Core Viewpoint - Global Water Resources, Inc. reported a 5.4% increase in total revenue for Q2 2025, driven by organic connection growth, increased consumption, and successful rate case strategies, despite a slight decline in net income due to higher depreciation expenses from capital improvements [5][8][19]. Financial Highlights - Total revenue for Q2 2025 was $14.2 million, up from $13.5 million in Q2 2024, reflecting a 5.4% increase [8]. - Net income decreased to $1.6 million or $0.06 per share, down from $1.7 million or $0.07 per share in the same period last year [19]. - Adjusted EBITDA rose by 2.1% to $6.9 million compared to $6.8 million in Q2 2024 [20]. - The company declared three monthly cash dividends of $0.02533 per common share, amounting to an annualized rate of $0.30396 per share [21]. Operational Highlights - Active service connections increased by 3.8% to 65,639 as of June 30, 2025, compared to 63,256 a year earlier [24]. - Water consumption rose by 8.2% to 1.2 billion gallons [8]. - The company invested $20.2 million in infrastructure projects to support existing utilities and future growth [8]. Strategic Developments - Approval of the GW-Farmers general rate case is expected to generate an additional $1.1 million in annual revenue once fully phased in [8]. - The Arizona Department of Transportation's inclusion of State Route 347 improvements in a $11.6 billion five-year plan is anticipated to drive residential and commercial development, increasing demand for water services [6]. - Arizona's Senate Bill 1611, effective September 26, 2025, is expected to support water management and housing accessibility, with potential for over 1 million new homes from agricultural land conversion [7]. Market Trends - The Phoenix metropolitan area is projected to grow significantly, with a population increase from 5.2 million in 2024 to an estimated 6.5 million by 2040 [25]. - The City of Maricopa's housing market remains attractive due to lower median home prices compared to Phoenix, which is expected to continue driving organic growth for the company [26]. - Despite a decrease in housing permits in early 2025, the company remains optimistic about long-term growth prospects in the Phoenix MSA due to existing infrastructure and available lots [27].

Core Viewpoint - Global Water Resources, Inc. will hold a conference call on August 14, 2025, to discuss its second-quarter financial results for the period ending June 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 18.1 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 Excellence in Departmental Practice Award from Cityworks for demonstrating leadership in public asset management strategies [5].

Group 1 - Global Water Resources (NASDAQ: GWRS) operates as a utility with a P/E ratio of 55x, indicating a high valuation relative to earnings [1] - The company is the only TWM pure-play in Arizona, suggesting a unique market position [1] - There is an expected upside potential of 33% for the company, driven by anticipated intensification in the sector [1]

Core Insights - Global Water Resources, Inc. recognizes Arizona's Assured Water Supply "Ag-to-Urban" program as a transformative development for water sustainability, housing, and economic growth in the state [1] Group 1: Program Overview - The Ag-to-Urban program allows landowners to convert water rights from agricultural to municipal use, facilitating new development while reducing pressure on aquifers [2] - The program is designed to support the conversion of up to 384,000 acres of agricultural land, potentially enabling the construction of over 1 million new homes [5] Group 2: Company Impact - The initiative is expected to significantly benefit Global Water's utilities, GW-Santa Cruz and GW-Palo Verde, which collectively represent over 56,000 active service connections, approximately 87% of the company's total [4] - The program aligns with the company's strategic focus on Total Water Management (TWM), enhancing its ability to serve additional potential service connections [6] Group 3: Water Management and Sustainability - Irrigation for agriculture accounts for about 74% of Arizona's water supply, highlighting the importance of the Ag-to-Urban program in addressing water scarcity [5] - Global Water has been recognized for its effective implementation of TWM, which integrates water, wastewater, and recycled water management to maximize resource use [8]

Core Insights - Global Water Resources, Inc. recognizes Arizona's Assured Water Supply "Ag-to-Urban" program as a transformative development for water sustainability, housing, and economic growth in the state [1] Group 1: Program Overview - The Ag-to-Urban program allows landowners to convert water rights from agricultural to municipal use, facilitating new development while reducing pressure on aquifers [2] - The program is designed to support the conversion of up to 384,000 acres of agricultural land, potentially enabling the construction of over 1 million new homes [5] Group 2: Company Impact - The initiative is expected to significantly benefit Global Water's utilities, GW-Santa Cruz and GW-Palo Verde, which collectively represent over 56,000 active service connections, approximately 87% of the company's total [4] - The program aligns with the company's strategic focus on Total Water Management (TWM), enhancing its ability to serve additional potential service connections [6] Group 3: Water Management and Sustainability - Irrigation for agriculture accounts for about 74% of Arizona's water supply, highlighting the importance of the Ag-to-Urban program in addressing water scarcity [5] - Global Water has been recognized for its effective implementation of TWM, which integrates water, wastewater, and recycled water management to maximize conservation [8]

Core Viewpoint - Global Water Resources, Inc. has successfully acquired seven water systems from Tucson Water, enhancing its service area and customer base in Pima County, with an expected annual revenue of approximately $1.5 million from this acquisition [1][2]. Group 1: Acquisition Details - The acquisition was valued at approximately 1.05 times the current rate base of about $7.7 million [1]. - The newly acquired systems serve around 2,200 water service connections, increasing Global Water's total customer base in Pima County to approximately 7,200 [2]. - This acquisition is part of a broader strategy of utility consolidation and expansion in the region, with nearly 5,000 customers added from previous acquisitions over the last five years [2]. Group 2: Integration and Modernization Plans - The company plans to integrate the acquired water systems into its existing operations, leveraging their strategic location for efficient management and maintenance [3]. - Global Water will modernize the systems by installing an automated meter infrastructure (AMI), which includes upgrading to smart meters for wireless usage metering [4][5]. - The AMI deployment is expected to enhance water service quality, promote conservation, and potentially lead to customer savings [6]. Group 3: Rate Strategy - As part of the acquisition, Global Water will adopt Tucson Water's rates for the new systems, with a scheduled five percent rate increase set for July 2026 [7]. - The company is developing a broader rate case strategy for these systems, aiming to implement rate structures that encourage conservation and ensure a reasonable return on capital investments [7]. Group 4: Company Overview - Global Water Resources operates 39 systems providing water, wastewater, and recycled water services, primarily in growth corridors around metropolitan Phoenix and Tucson [8]. - The company has recycled over 1 billion gallons of water annually, totaling 18.1 billion gallons since 2004 [8]. - Global Water has been recognized for its effective Total Water Management (TWM) approach, which integrates water cycle management to maximize the beneficial use of recycled water [9].

Core Insights - Global Water Resources, Inc. supports Arizona's $11.6 billion Five-Year Transportation Facilities Construction Program, which includes over $249 million for improvements on State Route 347 [1][2] - The SR 347 projects aim to enhance regional infrastructure, improve safety, and support growth in Maricopa, accommodating over 58,000 vehicles daily [2][4] - The expansion will add one lane in each direction over a 13-mile stretch, eliminate traffic signals, and upgrade intersections and bridges, with construction expected to start in fiscal year 2026 [3][4] Company Strategy and Growth - The infrastructure investment aligns with Global Water's strategy for organic growth in water and wastewater services, driven by increased demand from residential and commercial development in Maricopa [4][5] - Maricopa's population is projected to grow nearly 90% by 2040, reaching approximately 140,000, indicating a strong growth outlook for the company [4][5] Company Overview - Global Water Resources operates 32 systems providing water, wastewater, and recycled water services, primarily in growth corridors around Phoenix and Tucson [6] - The company recycles over 1 billion gallons of water annually, totaling 18.1 billion gallons since 2004, showcasing its commitment to sustainable water management [6][7] - Recognized for its Total Water Management approach, the company integrates water cycle management to maximize recycled water use and promote conservation [7][8]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $12.5 million, an increase of $800,000 or 7.3% compared to Q1 2024, primarily due to a 4.3% increase in active service connections and increased consumption [15] - Operating expenses for Q1 2025 were $11.2 million, up from $10.3 million in Q1 2024, representing an increase of approximately $900,000 or 8.3% [15] - Net income for Q1 2025 was $600,000 or $0.02 per diluted share, compared to $700,000 or $0.03 per diluted share in Q1 2024 [18] - Adjusted EBITDA for Q1 2025 was $5.6 million, an increase of approximately $200,000 or 4.4% compared to Q1 2024 [19] Business Line Data and Key Metrics Changes - Total active service connections increased by 4.3% to 65,163 as of March 31, 2025, compared to the previous year [5] - The company invested $15.2 million into infrastructure improvements and existing utilities year-to-date [6] Market Data and Key Metrics Changes - The single-family dwelling unit market in the Phoenix area saw a 15% decrease in building permits issued in Q1 2025 compared to Q1 2024 [7] - The City of Maricopa experienced a 41.5% decrease in single-family building permits in Q1 2025 compared to Q1 2024 [7] - Despite the decrease in permits, the company believes the housing shortage in Arizona will sustain demand for housing units [9] Company Strategy and Development Direction - The company remains bullish on the future potential of its Inland Port Arizona service area, anticipating significant industrial growth [12] - The company plans to leverage organic connections, new greenfield utilities, acquisitions, and rate cases to drive growth [14] - The company aims to expand its total water management platform and apply its expertise across regional service areas [25] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a mix of tailwinds and headwinds in the economy but remains confident in the company's ability to improve utility metrics [24] - The company expects continued strong customer growth, revenue growth, and earnings growth due to its strategic initiatives and local dynamics [24] Other Important Information - The Arizona Corporation Commission approved new rates for the Farmers Water Utility, effective May 1, 2025 [20] - The company filed a rate case for Santa Cruz and Palo Verde, requesting a net revenue increase of $6.5 million [21] - A successful equity capital raise of $32 million was completed in March 2025, enhancing liquidity [19] Q&A Session Summary - No questions were asked during the Q&A session, and the call concluded without any inquiries [27]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $12.5 million, an increase of $800,000 or 7.3% compared to Q1 2024, primarily due to a 4.3% increase in active service connections and increased consumption [15] - Operating expenses for Q1 2025 were $11.2 million, up from $10.3 million in Q1 2024, representing an increase of approximately $900,000 or 8.3% [16] - Net income for Q1 2025 was $600,000 or $0.02 per diluted share, compared to $700,000 or $0.03 per diluted share in Q1 2024 [17] - Adjusted EBITDA for Q1 2025 was $5.6 million, an increase of approximately $200,000 or 4.4% compared to Q1 2024 [18] - The company raised $32 million in equity capital in March 2025 and extended its line of credit to May 2027, increasing it from $15 million to $20 million, resulting in over $50 million of liquidity [19] Business Line Data and Key Metrics Changes - Total active service connections increased by 4.3% to 65,163 as of March 31, 2025, compared to the previous year [5] - The company invested $15.2 million year-to-date into infrastructure improvements and existing utilities [6] Market Data and Key Metrics Changes - The single-family dwelling unit market in the Phoenix area saw a 15% decrease in building permits in Q1 2025 compared to Q1 2024, with 6,406 permits issued [7] - The City of Maricopa experienced a 41.5% decrease in single-family building permits in Q1 2025 compared to Q1 2024, with 190 permits issued [7] - Despite the pullback in permit data, the company believes this is temporary due to ongoing housing shortages and strong population growth in Arizona [8] Company Strategy and Development Direction - The company remains bullish on future growth potential in the Inland Port Arizona service area, with significant industrial investments expected [12] - The company plans to leverage organic connections, new greenfield utilities, acquisitions, and rate cases to drive growth [14] - The company aims to expand its total water management platform and apply its expertise across regional service areas [25] Management's Comments on Operating Environment and Future Outlook - Management acknowledged mixed economic conditions but expressed confidence in the company's ability to improve utility metrics despite these challenges [24] - The company expects continued strong growth in customer connections, revenue, and earnings driven by strategic investments and rate increases [24] Other Important Information - The Arizona Corporation Commission approved new rates for the Farmers Water Utility, effective May 1, 2025, which will positively impact future quarters [20] - The company filed a rate case for Santa Cruz and Palo Verde, requesting a net revenue increase of $6.5 million, with hearings scheduled for December 2025 [21] Q&A Session Summary Question: What is the outlook for the housing market in Arizona? - Management noted that while there has been a decrease in single-family permits, the overall demand for housing remains strong due to population growth and job opportunities [8] Question: How does the company plan to address inflation and cost increases? - Management indicated that new rates from recent rate cases will help address cost increases and support earnings growth [14]

Group 1 - Global Water Resources, Inc. reported quarterly earnings of $0.02 per share, matching the Zacks Consensus Estimate, but down from $0.03 per share a year ago [1] - The company posted revenues of $12.46 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 3.81% and up from $11.61 million year-over-year [2] - The stock has underperformed, losing about 11% since the beginning of the year compared to the S&P 500's gain of 0.1% [3] Group 2 - The earnings outlook for Global Water Resources is uncertain, with current consensus EPS estimates at $0.06 for the coming quarter and $0.22 for the current fiscal year [7] - The Zacks Rank for the stock is currently 4 (Sell), indicating expectations of underperformance in the near future [6] - The Utility - Water Supply industry is ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]