Pure Cycle Corporation reported first‑quarter 2026 results, posting net income of $4.5 million and earnings per share of $0.19, a 19% increase from the same period in 2024. Revenue rose 59% to $9.1 million, driven by $6.5 million from land development, $2.5 million from water and wastewater services, and $0.1 million from single‑family rentals.
The jump in revenue is largely attributable to accelerated lot sales in the Sky Ranch master‑planned community. Phase 2C is 89% complete and Phase 2D is 65% complete, with platting for Phase 2E already underway. The company sold 51 water and wastewater taps in the quarter, up from 38 in the prior year, and sold 1,016 taps across all Sky Ranch phases, underscoring the strength of its integrated water‑and‑land model.
Pure Cycle added two new national home‑builder partners, Pulte Group and Oakwood, expanding its builder base to seven and positioning the company for higher lot‑sale velocity in the coming fiscal year. CEO Mark Harding highlighted the company’s focus on “investing in improvements in 2026 such as beginning construction of a new interchange at I‑70” to support continued expansion of residential and commercial opportunities at Sky Ranch.
The company’s profitability remains robust, with net income growing 16% from $3.9 million in the same quarter of 2024. Gross profit margin expanded to 70% from 68% year‑over‑year, reflecting a favorable mix shift toward higher‑margin land development and water services, as well as disciplined cost management amid rising input costs.
Management guided for the full fiscal year 2026 on a revenue range of $36.5 million to $37.0 million, up from the prior guidance of $35.0 million to $35.5 million, and maintained its net income guidance of $18.0 million to $18.5 million. The guidance increase signals confidence in sustained demand for land development and water services, while the company noted a headwind from a decline in water deliveries to oil and gas customers due to reduced drilling activity.
Analysts noted that the earnings beat was driven by strong lot‑sale momentum and effective cost control, while the market reaction reflected confidence in the company’s integrated model and the strategic importance of the Sky Ranch project. The company’s 26th consecutive profitable quarter reinforces its long‑term financial resilience.
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