Global Water Resources (GWRS) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue increased 24.8% year-over-year to $17.8 million, driven by organic growth, ICFA revenue, and the acquisition of seven Tucson water systems.

• Net income for Q2 2026 rose 70.4% to $2.7 million ($0.10 per diluted share), with EPS up from $0.06, reflecting acquisitions and organic growth.

• Active service connections increased 5.8% year-over-year to 69,429 as of June 30, 2026, with organic growth at 2.7%.

• The company is positioned for long-term growth in the Phoenix MSA, supported by job creation, affordability, and infrastructure projects like State Route 347.

• Major infrastructure investments include the recommissioning of the Southwest Plant water reclamation facility and a new 60,000-gallon-per-day facility in Hassayampa.

Financial highlights

• Q2 2026 total revenue was $17.8 million, up 24.8% year-over-year; year-to-date revenue rose 16.3% to $31.1 million.

• Q2 2026 net income was $2.7 million ($0.10 per diluted share), compared to $1.6 million ($0.06 per share) in Q2 2025.

• Adjusted EBITDA for Q2 2026 was $7.9 million, up 14.6% year-over-year; year-to-date Adjusted EBITDA reached $13.5 million, up 8%.

• Regulated revenue for Q2 2026 was $15.7 million, up 9.9% year-over-year, mainly from the Tucson Water acquisition and organic growth.

• Operating expenses for Q2 2026 increased 14.1% to $13.3 million, mainly due to higher depreciation, medical, and power expenses.

Outlook and guidance

• Management anticipates years of meaningful earnings growth as new rates are implemented and organic growth continues.

• Regulatory rate relief is anticipated, with a $1.9 million net rate increase for GW-Santa Cruz pending approval and new rates expected November 1, 2026.

• Capital expenditures for 2027 are expected to be lower than near-record 2025 levels, returning to corporate norms.

• G&A expenses are targeted to remain flat for the remainder of the year.

• Decisions on key water supply applications are expected by late 2027, potentially expanding water resource security.