PHOENIX, March 04, 2026 (GLOBE NEWSWIRE) -- Global Water Resources, Inc. (NASDAQ: GWRS), a pure-play water resource management company, reported results for the full year ended December 31, 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 5.8% year-over-year ("YoY") to $55.8 million. The
increase was primarily due to the recent acquisition of seven water
systems from Tucson Water, organic connection growth, increased
consumption and higher rates.
-- Net income decreased to $3.0 million or $0.11 per share, a decrease of
$2.8 million or 48.9% YoY. The decrease primarily reflects the company's
capital improvement plan, which resulted in increased depreciation
expense and net interest expense, and loss on asset disposals of $1.3
million related to the recommissioning of the company's Southwest Plant.
-- Adjusted net income, a non-GAAP measure, decreased to $3.9 million or
$0.14 per diluted share in 2025, as compared to $6.3 million, or $0.26
per diluted share in 2024 (see definition of adjusted net income and its
reconciliation to GAAP, below).
-- Adjusted EBITDA, a non-GAAP measure, decreased 0.7% YoY to $26.5 million
(see definition of adjusted EBITDA and its reconciliation to GAAP,
below).
-- Declared three monthly cash dividends of $0.02533 per common share or
$0.30396 per common share on an annualized basis.
-- On December 10, 2025, secured a $15 million term loan at a fixed interest
rate of 5.49%.
Operational Highlights
-- Total active service connections at December 31, 2025, increased 6.3% YoY
to 68,577.
-- Annualized active service connection growth rate excluding the recent
acquisition of seven water systems was 3.2%.
-- Water consumption increased 5.9% YoY to 4.28 billion gallons in 2025.
-- Invested $17.7 million in Q4 2025 in infrastructure projects to support
existing utilities and continued growth, bringing the total investment
for the year to $67.3 million, successfully delivering our planned
capital investments.
-- Completed the acquisition of seven water systems from Tucson Water, the
City of Tucson's water utility. The assets were acquired at a value
equivalent to approximately 1.05 times the current rate base of
approximately $7.7 million and are expected to generate approximately
$1.5 million in revenue annually.
Management Commentary
"2025 included large and successful initiatives that materially grew rate base," commented Global Water Resources President and CEO Ron Fleming.
"With respect to these initiatives, we had a near record year for capital investments that were critical to complete within 2025. These investments spanned everything from recommissioning the previously mothballed water reclamation facility in Pinal County south of the City of Maricopa, which is part of the system we refer to as our Southwest Plant, to our capital improvements to stay in front of our fast growing communities, and the acquisition of the City of Tucson water systems. All of these investments inure to long-term value creation, and also benefit the customers and communities we have the privilege to serve.
"However, these investments increased expenses across the board, including much larger depreciation and a one-time asset write-off, which all impact income and earnings per share. This is an unfortunate yet necessary part of the historical test year environment here in Arizona. Additionally, certain company expenses, such as medical, continue to grow at an unprecedented pace. As I have been saying for many quarters now, we need new rates to keep up with all the investment and inflation that we have incurred in our utilities.
"To that point, beyond revenue and connection growth that remains strong, we continue to work through the commission's rate case process for our two largest utilities and hope to have a fair resolution in 2026. As a reminder, 2024 was the test year, and 2025 investments are also allowed for inclusion into new rates if they meet certain post test year criteria, as a means to reduce the lag in rate recovery.
"As previously reported, our recent testimonies, filed in the fourth quarter, support a requested net annual revenue increase of approximately $4.3 million. We submitted additional supporting documentation late last year, and the Administrative Law Judge has set hearings to commence in August. After the hearings, the matter is then evaluated by an Administrative Law Judge who writes a Recommend Opinion and Order for the Commission's consideration. We expect the case to conclude in late 2026.
"We remain committed to supporting Arizona's long-term growth by pursuing rate cases that enable continued investment in water and wastewater infrastructure. These rate adjustments are essential to maintain safe, reliable service and to ensure that our systems keep pace with the state's expanding economy and population.
"In the meantime, 2026 is about working hard to control expenses, and we have reduced the pace of capital investments.
"Other major developments for the company went into effect late last year, including Arizona's new 'Ag-to-Urban' program that allows landowners who cease agricultural operations to convert their water rights for use in new development. The initiative aims to conserve millions of acre-feet of groundwater while addressing Arizona's housing supply shortages. The Arizona Department of Water Resources continues to actively accept applications from landowners, including several from developments in our Southwest Service Area subsequent to year-end.
"Another important development last year was the Arizona Department of Transportation (ADOT) adding the State Route 347 Improvement Project to its five-year construction plan. The project will widen the 15-mile corridor with an additional lane in each direction, upgrade bridges and intersections to ease congestion, and begin construction in summer 2026.
"We believe Arizona's economy is on a stable, long-term growth path that will help grow our organic connections. The economy is expected to accelerate in 2026, driven by a strong manufacturing sector and population growth. According to Arizona's Office of Economic Opportunity, employment is expected to rise by 486,000 jobs through 2033--an annual growth rate of 1.3%, which is more than three times the national average of 0.4%.
"Our ongoing Southern Arizona plan focuses on consolidating operations and rates across our customer base--delivering greater efficiency, affordability, and value through regionalization. Customers benefit from our emphasis on water conservation, including reduced demand for aquifer water.
"In light of all these considerations, as we look ahead we are confident these efforts will provide lasting value for both our customers and shareholders."
Financial Summary for the Years Ended December 31, 2025 and 2024
Revenue
Year Ended Favorable (Unfavorable)
December 31, 2025 vs. 2024
---------------- -----------------------------
(in thousands) 2025 2024 %
------- ------- --------------- ------------
Water service $28,609 $26,064 $ 2,545 9.8%
Wastewater and recycled
water service 27,149 26,628 521 2.0%
Total revenue $55,758 $52,692 $ 3,066 5.8%
====== ====== === ========== ====== ===
The increase in revenue for the year ended December 31, 2025 as compared to the year ended December 31, 2024 was primarily attributable to:
-- Organic growth in active water and wastewater connections and growth from
the acquisition of the seven water systems from the City of Tucson in
July 2025.
-- Increased water consumption, predominantly driven by the increase in
active connections and higher usage.
-- Higher rates for GW-Saguaro, resulting from the GW-Saguaro general rate
case, effective July 2024 and January 2025, and higher rates for
GW-Farmers, resulting from the GW-Farmers general rate case, effective
May 1, 2025 and November 1, 2025.
-- The increase in wastewater and recycled water service revenue was
partially offset by an increase of $0.4 million in bill credits related
to the company's Southwest Plant, which were effective beginning August
2024.
Operating Expenses
Year Ended Favorable (Unfavorable)
December 31, 2025 vs. 2024
---------------- -----------------------------
(in thousands) 2025 2024 $ %
------- ------- --------------- ------------
Personnel costs -
operations and
maintenance $ 5,637 $ 5,014 $ (623) (12.4)%
Utilities, chemicals
and repairs 4,671 3,927 (744) (18.9)%
Other operations and
maintenance expenses 5,441 4,785 (656) (13.7)%
------ ------ ---------- -------
Total operations
and maintenance
expense 15,749 13,726 (2,023) (14.7)%
------ ------ ---------- -------
Personnel costs -
general and
administrative 9,119 9,173 54 0.6%
Professional fees 1,899 1,687 (212) (12.6)%
Other general and
administrative
(MORE TO FOLLOW) Dow Jones Newswires
March 04, 2026 16:30 ET (21:30 GMT)