Global Water Resources Reports First Quarter 2025 Results

Global Water Resources, Inc., a pure-play water resource management company, has released its financial results for the first quarter ended March 31, 2025. The company, known for its Total Water Management approach, continues to focus on sustainable water resource management in growth corridors around metropolitan Phoenix and Tucson.

Financial Highlights

For the first quarter of 2025, Global Water Resources reported a total revenue increase of 7.3% to $12.5 million, primarily driven by organic connection growth and increased consumption. However, net income decreased by 14.5% to $0.6 million, or $0.02 per share, compared to $0.7 million, or $0.03 per share, in the same period last year. Adjusted EBITDA saw a 4.4% increase to $5.6 million. The company also reported a significant increase in cash and cash equivalents, totaling $31.5 million at the end of the quarter, up from $9.0 million at the end of 2024.

Business and Operational Highlights

Operationally, the company saw a 4.3% increase in total active service connections, reaching 65,163 by the end of the quarter. Water consumption also rose by 24.2% to 0.84 billion gallons. The company invested $15.2 million in infrastructure projects to support existing utilities and continued growth. Additionally, Global Water Resources filed general rate case applications for its GW-Santa Cruz and GW-Palo Verde utilities, requesting a net increase in annual revenues of $6.5 million.

Strategic Initiatives and Corporate Developments

In terms of strategic initiatives, the company raised net proceeds of $30.8 million from a public offering of common stock and declared three monthly cash dividends of $0.02533 per common share. The Arizona Corporation Commission approved a general rate case application for GW-Farmers, expected to generate an additional $1.1 million in annual revenue once fully phased in. The company also extended the maturity date of its revolving credit facility to May 2027 and increased the principal amount available for borrowing from $15 million to $20 million.

Management's Perspective

Ron Fleming, President and CEO, highlighted the company's continued top-line growth driven by organic growth in active water and wastewater connections and increased consumption. He emphasized the potential for strong net income growth supported by appropriate rate increases and organic growth. CFO Mike Liebman noted the strengthening of capital resources, positioning the company well for future growth opportunities, including capital improvements and acquisitions.

Future Outlook

Looking ahead, the company anticipates completing its plan to acquire seven water systems from the City of Tucson by mid-2025, expanding its service area in Pima County by approximately 2,200 water service connections. The company also expects continued growth in active service connections, driven by Arizona's strong economic outlook and projected population growth.

SEC Filing: Global Water Resources, Inc. [ GWRS ] - 8-K - May. 14, 2025