Global Water Resources, Inc. (GWRI) reported a slight decline in revenue for the fiscal year ending December 31, 2024, totaling $52.7 million, down from $53.0 million in 2023. The company's operating income also decreased by 23.8% to $9.4 million, compared to $12.3 million in the previous year. Net income fell by 27.5% to $5.8 million, resulting in basic and diluted earnings per share of $0.24, down from $0.33 in 2023. The decrease in profitability was attributed to increased operating expenses, which rose by 6.3% to $43.3 million, driven primarily by higher personnel costs and utility expenses.
In terms of operational metrics, GWRI experienced a 4.4% increase in active service connections, bringing the total to 64,520 as of December 31, 2024. This growth was largely organic, with the company serving approximately 111,000 people across 36,000 homes in its designated service areas. The company’s GW-Santa Cruz and GW-Palo Verde utilities accounted for approximately 89.6% of these connections. Additionally, the company reported a significant increase in recycled water consumption, which rose by 66% to 1.4 million gallons.
Strategically, GWRI has been active in expanding its service capabilities through acquisitions. In February 2023, the company acquired Farmers Water Co., adding approximately 3,300 active water service connections. Furthermore, GWRI entered into an asset purchase agreement with the City of Tucson in April 2024 to acquire seven isolated public water systems, which is expected to close in the first half of 2025. This acquisition will add approximately 2,200 service connections and is anticipated to enhance the company’s operational footprint in Pima County.
Looking ahead, GWRI is optimistic about its growth prospects, particularly in the Phoenix metropolitan area, which is projected to see significant population growth. The company plans to file a rate case for its GW-Santa Cruz and GW-Palo Verde utilities in 2025, seeking a net increase in annual revenue of $6.5 million. The company is also evaluating the impact of a new policy allowing for Formula Rate Plans, which could facilitate more frequent rate adjustments and reduce regulatory lag. Overall, GWRI aims to leverage its Total Water Management approach to enhance sustainability and operational efficiency while meeting the growing demand for water services in Arizona.
About Global Water Resources, Inc.
About 10-K Filings
A 10-K form is a comprehensive annual report that public companies in the United States must file with the SEC, providing a detailed overview of the company's financial condition, performance, and business strategies.
Key points about the 10-K:
- Frequency: Filed annually, typically within 60 to 90 days after the end of the company's fiscal year.
-
Content: It includes:
- Detailed financial statements audited by an independent accounting firm
- Management's Discussion and Analysis (MD&A) of financial condition and results
- Description of the company's business, properties, and legal proceedings
- Risk factors and market risks
- Executive compensation and corporate governance information
- Importance: Considered the most comprehensive and important document a public company files with the SEC.
- Length: Often exceeds 100 pages due to its extensive and detailed nature.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.