Global Water Resources (GWRS) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue rose 5.4% to $14.2M, driven by a 3.8% increase in active service connections, higher consumption, and rates.

• Net income for Q2 2025 was $1.6M ($0.06 per share), down 6.8% from Q2 2024, mainly due to higher operating expenses and depreciation.

• Completed the acquisition of seven Tucson Water systems in July 2025 for up to $8.2M, adding 2,200 connections and $7.7M in rate base, expected to add $1.5M in annual revenue.

• Benefited from new Arizona water legislation (Ag-to-Urban), supporting aquifer sustainability and future growth.

• Highway 347 expansion funding approved, supporting long-term growth in the City of Maricopa, one of the fastest-growing U.S. cities.

Financial highlights

• Six-month revenue rose 6.3% year-over-year to $26.7M; Q2 2025 revenue was $14.2M.

• Operating expenses for Q2 2025 increased 8.5% to $11.6M, mainly due to higher personnel, maintenance, and depreciation costs.

• Adjusted EBITDA for Q2 2025 was $6.9M, up 2.1% year-over-year.

• Basic and diluted EPS for Q2 2025 were $0.06, compared to $0.07 in Q2 2024.

• Cash provided by operating activities for the first half of 2025 was $8.8M, down from $13.6M in the prior year.

Outlook and guidance

• Management expects continued above-average growth from organic connections, rate increases, and regional economic expansion.

• $6.5M in annual rate increases proposed and under review by the Arizona Corporation Commission.

• Formula Rate Plans proposed to reduce regulatory lag and allow for more predictable rate adjustments, pending ACC approval.

• Anticipate a fair outcome for the major rate case in mid-2026.

• Expects long-term positive impact from major corporate investments and infrastructure projects in Arizona.