Global Water Resources Reports 7.3% Revenue Growth to $12.5 Million in Q1 2025

Global Water Resources, Inc. (GWRI) reported its financial results for the first quarter of 2025, revealing total revenue of $12.5 million, a 7.3% increase from $11.6 million in the same period last year. The growth was primarily driven by an increase in active water and wastewater connections, which rose by 4.3% to 65,163, and higher consumption rates, particularly in irrigation and commercial sectors. However, net income decreased to $591,000, down 14.5% from $691,000 in the prior year, resulting in basic and diluted earnings per share of $0.02, compared to $0.03 in the first quarter of 2024.

Operating expenses for the quarter totaled $11.2 million, an increase of 8.3% from $10.3 million in the previous year. This rise was attributed to higher costs in operations and maintenance, particularly for utilities, chemicals, and repairs, which were driven by increased consumption. General and administrative expenses saw a slight increase, while depreciation and amortization expenses rose due to a higher asset base. The company’s operating income remained relatively stable at $1.3 million, down slightly from $1.3 million in the prior year.

In terms of strategic developments, GWRI is in the process of acquiring seven isolated public water systems from the City of Tucson for $8.4 million, expected to close in mid-2025. This acquisition is anticipated to add approximately 2,200 water service connections to the company’s portfolio. Additionally, the company completed a public offering of 3.2 million shares at $10.00 per share, generating approximately $30.8 million in net proceeds, which will support its capital improvement plans and operational needs.

The company’s cash flow from operating activities was $7.5 million for the quarter, down from $8.1 million in the same period last year, primarily due to lower net income. Cash used in investing activities increased significantly to $15.2 million, reflecting higher capital expenditures related to infrastructure improvements. Conversely, cash provided by financing activities rose to $29.8 million, largely due to the recent equity offering. As of March 31, 2025, GWRI maintained a strong cash position with $31.5 million in cash and cash equivalents, compared to $9.0 million at the end of the previous fiscal year.

Looking ahead, GWRI anticipates continued organic growth driven by population increases in the Phoenix metropolitan area, which is projected to reach 5.8 million by 2030. The company is also preparing for upcoming rate cases with the Arizona Corporation Commission, which could further enhance revenue streams. However, management remains cautious about potential regulatory challenges and market conditions that could impact future performance.