Global Water Resources Reports 5.4% Revenue Growth in Q2 2025

Global Water Resources, Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $14.2 million, a 5.4% increase from $13.5 million in the same period last year. For the first half of 2025, revenue reached $26.7 million, up 6.3% from $25.1 million in the prior year. The company's net income for the second quarter was $1.6 million, down from $1.7 million in the previous year, resulting in basic and diluted earnings per share of $0.06, compared to $0.07 in the same quarter of 2024. The decline in net income was attributed to increased operating expenses, which rose to $11.6 million from $10.7 million year-over-year.

The company experienced notable growth in its customer base, with active service connections increasing by 3.8% to 65,639 as of June 30, 2025, compared to 63,256 a year earlier. This growth was driven by organic increases in both water and wastewater connections, alongside higher consumption rates, particularly in irrigation and construction sectors. The company also reported a significant rise in water service revenue, which increased by 10.5% to $7.4 million, while wastewater and recycled water service revenue remained relatively stable at $6.9 million.

Strategically, Global Water completed the acquisition of seven water systems from Tucson Water for approximately $8.2 million, which is expected to add about 2,200 service connections and generate an estimated $1.5 million in annual revenue. This acquisition aligns with the company's ongoing strategy to expand its footprint in Pima County and enhance its service capabilities. Additionally, the company has been actively investing in infrastructure, with capital expenditures totaling $35.4 million in the first half of 2025, significantly higher than the $12.2 million spent in the same period last year.

The company’s financial position remains strong, with total assets increasing to $449.4 million as of June 30, 2025, compared to $405.1 million at the end of 2024. Shareholders' equity also rose to $76.7 million, up from $47.6 million, reflecting the successful public offering of 3.2 million shares in March 2025, which generated approximately $30.8 million in net proceeds. The company maintains a revolving credit facility of $20 million, with no outstanding borrowings as of the reporting date.

Looking ahead, Global Water anticipates continued growth driven by the expanding population in the Phoenix metropolitan area, which is projected to reach 6.5 million by 2040. The company is focused on leveraging its Total Water Management approach to meet increasing demand while ensuring sustainability. However, it remains vigilant regarding potential macroeconomic challenges, including inflation and regulatory changes, which could impact operational costs and growth trajectories.