Global Water Resources (GWRS) investor relations material

Executive summary

• Q3 revenue rose 5.0% YoY to $16.301 million, while net income fell 41.5% to $1.005 million as higher operating costs, depreciation and interest weighed on earnings.

• 9M revenue increased 12.2% to $47.354 million; net income declined 13.6% to $3.386 million, while Adjusted EBITDA rose 5.0% to $21.4 million.

• Active connections grew 2.4% YoY to 69,797; management sees long-term support from Phoenix-area population and employment growth despite slower recent permit activity.

Financial highlights

• Q3 water-service revenue rose 6.2% to $9.004 million; wastewater and recycled-water revenue increased 3.7% to $7.297 million.

• Q3 operating expenses increased 10.4% to $13.908 million; depreciation, amortization and accretion rose 30.4% to $4.634 million, and operating income fell 18.1% to $2.393 million.

• Q3 net income was $1.005 million vs. $1.717 million; diluted EPS was $0.03 vs. $0.06 YoY. 9M diluted EPS was $0.12 vs. $0.15.

• 9M operating expenses rose 13.1% to $40.066 million, while operating income increased 7.2% to $7.288 million.

• Adjusted EBITDA was $7.8 million in both Q3 periods; 9M Adjusted EBITDA increased to $21.4 million from $20.4 million.

Outlook and guidance

• Four rate reviews for GW-Palo Verde and three Pima County utilities are planned for H1 2027, using a 2026 test year; new rates are estimated in 2028.

• Santa Cruz rates are scheduled to take effect Dec. 1, 2026, with $2.3 million in anticipated annual revenue, partly offset by a $0.4 million Palo Verde reduction; net increase expected at $1.9 million.

• Long-term strategy centers on connection growth, operating efficiencies, approved rate increases, and strategic utility acquisitions and consolidation; G&A cost control remains a 2026 priority.

• Management expects cash flows, cash on hand and Revolver access to cover operating needs and maintenance capital and support covenant compliance for the next 12 months and beyond.