, up from $149,382,000 in Q1 2024, driven by rate increases in California and Connecticut. - **Profit Margins:** Net income increased by 41% to $16,551,000, with an effective tax rate of 17%. - **Cash Flow:** Operating cash flow was $43,181,000, down from $51,216,000 in Q1 2024 due to changes in working capital and regulatory adjustments. - **Earnings per Share (EPS):** Basic and diluted EPS were $0.49, up from $0.36 in Q1 2024. **Operational Performance:** - **Water Production Expenses:** Increased by $7,173,000 due to higher costs for purchased water, groundwater extraction, and production volume. - **Operating Expenses:** Increased by $10,234,000, primarily due to administrative, general, and maintenance costs. - **Regulatory Matters:** SJW continues to navigate regulatory proceedings, with rate increases approved in California and Connecticut. **Trends and Uncertainties:** - **Water Supply:** SJW's water supply remains stable, with positive water conditions in California and sufficient supply in other regions. - **Capital Expenditures:** Budgeted capital expenditures for 2025 are $451,000,000, with $77,461,000 invested in Q1 2025. - **Legal and Regulatory Risks:** SJW faces ongoing litigation and regulatory uncertainties, including PFAS-related lawsuits and rate case proceedings. **Future Operations Impact:** - **Growth Initiatives:** SJW is focused on investing in regional regulated water utility operations and exploring strategic acquisitions. - **Financing:** SJW has access to lines of credit and equity financing, with a stable credit rating from Standard & Poor's. - **Dividends:** SJW declared a quarterly dividend of $0.42 per share, payable on June 2, 2025. **Conclusion:** SJW Group demonstrated strong financial performance in Q1 2025, driven by rate increases and operational efficiencies. However, the company faces challenges related to water supply, regulatory uncertainties, and legal risks. SJW's strategic initiatives and financial strength position it for continued growth and stability.