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].

August 7, 2025 NYSE: AWR Financial Results Call Presentation Second Quarter 2025 Today's Presenters Robert J. Sprowls President & CEO Eva G. Tang SVP – Finance & CFO 2 Forward-Looking Statement This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can often be identified by words such as "anticipate," "estimate," "expect," "intend," "may," "should" and similar phrases and expressions, and variations or neg ...

Financial Data and Key Metrics Changes - The company reported GAAP earnings per share of $0.38, a 35% increase compared to the same quarter last year [4] - Net income for the gas business was $17,500,000, contributing to strong overall performance [5] - Revenues increased by 18.5% year-over-year, rising from $434,400,000 to $514,900,000 [24][25] - Earnings per share increased by 35.7% year-over-year, driven by favorable rate case outcomes and increased gas volume [24] Business Line Data and Key Metrics Changes - The water business is expected to see annual rate base growth of 6% through 2029, not including acquisitions [15] - The gas business experienced strong revenue growth due to higher gas usage and favorable rate outcomes [24] - The water business contributed $2,100,000 to revenue growth, although lower water volumes offset some gains [25] Market Data and Key Metrics Changes - The company serves over a million customers with a rate base exceeding $7,000,000,000 across eight states [15] - In Texas, the company has grown by nearly 25,000 connections over the last ten years, with another 90,000 under contract or negotiation [21] Company Strategy and Development Direction - The company is reaffirming its capital investment plans with a target of approximately $1,400,000,000 in infrastructure investment for 2025 [5] - The focus remains on growing the water and wastewater business through acquisitions, with recent purchases totaling approximately $58,000,000 [32] - The company aims to maintain a strong balance sheet and deliver consistent dividend growth while keeping the payout ratio between 60-65% [34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth opportunities, particularly in Pennsylvania due to low energy costs attracting hyperscalers [7][70] - The company is committed to addressing PFAS regulations and sees potential for acquisition growth as municipalities begin to comply with new standards [20][74] - Management expects GAAP earnings per share to exceed the guidance range of $2.07 to $2.11, driven by strong performance and non-recurring benefits [5][46] Other Important Information - The Board of Directors approved a 5.25% increase in the dividend, continuing a 30-year tradition of dividend growth [10] - The company has been recognized for its community engagement efforts, being named one of Greater Philadelphia's most community-minded businesses [12] Q&A Session Summary Question: Clarification on quarterly earnings guidance - Management confirmed that GAAP earnings are expected to be above the guidance range due to strong revenue and some positive tax items [41][46] Question: Trends in cash flow and PFAS settlements - Management indicated a target for funds from operations (FFO) to be above 12% and expects to receive approximately $45,000,000 in PFAS proceeds this year [48][49] Question: Insights on Pennsylvania's regulatory environment - Management noted a positive engagement with the new consumer advocate and expressed hope for constructive relationships with all advocates [54][55] Question: Fair market value and acquisition strategy - Management stated they might consider paying above the reasonable review ratio if significant rate base growth is anticipated [58] Question: Tax rate modeling for future years - Management advised to expect a low single-digit benefit for 2025 and a low single-digit expense for 2026 [61]

Core Viewpoint - California Water Service Group (CWT) is positioned well to potentially beat earnings estimates in its upcoming quarterly report, supported by a strong history of exceeding expectations [1]. Earnings Performance - The company has a solid track record of surpassing earnings estimates, with an average surprise of 78.75% over the last two quarters [2]. - In the most recent quarter, CWT was expected to report earnings of $0.22 per share but instead reported $0.16 per share, resulting in a surprise of 37.50%. In the previous quarter, the consensus estimate was $0.15 per share, while the actual earnings were $0.33 per share, leading to a surprise of 120.00% [3]. Earnings Estimates and Predictions - Recent estimates for California Water Service Group have been trending upward, with a positive Zacks Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [6]. - The current Earnings ESP for the company is +29.50%, suggesting that analysts have recently become more optimistic about its earnings prospects [9]. Zacks Rank and Success Rate - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests that CWT has a high probability of beating consensus estimates, with historical data indicating that nearly 70% of stocks with this combination achieve positive surprises [7][9].

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 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].

Financial Data and Key Metrics Changes - The company reported GAAP earnings per share of $1.3, a 6% increase compared to the same quarter last year [6] - Revenues increased by 28% from $612.1 million to $783.6 million year-over-year [24] - The company reaffirmed its 2025 earnings per share guidance range of $2.07 to $2.11, compared to last year's non-GAAP earnings of $1.97 per share [7] Business Line Data and Key Metrics Changes - Both the Water and Gas businesses performed well, contributing to the overall strong results [6] - The Gas segment reported an increase in volumes due to normal weather conditions compared to significantly warmer weather in the previous year [24] Market Data and Key Metrics Changes - The company has begun to raise equity through its ATM program, issuing approximately $210 million so far this year [8] - The company is in discussions with data center developers representing up to five gigawatts of needed power generation in the Pittsburgh region [21] Company Strategy and Development Direction - The company plans to invest between $1.4 billion and $1.5 billion in infrastructure improvements in 2025, with $270.5 million already invested by March 31 [7] - The company is focusing on water and wastewater utility acquisitions, having acquired over $518 million in rate base since 2015 [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting the full-year earnings per share guidance, citing strong first-quarter performance but cautioning about potential headwinds in the remaining quarters [52] - The company is committed to addressing PFAS compliance and expects to spend approximately $450 million to achieve compliance by 2028 [10][56] Other Important Information - The company has been recognized for its operational achievements, including a 99.8% water quality compliance rate [9] - New rates went into effect for Aqua Pennsylvania, expected to increase total annual revenues by $73 million [31] Q&A Session Summary Question: Regarding equity issuance and share price - Management indicated that the focus is on raising the $315 million in equity needed for 2025 rather than considering 2026 equity needs at this time [43] Question: Texas rate case expectations - Management stated that they plan to file the Texas rate case by the end of the month and will provide details on revenue requests and equity layers at that time [45] Question: EPS guidance and performance - Management acknowledged strong first-quarter performance but emphasized the need to wait for clarity as the year progresses before adjusting guidance [52] Question: Impact of EPA announcement on PFAS - Management confirmed that they are proceeding with their PFAS mitigation plans and remain on track with their budget [56] Question: Data centers and gas supply - Management discussed various approaches to support data center development, including behind-the-meter generation and increased distribution volume [65] Question: Beaver Falls settlement status - Management expressed optimism about the Beaver Falls case being on the agenda in June and highlighted the importance of resolving such cases for water supply [90]

Financial Data and Key Metrics Changes - The company reported GAAP earnings per share of $1.3, a 6% increase compared to the same quarter last year [5] - Revenues increased by 28% from $612.1 million to $783.6 million year-over-year [22][23] - The company reaffirmed its 2025 earnings per share guidance range of $2.07 to $2.11, compared to last year's $1.97 on a non-GAAP basis [6][12] Business Line Data and Key Metrics Changes - Both the Water and Gas businesses performed well, contributing to the overall strong results [5] - The Gas segment reported an increase in volumes due to normal weather conditions compared to significantly warmer weather in the previous year [23] Market Data and Key Metrics Changes - The company has begun to raise equity through its ATM program, issuing approximately $210 million so far this year [6] - The company expects to receive approximately $100 million in proceeds from settlements with polluters [8] Company Strategy and Development Direction - The company is focused on infrastructure investments, planning to invest between $1.4 billion and $1.5 billion in 2025 [6] - The company is actively pursuing water and wastewater utility acquisitions, having acquired over $518 million in rate base since 2015 [30][31] - The company aims for a compounded annual growth rate of 8% in its combined utility rate base, with specific growth rates of 6% for regulated water and 11% for regulated natural gas segments [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting the full-year earnings per share guidance, despite potential headwinds in the remaining quarters [50] - The company is committed to addressing PFAS compliance and expects to meet its $450 million capital spend target by 2028 [8][54] Other Important Information - The company has been recognized for its operational achievements, including a 99.8% water quality compliance rate [7] - Legislative developments in Texas and Ohio are seen as positive for the company's regulatory environment [10][29] Q&A Session Summary Question: Equity issuance and share price - Management indicated that the focus is on raising the $315 million in equity needed for 2025 rather than considering 2026 equity needs at this time [40] Question: Texas rate case expectations - The company plans to file for the Texas rate case by the end of the month, with expectations for revenue increase and ROE consistent with other states [42][44] Question: EPS guidance and performance - Management noted that while the first quarter started strong, it is premature to adjust guidance due to uncertainties in the remaining quarters [50] Question: PFAS operational strategy - The company is proceeding with its PFAS mitigation plans and remains on track with its budget [54] Question: Data centers and gas supply - Discussions with data center developers are ongoing, with various approaches being considered, including behind-the-meter generation [62] Question: Beaver Falls settlement - Management expressed optimism about the Beaver Falls case, expecting it to be on the agenda in June [86]

Financial Data and Key Metrics Changes - For Q1 2025, operating revenue was $204 million, compared to $270.7 million in Q1 2024, reflecting a decrease due to interim rate relief recorded in the previous year [8] - Net income attributed to the group was $13.3 million or $0.22 per diluted share, down from $69.9 million or $1.21 per diluted share in Q1 2024 [9] - Adjusted for interim rate relief, Q1 revenue increased by 13% over non-GAAP 2024 revenue of $180.5 million, and net income increased by 225% over non-GAAP income of $4.1 million [10] Business Line Data and Key Metrics Changes - Capital investments during the quarter totaled $110.1 million, consistent with the record quarter reported in Q1 2024 [11] - The company expects annual capital expenditures to increase over the next five years due to ongoing infrastructure needs [12] Market Data and Key Metrics Changes - As of March 31, 2025, the company had $44.5 million in unrestricted cash, $45.7 million in restricted cash, and $315 million available on credit lines, indicating a strong liquidity profile [12] Company Strategy and Development Direction - The company is focused on rate base growth, targeting a compounded annual growth rate of approximately 11.7% [12] - The ongoing greenfield development in Texas is progressing well, with a focus on the South Austin corridor [23] - The company is also evaluating domestic M&A opportunities as a supplemental growth strategy [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the progress of the 2021 general rate case, noting that discussions with the California Public Advocates are ongoing [14][15] - The company is managing controllable expenses tightly due to market volatility and inflation, while maintaining a focus on capital execution [22][23] - Management is optimistic about the water supply situation in California, with strong snowpack and reservoir levels above historical averages [20][21] Other Important Information - The Board of Directors approved a quarterly dividend of $0.30 per share, representing a 10.7% increase from the previous year [13] - The company received regulatory approvals for various projects, including the Palos Verdes Peninsula Water Reliability Project, which is the largest in the company's history [17][18] Q&A Session Summary Question: Key points of contention in the California GRC - Management indicated that they cannot disclose specific details due to ongoing settlement discussions but are identifying non-contested areas for submission to the judge [28][30] Question: Comparison of the current GRC to the previous one - Management noted that the current GRC is progressing better than the previous one, with more positive engagement from the commissioner and advocates [36][39] Question: Managing costs amid market volatility - Management stated that it is too early to predict the impact of tariffs and supply chain issues but remains optimistic based on past experiences managing supply constraints [41][42] Question: Drivers behind better-than-expected Q1 results - Management attributed the positive results to effective budget management, a more accurate water mix in the rate case, and higher customer usage [51][55] Question: Potential for a global settlement in the GRC - Management expressed uncertainty about achieving a global settlement but remains hopeful as they proceed with the hearings [60][62]