Global Water Resources (NASDAQ:GWRS) Issues Earnings Results

Global Water Resources (NASDAQ:GWRS) posted its earnings results on Thursday. The utilities provider reported $0.04 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.03 by $0.01, FiscalAI reports. Global Water Resources had a return on equity of 3.53% and a net margin of 3.53%.

Here are the key takeaways from Global Water Resources’ conference call:

• Second-quarter revenue rose 24.8% to $17.8 million, while net income increased to $2.7 million, or $0.10 per diluted share, from $1.6 million, or $0.06, a year earlier. Adjusted EBITDA grew 15% to $7.9 million.
• The Santa Cruz Water rate-case settlement contemplates approximately $1.9 million in annualized net revenue increases beginning November 1, 2026, pending an administrative law judge recommendation and Arizona Corporation Commission approval. Four additional utility rate reviews are expected to be filed in the first half of 2027, with potential new rates in 2028.
• Significant 2025 capital investments and the Southwest Plant recommissioning continue to raise depreciation and operating costs, while medical expenses, power costs and higher interest expense also pressured results. Management said new rates are needed to recover inflation and earn returns on recent investments.
• Active service connections increased 5.8% year over year to 69,429, including acquisitions, while organic growth was 2.7%; management said the latest three-month organic growth rate improved to 3.2%. Phoenix-area single-family permits declined 4.7% year over year in the second quarter, although management expects long-term regional growth driven by economic development and transportation improvements.
• Management highlighted major regional investments, including Intel, TSMC and the State Route 347 widening, alongside growing multifamily and commercial development. Executives believe these projects could accelerate customer and revenue growth over the next two to three years, while G&A controls are expected to keep costs broadly flat.

Global Water Resources Stock Performance

Shares of NASDAQ:GWRS traded up $1.28 on Thursday, hitting $8.89. The company’s stock had a trading volume of 346,647 shares, compared to its average volume of 94,306. Global Water Resources has a 12 month low of $6.55 and a 12 month high of $11.17. The company has a market capitalization of $256.03 million, a price-to-earnings ratio of 127.00 and a beta of 0.91. The stock’s 50-day moving average is $7.20 and its two-hundred day moving average is $7.63. The company has a debt-to-equity ratio of 1.59, a quick ratio of 0.68 and a current ratio of 0.68.

Global Water Resources Announces Dividend

The firm also recently declared a monthly dividend, which will be paid on Monday, August 31st. Shareholders of record on Monday, August 17th will be given a dividend of $0.0253 per share. This represents a c) dividend on an annualized basis and a yield of 3.4%. The ex-dividend date is Monday, August 17th. Global Water Resources’s payout ratio is 428.57%.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on GWRS. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Global Water Resources in a report on Wednesday, May 20th. Wall Street Zen upgraded shares of Global Water Resources from a “strong sell” rating to a “sell” rating in a research report on Saturday, June 13th. One research analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Reduce” and a consensus target price of $15.00.

Insider Transactions at Global Water Resources

In related news, COO Christopher D. Krygier bought 5,389 shares of the firm’s stock in a transaction that occurred on Wednesday, May 20th. The stock was purchased at an average price of $6.87 per share, for a total transaction of $37,022.43. Following the transaction, the chief operating officer directly owned 10,485 shares of the company’s stock, valued at approximately $72,031.95. This represents a 105.75% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Michael J. Liebman bought 7,000 shares of the stock in a transaction on Wednesday, May 20th. The shares were bought at an average cost of $6.89 per share, for a total transaction of $48,230.00. Following the purchase, the chief financial officer owned 7,000 shares in the company, valued at $48,230. This trade represents a ∞ increase in their position. The SEC filing for this purchase provides additional information. 53.70% of the stock is owned by insiders.

Institutional Investors Weigh In On Global Water Resources

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Allworth Financial LP boosted its stake in Global Water Resources by 75,025.0% during the 3rd quarter. Allworth Financial LP now owns 3,005 shares of the utilities provider’s stock valued at $31,000 after purchasing an additional 3,001 shares in the last quarter. Russell Investments Group Ltd. lifted its holdings in shares of Global Water Resources by 152.6% in the third quarter. Russell Investments Group Ltd. now owns 3,461 shares of the utilities provider’s stock valued at $36,000 after buying an additional 2,091 shares during the period. Tower Research Capital LLC TRC boosted its stake in Global Water Resources by 258.9% during the second quarter. Tower Research Capital LLC TRC now owns 3,898 shares of the utilities provider’s stock valued at $40,000 after buying an additional 2,812 shares in the last quarter. BNP Paribas Financial Markets grew its holdings in Global Water Resources by 120.9% during the third quarter. BNP Paribas Financial Markets now owns 4,753 shares of the utilities provider’s stock worth $49,000 after acquiring an additional 2,601 shares during the period. Finally, Bridgeway Capital Management LLC bought a new stake in Global Water Resources in the fourth quarter worth about $84,000. Institutional investors own 27.91% of the company’s stock.

About Global Water Resources

Global Water Resources, Inc (NASDAQ:GWRS) is a publicly traded holding company based in Scottsdale, Arizona, specializing in the ownership and management of water and wastewater utilities. The company provides critical potable water delivery, wastewater collection and treatment, and reclaimed water services to residential, commercial and industrial customers across select communities in Central and Southern Arizona.

The company operates multiple regulated utility systems, serving communities such as Anthem, Biltmore, Florence and San Tan Valley.