Pure Cycle Corporation reported full‑year results for the year ended August 31 2025, posting net income of $13.1 million—an increase of 13% from $11.6 million in 2024—and earnings per share of $0.54, up 12.5% from $0.48 in the prior year. Total revenue fell 9% to $26.1 million, driven by a decline in water and wastewater deliveries to oil and gas customers, while a surge in oil and gas royalty income offset the revenue drop.
The company’s water and wastewater resource‑development segment generated $10.3 million in 2025, a slight decline from $10.7 million in 2024. The drop reflects a slowdown in drilling activity within the company’s service area, which reduced the volume of water required by upstream operators. In contrast, the land‑development segment—comprising sales of lots and related services—generated $15.3 million, down from $17.6 million in 2024, as the pace of new lot sales slowed in the core Sky Ranch community.
Oil and gas royalty income surged to $5.86 million in 2025, a 738% jump from $0.8 million in 2024. The increase is attributable to six wells that began production during the fiscal year, generating higher royalty receipts. This high‑margin revenue stream not only compensated for the decline in water‑service sales but also contributed to the overall rise in net income and EPS.
Management highlighted continued demand for entry‑level lots in the Sky Ranch master‑planned community. Phase 2C lots were completed, and development of Phases 2D and 2E has begun, positioning the company for future revenue growth from land sales. The company also reiterated its strong balance sheet and ongoing share‑repurchase program, underscoring a commitment to returning value to shareholders.
While the company did not provide updated guidance figures in the release, the results suggest a resilient business model that balances a diversified revenue mix with a focus on high‑margin royalty income. The combination of a solid balance sheet, active share‑repurchase activity, and progress in the Sky Ranch development indicates that Pure Cycle is well positioned to navigate the current market headwinds and pursue growth opportunities in both its core land‑development and resource‑management businesses.
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