Global Water Resources (NASDAQ:GWRS) Releases Earnings Results, Beats Expectations By $0.01 EPS

Global Water Resources (NASDAQ:GWRS) announced its quarterly earnings results on Thursday. The utilities provider reported $0.04 EPS for the quarter, topping the consensus estimate 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 Price Performance

Shares of NASDAQ:GWRS traded up $1.28 on Thursday, hitting $8.89. The company had a trading volume of 346,641 shares, compared to its average volume of 94,306. The company has a current ratio of 0.68, a quick ratio of 0.68 and a debt-to-equity ratio of 1.59. The company has a market cap of $256.03 million, a PE ratio of 127.00 and a beta of 0.91. Global Water Resources has a 52-week low of $6.55 and a 52-week high of $11.17. The business has a 50 day moving average of $7.17 and a 200 day moving average of $7.62.

Global Water Resources Announces Dividend

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

Analyst Upgrades and Downgrades

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

Insider Transactions at Global Water Resources

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

Institutional Trading of Global Water Resources

A number of hedge funds have recently bought and sold shares of GWRS. Allworth Financial LP grew its stake in Global Water Resources by 75,025.0% in the 3rd quarter. Allworth Financial LP now owns 3,005 shares of the utilities provider’s stock worth $31,000 after acquiring an additional 3,001 shares during the period. Russell Investments Group Ltd. boosted its holdings in shares of Global Water Resources by 152.6% during the third quarter. Russell Investments Group Ltd. now owns 3,461 shares of the utilities provider’s stock worth $36,000 after purchasing an additional 2,091 shares during the last quarter. Tower Research Capital LLC TRC boosted its holdings in shares of 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 worth $40,000 after purchasing an additional 2,812 shares during the last quarter. BNP Paribas Financial Markets grew its position in shares of Global Water Resources by 120.9% in the third quarter. BNP Paribas Financial Markets now owns 4,753 shares of the utilities provider’s stock valued at $49,000 after purchasing an additional 2,601 shares during the period. Finally, Bridgeway Capital Management LLC acquired a new position in Global Water Resources in the fourth quarter valued at $84,000. Institutional investors and hedge funds 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.