What should be the expected G&A run rate for the remainder of the year?

The company plans to continue the current flat G&A run rate, actively working to keep costs as flat as possible. “that's something that we've actively been working on this year, and we've done a pretty good job, and our plan is to continue that run rate. So to the extent that we can keep those as flat as possible, that's the goal. And so that's our plan.”

Given significant 2025 capital investments, what is the 2026 and 2027 capex outlook?

Management does not provide specific capex guidance but indicated that 2027 capex would be lower than 2025, returning to more 'normal norms.' “We don't really give guidance, but what we have said is, you know, '25, because it was part of a post-test year, we made pretty significant investments, that '27 would definitely be lower than that, kind of somewhere around what the normal norms have been.”

How does the acquisition pipeline look today compared to the last three to five years?

The company has been focused on integrating recent acquisitions and recovering capital investments, rather than actively pursuing new acquisitions. “we've really been, right now, focused on integrating those acquisitions, filing for the necessary reviews, and that's been our focus, and then recovering the capital investments that we've been making in those utilities along with the rest of the company.”

GWRS

Global Water Resources (GWRS) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Utilities· Aug 13, 2026

Source: earnings call transcript

Executive summary

Global Water Resources, Inc. Q2 FY26 — Rate Case Progress and Organic Growth Drive Optimism

Global Water Resources reported strong Q2 FY26 revenue and adjusted EBITDA growth, driven by unregulated ICFA revenue, acquisitions, and organic connection growth. The company is navigating increased operating expenses from prior capital investments and rising medical costs, which have impacted net income. Significant progress on rate cases, particularly for GW-Santa Cruz, is expected to provide meaningful earnings growth in the coming years, supported by ongoing economic development in the Phoenix metro area.

Highlights

Total revenue increased 24.8% to $17.8 million in Q2 FY26.
Adjusted EBITDA increased 15% to $7.9 million in Q2 FY26.
Total active service connections increased 5.8% to 69,429 year-over-year.
Regulated revenue increased 9.9% to $15.7 million in Q2 FY26.
G&A costs remained relatively flat at $4.3 million in Q2 FY26.

Concerns

Depreciation and operating expenses from 2025 capital investments adversely impacted net income and EPS in Q2 FY26.
Medical expenses continue to grow at an unprecedented pace.
Phoenix MSA single-family building permits decreased 4.7% in Q2 FY26 compared to Q2 FY25.
Higher interest expense and lower interest income increased other expense by $0.4 million in Q2 FY26.

Guidance & targets

Category	Target	Timeline	Confidence
Net increased revenues	$1.9 million high materiality	FY26	High
New rates	2028 medium materiality	FY28	Medium
Rate review filings	First half of 2027 medium materiality	H1 FY27	High
Next GW-Santa Cruz rate review filing	2028 low materiality	FY28	Medium
G&A costs run rate	flat medium materiality	remainder of FY26	High
Capital expenditure	lower than 2025 medium materiality	FY27	Medium

Deals & partnerships

Tucson Water acquisition of seven water systems

Acquisition of seven water systems from Tucson Water in July 2025, contributing to revenue growth.

Capital programs

2025 Capital Investments completed

Start: 2025

Benefit:recommission our Southwest Plant Water Reclamation Facility

In 2025, we had a near-record year for capital investments that were critical to complete. This included the investment necessary to recommission our Southwest Plant Water Reclamation Facility, which was originally constructed 20 years ago but was mothballed during the Great Recession.

Infrastructure Improvements underway

Period spend: $6.6 million

Benefit:provide safe and reliable service

Specifically, we invested $6.6 million into infrastructure improvements in existing utilities in the second quarter of 2026 to provide safe and reliable service.

Risks & headwinds

Increased operating expenses from 2025 capital investments second quarter of 2026

increase certain operating expenses and, most notably, depreciation expense

Mitigation:seek to obtain appropriate rate increases

Rising medical expenses Q2 2026

continue to grow at an unprecedented pace

Mitigation:seek to obtain appropriate rate increases

Decline in Phoenix MSA building permits second quarter of 2026

4.7% decrease compared to the same period in 2025

Mitigation:believe the decline in permits is temporary

Higher interest expense and lower interest income Q2 2026 and YTD 2026

increase of $0.4 million for Q2 2026; increase of $0.7 million for YTD 2026

Cyberattacks on water and wastewater infrastructure recent events

not impacted

What to watch in Q3 FY26

GW-Santa Cruz Rate Case Decision

later this year

Current Hearing concluded, pending recommended opinion and order

Target Commission open meeting decision

Why it matters

This decision will implement a $1.9 million net revenue increase, significantly impacting future earnings.

Once the recommendation is issued, it will appear at a Commission open meeting, which we estimate will happen later this year. Recall that the unanimous settlement agreement contemplates net increased revenues of approximately $1.9 million effective November 1, 2026.

Find out whether GWRS delivers this. Inve re-checks your case every morning.

Q&A highlights

How will major regional developments like Intel, TSMC, and SR 347 improvements impact Global Water's growth?

Management is optimistic about continued growth, citing a slight upward trajectory in permits, a record economic development year in FY26 for Arizona ($109 billion investment, 26,000 projected jobs), and the strategic importance of the SR 347 widening for affordability and access to the Phoenix market.

“the Arizona Commerce Authority in FY '26, which ended in June, they just put a report out last month where it was the biggest economic development year yet. So there was about 26,000 projected new jobs coming, and there was an investment of more than $109 billion in the community statewide.”

asked by Brandon B. Rogers · answered by Michael Liebman

2 min read 6 chapters

Detailed narrative

Rate Case Progress

The company is making significant progress on rate reviews, with a unanimous settlement agreement for GW-Santa Cruz expected to yield a $1.9 million net revenue increase effective November 1, 2026. While GW-Palo Verde's rate case is delayed, a new schedule provides a clearer path to setting appropriate rates in 2028.

This regulatory activity is crucial for recovering inflationary expenses and investments, including the recommissioned Southwest Plant.

Capital Investments & Impact

Global Water made near-record capital investments in 2025, including recommissioning the Southwest Plant Water Reclamation Facility. While these investments grow the rate base and ensure service reliability, they have increased operating expenses, particularly depreciation, which adversely impacted net income and EPS in Q2 FY26. The company views these as necessary for long-term growth and recovery through future rate increases.

Organic Growth & Economic Development

Total active service connections grew 5.8% year-over-year to 69,429. Despite a 4.7% decrease in single-family building permits in the Phoenix MSA in Q2 FY26, the company's organic connection growth was 2.7% year-over-year, with the Maricopa market seeing a 5.7% increase in permits.

Management believes the permit decline is temporary, citing significant economic development in the Phoenix area, including projects by Intel and TSMC, and the State Route 347 widening, which are expected to accelerate growth.

Financial Performance Drivers

Q2 FY26 total revenue increased 24.8% to $17.8 million, primarily driven by $2.1 million in unregulated ICFA revenue recognition, the acquisition of seven Tucson Water systems, organic connection growth, and higher rates. Regulated revenue alone grew 9.9% to $15.7 million. Adjusted EBITDA increased 15% to $7.9 million for the quarter.

Cost Management

The company is actively working to control G&A expenses, which remained relatively flat at $4.3 million in Q2 FY26 compared to $4.4 million in Q2 FY25. This focus on G&A control is a key strategy for 2026 to mitigate the impact of rising operating costs, such as medical expenses, and the increased depreciation from prior capital investments.

Acquisition Integration & Future Filings

Following significant acquisitions over the past five years, the company is currently focused on integrating these systems and filing for necessary rate reviews to recover capital investments. Future rate applications are planned for four utilities in H1 2027 (GW-Palo Verde, GW-Saguaro, GW-Farmers, GW-Ocotillo) and for GW-Santa Cruz in 2028, all targeting new rates in subsequent years.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.