Global Water Resources Q3 revenue beats estimates on growth in active water and wastewater connections

Overview

• US water utility's Q3 revenue rose 5% yr/yr, beating analyst expectations

• Q3 net income fell due to higher depreciation and interest expenses

• Company completed $10 mln private placement and expanded credit facility

Outlook

• Company expects new rates for GW-Santa Cruz to take effect December 1, 2026

• Global Water plans to refile GW-Palo Verde rate case in 2027 using a 2026 test year

• Company anticipates filing rate reviews for several utilities in first half of 2027, with estimated new rates in 2028

Result Drivers

• ORGANIC CONNECTION GROWTH - Higher revenue was driven by growth in active water and wastewater connections and increased consumption revenue

• RATE INCREASES - Higher rates for GW-Farmers and GW-Ocotillo contributed to revenue growth

• HIGHER DEPRECIATION AND INTEREST EXPENSE - Net income fell due to increased depreciation and net interest expense from capital investments

Company press release: ID:nGNX7HymT7

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "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 $10.00, about 24.4% above its November 2 closing price of $8.04

• The stock recently traded at 64 times the next 12-month earnings vs. a P/E of 87 three months ago

Reuters Recommended Reads

• Nov 3 - Essential Utilities Q3 revenue rises on regulatory recoveries, higher gas costs

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(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.)