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Global Water Resources, Inc. (NASDAQ:GWRS), a water utility company with $54.27 million in annual revenue and impressive gross profit margins of 73%, reported Thursday that the Arizona Corporation Commission (ACC) Utilities Division and the Residential Utility Consumer Office (RUCO) have filed initial testimonies in response to rate case applications submitted by two of its regulated subsidiaries, Global Water – Santa Cruz Water Company, Inc. and Global Water – Palo Verde Utilities Company, Inc. According to InvestingPro analysis, the company has maintained a strong dividend track record, raising payments for 9 consecutive years.
The subsidiaries filed for increased rates on March 5, seeking a net annual revenue increase of approximately $6.5 million, which would represent an estimated 11% rise in the total median monthly aggregate bill for their customers and an adjusted rate base of about $164.6 million. This rate increase request comes as the company maintains a current dividend yield of 2.81% and shows moderate revenue growth of 4.33% over the last twelve months. For deeper insights into GWRS’s financial metrics and growth potential, InvestingPro subscribers have access to over 30 additional key indicators and analysis tools.
On October 1, the ACC Utilities Division recommended a net annual revenue decrease of approximately $7.1 million and an adjusted rate base of about $78.7 million. In contrast, RUCO recommended a net annual revenue increase of around $3.0 million and an adjusted rate base of approximately $156.6 million. The ACC Staff indicated that its recommendation reflects certain adjustments for post-test year plant projected through August 1, 2025, and requested updated information for projects completed through December 31, 2025.
Following these filings, Global Water Resources has engaged in discussions with ACC Staff, most recently on Tuesday, with both parties agreeing to begin settlement discussions as early as the week of October 20. With a market capitalization of $297.54 million and current Fair Value indicators suggesting the stock is slightly overvalued, investors can access comprehensive valuation analysis through InvestingPro’s detailed research reports, which provide expert insights on 1,400+ US stocks.
The company’s rebuttal testimony is due November 6, with surrebuttal testimony from ACC Staff and RUCO due December 1, and rejoinder testimony from the company due December 10. A hearing before an Administrative Law Judge is scheduled to begin December 15. The judge’s Recommended Opinion and Order, as well as the final ACC vote, are expected in the first half of 2026.
Global Water Resources stated there is no assurance that differences between its applications and the initial testimonies will be reconciled, and it cannot speculate on the ACC’s final decision. This information is based on a press release statement included in the company’s SEC filing.
In other recent news, Global Water Resources Inc. reported its Q2 2025 earnings, surpassing analysts’ expectations with an earnings per share of $0.07, compared to the forecasted $0.06. The company also exceeded revenue projections, reporting $14.2 million against the anticipated $14.05 million. In a notable development, Global Water Resources completed a $13.1 million private placement, including significant contributions from company leadership and an undisclosed investor. Additionally, Freedom Capital Markets upgraded the company’s stock rating from Hold to Buy, raising the price target to $11.50 from $10.50. This upgrade followed the successful private placement. Previously, Freedom Capital Markets had initiated coverage on Global Water Resources with a Hold rating and a price target of $10.50. These developments highlight recent activities surrounding Global Water Resources.
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