Global Water Resources Reports Third Quarter 2026 Results
Key Highlights
- ➤Q3 revenue $16.3 million, up 5.0% year over year
- ➤Q3 net income $1.0 million, down 41.5%; diluted EPS $0.03
- ➤Q3 adjusted EBITDA held at $7.8 million year over year
- ➤$10.0 million private placement completed; credit capacity increased to $30.0 million
- ➤GW-Santa Cruz rate settlement recommended; new rates could begin December 1, 2026
Expert Statements
Ron Fleming, President and CEO of Global Water Resources
“In the third quarter, total revenue increased 5.0% year over year to $16.3 million,”
Ron Fleming, President and CEO of Global Water Resources
“Total active service connections increased 2.4% year over year to 69,797.”
Ron Fleming, President and CEO of Global Water Resources
“We invested $6.9 million during the quarter in infrastructure improvements across our existing utilities.”
Ron Fleming, President and CEO of Global Water Resources
“These investments build on our significant 2025 capital program, including recommissioning the Southwest Plant Water Reclamation Facility, and expand the rate base needed to continue safe and reliable service to our customers and communities over the long term.”
Ron Fleming, President and CEO of Global Water Resources
“As expected, assets placed in service under the 2025 and 2026 capital improvement plans increased depreciation expense and continued to affect near-term net income and earnings per share.”
Ron Fleming, President and CEO of Global Water Resources
“Operations and maintenance expense also increased, primarily due to rising medical costs and higher costs to power and operate our newly operational plant.”
Ron Fleming, President and CEO of Global Water Resources
“At the same time, general and administrative expense remained relatively flat at $4.8 million, compared with $4.9 million in the prior-year quarter, reflecting our continued focus on cost discipline.”
Ron Fleming, President and CEO of Global Water Resources
“We remain committed to pursuing long-term earnings growth by combining disciplined expense management with organic growth and appropriate rate recovery.”
Ron Fleming, President and CEO of Global Water Resources
“We appreciate the ALJ issuing his order and opinion to the ACC recommending adoption of the settlement agreement for our GW-Santa Cruz and GW-Palo Verde utilities, which will be deliberated by the ACC at the open meeting on November 4, 2026.”
Ron Fleming, President and CEO of Global Water Resources
“If approved, we expect new rates for GW-Santa Cruz to take effect on December 1, 2026.”
Ron Fleming, President and CEO of Global Water Resources
“For GW-Palo Verde, the withdrawal of the current rate case provides a clearer path to seeking appropriate recovery using a 2026 test year.”
Ron Fleming, President and CEO of Global Water Resources
“We have begun preparing rate reviews for GW-Palo Verde and our three Pima County utilities—GW-Saguaro, GW-Farmers and GW-Ocotillo—which we anticipate filing in the first half of 2027, with estimated new rates in 2028.”
Ron Fleming, President and CEO of Global Water Resources
“We have also started preliminary planning for the next GW-Santa Cruz rate case, tentatively using a 2027 test year for a 2028 filing and estimated new rates in 2029.”
Ron Fleming, President and CEO of Global Water Resources
“Several long-term growth drivers support our outlook for Arizona’s Sun Corridor.”
Ron Fleming, President and CEO of Global Water Resources
“Earlier this year, TSMC increased its planned Arizona investment by $100 billion to $265 billion, supporting additional semiconductor manufacturing and advanced packaging facilities that are expected to drive job creation and regional development.”
Ron Fleming, President and CEO of Global Water Resources
“Arizona’s Ag-to-Urban program also creates a pathway to convert agricultural water rights to municipal use, potentially supporting new housing while reducing groundwater demand.”
Ron Fleming, President and CEO of Global Water Resources
“With approximately 384,000 eligible agricultural acres across the Phoenix and Pinal active management areas—including about two-thirds in Pinal County—we believe the program could support sustainable development and long-term demand across our core service areas.”
Ron Fleming, President and CEO of Global Water Resources
“While the pace of new connection and permit activity has slowed recently, ongoing development throughout the Phoenix metropolitan area—particularly in the City of Maricopa—continues to support organic growth in our active connection base.”
Ron Fleming, President and CEO of Global Water Resources
“We believe the decline is temporary, primarily driven by higher mortgage rates and other macroeconomic factors, and that we remain well-positioned to benefit from the region’s long-term population and job growth, housing affordability and transportation improvements such as the State Route 347 widening.”
Ron Fleming, President and CEO of Global Water Resources
“By expanding our Total Water Management platform and applying our expertise across our regional service areas and new utilities, we believe we can create lasting value for customers, communities and shareholders.”
PHOENIX, Nov. 03, 2026 (GLOBE NEWSWIRE) -- Global Water Resources, Inc. (NASDAQ: GWRS), a pure-play water resource management company, reported results for the three and nine months ended September 30, 2026. Unless otherwise noted, all comparisons are to the corresponding period in the prior year. The company will hold a conference call on Thursday, November 5, 2026 at 1:00 p.m. Eastern time to discuss the results (see dial-in information below).
Q3 2026 Financial Highlights * Total revenue for the third quarter of 2026 increased $0.8 million or 5.0% year-over-year (YoY) to $16.3 million compared to the same period in 2025. Total revenue for the year-to-date period increased $5.1 million or 12.2% to $47.4 million. The increase in both periods was primarily driven by organic connection growth in active water and wastewater connections, increased consumption revenue from irrigation, residential and multi-family customers, and higher rates. The increase in the year-to-date period was also aided by unregulated revenue recognition of $2.1 million during the second quarter of 2026 and the acquisition of the seven water systems from the City of Tucson in July 2025. * Net income for the third quarter of 2026 decreased $0.7 million to $1.0 million or $0.03 per diluted share, as compared to net income of $1.7 million or $0.06 per diluted share in the third quarter of 2025. Net income for the year-to-date period was $3.4 million or $0.12 per diluted share, as compared to net income of $3.9 million or $0.15 per diluted share in the prior year period. The decrease in both periods was primarily driven by higher depreciation and net interest expense. * Adjusted EBITDA, a non-GAAP measure, remained largely consistent for the quarter-to-date periods at $7.8 million. Adjusted EBITDA for the year-to-date period increased $1.0 million or 5.0% to $21.4 million (see definition of adjusted EBITDA, and its reconciliation to GAAP, below). The year-to-date increase was primarily driven by higher revenue and partially offset by increased operations and maintenance expense. * Completed a $10.0 million private placement of common stock and amended its revolving credit facility, increasing borrowing capacity from $20.0 million to $30.0 million. * Declared three monthly cash dividends of $0.02533 per common share or $0.30396 per common share on an annualized basis. Q3 2026 Operational Highlights * Total active service connections at September 30, 2026 increased 2.4% YoY to 69,797. * Water consumption remained steady at approximately 1.3 billion gallons. * Invested $6.9 million in Q3 2026 in infrastructure projects to support continued safe and reliable service in our existing utilities. * GW-Palo Verde filed a motion to withdraw its rate application in accordance with the company’s previously announced settlement agreement, which remains subject to Arizona Corporation Commission (ACC) approval. The motion was granted on July 29, 2026. Global Water plans to refile the GW-Palo Verde rate case in 2027 using a 2026 test year. Subsequent Events * GW-Santa Cruz received ACC approval of its new water availability fee on October 14, 2026. * On October 19, 2026, the Administrative Law Judge (ALJ) issued a Recommended Opinion and Order, which recommended that the ACC adopt the settlement agreement with new rates for GW-Santa Cruz effective December 1, 2026. Management Commentary “In the third quarter, total revenue increased 5.0% year over year to $16.3 million,” commented Global Water Resources President and CEO Ron Fleming. “Total active service connections increased 2.4% year over year to 69,797.
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