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Global Water Resources Q2 Earnings and Revenues Meet Estimates
ZACKS· 2025-08-14 16:50
Core Insights - Global Water Resources (GWRS) reported second-quarter 2025 adjusted earnings of 6 cents per share, matching the Zacks Consensus Estimate but down 14.3% from 7 cents per share in the same quarter last year due to increased depreciation expenses related to capital improvement plans [1][8] Revenue Performance - Total operating revenues for the second quarter reached $14 million, aligning with the Zacks Consensus Estimate and reflecting a year-over-year increase of 5.4%, driven by organic connection growth, increased consumption, and higher rates [2][8] - Water Services contributed $7.36 million to total revenues, marking a 10.5% increase from $6.67 million in the prior year [2] - Wastewater and recycled water services generated $6.87 million in revenues, a slight increase of 0.5% from $6.84 million in the same quarter last year [3] Operational Metrics - Water consumption rose by 8.2% to 1.2 billion gallons, while total active service connections increased by 3.8% to 65,639 as of June 30, 2025 [4][8] - Net income for the second quarter decreased to $1.6 million from $1.7 million in the previous year [4] Financial Position - As of June 30, 2025, GWRS had cash and cash equivalents of $10.2 million, up from $9.04 million at the end of 2024 [5] - The company's net long-term debt decreased to $116.8 million from $118.5 million as of December 31, 2024 [5] - Cash flow from operating activities in the first half of 2025 was approximately $8.8 million, down from $13.6 million in the same period last year [5] Market Position - GWRS currently holds a Zacks Rank of 3 (Hold) [6]
Global Water Resources Reports Second Quarter 2025 Results
Globenewswire· 2025-08-13 20:30
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].
Global Water Resources Reports First Quarter 2025 Results
Globenewswire· 2025-05-14 20:45
Core Viewpoint - Global Water Resources, Inc. reported a 7.3% increase in total revenue for Q1 2025, driven by organic growth in active water and wastewater connections and increased consumption, despite a 14.5% decrease in net income [7][21]. Financial Highlights - Total revenue for Q1 2025 reached $12.5 million, up from $11.6 million in Q1 2024 [7][15]. - Net income decreased to $0.6 million or $0.02 per share, down from $0.7 million or $0.03 per share in the same period last year [21]. - Adjusted EBITDA increased by 4.4% to $5.6 million compared to $5.4 million in Q1 2024 [22]. - Cash and cash equivalents rose significantly to $31.5 million from $9.0 million at the end of 2024 [7]. - The company raised net proceeds of $30.8 million from a public offering of common stock [10]. Operational Highlights - Active service connections increased by 4.3% to 65,163 as of March 31, 2025 [25]. - Water consumption surged by 24.2% to 0.84 billion gallons [7]. - The company invested $15.2 million in infrastructure projects to support existing utilities and growth [7]. Rate Case Applications - In March 2025, the company filed general rate case applications for GW-Santa Cruz and GW-Palo Verde utilities, seeking a net revenue increase of approximately $6.5 million [6][8]. - The Arizona Corporation Commission approved a rate case for GW-Farmers, expected to generate an additional $1.1 million in annual revenue [7][8]. Business Strategy - The company aims to enhance service connections, improve operational efficiencies, and increase utility rates as approved by the Arizona Corporation Commission [24]. - Plans include acquiring seven water systems from the City of Tucson, which would add approximately 2,200 water service connections [11]. Market Outlook - Arizona's economic outlook remains strong, with projections of adding 478,000 jobs by 2032, supporting continued growth in active service connections [13]. - The Phoenix metropolitan area is expected to grow significantly, with a population forecast of 5.8 million by 2030 [26]. Dividend Policy - The company declared a monthly cash dividend of $0.02533 per common share, equating to an annualized rate of $0.30396 [23]. Management Commentary - The CEO expressed confidence in maintaining solid revenue growth through appropriate rate increases and organic growth, supporting potential net income growth [5]. - The CFO highlighted the strengthening of capital resources to fund growth opportunities [10].