H2O America (SJW) Q2 2024 earnings summary

Executive summary

• Achieved 12% year-over-year revenue growth in Q2 2024, with net income up 13% to $20.7 million, driven by rate increases, customer growth, and higher usage.

• Diluted EPS for Q2 2024 was $0.64 GAAP and $0.66 adjusted, both up year-over-year.

• Invested $158 million in water and wastewater infrastructure in H1 2024, about 48% of the 2024 capital plan.

• Declared a $0.40 per share dividend, marking 56 consecutive years of increases and 80+ years of uninterrupted payments.

• Maintained strong stakeholder engagement and regulatory progress, especially in California and Connecticut.

Financial highlights

• Q2 2024 revenue was $176.2 million, up from $156.9 million in Q2 2023; year-to-date revenue reached $325.6 million, up 11%.

• Q2 2024 net income was $20.7 million, up from $18.3 million; year-to-date net income was $32.4 million, up 9%.

• Q2 2024 operating income was $40.6 million, up from $31.2 million; gross margin was 23%.

• Q2 2024 dividend per share was $0.40, up from $0.38 in Q2 2023.

• Cash flow from operations for H1 2024 was $100.5 million, up from $97.4 million in 2023.

Outlook and guidance

• 2024 GAAP EPS guidance is $2.66–$2.76; adjusted EPS guidance is $2.68–$2.78.

• Five-year capital investment plan reaffirmed at $1.6 billion, including $230 million for PFAS remediation.

• Long-term EPS growth target of 5%–7% off 2022 base.

• Equity issuance expected at $55–$65 million to support capital investment.

• Guidance assumes constructive regulatory outcomes and excludes M&A or real estate transactions.