sjw-20250331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

___________________________________________

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-8966

SJW GROUP

(Exact name of registrant as specified in its charter)

Delaware

77-0066628

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

110 West Taylor Street, San Jose, CA

95110

(Address of principal executive offices)

(Zip Code)

(408) 279-7800

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.001 per share

SJW

Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒ Non-accelerated filer ☐

Accelerated filer ☐ Smaller reporting company ☐

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

As of April 22, 2025, there were 34,182,947 shares of the registrant’s Common Stock outstanding.


TABLE OF CONTENTS

		Page
Forward-Looking Statements		3
PART I	FINANCIAL INFORMATION	4
Item 1.	Financial Statements	4
	Condensed Consolidated Statements of Comprehensive Income (unaudited) For the Three Months Ended March 3 1 , 202 5 and 202 4	4
	Condensed Consolidated Balance Sheets (unaudited) as of March 3 1 , 202 5 and December 31, 202 4	5
	Condensed Consolidated Statements of Changes in Stockholders’ Equity (unaudited) For the Three Months Ended March 3 1 , 202 5 and 202 4	7
	Condensed Consolidated Statements of Cash Flows (unaudited) For the Three Months Ended March 3 1 , 202 5 and 202 4	8
	Notes to Unaudited Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	25
Item 4.	Controls and Procedures	25
PART II	OTHER INFORMATION	26
Item 1.	Legal Proceedings	26
Item 1A.	Risk Factors	26
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	26
Item 3.	Defaults Upon Senior Securities	26
Item 4.	Mine Safety Disclosures	26
Item 5.	Other Information	26
Item 6.	Exhibits	27
Signatures		28


	Three months ended March 31,
	2025		2024
Operating revenue	$	167,599	149,382
Operating expense:
Production Expenses:
Purchased water	25,953		26,192
Power	3,483		2,427
Groundwater extraction charges	18,291		12,126
Other production expenses	11,240		11,049
Total production expenses	58,967		51,794
Administrative and general	27,760		25,788
Maintenance	7,499		6,687
Property taxes and other non-income taxes	9,195		8,830
Depreciation and amortization	28,282		28,370

Total operating expense	131,703		121,469
Operating income	35,896		27,913
Other (expense) income:
Interest on long-term debt and other interest expense	(18,272)		(17,584)
Pension non-service credit	1,603		950

Other, net	795		2,651
Income before income taxes	20,022		13,930
Provision for income taxes	3,471		2,231
Net income	16,551		11,699
Other comprehensive loss, net	—		(442)
Comprehensive income	$	16,551	11,257

Earnings per share
—Basic	$	0.49	0.36
—Diluted	$	0.49	0.36
Dividends per share	$	0.42	0.40
Weighted average shares outstanding
—Basic	33,778,792		32,076,720
—Diluted	33,868,565		32,144,579


	March 31, 2025		December 31, 2024
Assets
Utility plant:
Land	$	44,657	44,657
Depreciable plant and equipment	4,311,934		4,249,314
Construction work in progress	199,039		179,486
Intangible assets	51,604		51,604
Total utility plant	4,607,234		4,525,061
Less: accumulated depreciation and amortization	1,058,985		1,036,450
Net utility plant	3,548,249		3,488,611

Nonutility properties	1,314		1,314
Less: accumulated depreciation	99		98
Net nonutility properties	1,215		1,216

Current assets:
Cash and cash equivalents	23,696		11,114

Accounts receivable:
Customers, net of allowances for credit losses of $1,149 and $1,172 on March 31, 2025 and December 31, 2024, respectively	65,854		68,679
Income tax	4,507		5,953
Other	6,775		7,059
Accrued unbilled revenue	58,616		60,847

Prepaid expenses	13,336		10,297
Current regulatory assets	16,572		18,172
Other current assets	7,916		8,593
Total current assets	197,272		190,714
Other assets:
Regulatory assets, less current portion	226,602		224,055
Investments	18,622		18,087
Postretirement benefit plans	67,848		66,422

Goodwill	640,311		640,311
Other	28,691		28,893
Total other assets	982,074		977,768
Total assets	$	4,728,810	4,658,309


	March 31, 2025		December 31, 2024
Capitalization and liabilities
Capitalization:
Stockholders’ equity:
Common stock, $0.001 par value; authorized 70,000,000 shares; issued and outstanding shares 34,182,785 on March 31, 2025 and 33,629,169 on December 31, 2024	$	34	34
Additional paid-in capital	855,759		827,796
Retained earnings	539,584		537,184
Accumulated other comprehensive income	1,960		1,960
Total stockholders’ equity	1,397,337		1,366,974
Long-term debt, less current portion	1,691,475		1,706,904
Total capitalization	3,088,812		3,073,878

Current liabilities:
Lines of credit	152,590		119,124
Current portion of long-term debt	18,665		3,648
Accrued groundwater extraction charges, purchased water and power	23,312		25,118
Accounts payable	46,654		56,256
Accrued interest	20,230		17,476
Accrued payroll	9,817		15,193

Current regulatory liabilities	573		1,122
Other current liabilities	24,838		23,236
Total current liabilities	296,679		261,173

Deferred income taxes	280,132		276,043
Advances for construction	162,334		155,397
Contributions in aid of construction	340,395		340,738
Postretirement benefit plans	43,613		45,063
Regulatory liabilities, less current portion	493,957		483,719
Other noncurrent liabilities	22,888		22,298
Commitments and contingencies
Total capitalization and liabilities	$	4,728,810	4,658,309


	Common Stock			Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income	Total Stockholders’ Equity
	Number of Shares	Amount
Balances, December 31, 2024	33,629,169	$	34	827,796	537,184	1,960	1,366,974
Net income	—	—		—	16,551	—	16,551

Stock-based compensation	—	—		1,210	(9)	—	1,201
Issuance of restricted and deferred stock units	31,587	—		(908)	—	—	(908)
Employee stock purchase plan	26,129	—		1,116	—	—	1,116
Common stock issuance, net of costs	495,900	—		26,545	—	—	26,545
Dividends paid ($0.42 per share)	—	—		—	(14,142)	—	(14,142)
Balances, March 31, 2025	34,182,785	$	34	855,759	539,584	1,960	1,397,337


	March 31, 2025		December 31, 2024
Regulatory assets:
Income tax temporary differences (a) (p)	$	181,282	180,103
Monterey Water Revenue Adjustment Mechanism (“MWRAM”) (b)	13,032		9,985
Business combinations debt premium (c) (p)	11,678		12,313
Employee benefit costs (d) (p)	6,262		6,370
Revenue adjustment mechanisms (e) (p)	5,766		5,024
Customer Assistance Program (“CAP”) balancing account (f)	5,717		6,599
2022 general rate case interim memorandum account (h)	2,249		3,392
Unrecognized pensions and other postretirement benefits (g) (p)	1,506		3,177

Other (j)	15,682		15,264
Total regulatory assets	243,174		242,227
Less: current regulatory assets (k)	16,572		18,172
Total regulatory assets, less current portion	$	226,602	224,055
Regulatory liabilities:
Cost of removal (l)	372,029		364,398
Future income tax benefits due to customers (m)	83,670		84,128
Unrecognized pensions and other postretirement benefits (g)	27,782		27,872
Water supply costs (i)	4,726		3,386
Employee benefit costs (d)	3,028		1,137
Revenue adjustment mechanisms (e)	573		1,122
Other (n)	2,722		2,798
Total regulatory liabilities	494,530		484,841
Less: current regulatory liabilities (o)	573		1,122
Total regulatory liabilities, less current portion	$	493,957	483,719


	Pension Benefits			Other Benefits
	Three months ended March 31,
	2025		2024	2025		2024
Service cost	$	1,644	1,665	$	156	166
Interest cost	3,901		3,613	337		295
Expected return on assets	(4,944)		(4,463)	(295)		(267)
Amortization of actuarial (gain) loss	(458)		(18)	(214)		(160)
Amortization of prior service cost	—		4	—		—
Total	$	143	801	$	(16)	34


	For the three months ended March 31, 2025
	Reportable Segment
	Water Utility Services		Other Services (1)	Unallocated Corporate (2)	Consolidated
Operating revenue	$	165,156	2,443	—	167,599

Less:
Production expenses	57,985		982	—	58,967
Administrative and general	26,751		560	449	27,760
Maintenance	7,003		496	—	7,499
Property taxes and other non-income taxes	9,209		(59)	45	9,195
Depreciation and amortization	28,032		27	223	28,282
Interest on long-term debt and other interest expense	13,039		—	5,233	18,272

Provision (benefit) for income taxes	5,306		226	(2,061)	3,471
Other (3)	(1,122)		(99)	(1,177)	(2,398)
Net income (loss)	$	18,953	310	(2,712)	16,551

Capital expenditures	$	84,345	—	—	84,345


	March 31, 2025		December 31, 2024
Water Utility Services (reportable segment)	$	4,633,239	4,567,182
Other Services	27,841		25,053
Unallocated Corporate	67,730		66,074
Total assets	$	4,728,810	4,658,309


	Operating Revenue by Segment
	Three months ended March 31,
	2025		2024
Water Utility Services	$	165,156	144,915
Other Services	2,443		4,467
Total operating revenue	$	167,599	149,382

SEC Form 10-Q filed by SJW Group