Global Water Resources (GWRS) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue increased 8.4% year-over-year to $15.5 million, driven by organic growth and the acquisition of seven water systems from Tucson, adding 2,200 connections and $1.5 million in expected annual revenue.

• Net income for Q3 2025 was $1.7 million ($0.06/share), down 41.3% from $2.9 million in Q3 2024, mainly due to higher operating, depreciation, and interest expenses.

• Active service connections grew 6.6% year-over-year to 68,130 as of September 30, 2025, with 87.2% serviced by the two largest utilities.

• Continued execution of capital investment and rate case strategies to support near- and long-term earnings growth.

• Declared three monthly cash dividends totaling $0.02533 per share each, or $0.30396 annualized.

Financial highlights

• Q3 2025 total revenue: $15.5 million (+8.4% YoY); nine months: $42.2 million (+7.0% YoY).

• Q3 2025 net income: $1.7 million ($0.06/share), down from $2.9 million ($0.12/share) in Q3 2024; nine-month net income: $3.9 million ($0.15/share), down 26.7% YoY.

• Adjusted EBITDA for Q3 2025 was $7.8 million, a 5% decrease year-over-year; year-to-date adjusted EBITDA was stable at $20.4 million.

• Operating expenses increased 21.9% in Q3 2025, mainly due to higher personnel, O&M, G&A, and storm-related costs.

• Operating margin for Q3 2025 was approximately 18.8%.

Outlook and guidance

• Management expects continued growth from organic connections, acquisitions, and rate increases, supported by Arizona's economic outlook and the Ag-to-Urban water program.

• Pending rate cases for the two largest utilities could materially affect future revenue, with outcomes expected by mid-2026 and a proposed $4.3 million annual rate increase.

• Management remains optimistic despite temporary macroeconomic headwinds and expects to benefit from Phoenix MSA's long-term growth.