Global Water Q1 revenue up, but posts loss on higher depreciation, interest costs

Global Water Resources

13/05/2026 21:41

Overview

US water utility's Q1 revenue grew 6.7% yr/yr, driven by acquisition and organic growth

Company posted Q1 net loss, reflecting higher depreciation and interest expenses from capital investments

Global Water filed rate case settlement for largest utility, targeting rate increase effective Nov 2026

Outlook

Company expects new rates for GW-Santa Cruz to be effective Nov 1, 2026

Company anticipates additional rate case activity for other utilities in coming quarters

Global Water expects Arizona’s strong economy to drive organic connection growth in 2026

Result Drivers

ACQUISITION AND ORGANIC GROWTH - Revenue growth was driven by the acquisition of seven Tucson Water systems, organic connection growth, increased consumption, and higher rates

HIGHER DEPRECIATION AND INTEREST EXPENSE - Net loss reflects increased depreciation and net interest expense from 2025 capital investments

RISING OPERATING COSTS - Higher personnel costs, utilities, and expenses for new facilities contributed to increased operating expenses

Company press release: ID:nGNX5JBTj

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$13.29 mln
$14.09 mln (2 Analysts)
Q1 Net Income
-$400,000
Q1 Adjusted EBITDA
Miss
$5.60 mln
$6.11 mln (2 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the water & related utilities peer group is "buy"

Wall Street's median 12-month price target for Global Water Resources Inc is $10.85, about 55.7% above its May 12 closing price of $6.97

The stock recently traded at 43 times the next 12-month earnings vs. a P/E of 38 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)