PHOENIX – Global Water Resources, Inc. (NASDAQ: GWRS), a dedicated water resource management company, reported significant financial and operational advancements for the second quarter ended June 30, 2026. The company posted a substantial 24.8% year-over-year increase in total revenue, reaching $17.8 million, alongside a notable rise in net income to $2.7 million.
Financial Performance Highlights Q2 2026
The company’s total revenue for Q2 2026 surged by $3.5 million, or 24.8%, to $17.8 million compared to the prior year. This robust growth was primarily attributed to several key factors: the recognition of $2.1 million in unregulated revenue from infrastructure coordination and financing agreements (ICFA), the strategic acquisition of seven water systems from Tucson Water in July 2025, sustained organic connection growth, increased water consumption, and higher rates across its service areas.
Regulated revenue also saw a healthy increase, rising by $1.4 million, or 9.9%, to $15.7 million year-over-year. The drivers for this segment mirrored the overall revenue growth, stemming from the Tucson Water acquisition, organic connection expansion, greater consumption, and rate adjustments.
Net income for the quarter climbed by $1.1 million to $2.7 million, translating to $0.10 per diluted share, up from $1.6 million, or $0.06 per diluted share, in the second quarter of 2025. This improvement was largely a reflection of the ICFA revenue, the impact of the Tucson Water acquisition, and organic growth. These positive factors were partially offset by increased depreciation expense and net interest expense, which resulted from the company’s significant rate base investments made in 2025.
Adjusted EBITDA, a non-GAAP measure closely watched by investors, also demonstrated strength, increasing by $1.0 million year-over-year to $7.9 million in the second quarter of 2026. Furthermore, Global Water Resources declared three monthly cash dividends of $0.02533 per common share, equating to an annualized dividend of $0.30396 per common share.
Operational Growth and Strategic Investments
Operationally, Global Water Resources continued its expansion trajectory. Total active service connections as of June 30, 2026, grew by 5.8% year-over-year, reaching 69,429. Excluding the impact of the Tucson Water acquisition, the annualized active service connection growth rate stood at a solid 2.6%. Water consumption across the company’s systems increased by 6.1% year-over-year, totaling 1.2 billion gallons for the quarter.
The company also maintained its commitment to infrastructure development, investing $6.6 million in Q2 2026 into various infrastructure projects designed to support existing utilities and facilitate continued growth within its service areas.
Regulatory Developments and Future Outlook
Significant regulatory progress was made during the quarter. On April 28, 2026, Global Water Resources filed a settlement agreement with the Arizona Corporation Commission (ACC) concerning the rate cases for Global Water – Santa Cruz Water Company, Inc. (GW-Santa Cruz) and Global Water – Palo Verde Utilities Company, Inc. (GW-Palo Verde). Key terms of the agreement, subject to ACC approval, include an approximate $2.3 million increase in GW-Santa Cruz’s annual revenue requirement, with new rates anticipated to be effective November 1, 2026. For GW-Palo Verde, the agreement entails the withdrawal of its current rate case, with a plan to refile in 2027 using a 2026 test year and without seeking formula rates. In consideration, GW-Palo Verde committed to increasing its temporary customer bill credit by approximately $0.4 million annually until the resolution of its next rate case, coinciding with GW-Santa Cruz’s new rates.
Subsequent to the quarter end, on July 9, 2026, GW-Palo Verde’s motion to withdraw its rate application was granted by the ACC on July 29, 2026. Hearings for the GW-Santa Cruz rate case, including the settlement agreement, concluded on August 3, 2026, and the case is currently under advisement with the Administrative Law Judge (ALJ).
Further demonstrating its long-term growth strategy, the company filed Designation of Assured Water Supply applications to expand assured water supply in the GW-Santa Cruz and GW-Ocotillo service areas. Additionally, Global Water Resources secured an extension of its $20 million revolving line of credit to May 18, 2028, bolstering its financial flexibility.
Ron Fleming, President and CEO of Global Water Resources, commented on the results, stating, “In Q2, we generated strong year-over-year growth. The 9.9% increase in regulated revenue was primarily driven by the Tucson acquisition, the 2.7% organic active connections growth and higher water consumption in a rapidly expanding metropolitan region.” He added that revenue also benefited from higher rates at GW-Farmers following a successful general rate case in Southern Arizona, expecting the additional revenue to fund current and future customer needs, including high-quality water infrastructure and improved service. Fleming also highlighted the impact of significant 2025 capital investments, such as the recommissioning of the Southwest Plant water reclamation facility and the Tucson acquisition, which, while increasing depreciation, expanded and strengthened the company’s infrastructure, improved customer service capacity, and support long-term shareholder value. The company’s strategic acquisitions, organic growth, and proactive regulatory engagement position it for continued expansion in Arizona’s dynamic water sector.
