H2O AMERICA Q4 FY2024 earnings call

• Eric Thornburg announced his retirement as President and CEO effective June 30, with Andrew Walters succeeding him. Bruce Hauk and Kristen Johnson received promotions.
• SJW Group had strong 2024 financial results with nearly 11% increase in net income on GAAP basis.
• Achieved regulatory approvals in various states including California, Maine, Connecticut, and Texas.
• Invested $353 million in water and wastewater infrastructure in 2024 and increased five-year capital budget by 25% to ~$2 billion.
• Recognized by Newsweek as one of America's most Responsible Companies 2025.
• Introduced the Force for Good Foundation, a not-for-profit funded by SJW Group to support community charities.

In 2024, SJW Group reported revenue of $748.4 million, a 12% increase from 2023. Revenue was impacted by rate increases in California and Connecticut, pass-through water costs for wholesalers, and higher customer usage. Water production expense increased 14% due to wholesaler rate increases and higher customer usage. Other operating expenses rose 8% due to higher administrative, depreciation, and maintenance costs. The company invested $353 million in water and wastewater utility infrastructure across four states in 2024.

• 2025 guidance range for diluted earnings per share is $2.90 to $3 per share.
• Expect equity issuance of $120 million to $140 million through ATM program excluding acquisition growth.
• Intend to invest $473 million in CapEx during 2025.
• Extended long-term growth rate of 5% to 7% through 2029 and guide to top half of the range.

• Aging infrastructure poses challenges.
• Evolving regulatory requirements could impact operations.
• Climate change impacts such as severe droughts and wildfires threaten water systems.

Q: Roger Liddell inquired about unaccounted for water rate in California, specifically the 7% figure and if it's peculiar to California preventing similar measures elsewhere.

A: Eric Thornburg didn't specifically address the unaccounted for water rate peculiarity in detail in the provided transcript beyond general mentions of system resiliency efforts