Global Water completes acquisition of seven water systems from Tucson

PHOENIX - Global Water Resources, Inc. (NASDAQ:GWRS), a $283 million market cap water utility with impressive gross margins of 74% and a track record of nine consecutive years of dividend increases, has completed its previously announced acquisition of seven water systems from Tucson Water, the company announced Wednesday. According to InvestingPro analysis, the company maintains healthy liquidity with a current ratio of 1.55, though it currently trades above its Fair Value.

The water resource management company acquired the assets at approximately 1.05 times their current rate base of $7.7 million. The systems are expected to generate about $1.5 million in annual revenue and serve approximately 2,200 water service connections in and around Pima County, adding to Global Water’s existing revenue base of $53.5 million over the last twelve months.

With this acquisition, Global Water’s customer base in Pima County has grown to approximately 7,200, with nearly 5,000 added through seven previous acquisitions in the area over the past five years.

"All seven water systems acquired from Tucson Water are located near our hubs, enabling seamless integration into our platform," said Chris Krygier, COO of Global Water.

The company plans to modernize the acquired systems by installing automated meter infrastructure and upgrading customer connections with smart meters that enable wireless usage metering, similar to technology already deployed across more than 95% of its existing water connections. For deeper insights into Global Water’s modernization strategy and its impact on future growth, InvestingPro subscribers can access the comprehensive Pro Research Report, which includes detailed analysis of the company’s operational efficiency and growth prospects.

Global Water has adopted Tucson Water’s existing rates for the acquired systems, with a previously approved five percent rate increase scheduled for July 2026. The company indicated it has begun work on a broader rate case strategy for these water systems with updates expected next year.

This acquisition represents Global Water’s continued expansion in Arizona, where it now operates 39 systems providing water, wastewater, and recycled water services primarily in growth corridors around metropolitan Phoenix and Tucson.

The information in this article is based on a company press release statement and financial data from InvestingPro, which offers additional insights through its collection of 12+ key ProTips and extensive financial metrics for Global Water Resources.

In other recent news, Global Water Resources Inc. reported its Q1 2025 earnings, revealing a mixed performance. The company posted earnings per share (EPS) of $0.02, which did not meet the forecast of $0.05, but it exceeded revenue expectations with $12.46 million against a forecast of $12 million. Additionally, Global Water Resources held its 2025 Annual Meeting of Stockholders, where seven directors were elected, and the appointment of Deloitte & Touche LLP as the independent auditor was ratified. The directors received a significant majority of votes, with Ron L. Fleming achieving the highest approval. The stockholders also approved the executive compensation on an advisory basis, with 98.65% of votes in favor. Furthermore, the company is targeting the closure of a Tucson acquisition in summer 2025, highlighting its growth strategy. Global Water Resources continues to invest in infrastructure, with $15.2 million allocated for improvements in the first quarter of 2025. The firm also successfully raised $32 million in equity capital in March 2025 to support its expansion plans.

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