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PresentationStefan ArnoldHead of Investor Relations Hello, everybody. Can you hear me? Is everything okay? Maybe you can give me a sign. Okay. Perfect. Thank you very much. So good afternoon, good morning or good evening to everyone wherever you are in this world. I thank you for participating in this IR talk today and a very warm welcome to everybody. First of all, some housekeeping rules again. So I will start with a quick summary of the last week's results again, and then we can go over to Q&A session. [ ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $15.5 million, an increase of $1.2 million or 8.4% compared to Q3 2024 [13] - Year-to-date revenue increased by $2.8 million or 7% to $42.2 million [13] - Operating expenses for Q3 2025 were $12.6 million, up $2.3 million or 21.9% from Q3 2024 [13] - Net income for Q3 2025 was $1.7 million or $0.06 per diluted share, down from $2.9 million or $0.12 per diluted share in Q3 2024 [16] - Adjusted EBITDA for Q3 2025 was $7.8 million, a decrease of $0.4 million or 5% from Q3 2024 [17] Business Line Data and Key Metrics Changes - Total active service connections increased by 6.6% to 68,130 as of September 30, 2025 [9] - The annualized total active service connection growth rate, excluding the Tucson acquisition, was 3.3% [9] - The single-family dwelling unit market in the Phoenix area saw a 29% decrease in building permits in Q3 2025 compared to Q3 2024 [10] Market Data and Key Metrics Changes - The City of Maricopa was ranked sixth among the fastest-growing large municipalities in the U.S., with a population growth of 7.4% in 2024 [8] - The Highway 347 expansion project is expected to begin construction in fiscal year 2026, which will support the growth of the City of Maricopa [6] Company Strategy and Development Direction - The company aims for long-term value creation and strong total returns to shareholders through strategic acquisitions and infrastructure investments [4] - The Tucson acquisition is expected to generate around $1.5 million in annual revenue and is seen as immediately accretive [5] - The company is focused on integrating the newly acquired Tucson water systems and executing capital investment strategies [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges such as high inflation impacting earnings growth but remains optimistic about future growth drivers [11] - The company expects a fair outcome from the ongoing rate case, which is anticipated to conclude in mid-2026 [19] - Management believes the new water legislation will drive growth in service areas and improve aquifer sustainability [5] Other Important Information - Year-to-date capital investments totaled $49.6 million for infrastructure improvements [9] - The company is in the middle of the rate case process, with further steps including formal written testimony and a hearing [18] Q&A Session Summary Question: Rate case completion timeline - Management confirmed that the rates are expected to change by mid-2026, potentially around July 1 [24] Question: Ag to Urban program impact - Management explained that the program allows for the conversion of agricultural water rights to municipal water supply without the need to purchase or lease rights, benefiting aquifer sustainability [26][28] Question: Regulatory proposal differences - Management clarified that the significant difference in proposed rates is due to ongoing processes and the inclusion of post-test year plant [32][33] Question: Expected rate base figure - Management confirmed that the expected rate base figure is still valid but not reported in quarterly financials [34][35]

Core Insights - Global Water Resources, Inc. (GWRS) reported quarterly earnings of $0.07 per share, missing the Zacks Consensus Estimate of $0.09 per share, and down from $0.12 per share a year ago, representing an earnings surprise of -22.22% [1] - The company posted revenues of $15.52 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.77%, and up from $14.32 million year-over-year [2] - The stock has underperformed the market, losing about 12.4% since the beginning of the year compared to the S&P 500's gain of 16.4% [3] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.05 on revenues of $13.9 million, and for the current fiscal year, it is $0.22 on revenues of $55.7 million [7] - The estimate revisions trend for Global Water Resources was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Utility - Water Supply industry, to which Global Water Resources belongs, is currently in the top 22% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Service Connections and Growth - As of September 30, 2025, active service connections increased by 4,241, or 6.6%, to 68,130 compared to 63,889 active service connections as of September 30, 2024[87]. - The company experienced a year-over-year organic increase in active connections of 3.5% as of September 30, 2025[80]. - Approximately 87.2% of the active service connections are serviced by GW-Santa Cruz and GW-Palo Verde utilities as of September 30, 2025[87]. - Active water connections increased by 8.9% to 38,631 in Q3 2025, compared to 35,464 in Q3 2024[120]. - The increase in revenue was primarily driven by the acquisition of seven water systems from the City of Tucson and organic growth in active connections[120]. Financial Performance - Revenue for the three months ended September 30, 2025, increased by 8.4% to $15,519,000 compared to $14,321,000 in 2024[119]. - Total revenue for the nine months ended September 30, 2025, was $42,217,000, a 7.0% increase from $39,441,000 in 2024[128]. - Operating expenses rose by 21.9% to $12,597,000 in Q3 2025, up from $10,337,000 in Q3 2024[122]. - Total operating expenses for the nine months ended September 30, 2025, were $35,420,000, an increase of 12.8% from $31,393,000 in 2024[130]. - Net income decreased by 41.3% to $1,717,000 in Q3 2025, down from $2,925,000 in Q3 2024[119]. - Basic earnings per share for the nine months ended September 30, 2025, decreased by 31.8% to $0.15 from $0.22 in 2024[128]. Acquisitions and Investments - The acquisition of seven water systems from the City of Tucson was completed for an amended purchase price of approximately $8.1 million, expected to generate approximately $1.5 million in annual revenue[91]. - The Company completed the acquisition of seven water systems from Tucson Water for approximately $8.1 million on July 8, 2025[147]. - The Company expects elevated levels of capital expenditures in 2025 compared to 2024, driven by its capital expenditure plan[153]. Infrastructure and Capacity - The Company has significant unused capacity in its water supply systems, particularly in the north, to support future growth despite regulatory constraints in certain areas[107]. - The Company is working with development partners to address long-term water resource constraints in Pinal County, ensuring adequate supply for current and future demand[108]. - Capital expenditures for infrastructure investment are crucial for earnings growth, with the Company maintaining a capital improvement plan to enhance financial performance[101]. Regulatory and Legal Matters - The Company is involved in a multi-district civil class action lawsuit related to PFAS contamination, with 3M expected to make annual payments through 2036, totaling approximately $0.4 million received as of November 10, 2025[98]. - The Company filed a general rate case application on March 5, 2025, requesting a net annual revenue increase of approximately $6.5 million, with an adjusted rate base of approximately $164.6 million[110]. - The ACC Staff recommended a net annual revenue decrease of approximately $7.1 million in the ongoing rate case, contrasting with the Company's request[111]. Economic and Market Conditions - The company continues to monitor the impact of macroeconomic conditions, including inflationary pressures and changes in tariff policy, on its operations[86]. - The population of the Phoenix metropolitan area is projected to grow from 5.2 million in 2024 to 5.8 million by 2030 and 6.5 million by 2040[80]. - The company expects to benefit from the anticipated long-term growth of the Phoenix MSA, supported by ample lot availability and strong existing infrastructure[82]. Cash Flow and Financing - For the nine months ended September 30, 2025, net cash provided by operating activities totaled $17.5 million, an increase from $15.8 million for the same period in 2024, primarily driven by increases in payments received related to ICFA contracts[151]. - The net cash used in investing activities was approximately $57.7 million for the nine months ended September 30, 2025, compared to $19.2 million for the same period in 2024, reflecting a $38.6 million increase due to higher capital expenditures and the acquisition of seven water systems[152]. - The net cash provided by financing activities totaled $46.7 million for the nine months ended September 30, 2025, a $26.0 million increase compared to $20.7 million for the same period in 2024, mainly due to $43.8 million from common stock issuances[155]. - As of September 30, 2025, the Company had outstanding borrowings of $6.9 million under its $20.0 million Revolver, with a weighted average interest rate of 6.43%[144]. - The Company received gross proceeds of approximately $13.1 million from a securities purchase agreement for the issuance of 1,270,572 shares of common stock at a price of $10.30 per share on September 30, 2025[140]. Operational Efficiency - Higher personnel costs were attributed to filling vacant positions and hiring for newly acquired systems, alongside increased medical costs[123]. - Depreciation and amortization increased significantly due to an 11.3% rise in depreciable fixed assets[135]. - The second and third quarters typically see the highest water service revenue, influenced by seasonal weather patterns affecting customer demand[106]. - As of June 30, 2025, the Company completed an inventory of its service lines and found no lead pipes, in compliance with the EPA's Lead and Copper Rule Improvements[99]. Grants and Funding - The Company was awarded a $1.6 million grant from WIFA in December 2023 to replace manual read meters with advanced metering infrastructure smart meters[142].

PHOENIX, Nov. 12, 2025 (GLOBE NEWSWIRE) -- Global Water Resources, Inc. (NASDAQ: GWRS), a pure-play water resource management company, reported results for the third quarter and nine months ended September 30, 2025. Unless otherwise noted, all comparisons are to the corresponding period in the prior year. The company will hold a conference call at 1:00 p.m. Eastern time tomorrow to discuss the results (see dial-in information below). Financial Highlights Total revenue increased 8.4% to $15.5 million for the ...

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Core Viewpoint - Global Water Resources, Inc. will hold a conference call on November 13, 2025, to discuss its third-quarter financial results for the period ending September 30, 2025 [1] Company Overview - Global Water Resources, Inc. is a leading water resource management company that operates 39 systems providing water, wastewater, and recycled water services, primarily in growth corridors around metropolitan Phoenix and Tucson [3] - The company recycles over 1 billion gallons of water annually, totaling 18.5 billion gallons recycled since 2004 [3] Total Water Management (TWM) - The company has effectively implemented Total Water Management (TWM), an integrated approach to managing the entire water cycle, which maximizes the beneficial use of recycled water [4] - TWM enables smart water management programs, including remote metering infrastructure and advanced technologies, leading to real conservation and protection of water supplies in water-scarce areas [4] Industry Recognition - Global Water has received numerous awards, including national recognition as a 'Utility of the Future Today' for its superior water reuse practices [5] - The company also received the Cityworks' Excellence in Departmental Practice Award for demonstrating leadership in public asset management strategies [5]

Core Insights - Global Water Resources (GWRS) is positioned as a strong investment option in the utility sector due to its regulated water, wastewater, and recycled water operations, along with growth opportunities [1] Growth Projections - The Zacks Consensus Estimate for GWRS's 2025 earnings per share (EPS) is 22 cents, with a projected increase to 28 cents in 2026, reflecting a year-over-year growth of 25% [2] - The estimated sales for 2025 are $55.85 million, indicating a year-over-year increase of 6% [2] Solvency - GWRS's time-to-interest earned ratio was 2.3 at the end of Q2 2025, demonstrating the company's capability to meet future interest obligations comfortably [3] Liquidity - The current ratio for GWRS stands at 1.09, surpassing the industry average of 0.9, indicating sufficient short-term assets to cover liabilities [4] Dividend History - GWRS has been increasing shareholder value through dividend hikes, currently offering a quarterly dividend of 2.53 cents per share, leading to an annualized dividend of 30.4 cents and a dividend yield of 2.83%, which is higher than the S&P 500 average of 1.09% [5] Focus on M&A - The company has executed a Total Water Management strategy, acquiring 23 smaller water and wastewater systems since 2017, resulting in 9,889 new connections and an expansion of service area by 69.9 square miles [6] Share Price Performance - Over the past month, GWRS stock has returned 9.5%, significantly outperforming the industry's growth of 1.6% [7] Summary of Financial Metrics - GWRS's 2025 EPS is projected at 22 cents, with sales expected to reach $55.85 million, alongside a strong current ratio of 1.09 and solid interest coverage of 2.3 [8]

Company Overview - Global Water Resources, Inc. (GWRS) shares increased by 5.2% to close at $10.75, supported by strong trading volume, and have gained 5.3% over the past four weeks [1] - The company employs a Total Water Management approach to improve water sustainability and resource efficiency, focusing on the treatment, recycling, and reuse of water [2] Growth Strategy - GWRS is expanding its operations through strategic acquisitions of smaller water and wastewater utilities in high-growth areas, which is expected to drive revenue growth and enhance cash flows [3] - Favorable rate case approvals allow the company to recover infrastructure investments and generate reasonable returns, further supporting revenue growth [3] Financial Performance - The company is projected to report quarterly earnings of $0.09 per share, reflecting a year-over-year decline of 25%, while revenues are expected to reach $15.2 million, an increase of 6.2% from the previous year [4] - The consensus EPS estimate for GWRS has remained unchanged over the last 30 days, indicating that stock price movements may be influenced by trends in earnings estimate revisions [5] Industry Context - GWRS is part of the Zacks Utility - Water Supply industry, where Middlesex Water (MSEX) also operates, having closed 1.3% higher at $54.85, with a 2% return over the past month [5] - Middlesex Water's consensus EPS estimate has remained stable at $0.86, showing a year-over-year increase of 7.5%, and it currently holds a Zacks Rank of 3 (Hold) [6]