Global Water Resources Reports Third Quarter 2025 Results

Core Insights - Global Water Resources, Inc. reported a total revenue increase of 8.4% to $15.5 million for Q3 2025, driven by new connections from the acquisition of seven water systems and organic growth [5][10] - Net income for Q3 2025 decreased to $1.7 million, a decline of 41.3% compared to the same period last year, primarily due to increased depreciation and interest expenses [17][29] - The company declared a monthly cash dividend of $0.02533 per common share, amounting to an annualized rate of $0.30396 [31] Financial Highlights - Total revenue for the nine months ended September 30, 2025, increased by 7.0% to $42.2 million, attributed to organic growth and the acquisition of water systems [20] - Adjusted EBITDA for Q3 2025 decreased by 5.0% to $7.8 million, while it remained consistent at $20.4 million for the nine months [18][30] - The company invested $14.2 million in infrastructure projects to support growth and existing utilities [5] Operational Highlights - Total active service connections increased by 6.6% to 68,130 as of September 30, 2025, with an annualized growth rate of 3.3% excluding the recent acquisition [33] - Water consumption remained steady at 1.3 billion gallons [5] - The company completed the acquisition of seven water systems from Tucson Water, expected to generate approximately $1.5 million in annual revenue [5][10] Management Commentary - The CEO highlighted strong top-line growth driven by new connections and successful rate implementations in Southern Arizona [4] - The company is optimistic about growth prospects due to Arizona's positive economic outlook, with employment expected to rise by 486,000 jobs through 2033 [7] - Management is focused on extending the benefits of consolidation and regionalization while navigating ongoing rate cases [10] Business Strategy - The near-term growth strategy includes increasing service connections, improving operational efficiencies, and pursuing strategic acquisitions [32] - The company aims to benefit from Arizona's 'Ag-to-Urban' program, allowing landowners to convert water rights for new developments [6] - The company continues to monitor macroeconomic factors that may impact operations, including housing market trends and construction activity [35][36]