Global Water Resources, Inc. Q3 2026 Earnings Recap

Shares rose 1.4% after the results, a roughly flat reaction. Revenue grew, but earnings remain pressured by higher depreciation and other costs; management pointed to rate increases as important to a recovery, while activity in Phoenix-area housing permits has slowed.

Key Takeaways

• Q3 revenue was $16.3 million, up $0.8 million, or 5%, year over year; year-to-date revenue rose 12.2% to $47.4 million.
• Active service connections increased 2.4% year over year to 69,797. The company invested $6.9 million in existing-utility infrastructure during the quarter.
• Phoenix MSA building permits fell 10% for the first nine months of 2026 versus the same period in 2025; Maricopa permits were down 2.1% over that period, though October put them nearly 2% ahead of 2025.
• Management said depreciation from recent capital investment and rising medical and liability insurance costs continue to weigh on net income and EPS; G&A expenses were flat year over year.
• A rate-review settlement for GW-Santa Cruz received unanimous approval. The GW-Palo Verde rate process was delayed, with a revised schedule pointing to rates being set in 2028.