H2O America (SJW) Q4 2024 earnings summary

Executive summary

• CEO Eric Thornburg to retire June 30, 2025; CFO Andrew Walters named successor, with other executive promotions.

• 2024 featured strong financial and operational performance, record regulatory progress, and recognition for corporate responsibility.

• Invested $353 million in water and wastewater infrastructure in 2024, with a five-year CapEx plan increased 25% to $2.0 billion.

• Named one of America's Most Responsible Companies 2025 and reduced Scope 1 and 2 emissions by nearly one-third since 2019.

• 2024 diluted EPS was $2.87 (GAAP), $2.95 (adjusted), both exceeding guidance; 2025 adjusted EPS guidance is $2.90–$3.00.

Financial highlights

• 2024 revenue reached $748.4 million, up 12% year-over-year; GAAP net income was $94.0 million, up 11%; adjusted net income was $96.8 million, up 15%.

• Diluted EPS was $2.87 (vs. $2.68 in 2023); adjusted diluted EPS was $2.95, up 11%.

• Water production expense rose 14%, other operating expenses up 8%, and $3.4 million in acquisition-related costs were excluded from adjusted results.

• Q4 2024 adjusted diluted EPS was $0.74, up from $0.59 in Q4 2023.

• Effective consolidated income tax rate was 9% in 2024 (vs. 7% in 2023).

Outlook and guidance

• 2025 adjusted diluted EPS guidance set at $2.90–$3.00, with expectations to be in the top half of the range.

• Five-year capital plan increased 25% to $2.0 billion; CapEx for 2025 guided at $473 million.

• Long-term EPS growth rate of 5%-7% extended through 2029, anchored off 2022 EPS of $2.43.

• Annualized dividend for 2025 expected to be $1.68 per share, a 5% increase over 2024.

• Equity issuance of $120–$140 million expected in 2025, excluding acquisitions.