Global Water Resources Stock Earnings Reports

Global Water Resources reported Q1 2026 revenue of $13.3 million (up 6.7% YoY) driven by the July 2025 acquisition of seven Tucson water systems, organic connection growth and higher rates in one utility. Active service connections rose 5.7% YoY to 68,885; organic connection growth was 1.9% (excluding the Tucson acquisition). Operating expenses increased 15.1% YoY to $12.9 million, led by higher depreciation (from 2025 capital investments and commissioning of plants), increased O&M (medical costs, purchased power, wastewater disposal) and higher interest expense—resulting in a Q1 net loss of $0.4 million ($0.01 per diluted share) versus net income of $0.6 million in Q1 2025. Adjusted EBITDA remained flat at $5.6 million. Management emphasized a strategic focus on long-term earnings growth, slowing the pace of new capital spending in 2026 to control expenses, and pursuing regulatory rate recovery. A unanimous rate-review settlement contemplates approximately $2.3 million of incremental water revenue for GW-Santa Cruz and a $0.4 million wastewater revenue decrease for GW-Palo Verde (extension of a temporary credit), with new rates estimated to be effective November 1, 2026; GW-Palo Verde will be refiled in 2027 with rates anticipated in 2028 and the Southwest Plant reclamation facility to be included. Management plans additional rate filings across other utilities in coming quarters. Key near-term investor considerations: timing and outcome of the GW-Santa Cruz rate case (hearing in August 2026), the planned GW-Palo Verde refiling, how rate recovery unfolds versus higher depreciation/interest pressure, and the pace of future capital investment.