SJW's Q1 2025: Navigating Drought, Rate Cases, and Regulatory Challenges
Earnings DecryptFriday, May 9, 2025 3:40 am ET

Impact of drought in Texas, Connecticut rate case timeline, regulatory strategy and water quality targets, non-revenue water in California, and California rate case impact are the key contradictions discussed in SJW's latest 2025Q1 earnings call.
Strong Financial Performance:
- SJW Group reported a nearly 41% increase in net income from the first quarter of 2024 on a GAAP basis, with earnings per diluted share of $0.49 and adjusted diluted earnings per share of $0.50 for the first quarter.
- This growth was driven by increases in revenue from rate increases in California and Connecticut, as well as prudent cost management.
Capital Investments and Infrastructure Improvements:
- SJW Group invested $78 million in water and wastewater utility infrastructure across all 4 states in the first quarter, and they are on track to meet their 2025 capital plan.
- The investments are focused on maintaining and enhancing the reliability and quality of water systems, which is crucial for both regulatory compliance and customer satisfaction.
Regulatory Success and Rate Case Outcomes:
- San Jose Water's 2025 to 2027 general rate case was approved and effective on January 1, and Connecticut Water's water infrastructure and conservation adjustment and water revenue adjustment filings were approved.
- These regulatory successes have led to increased revenue recovery and will support future capital expenditures, ensuring the long-term sustainability of the company's infrastructure.
Focus on Affordability and Efficiency:
- SJW Group emphasized its commitment to maintaining affordability through optimizing operational efficiencies and leveraging technological advancements.
- This focus is aimed at managing costs while providing high-quality water services, which is essential for sustaining customer satisfaction and regulatory compliance.
Leadership Transition and Strategic Outlook:
- SJW Group announced the upcoming retirement of Eric Thornburg as CEO and the appointment of Andrew Walters as the new CEO, effective July 1.
- The company remains focused on its long-term growth strategy, which includes continued investments in infrastructure, constructive engagement with stakeholders, and exploring opportunistic acquisitions.
Strong Financial Performance:
- SJW Group reported a nearly 41% increase in net income from the first quarter of 2024 on a GAAP basis, with earnings per diluted share of $0.49 and adjusted diluted earnings per share of $0.50 for the first quarter.
- This growth was driven by increases in revenue from rate increases in California and Connecticut, as well as prudent cost management.
Capital Investments and Infrastructure Improvements:
- SJW Group invested $78 million in water and wastewater utility infrastructure across all 4 states in the first quarter, and they are on track to meet their 2025 capital plan.
- The investments are focused on maintaining and enhancing the reliability and quality of water systems, which is crucial for both regulatory compliance and customer satisfaction.
Regulatory Success and Rate Case Outcomes:
- San Jose Water's 2025 to 2027 general rate case was approved and effective on January 1, and Connecticut Water's water infrastructure and conservation adjustment and water revenue adjustment filings were approved.
- These regulatory successes have led to increased revenue recovery and will support future capital expenditures, ensuring the long-term sustainability of the company's infrastructure.
Focus on Affordability and Efficiency:
- SJW Group emphasized its commitment to maintaining affordability through optimizing operational efficiencies and leveraging technological advancements.
- This focus is aimed at managing costs while providing high-quality water services, which is essential for sustaining customer satisfaction and regulatory compliance.
Leadership Transition and Strategic Outlook:
- SJW Group announced the upcoming retirement of Eric Thornburg as CEO and the appointment of Andrew Walters as the new CEO, effective July 1.
- The company remains focused on its long-term growth strategy, which includes continued investments in infrastructure, constructive engagement with stakeholders, and exploring opportunistic acquisitions.

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