GWRS

This article first appeared on GuruFocus. Total Revenue: $17.8 million in Q2 2026, up 24.8% year-over-year; $31.1 million for the year-to-date period, up 16.3%. Regulated Revenue: $15.7 million in Q2 2026, up 9.9% year-over-year; $28.9 million for the year-to-date period, up 8.4%. Operating Expenses: $13.3 million in Q2 2026, up 14.1% year-over-year; $26.2 million for the year-to-date period, up 14.6%. Depreciation, Amortization and Accretion: Increased $1.1 million in Q2 and $2.0 million for the year-to-date period. Operations and Maintenance Costs: Increased approximately $0.6 million in Q2 and $1.1 million for the year-to-date period. G&A Costs: Relatively flat at $4.3 million in Q2 2026 compared to $4.4 million in Q2 2025; increased $0.2 million to $8.8 million for the year-to-date period. Other Expense: $0.8 million in Q2 2026 compared to $0.4 million in Q2 2025; $1.6 million for the year-to-date period compared to $0.9 million in the prior year period. Net Income: $2.7 million or $0.10 per diluted share in Q2 2026, compared to $1.6 million or $0.06 per diluted share in Q2 2025; $2.4 million or $0.08 per diluted share for the year-to-date period, compared to $2.2 million or $0.08 per diluted share in the prior year period. Adjusted EBITDA: $7.9 million in Q2 2026, up 15% year-over-year; $13.5 million for the year-to-date period, up 8%. Total Active Service Connections: Increased 5.8% to 69,429 as of June 30, 2026; annualized organic growth rate of 2.6% excluding the Tucson acquisition. Capital Investments: $6.6 million invested in infrastructure improvements in existing utilities in Q2 2026. Warning! GuruFocus has detected 11 Warning Signs with GWRS. Is GWRS fairly valued? Test your thesis with our free DCF calculator. Release Date: August 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Total revenue increased 24.8% year-over-year in Q2 2026, driven by unregulated ICFA revenue, acquisitions, and organic growth. Active service connections grew 5.8% year-over-year, with organic growth accelerating to 3.2% in the last three months. The unanimous settlement for GW Santa Cruz rate case provides a clear path to a $1.9 million net revenue increase effective November 2026. Adjusted EBITDA rose 15% in Q2 2026 to $7.9 million, reflecting strong operational performance. G&A expenses remained flat year-over-year, demonstrating effective cost control measures. Net income per diluted share remained flat at $0.08 for the year-to-date period, impacted by higher depreciation and operating expenses. Depreciation, amortization, and accretion expenses increased by $1.1 million in Q2 due to significant 2025 capital investments, pressuring earnings. Operations and maintenance costs rose due to rising medical expenses, higher purchase power costs, and a loss on disposal of utility plant. Other expenses increased to $0.8 million in Q2, driven by higher interest expense and lower interest income. Single-family building permits in the Phoenix MSA decreased 4.7% year-over-year, indicating a temporary slowdown in new construction activity. Q: How do you see the significant development in the Phoenix metro area, such as Intel, TMC, and the State Route 347 improvement project, potentially impacting the region and Global Water as a whole? A: Michael Liebman (CFO): We are optimistic that growth will continue to accelerate from current levels. The Arizona Commerce Authority reported its biggest economic development year yet for fiscal year 2026, with about 26,000 projected new jobs and more than $109 billion in community investment statewideboth single-year records. This is on top of roughly $170 billion in investment over the prior six years, which bodes well for future demand in our service areas. Q: Can you provide some color on what you're seeing on the ground from developers regarding permits, absorption, and new communities, and what is the timeline for those leading indicators to flow through to your numbers? A: Ron Fleming (CEO): While single-family permits had been slowing year-over-year, they bottomed out in the high 2% range and have ticked back up. Our actual organic growth rate has increased to 3.2% over the last three months, which we haven't seen in a few years. We are also seeing a significant shift from single-family homes to large multifamily apartment complexes, more activity than ever in our history. The cycle from announcement to impact is roughly two to three years, and we believe we are just now experiencing the acceleration from major projects announced over the last few years. Q: Given the company's significant 2025 capital investments, what is the 2026-27 capital expenditure outlook? A: Michael Liebman (CFO): We don't give specific guidance, but we have stated that 2025 was a near-record year for capital investments due to post-test year requirements. Capital expenditures in 2027 will definitely be lower than 2025, returning to somewhere around historical norms. Q: How is the acquisition pipeline looking today versus the last three to five years? A: Christopher Krygier (COO): It's always on our radar, but our primary focus right now is on integrating the acquisitions we've made over the past five years. We are concentrating on filing the necessary rate reviews and recovering the capital investments made in those utilities, along with the rest of the company. Q: If additional capital is required, how are you evaluating equity versus potential debt at current share prices? A: Michael Liebman (CFO): We aim to maintain a smooth capital structure at a 50/50 equity-to-debt ratio. The final decision depends on the situation, including where the stock price is, the state of the capital markets, and current debt rates. We are mindful of the dilutive nature of equity capital to shareholders, so we try to find that balance, but we start at that 50/50 target. Q: G&A was down slightly year-over-year as you continue bringing costs down. What should we think about as the run rate for G&A for the remainder of the year? A: Michael Liebman (CFO): This is something we've actively been working on this year, and we've done a pretty good job. Our plan is to continue that run rate and keep G&A costs as flat as possible for the remainder of the year. Q: Can you provide more detail on the regulatory progress for the GW Santa Cruz rate review and the timeline for new rates? A: Christopher Krygier (COO): We concluded the hearing on the settlement agreement on August 3, 2026, and the case is now pending a recommended opinion and order from the administrative law judge. We estimate the commission will vote on it later this year. The unanimous settlement contemplates net increased revenues of approximately $1.9 million effective November 1, 2026. Q: What are the plans for future rate filings beyond the GW Santa Cruz case? A: Christopher Krygier (COO): We have already started working on rate reviews for four utilities, which we anticipate filing in the first half of 2027, including GW Palo Verde and our three Pima county utilities (GW Saguaro, GW Farmers, and GW Ocotillo). All four applications contemplate a 2026 test year with a 2027 post-test year, implying estimated new rates in 2028. We have also started preliminary planning for the next GW Santa Cruz rate review, tentatively scheduled to file in 2028 for estimated new rates in 2029. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

PHOENIX, Aug. 12, 2026 (GLOBE NEWSWIRE) -- Global Water Resources, Inc. (NASDAQ: GWRS), a pure-play water resource management company, reported results for the three and six months ended June 30, 2026. 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). Q2 2026 Financial Highlights Total revenue increased $3.5 million or 24.8% year-over-year (YoY) to $17.8 million. The increase was primarily due to the recognition of $2.1 million in unregulated revenue related to infrastructure coordination and financing agreements (ICFA), the acquisition of seven water systems from Tucson Water in July 2025, organic connection growth, increased consumption and higher rates. Regulated revenue increased $1.4 million or 9.9% to $15.7 million YoY, primarily due to the acquisition of seven water systems from Tucson Water in July 2025, organic connection growth, increased consumption and higher rates. Net income increased $1.1 million to $2.7 million or $0.10 per diluted share, as compared to net income of $1.6 million or $0.06 per diluted share in the second quarter of 2025. The increase primarily reflects the company’s ICFA revenue recognized, the acquisition of seven water systems from Tucson Water in July 2025, and organic growth, partially offset by increased depreciation expense and net interest expense resulting from the company’s 2025 rate base investments. Adjusted EBITDA, a non-GAAP measure, increased $1.0 million YoY to $7.9 million in the second quarter of 2026 (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. Q2 2026 Operational Highlights Total active service connections at June 30, 2026 increased 5.8% YoY to 69,429. Annualized active service connection growth rate, excluding the acquisition of seven water systems from Tucson Water, was 2.6%. Water consumption increased 6.1% YoY to 1.2 billion gallons. Invested $6.6 million in Q2 2026 in infrastructure projects to support existing utilities and continued growth. On April 28, 2026, the company filed a settlement agreement with the Arizona Corporation Commission (ACC) detailing the terms upon which the parties have agreed, subject to ACC approval, to bifurcate and settle the rate cases for Global Water – Santa Cruz Water Company, Inc. (GW-Santa Cruz) and Global Water – Palo Verde Utilities Company, Inc. (GW-Palo Verde). Among other things, the parties have agreed to: In consideration of the settlement agreement, GW-Palo Verde committed to seek an increase to the amount of the temporary bill credit for its customers of approximately $0.4 million annually until resolution of the next GW-Palo Verde rate case. The increase to the temporary bill credit is anticipated to coincide with the new rates described above for GW-Santa Cruz going into effect. Filed Designation of Assured Water Supply applications to expand assured water supply and support long-term growth in GW-Santa Cruz and GW-Ocotillo service areas. Secured an extension of the company’s $20 million revolving line of credit to May 18, 2028. Subsequent Events On July 9, 2026, GW-Palo Verde filed a motion to withdraw its rate application in accordance with the settlement agreement. The motion was granted on July 29, 2026. On August 3, 2026, hearings concluded on the GW-Santa Cruz rate case, and the case, including the settlement agreement, is under advisement with the ALJ. Management Commentary“In Q2, we generated strong year-over-year growth,” commented Global Water Resources President and CEO, Ron Fleming. “The 9.9% increase in regulated revenue was primarily driven by the Tucson acquisition, the 2.7% organic active connections growth and higher water consumption in a rapidly expanding metropolitan region.“Revenue also benefited from higher rates at GW-Farmers following a successful general rate case in Southern Arizona. We expect the additional revenue to help fund current and future customer needs, including high-quality water infrastructure and improved service for the communities we serve.“As previously reported, we completed several significant 2025 capital investments to support growth and enhance long-term system reliability. These included recommissioning our Southwest Plant water reclamation facility, capital improvements to stay ahead of community growth, and the acquisition of seven water systems from the City of Tucson. While these projects increased depreciation as assets entered service, they expanded and strengthened our infrastructure, improved customer service capacity, and support long-term shareholder value.“Importantly, second quarter general and administrative expense was slightly lower year-over-year, reflecting continued cost discipline. Depreciation, amortization and accretion increased primarily from assets placed in service following our 2025 capital improvement plan and related investments. Although these non-cash expenses can affect near-term net income and earnings per share, they reflect capital deployed into infrastructure that supports growth, service quality, and customer and community needs. Appropriate rate relief remains important to recovering these investments and addressing inflationary pressures across our utilities.“In May, we filed testimony supporting a settlement to bifurcate rate cases for GW-Santa Cruz and GW-Palo Verde, our largest water and wastewater utilities. The regulatory hearing has concluded, our legal brief is complete, and we are awaiting the administrative law judge’s recommended opinion and order for commissioner review and vote. As a reminder, the settlement proposes a net $1.9 million rate increase. A final decision is expected in the fourth quarter with new rates for GW-Santa Cruz requested to be effective November 1, 2026.“Regarding GW-Palo Verde, we filed a motion to withdraw our rate review application. The motion was granted, and we intend to refile in 2027 using a 2026 test year. A growing rate base from prudent infrastructure investments is expected to support future rate case filings and appropriate rate increases, helping drive revenue growth and fund current and future customer needs.“During the quarter, we continued to invest prudently in core service areas where we can deploy our Total Water Management model, including required maintenance capital and new water and wastewater treatment and delivery facilities. For example, our Hassayampa utility commissioned a new 60,000-gallon-per-day water reclamation facility serving a planning and service area in western Maricopa County, Arizona, within Phoenix’s growth corridors.“Looking ahead, we expect continued organic connection growth driven by Arizona’s strong economic outlook. On July 16, 2026, TSMC announced an additional $100 billion investment for U.S. semiconductor manufacturing, bringing TSMC’s total planned Arizona investment to a record $265 billion. The funding will support four additional advanced chip manufacturing and packaging facilities in Arizona, totaling 12 U.S. sites, and is expected to create tens of thousands of jobs across the state, including Metro Phoenix and Tucson.“Beyond manufacturing, we believe Arizona’s broader economy is positioned to accelerate in 2026, supported by population and job growth. Arizona’s Office of Economic Opportunity projects employment will increase by 454,000 jobs through 2034, an annual growth rate of 1.2%, or four times the national average of 0.3%.“We are also pleased that the State Route 347 Improvement Project began in June. The project will widen the 14-mile corridor by adding one lane in each direction and upgrading bridges and intersections to ease congestion. We expect it to support residential and commercial development and increase demand for water, wastewater and recycled water services in the City of Maricopa and western Pinal County. “As part of our long-term regulatory planning, we expect to pursue future rate review filings over the next few years. As previously mentioned, we intend to start with GW-Palo Verde, followed by a rate review for, and consolidation of, our Pima County utilities, including GW-Saguaro, GW-Ocotillo, and GW-Farmers. These cases are expected to use a 2026 test year, which we intend to file in the first half of 2027. Finally, we are planning a GW-Santa Cruz rate review filing in the first half of 2028 using a 2027 test year. For the remainder of 2026 and beyond, we plan to continue to make prudent infrastructure investments across all our utilities as we build a strong regulatory record to support appropriate recovery of these investments.” Financial Summary for the Three Months Ended June 30, 2026 and 2025 Revenue N/M denotes a change not considered meaningful due to immaterial prior year value The increase in regulated revenue for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025 was primarily attributable to: The acquisition of the seven water systems from the City of Tucson in July 2025. Organic growth in active water and wastewater connections. Increased water consumption, predominantly driven by growth in active connections and higher usage largely as a result of higher temperatures and drier weather during the current year period. Higher rates for GW-Farmers resulting from the GW-Farmers general rate case, effective November 1, 2025 and May 1, 2026. The increase in unregulated revenue for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025 was related to ICFA revenue recorded in connection with the commissioning of a new wastewater reclamation facility in GW-Hassayampa’s service territory in June 2026. Operating Expenses Operations and Maintenance Higher personnel costs were primarily attributable to rising medical costs. Higher utilities, chemicals and repairs were primarily the result of increased purchased power driven by increased consumption and additional processing equipment in operation as a result of our 2025 capital improvement plan. Increased consumption also resulted in increased expenditures for chemicals and supplies. The increase in other operations and maintenance expenses was primarily driven by a $0.1 million loss on the disposal of utility plant and expenses related to wastewater disposal prior to the start-up of the GW-Hassayampa wastewater reclamation facility in June 2026 and $0.1 million in new operating costs for the seven water systems acquired from the City of Tucson in July 2025. General and Administrative Lower personnel costs were primarily driven by decreased hiring and moving expenses and lower salaries and wages, partially offset by increased medical costs. The decrease in professional fees was largely attributable to higher legal fees in the prior year period associated with the Nikola bankruptcy and the acquisition of the seven water systems from the City of Tucson in July 2025. The increase in other general and administrative expenses was primarily attributable to: Depreciation, Amortization and Accretion The increase for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025 was substantially attributable to an 18.8% increase in depreciable fixed assets as a result of our 2025 capital improvement plan, which resulted in a significant number of assets placed in service in the fourth quarter of 2025. Total Other Expense The increase of $0.4 million in other expense to $0.8 million for the three months ended June 30, 2026 as compared to $0.4 million for the three months ended June 30, 2025 was substantially attributable to: An increase in interest expense of $0.2 million primarily due to a term loan entered into in December 2025 to support our 2025 capital improvement plan and increased borrowings under the Revolver in the current year period. A decrease in interest income of $0.2 million as a result of carrying lower average cash balances. Net Income Net income increased $1.1 million or 70.4% to $2.7 million or $0.10 per diluted share in the second quarter of 2026, compared to net income of $1.6 million or $0.06 per diluted share in the second quarter of 2025. The increase primarily reflects the company’s ICFA revenue recognized, the acquisition of seven water systems from Tucson Water in July 2025, and organic growth, partially offset by increased depreciation expense and net interest expense, resulting from the company’s 2025 rate base investments. Adjusted EBITDA Adjusted EBITDA increased $1.0 million or 14.6% to $7.9 million in the second quarter of 2026, compared to $6.9 million in the same period in 2025. The increase was primarily the result of regulated revenue growth. Adjusted Net Income Adjusted net income, a non-GAAP measure, was $1.3 million in the second quarter of 2026, compared to $1.6 million in the same period in 2025. The decrease is primarily the result of higher depreciation, amortization and accretion expense, partially offset by an increase in regulated revenue. Financial Summary for the Six Months Ended June 30, 2026 and 2025 Revenue N/M denotes a change not considered meaningful due to immaterial prior year value The increase in regulated revenue for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025 was primarily attributable to: The acquisition of the seven water systems from the City of Tucson in July 2025. Organic growth in active water and wastewater connections. Increased water consumption, predominantly driven by growth in active connections and higher usage largely as a result of higher temperatures and drier weather during the current year period. Higher rates for GW-Farmers resulting from the GW-Farmers general rate case, effective November 1, 2025 and May 1, 2026. The increase in unregulated revenue for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025 was related to ICFA revenue recorded in connection with the commissioning of a new wastewater reclamation facility in GW-Hassayampa’s service territory in June 2026. Operating Expenses Operations and Maintenance Higher personnel costs were primarily attributable to rising medical costs. Higher utilities, chemicals and repairs were primarily the result of increased purchased power driven by increased consumption and additional processing equipment in operation as a result of our 2025 capital improvement plan. Increased consumption also resulted in increased expenditures for chemicals and supplies. The increase in other operations and maintenance expenses was primarily driven by a $0.1 million loss on the disposal of utility plant and expenses related to wastewater disposal prior to the start-up of the GW-Hassayampa wastewater reclamation facility in June 2026 and $0.1 million in new operating costs for the seven water system acquired from the City of Tucson in July 2025. General and Administrative Lower professional fees were substantially the result of higher legal fees in the prior year period associated with the Nikola bankruptcy and the acquisition of the seven water systems from the City of Tucson. The increase in other general and administrative expenses was primarily attributable to: Depreciation, Amortization and Accretion The increase for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025 was substantially attributable to an 18.8% increase in depreciable fixed assets as a result of our 2025 capital improvement plan, which resulted in a significant number of assets placed in service in the fourth quarter of 2025. In addition, amortization of intangible assets increased in the first quarter of 2026 in connection with ICFA payments received. Total Other Expense The increase of $0.7 million in total other expense to $1.6 million for the six months ended June 30, 2026 as compared to $0.9 million for the six months ended June 30, 2025 was substantially attributable to: An increase in interest expense of $0.4 million primarily due to a term loan entered into in December 2025 to support our 2025 capital improvement plan and increased borrowings under the Revolver in the current year period. A decrease in interest income of $0.2 million as a result of carrying lower average cash balances. A decrease in income associated with Buckeye growth premiums of $0.1 million that resulted from fewer new meter connections in the area. Net Income Net income increased $0.2 million or 8.1% to $2.4 million or $0.08 per diluted share in the six months ended June 30, 2026, compared to net income of $2.2 million or $0.08 per diluted share in the six months ended June 30, 2025. The primary drivers include ICFA revenue recognition, the acquisition of seven water systems from Tucson Water in July 2025, and organic growth partially offset by increased depreciation expense and net interest expense as a result of the company’s 2025 capital improvement plan. Adjusted EBITDA Adjusted EBITDA, a non-GAAP measure, increased $0.9 million or 7.6% to $13.5 million for the six months ended June 30, 2026, compared to $12.6 million in the same period in 2025. The increase is primarily attributable to higher regulated revenue, partially offset by increases in operations and maintenance expenses. Adjusted Net Income Adjusted net income, a non-GAAP measure, was $0.9 million for the six months ended June 30, 2026, compared to $2.2 million in the same period in 2025. The decrease is primarily the result of higher depreciation, amortization and accretion expense, partially offset by an increase in regulated revenue. Dividend Policy The company recently declared a monthly cash dividend of $0.02533 per common share (or $0.30396 per share on an annualized basis), payable on August 31, 2026, to holders of record at the close of business on August 17, 2026. Business Strategy Global Water's near-term growth strategy involves increasing service connections, improving operating efficiencies, and increasing utility rates as approved by the ACC. The company plans to continue aggregating water and wastewater utilities through strategic acquisitions and entity consolidation, which is expected to enable the company and its customers to realize the benefits of consolidation, regionalization, and environmental stewardship. Connection Rates As of June 30, 2026, active service connections increased by 3,790 or 5.8% to 69,429 compared to 65,639 at June 30, 2025. The increase in active service connections was primarily due to new connections associated with the seven acquired water systems from Tucson Water and organic growth in the company’s service areas. Arizona’s Growth Corridor: Positive Population and Economic Trends The company continues to experience organic growth exhibited through its year-over-year organic increase in active connections (i.e., exclusive of acquisition related growth) of 2.7% as of June 30, 2026. According to the 2025 U.S. Census estimates, the Phoenix metropolitan statistical area (MSA) is the 10th largest MSA in the U.S. and had an estimated population of 5.2 million, an increase of 7.9% over the 4.8 million people reported in the 2020 Census. Growth in the Phoenix MSA continues as a result of its excellent weather, large and growing universities, a diverse employment base, and low taxes. The Arizona Office of Economic Opportunity predicts that the Phoenix metropolitan area will have a population of 5.7 million people by 2030 and 6.3 million by 2040. The company’s organic growth continues to be primarily influenced by the comparatively lower cost of housing in the City of Maricopa relative to other areas within the Phoenix MSA. As of June 2026, the median home sales price in the City of Maricopa was 25% lower than in the City of Phoenix. In addition, construction on the State Route 347 Improvement Project began in June 2026, with completion scheduled for 2029. The project represents a transformative investment in regional infrastructure that the company believes will enhance safety, improve mobility and support the continued growth of the City of Maricopa and surrounding areas. The company continues to monitor potential effects on its operations due to changes in the macroeconomic environment, such as the impacts of tariffs on its operational costs and construction work in progress, as well as new home construction in the company’s service areas. The company continues to expect a positive long-term outlook based on forecasted performance of job and population growth, as well as indicators of stabilizing construction in the single-family housing market in the Phoenix MSA. While new permit activity has slowed, growth in the Phoenix MSA, particularly in the City of Maricopa, is reflected in the company’s 2.7% year-over-year organic increase in active connections. Management believes, despite fluctuations in permit projections, the company remains well-positioned to benefit from the anticipated long-term growth of the Phoenix MSA. Conference Call Global Water Resources will hold a conference call tomorrow to discuss its second quarter of 2026 results, including a question-and-answer period. Date: Thursday, August 13, 2026Time: 1:00 p.m. Eastern time (10:00 a.m. local time)Toll-free dial-in number: 1-833-816-1435International dial-in number: 1-412-317-0527Conference ID: 10208204Webcast (live and replay): here The conference call webcast is also available via a link in the Investors section of the company’s website at www.gwresources.com. Please call the conference telephone number five minutes prior to the start time. An operator will register your name and organization. If you require any assistance connecting to the call, please contact Encore at 1-949-432-7450. A replay of the call will be available after 4:00 p.m. Eastern time on the same day through August 27, 2026. Toll-free replay number: 1-844-512-2921International replay number: 1-412-317-6671 Replay ID: 10208204 About Global Water Resources Global Water Resources, Inc. is a leading water resource management company that owns and operates 39 systems which provide water, wastewater, and recycled water service. The company’s service areas are located primarily in growth corridors around metropolitan Phoenix and Tucson. Global Water recycles over 1 billion gallons of water annually with 19.9 billion gallons recycled since 2004. The company has been recognized for its highly effective implementation of Total Water Management (TWM). TWM is an integrated approach to managing the entire water cycle that involves owning and operating water, wastewater and recycled water utilities within the same geographic area in order to maximize the beneficial use of recycled water. It enables smart water management programs such as remote metering infrastructure and other advanced technologies, rate designs, and incentives that result in real conservation. TWM helps protect water supplies in water-scarce areas experiencing population growth. Global Water has received numerous industry awards, including national recognition as a ‘Utility of the Future Today’ for its superior water reuse practices by a national consortium of water and conservation organizations led by the Water Environment Federation (WEF). The company also received Cityworks’ Excellence in Departmental Practice Award for demonstrating leadership and creativity in applying public asset management strategies to daily operations and long-term planning. To learn more, visit www.gwresources.com. Use of Non-GAAP Measures This press release contains certain financial measures that are not recognized measures under accounting principles generally accepted in the United States of America (“GAAP”), including EBITDA, adjusted EBITDA, adjusted net income, and adjusted diluted earnings per common share. EBITDA is defined for the purposes of this press release as net income before interest, income taxes, depreciation, amortization and accretion. Adjusted EBITDA is defined as EBITDA excluding the gain or loss related to (i) restricted stock expense related to awards made to employees and the board of directors; (ii) disposal of assets and (iii) ICFA revenue. Adjusted net income and adjusted diluted earnings per common share reflect net income and diluted earnings per common share excluding (i) ICFA revenue; (ii) amortization related to ICFA intangible assets; (iii) disposal of assets and (iv) the tax effect of these items, as applicable. Management believes that EBITDA, adjusted EBITDA, adjusted net income, and adjusted diluted earnings per common share are useful supplemental measures of our operating performance and provide our investors meaningful measures of overall corporate performance. EBITDA is also presented because management believes that it is frequently used by investment analysts, investors, and other interested parties as a measure of financial performance. Adjusted EBITDA, adjusted net income, and adjusted diluted earnings per common share are also presented because management believes that they provide our investors additional measures of our recurring core business. However, non-GAAP measures do not have a standardized meaning prescribed by GAAP, and investors are cautioned that non-GAAP measures, such as EBITDA, adjusted EBITDA, adjusted net income, and adjusted diluted earnings per common share, should not be construed as an alternative to net income, diluted earnings per common share, or other income statement data (which are determined in accordance with GAAP) as an indicator of our performance or as a measure of liquidity and cash flows. Management's method of calculating EBITDA, adjusted EBITDA, adjusted net income, and adjusted diluted earnings per common share may differ materially from the method used by other companies and accordingly, may not be comparable to similarly titled measures used by other companies. A reconciliation of EBITDA, adjusted EBITDA and adjusted net income to net income and a reconciliation of adjusted diluted earnings per common share to diluted earnings per common share, the most comparable GAAP measures, are included in the schedules attached to this press release. Cautionary Note Regarding Forward-Looking Statements Certain statements in this press release and the related conference call include certain forward-looking statements which reflect the company's expectations regarding future events. These forward-looking statements include, but are not limited to, statements about our strategies; expectations about future business plans, prospective performance, growth, and opportunities, including the potential for new service connections; future financial performance; regulatory and ACC proceedings, decisions and approvals, such as the outcome, timing and other statements regarding our plans, expectations and estimates relating to our rate cases and other applications with the ACC and other regulatory bodies, including with respect to the settlement agreement for the GW-Santa Cruz and GW-Palo Verde rate cases; our plans relating to future filings of our rate cases and other regulatory applications; acquisition plans and strategies, including our ability to complete additional acquisitions, and our expectations about future benefits of our acquisitions, such as projected revenue from our acquisitions, as well as our plans relating to the integration and upgrade of acquired water systems; statements concerning Arizona’s Assured Water Supply “Ag-to-Urban” program and ADOT’s SR 347 widening project, including anticipated benefits; population and growth projections; technologies, including expected benefits from implementing such technologies; revenue; metrics; operating expenses; trends relating to our industry, market, population and job growth, and housing permits; the adequacy of our water supply to service our current demand and growth for the foreseeable future; liquidity and capital resources; plans and expectations for capital expenditures; cash flows and uses of cash; dividends; depreciation and amortization; tax payments; our ability to repay indebtedness and invest in initiatives; the anticipated impact and resolutions of legal matters; the anticipated impact of new or proposed laws, including regulatory requirements, tax changes, and judicial decisions; the anticipated impact of accounting changes and other pronouncements; and other statements that are not historical facts, as well as statements identified by words such as "expects", "anticipates", "intends", "plans", "believes", "seeks", "estimates", or the negative of these terms, or other words of similar meaning. These statements are based on our current beliefs or expectations and are inherently subject to a number of risks, uncertainties, and assumptions, most of which are difficult to predict and many of which are beyond our control. Actual results may differ materially from these expectations due to changes in political, economic, business, market, regulatory, and other factors. Factors that may also affect future results are disclosed under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our filings with the Securities and Exchange Commission (the "SEC"), which are available at the SEC's website at www.sec.gov. This includes, but is not limited to, our most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings with the SEC. Accordingly, investors are cautioned not to place undue reliance on any forward-looking statements, which reflect management’s views as of the date hereof. We undertake no obligation to publicly update any forward-looking statement, except as required by law, whether as a result of new information, future developments or otherwise. A reconciliation of net income to EBITDA and adjusted EBITDA is as follows: A reconciliation of net income to adjusted net income and diluted earnings per common share to adjusted diluted earnings per common share is as follows: 1Represents unregulated revenue related to ICFA agreements previously recorded as deferred revenue.2Represents the disposal of certain assets that were no longer used and useful following the completion of new water treatment assets.3Represents noncash restricted stock expense for awards made to employees and the nonemployee directors.4Represents amortization expense of intangible assets associated with ICFA payments received in the first quarter of 2026.

Global Water Resources, Inc. (GWRS) came out with quarterly earnings of $0.04 per share, beating the Zacks Consensus Estimate of $0.03 per share. This compares to earnings of $0.06 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +33.33%. A quarter ago, it was expected that this company would post a loss of $0.02 per share when it actually produced a loss of $0.01, delivering a surprise of +50%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Global Water Resources, which belongs to the Zacks Utility - Water Supply industry, posted revenues of $17.77 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 18.45%. This compares to year-ago revenues of $14.24 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Global Water Resources shares have lost about 9.9% since the beginning of the year versus the S&P 500's gain of 12.9%. While Global Water Resources has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Global Water Resources was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.05 on $16 million in revenues for the coming quarter and $0.08 on $58.6 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Utility - Water Supply is currently in the bottom 13% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Global Water Resources, Inc. (GWRS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Global Water Resources, Inc.? Here are five stocks we like better. Second-quarter revenue rose 24.8% to $17.8 million, while net income increased to $2.7 million, or $0.10 per diluted share. Growth was driven by regulated revenue, $2.1 million in ICFA-related revenue recognition, the Tucson acquisition, customer connections and higher rates. Profitability remained pressured by a 14.1% increase in operating expenses, including higher depreciation, purchased power, medical and other operating costs tied to recent capital investments. Management expects delayed rate recovery to ease some pressure as regulatory proceedings advance. Global Water’s active connections grew 5.8% year over year to 69,429, and the company invested $6.6 million in infrastructure during the quarter. A Santa Cruz rate-case settlement could provide approximately $1.9 million in annual net revenue increases beginning November 2026 if approved. Global Water Resources (NASDAQ:GWRS) reported higher second-quarter revenue and earnings, supported by regulated revenue growth, infrastructure-related revenue recognition, acquisitions and customer growth, while management emphasized that rising depreciation, operating costs and delayed rate recovery continue to pressure profitability. Total revenue for the second quarter of 2026 rose 24.8% year over year to $17.8 million. For the first six months of the year, revenue increased 16.3% to $31.1 million. Chief Financial Officer Mike Liebman said the increases reflected $2.1 million of unregulated revenue recognition related to Infrastructure Coordination and Financing Agreements, or ICFAs, as well as the July 2025 acquisition of seven Tucson Water systems, organic connection growth, increased consumption and higher rates. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be Regulated revenue, which excludes ICFA revenue, increased 9.9% to $15.7 million in the quarter and grew 8.4% to $28.9 million for the year-to-date period. Net income rose to $2.7 million, or $0.10 per diluted share, from $1.6 million, or $0.06 per diluted share, a year earlier. Year-to-date net income was $2.4 million, or $0.08 per diluted share, compared with $2.2 million, or $0.08 per diluted share, in the prior-year period. → Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand Adjusted EBITDA increased 15% to $7.9 million in the second quarter. For the first half, adjusted EBITDA rose 8% to $13.5 million. Operating expenses increased 14.1% to $13.3 million during the quarter. Depreciation, amortization and accretion expense rose by $1.1 million, largely due to utility plant placed into service following the company’s 2025 capital-improvement program and the commissioning of related projects. Operations and maintenance costs increased approximately $600,000, driven by rising medical expenses, higher purchased power costs associated with newly operational plants and increased consumption, and a loss on disposal of utility plant. → On Holding's Price Stumble May Be an Opening for a Company Built to Run General and administrative expenses were relatively unchanged, declining to $4.3 million from $4.4 million a year earlier. Liebman said management’s goal is to keep those costs “as flat as possible” for the remainder of the year. Other expense increased to $800,000 from $400,000, primarily due to higher interest expense and lower interest income. President and Chief Executive Officer Ron Fleming said major capital investments completed in 2025, including the recommissioning of the Southwest Plant water reclamation facility, expanded rate base and were necessary to support reliable service. However, the investments also increased depreciation and certain operating expenses, affecting net income and earnings per share under Arizona’s historical test-year regulatory framework. The company said it continues to seek rate increases intended to recover inflationary expenses and earn returns on its utility investments. Chief Operating Officer Chris Krygier said the rate-case settlement for Global Water-Santa Cruz Water Company concluded its hearing on Aug. 3 and is awaiting a recommended opinion and order from an administrative law judge. The matter is expected to go before the Arizona Corporation Commission later in 2026. The unanimous settlement contemplates approximately $1.9 million in net revenue increases, effective Nov. 1, 2026, if approved. Global Water has also begun preparing rate-review filings for four utilities during the first half of 2027: Global Water-Palo Verde Utilities Company; Global Water-Saguaro District Water Company; Global Water-Farmers Water Company; and Global Water-Ocotillo Water Company. Those cases are expected to use a 2026 test year and 2027 post-test year, with estimated new rates in 2028. The company is also preliminarily planning its next Santa Cruz rate review, using a potential 2027 test year for a 2028 filing and estimated rates taking effect in 2029. Total active service connections increased 5.8% from a year earlier to 69,429 as of June 30. Excluding the Tucson Water system acquisition, Global Water recorded an annualized 2.6% total active connection growth rate in 2026. The company invested $6.6 million in infrastructure improvements at existing utilities during the quarter. Organic active connections increased 2.7% year over year, as permitting activity moderated in the Phoenix metropolitan area. Single-family building permits in the Phoenix metro statistical area declined 4.7% in the second quarter from the prior-year period to 5,653. In Maricopa, permits rose 5.7% to 185. Fleming said organic growth over the most recent three months had increased to 3.2%, above the company’s earlier growth pace. He also cited greater development activity involving multifamily apartment projects and commercial properties, which he said has contributed to revenue growth that is not solely tied to meter connections. Management pointed to regional economic-development activity, housing affordability and the planned widening of State Route 347 as potential long-term growth drivers. Fleming said major employer projects and related residential development typically progress on a two- to three-year cycle from announcement to broader economic effects. On capital spending, Liebman said the company does not provide formal guidance, but indicated that 2027 capital expenditures are expected to be lower than the elevated 2025 investment level and closer to the company’s historical norms. Regarding financing, he said Global Water generally seeks to maintain a roughly 50-50 debt-and-equity capital structure, while considering equity-market conditions, debt rates and potential dilution. Liebman also said Global Water and its utility subsidiaries were not affected by recent cyberattacks targeting water and wastewater infrastructure in the U.S. Global Water Resources, Inc (NASDAQ:GWRS) is a publicly traded holding company based in Scottsdale, Arizona, specializing in the ownership and management of water and wastewater utilities. The company provides critical potable water delivery, wastewater collection and treatment, and reclaimed water services to residential, commercial and industrial customers across select communities in Central and Southern Arizona. The company operates multiple regulated utility systems, serving communities such as Anthem, Biltmore, Florence and San Tan Valley. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Global Water Resources Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is shifting focus toward long-term earnings growth following a period of heavy capital investment that expanded the rate base but pressured net income through increased depreciation. The 2025 recommissioning of the Southwest plant water reclamation facility, mothballed since the Great Recession, drove significant depreciation and operating expenses in the current quarter. Regulated revenue growth of 9.9% was supported by the acquisition of seven Tucson water systems and a 2.7% organic increase in active service connections. Unregulated revenue saw a significant boost from $2.1 million in Infrastructure Coordination and Financing Agreements (ICFA) recognition as the GW-Hassayampa utility met contractual obligations. Operating expenses were impacted by unprecedented growth in medical costs and higher purchased power requirements for newly operational plants. Management successfully stabilized G&A expenses year-over-year, emphasizing cost control as a bridge to future rate relief. The company reported no impact from recent national cyber attacks on water infrastructure, maintaining operational integrity. A settlement agreement for the GW-Santa Cruz utility provides a path for a notable rate increase expected to take effect later in 2026. The company plans to file rate reviews for four utilities in the first half of 2027, utilizing a 2026 test year to target new rates by 2028. Management anticipates a return to meaningful earnings growth as new rates begin to recover inflationary expenses and provide a return on the Southwest plant investment. Capital expenditure for 2027 is expected to trend lower toward historical norms following the significant investment cycle of 2025. Organic growth is expected to accelerate due to the State Route 347 widening project, which improves access to the company's service areas where homes are 20% to 30% more affordable than the broader Phoenix market. The historical test year environment in Arizona creates a lag between capital investment and rate recovery, temporarily depressing EPS during high-investment cycles. A temporary slowdown in building permits across the Phoenix MSA impacted organic growth, though management views this as a short-term trend. Increased interest expense and lower interest income contributed to a rise in 'other expense' to $800,000 for the quarter. The company maintains a target capital structure of 50% equity and 50% debt, balancing expansion needs against the dilutive nature of equity issuance. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that while permits flattened recently, they are seeing an upward trajectory driven by record economic development and job growth in Arizona. The cycle from project announcement to housing formation and utility connection typically spans two to three years, suggesting an acceleration in the near term. The company intends to keep G&A expenses as flat as possible for the remainder of the year as part of its active cost-management strategy. Revenue growth is beginning to outpace meter connection growth as the service area shifts from single-family homes to large multi-family complexes and commercial properties. Global Water Resources is focused on managing its total water platform and infrastructure investments to support organic growth and provide reliable service within its service areas.

MYR Group (MYRG) came out with quarterly earnings of $3.17 per share, beating the Zacks Consensus Estimate of $2.53 per share. This compares to earnings of $1.7 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +25.30%. A quarter ago, it was expected that this electrical construction services provider would post earnings of $2.09 per share when it actually produced earnings of $2.99, delivering a surprise of +43.06%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. MYR, which belongs to the Zacks Electric Construction industry, posted revenues of $1.08 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 8.66%. This compares to year-ago revenues of $900.33 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. MYR shares have added about 55.9% since the beginning of the year versus the S&P 500's gain of 8.5%. While MYR has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for MYR was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.84 on $1.05 billion in revenues for the coming quarter and $11.43 on $4.1 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electric Construction is currently in the top 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Utilities sector, Global Water Resources, Inc. (GWRS), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 13. This company is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of -50%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Global Water Resources, Inc.'s revenues are expected to be $15 million, up 5.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MYR Group, Inc. (MYRG) : Free Stock Analysis Report Global Water Resources, Inc. (GWRS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

PHOENIX, July 22, 2026 (GLOBE NEWSWIRE) -- Global Water Resources, Inc. (NASDAQ: GWRS), a pure-play water resource management company, will hold a conference call on Thursday, August 13, 2026 at 1:00 p.m. Eastern time to discuss results for the second quarter ended June 30, 2026. The financial results will be issued in a press release prior to the call. Global Water Resources management will host the presentation, followed by a question-and-answer period. Date: Thursday, August 13, 2026Time: 1:00 p.m. Eastern time (10:00 a.m. Pacific time)Toll-free dial-in number: 1-833-816-1435International dial-in number: 1-412-317-0527Conference ID: 10210577Webcast (live and replay): here The conference call webcast is also available via a link in the Investors section of the company’s website at www.gwresources.com. Please call the conference telephone number five minutes prior to the start time. An operator will register your name and organization. If you require any assistance connecting to the call, please contact Encore at 1-949-432-7450. A replay of the call will be available after 4:00 p.m. Eastern time on the same day through August 27, 2026. Toll-free replay number: 1-844-512-2921International replay number: 1-412-317-6671Replay ID: 10210577 About Global Water Resources Global Water Resources, Inc. is a leading water resource management company that owns and operates 39 systems which provide water, wastewater, and recycled water service. The company’s service areas are located primarily in growth corridors around metropolitan Phoenix and Tucson. Global Water recycles over 1 billion gallons of water annually with 19.8 billion gallons recycled since 2004. The company has been recognized for its highly effective implementation of Total Water Management (TWM). TWM is an integrated approach to managing the entire water cycle that involves owning and operating water, wastewater and recycled water utilities within the same geographic area in order to maximize the beneficial use of recycled water. It enables smart water management programs such as remote metering infrastructure and other advanced technologies, rate designs, and incentives that result in real conservation. TWM helps protect water supplies in water-scarce areas experiencing population growth. Global Water has received numerous industry awards, including national recognition as a ‘Utility of the Future Today’ for its superior water reuse practices by a national consortium of water and conservation organizations led by the Water Environment Federation (WEF). The company also received Cityworks’ Excellence in Departmental Practice Award for demonstrating leadership and creativity in applying public asset management strategies to daily operations and long-term planning.To learn more, visit www.gwresources.com.

PHOENIX, May 18, 2026 (GLOBE NEWSWIRE) -- Global Water Resources Inc., ("the Company"), (NASDAQ: GWRS), a pure-play water resource management company, announced that the nominees listed in the Proxy Statement, dated March 31, 2026, for the 2026 Annual Meeting of Stockholders ("the Meeting") were selected as Directors of the Company. As of the March 17, 2026 record date for the determination of the shareholders entitled to notice of and to vote at the meeting, 28,763,634 shares of common stock were outstanding and eligible to vote. A total of 24,858,154 shares were voted in person or by proxy at the meeting. The results of the vote for the election of the Directors at the Meeting were as follows: In addition, at the Meeting, the appointment of Deloitte & Touche LLP as the Company's independent registered public accounting firm for the fiscal year ending December 31, 2026 was ratified. The results of the vote were as follows: In addition, at the Meeting, approval on an advisory basis, of the compensation of the Company’s named executive officers was approved. The results of the vote were as follows: (1) Percentages of total shares voted are calculated based on the number of shares entitled to vote on the applicable proposal and exclude broker non-votes, which are not considered votes cast for Proposals 1 and 3. About Global Water Resources Global Water Resources, Inc. is a leading water resource management company that owns and operates 39 systems which provide water, wastewater, and recycled water utility service. The company’s service areas are located primarily in growth corridors around metropolitan Phoenix and Tucson. Global Water recycles over 1 billion gallons of water annually with 19.8 billion gallons recycled since 2004.The company has been recognized for its highly effective implementation of Total Water Management (TWM). TWM is an integrated approach to managing the entire water cycle that involves owning and operating water, wastewater and recycled water utilities within the same geographic area in order to maximize the beneficial use of recycled water. It enables smart water management programs such as remote metering infrastructure and other advanced technologies, rate designs, and incentives that result in real conservation. TWM helps protect water supplies in water-scarce areas experiencing population growth.Global Water has received numerous industry awards, including national recognition as a ‘Utility of the Future Today’ for its superior water reuse practices by a national consortium of water and conservation organizations led by the Water Environment Federation. The company also received Cityworks’ Excellence in Departmental Practice Award for demonstrating leadership and creativity in applying public asset management strategies to daily operations and long-term planning.To learn more, visit www.gwresources.com. Company Contact:Michael J. Liebman CFO and SVPTel (480) 999-5104 [email protected] Investor Relations:Ron Both or Grant StudeEncore Investor RelationsTel (949) [email protected]

Interested in Global Water Resources, Inc.? Here are five stocks we like better. Global Water Resources reported Q1 revenue of $13.3 million, up 6.7% year over year, but higher depreciation, operating costs and interest expense pushed the company to a net loss of $0.4 million, or $0.01 per share. Customer growth remained solid, with active service connections rising 5.7% to 68,885, supported by acquisitions and organic growth, even as Arizona housing permits slowed in the quarter. The company reached a unanimous rate case settlement that could lift GW Santa Cruz water revenue by about $2.3 million starting Nov. 1, 2026, and it plans additional rate filings ahead, including for GW Palo Verde wastewater assets. Global Water Resources (NASDAQ:GWRS) reported higher first-quarter revenue but swung to a loss as increased depreciation, operating costs and interest expense weighed on results, management said on the company’s May 14 earnings call. President and Chief Executive Officer Ron Fleming said the company remains focused on long-term earnings growth, but near-term results continue to reflect the cost of recent investments, including the recommissioning of the Southwest Plant Water Reclamation facility. Fleming said those investments are expected to grow rate base and support future earnings, but they also increased operating expenses, “most notably, depreciation expense.” → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? “As I’ve been saying for many quarters now, we need new rates to keep up with all the investment and inflation that we have experienced in our utilities,” Fleming said. Chief Financial Officer Mike Liebman said total revenue for the first quarter of 2026 was $13.3 million, up $0.8 million, or 6.7%, from the first quarter of 2025. He attributed the increase primarily to the acquisition of seven water systems from the City of Tucson in July 2025, organic connection growth and higher rates in the company’s GW Farmer utility. → MP Materials Is Quietly Building a Rare Earth Powerhouse Operating expenses rose to $12.9 million, up $1.7 million, or 15.1%, from $11.2 million in the prior-year quarter. Liebman said depreciation, amortization and accretion expense increased $0.9 million, largely due to additional depreciable fixed assets placed in service last year as part of the 2025 capital improvement plan and related commissioned projects. Operating and maintenance costs increased by approximately $0.5 million, driven by higher medical expense, increased purchased power tied to newly operational plants and wastewater disposal expenses related to the startup of two new wastewater reclamation facilities. General and administrative costs rose by approximately $0.3 million, also primarily due to rising medical costs. → Micron Investors Face a High-Stakes Moment After the Latest Rally Other expense totaled $0.9 million in the first quarter, compared with $0.5 million in the same period last year. Liebman said the increase was mainly due to higher interest expense, lower interest income and a decrease in income associated with the company’s Buckeye growth premiums. Global Water Resources posted a net loss of $0.4 million, or $0.01 per diluted share, compared with net income of $0.6 million, or $0.02 per diluted share, in the first quarter of 2025. Adjusted EBITDA was unchanged at $5.6 million in both periods. Fleming said total active service connections increased 5.7% year over year to 68,885 as of March 31, 2026. Excluding the acquisition of the seven Tucson water systems, the company achieved an annualized 1.9% total active service connection growth rate in 2026. The company invested $6.3 million in infrastructure improvements in existing utilities during the year to provide safe and reliable service, Fleming said. Management also discussed trends in the Arizona housing market, which influence customer growth. Fleming said the single-family dwelling unit market ended 2025 with approximately 21,815 building permits issued in the Phoenix metropolitan statistical area. In the first quarter of 2026, the Phoenix MSA recorded 5,204 building permits, down 18.8% from the same period in 2025. The Maricopa market recorded 157 permits, down 16.5% year over year. Despite the slowdown in new permit activity, Fleming said continued growth in the Phoenix MSA and the city of Maricopa was reflected in the company’s 2.6% year-over-year organic increase in active connections. He said the company views the decline in permits as temporary and believes it remains positioned to benefit from long-term growth in the region, citing job growth, affordability, improving transportation, including State Route 347 widening, and the company’s large Assured Water Supply. Chief Operating Officer Christopher Krygier reviewed regulatory activity and said the company reached a unanimous settlement in its pending rate reviews, as previously disclosed in an April 29 press release and Form 10-Q. The settlement contemplates a water revenue increase of approximately $2.3 million for GW Santa Cruz and a wastewater revenue decrease of $0.4 million for GW Palo Verde through an extension of the existing temporary bill credit. The estimated effective date for the new rates is Nov. 1, 2026. Krygier said the settlement allows the company to close most of the history related to GW Santa Cruz’s southwest area water assets and shift attention to wastewater assets. The next steps include filing testimony in support of the settlement by the end of May, with a hearing scheduled to begin in August 2026. After the hearing, an administrative law judge will write a recommendation for the Arizona Corporation Commission’s consideration. As part of the settlement, Global Water Resources agreed to withdraw the GW Palo Verde rate review. Krygier said the company anticipates filing a new rate review request for GW Palo Verde’s wastewater assets in 2027, with new rates estimated to be implemented in 2028. That future request is expected to include the Southwest Plant Water Reclamation facility, incremental capital investments made since 2025 and operating expenses from a 2026 test year. Fleming said the recently announced settlement provides a clearer path to a “notable rate increase” for GW Santa Cruz later this year, while the revised timeline for GW Palo Verde addresses differences of opinion over the timing of rate recovery tied to the Southwest Plant Water Reclamation facility. He said the company is working to control expenses in 2026 and has reduced the pace of capital investments. Longer term, management said it expects revenue and earnings growth to come from appropriate rate increases and anticipated organic growth. Krygier said the company is planning multiple rate review filings and expects to provide updates during its next quarterly call in August 2026. Those updates are expected to include timing for future rate review filings for the Farmers Division, Saguaro Division, Ocotillo Division and Santa Cruz Division, among others. The call’s question-and-answer session concluded without any questions from participants. In closing remarks, Fleming thanked investors for their interest in the company and reiterated management’s focus on growth and serving communities along Arizona’s Sun Corridor. Global Water Resources, Inc (NASDAQ:GWRS) is a publicly traded holding company based in Scottsdale, Arizona, specializing in the ownership and management of water and wastewater utilities. The company provides critical potable water delivery, wastewater collection and treatment, and reclaimed water services to residential, commercial and industrial customers across select communities in Central and Southern Arizona. The company operates multiple regulated utility systems, serving communities such as Anthem, Biltmore, Florence and San Tan Valley. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Global Water Resources Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

This article first appeared on GuruFocus. Release Date: May 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Total revenue for Q1 2026 increased by 6.7% to $13.3 million compared to Q1 2025. The acquisition of seven water systems from the City of Tucson contributed positively to revenue growth. Total active service connections increased by 5.7% year-over-year, indicating strong customer growth. The company achieved a 2.6% year-over-year organic increase in active connections, reflecting continued growth in the Phoenix MSA. A settlement in pending rate reviews provides a clearer path to a notable rate increase for GW Santa Cruz, expected to enhance future earnings. Net loss for Q1 2026 was $0.4 million, compared to a net income of $0.6 million in Q1 2025. Operating expenses increased by 15.1% to $12.9 million, driven by higher depreciation and maintenance costs. The single-family dwelling unit market saw an 18.8% decrease in building permits in the Phoenix area, indicating a slowdown in new permit activity. Higher interest expenses and lower interest income contributed to an increase in other expenses. The delay in rate recovery for GW Palo Verde due to differences in opinion on timing impacts financial performance. Warning! GuruFocus has detected 9 Warning Signs with GWRS. Is GWRS fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more details on the recent rate case settlement and its impact on your financials? A: Chris Krieger, Chief Operating Officer, explained that the settlement involves a water revenue increase of approximately $2.3 million for GW Santa Cruz and a wastewater revenue decrease of $0.4 million for GW Palo Verde. The new rates are expected to be effective from November 1, 2026. This settlement helps close historical issues related to GW Santa Cruz's water assets and allows focus on wastewater assets. The next steps include filing testimony in support of the settlement and a hearing in August 2026. Q: What are the main drivers behind the increase in operating expenses for Q1 2026? A: Mike Liebman, Chief Financial Officer, noted that operating expenses increased by $1.7 million or 15.1% compared to Q1 2025. This was mainly due to higher depreciation, amortization, and accretion expenses from new fixed assets, increased operating and maintenance costs driven by rising medical expenses, and higher costs associated with new wastewater reclamation facilities. Q: How is Global Water Resources addressing the decline in building permits in the Phoenix MSA? A: Ron Fleming, President and CEO, acknowledged the 18.8% decrease in building permits in Q1 2026 compared to the same period in 2025. However, he emphasized that the company remains well-positioned to benefit from long-term growth in the Phoenix MSA due to factors like job growth, affordability, and infrastructure improvements. The company is focusing on organic growth and maintaining solid revenue and earnings growth. Q: What are the future plans for rate review filings across your utilities? A: Chris Krieger mentioned that Global Water Resources is planning multiple rate review filings for various divisions, including Farmers, Saguaro, Ocotillo, and Santa Cruz. Updates on these filings will be provided in the next quarterly update in August 2026. The company is focused on securing appropriate rates for its capital investments. Q: Can you elaborate on the impact of the acquisition of the Seven Water Systems from Tucson on your revenue? A: Mike Liebman highlighted that the acquisition of the Seven Water Systems from Tucson in July 2025 contributed significantly to the 6.7% increase in total revenue for Q1 2026, alongside organic connection growth and higher rates in the GW farmers utility. For the complete transcript of the earnings call, please refer to the full earnings call transcript.