Global Water Resources reported third‑quarter 2025 results with revenue of $15.5 million, up 5.4% from the same period last year, and net income of $1.7 million, translating to earnings per diluted share of $0.06. Adjusted EBITDA for the quarter fell 5% to $7.8 million. Over the first nine months of 2025, the company generated $42.2 million in revenue, $3.9 million in net income, and $20.4 million in adjusted EBITDA, with revenue flat year‑to‑year and adjusted EBITDA unchanged from the prior year.
The revenue increase was largely driven by the July 2025 acquisition of seven Tucson water systems, which added 2,200 connections and a $7.7 million rate base. Organic connection growth and the implementation of new rates approved in recent rate‑case filings also contributed to top‑line growth, offsetting the impact of higher operating expenses and capital investments that weighed on profitability.
Earnings per share fell short of the consensus estimate of $0.09, missing by $0.03. The miss reflects margin compression caused by higher operating costs and significant capital outlays associated with the Tucson acquisition and ongoing infrastructure upgrades. While revenue grew, the cost base expanded faster, eroding earnings.
Nine‑month revenue remained flat year‑to‑year at $42.2 million, indicating that the growth from the acquisition and rate increases balanced the slower performance in other segments. Net income and adjusted EBITDA for the nine months were $3.9 million and $20.4 million respectively, matching the prior year’s figures and underscoring the company’s focus on maintaining profitability amid investment‑heavy growth.
Analysts have expressed a generally positive long‑term outlook for Global Water Resources, citing its consolidation strategy and expansion into high‑growth arid regions. However, concerns about near‑term profitability persist due to the elevated cost base and capital intensity of recent acquisitions. The company has not issued new guidance for the upcoming quarter, leaving investors to assess the balance between growth opportunities and margin pressures.
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