Global Water Resources Reports 24.8% Revenue Growth in Q2 2026

Global Water Resources, Inc. (GWRI) reported a significant increase in financial performance for the second quarter of 2026, with total revenue reaching $17.8 million, a 24.8% increase from $14.2 million in the same period last year. The company's net income also rose to $2.7 million, up 70.4% from $1.6 million in the prior year, resulting in basic and diluted earnings per share of $0.10, compared to $0.06 in the previous year. For the first half of 2026, total revenue was $31.1 million, reflecting a 16.3% increase from $26.7 million in the first half of 2025.

The growth in revenue was primarily driven by the acquisition of seven water systems from the City of Tucson, which added approximately 2,200 service connections, and organic growth in active connections, which increased by 5.8% year-over-year to 69,429. Additionally, increased water consumption, attributed to higher temperatures and drier weather, contributed to the revenue growth. The company also reported a rise in unregulated revenue, totaling $2.1 million, linked to the commissioning of a new wastewater reclamation facility.

Operating expenses for the second quarter increased to $13.3 million, up from $11.6 million in the prior year, largely due to higher personnel costs and increased utility expenses driven by greater consumption. However, the company managed to improve its operating income to $4.5 million, a 72% increase from $2.6 million in the same quarter last year. The overall operating margin improved as the company continued to implement its capital improvement plan, which included significant investments in infrastructure.

In terms of strategic developments, GWRI has been actively expanding its footprint in Arizona, particularly in Pima County, where the acquired water systems are located. The company is also focused on enhancing its operational efficiency through the integration of advanced technologies, including smart meters for better water management. As of June 30, 2026, the company had a total employee headcount of 200, reflecting its commitment to supporting growth and operational needs.

Looking ahead, GWRI remains optimistic about its growth trajectory, supported by favorable demographic trends in the Phoenix metropolitan area, which is projected to see continued population growth. The company anticipates that its ongoing investments in infrastructure and technology will further enhance its service capabilities and operational efficiency. Additionally, GWRI is preparing for future regulatory proceedings, including rate cases that could impact its revenue structure. The company expects to file for rate increases every three to five years, aligning with industry practices, to ensure it can continue to meet the growing demand for water services in its operating regions.