Global Water invests $67.3M in infrastructure, expands rate base 59%
Global Water increased service connections 6.3% to 68,577 and invested $67.3 million in infrastructure, expanding its rate base by $70 million (59%) across 2024–25. Revenue rose 5.8% to $55.8 million in 2025, but 12.2% higher operating expenses pushed net income down to $3.0 million ($0.11/share).
1. Service Connection Growth and Capital Investment
Global Water reported 68,577 active service connections at year-end 2025, up 6.3% year-over-year, with 3.2% organic growth excluding the Tucson acquisition. The company invested $67.3 million in infrastructure improvements, including post-test year projects at Santa Cruz and Palo Verde, recommissioning the Southwest Plant and acquiring seven Tucson water systems.
2. 2025 Financial Performance
Total revenue increased 5.8% to $55.8 million, driven by the Tucson acquisition, organic connection gains and higher rates. Operating expenses rose 12.2% to $48.6 million due to higher depreciation, O&M and G&A costs, resulting in net income of $3.0 million ($0.11/share) versus $5.8 million a year earlier and roughly flat adjusted EBITDA at $26.5 million.
3. Regulatory Developments and Rate Base Expansion
The Arizona Corporation Commission approved the Tucson acquisition and modest Farmers rate relief, while Santa Cruz and Palo Verde cases seeking $4.3 million remain pending with an August 2026 hearing. Across the 2024–25 test and post-test years, the company increased its collective rate base by $70 million (59%), anticipating eventual cost recovery through future rate proceedings.
4. Growth Drivers and Outlook
Despite a near-20% decline in Phoenix-area housing permits, Global Water achieved 3.2% organic connection growth, reflecting resilience in fast-growing communities. Management highlighted Arizona’s Ag-to-Urban groundwater legislation and the planned Highway 347 expansion as long-term drivers for new supply and residential demand.