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Global Water Resources, Inc., a water supply company based in Phoenix, Arizona, with a market capitalization of $280 million and impressive gross profit margins of 74%, has filed applications with the Arizona Corporation Commission ( ACC (NSE:ACC)) for water and wastewater rate increases for two of its regulated subsidiaries. The filings, which were made on March 5, 2025, could potentially result in a net annual revenue increase of approximately $6.5 million, representing a significant boost to the company’s current annual revenue of $52.7 million. According to InvestingPro analysis, the company has demonstrated consistent shareholder returns, having raised its dividend for 9 consecutive years.
The subsidiaries, Global Water – Santa Cruz Water Company, Inc. (GW-Santa Cruz) and Global Water – Palo Verde Utilities Company, Inc. (GW-Palo Verde), represent the majority of the company’s operations, with 57,842 active service connections across 207 square miles. This accounts for about 89.6% of the company’s total active service connections.
If the ACC approves the rate increases, customers of GW-Santa Cruz and GW-Palo Verde could see an 11% increase in their median monthly aggregate bill. Global Water Resources has proposed implementing the new rates in two phases: the first in May 2026 and the second in January 2027. With the stock currently trading near its 52-week low of $11.05, investors can access detailed valuation metrics and a comprehensive Pro Research Report through InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable insights.
The rate case applications also include a request for a formula rate plan. If approved, this would allow the subsidiaries to adjust their rates annually based on a pre-approved formula tied to specific cost inputs.
It’s important to note that the ACC’s approval is not guaranteed. The commission could decide not to approve the increases, or it could opt for a different action as a result of the rate case. Furthermore, there is no certainty on the timing of when any approved rate increase would take effect, and the company cannot predict the ACC’s final determination.
The rate case applications and related schedules are publicly available on the ACC website, with docket numbers 25-0022 and 25-0023. Global Water Resources has emphasized that the information on the ACC website is not incorporated by reference into this report.
This news is based on a press release statement and contains forward-looking statements that involve risks and uncertainties. These include the possible outcomes and timing of the rate cases, as well as the potential benefits of the rate decisions. The forward-looking statements are not guarantees of future performance and are subject to a number of assumptions and factors that could cause actual results to differ materially from those expressed.
In other recent news, Global Water Resources Inc. announced its fourth-quarter 2024 earnings, revealing a slight miss on earnings per share (EPS) expectations but exceeding revenue forecasts. The company’s EPS was reported at $0.04, falling short of the projected $0.06, while revenue reached $13.29 million, surpassing the anticipated $12.7 million. Despite the EPS miss, the company achieved a 4.6% positive surprise in revenue. The total revenue for 2024 saw a minor decline of 0.6% from the previous year, amounting to $52.7 million. However, the company experienced growth in regulated revenue and adjusted EBITDA, which increased by 4.9% and 5.2%, respectively. Global Water Resources continues to focus on strategic infrastructure investments, particularly in Arizona’s rapidly expanding markets. Additionally, the Arizona Corporation Commission approved Global Water’s proposed acquisition of the City of Tucson assets, which will increase their customer base in the region. The company has also filed a rate case requesting $6.5 million in new revenue, with plans to implement a significant rate base increase.
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