Global Water 2025 Q3 Earnings Revenue Rises 8.4% as EPS Drops 50%

Global Water (GWRS) reported mixed Q3 2025 results, with revenue growth outpacing expectations but earnings falling short. The company’s shares declined post-earnings, reflecting investor concerns over declining profitability and macroeconomic challenges.

Revenue

Global Water’s total revenue rose 8.4% year-over-year to $15.52 million in Q3 2025, driven by the acquisition of seven Tucson Water systems, organic connection growth, and rate increases.

Earnings/Net Income

The company’s EPS fell sharply to $0.06 in Q3 2025, a 50% decline from $0.12 in Q3 2024. Net income dropped 41.3% to $1.72 million, impacted by higher depreciation, interest, and operating costs. This performance underscores the challenge of balancing growth investments with profitability.

Price Action

Following the earnings report, GWRS shares fell 1.59% in a single trading day, 3.41% over the week, and 6.52% month-to-date. The stock’s volatility reflects market skepticism about its ability to sustain growth amid rising costs.

Post-Earnings Price Action Review

The strategy of purchasing GWRS shares post-earnings and holding for 30 days showed mixed results over three years. While Q3 2023 saw a 13.16% gain, Q4 2023 triggered a 6.46% loss amid market corrections. The Q2 2024 report yielded negligible returns. Overall, the approach yielded an 18.78% total return but faced a 26.42% maximum drawdown. Market conditions, including recession fears, heavily influenced outcomes. Investors should weigh GWRS’s growth potential against its earnings volatility and macroeconomic risks.

CEO Commentary

CEO Ron Fleming highlighted the Tucson acquisition’s role in driving revenue growth and operational consolidation. He expressed optimism about Arizona’s Ag-to-Urban program and Highway 347 infrastructure project, aligning with the state’s 1.3% annual job growth forecast. Fleming emphasized balancing customer affordability with shareholder returns, despite rate case uncertainties.

Guidance

The company expects the GW-Santa Cruz and GW-Palo Verde rate cases to conclude by mid-2026, with hearings scheduled through December 2025. Management remains confident in leveraging Arizona’s economic growth and infrastructure investments to drive organic connections, despite macroeconomic headwinds.

Additional News

Global Water recently completed the acquisition of seven Tucson Water systems, expanding its Southern Arizona footprint and enabling operational efficiencies. The company also declared a monthly dividend of $0.02533 per share, reflecting its commitment to shareholder returns. Meanwhile, CEO Ron Fleming highlighted Arizona’s Ag-to-Urban program and Highway 347 infrastructure project as catalysts for long-term growth, aligning with the state’s robust job market.