Pure Cycle Posts 36% Net Income Growth on $5.1M Q2 Revenue
Pure Cycle Corp generated $5.1 million revenue and $2.8 million gross profit in Q2, driving a 36% net income increase with strong industrial water sales and accelerated lot deliveries. Phase 2C/2D nears completion, Phase 2E will deliver 160 lots by summer 2027, though new interchange timeline slid to 2028.
1. Q2 Financial Results
Pure Cycle reported Q2 revenue of $5.1 million and gross profit of $2.8 million, resulting in a 36% year-over-year net income increase driven by growth across land, water and single-family rental segments.
2. Segment Performance
Industrial water sales to oil and gas operators rose significantly, while recurring water revenue from commercial customers dipped slightly and single-family rental expansion was slowed to address housing affordability.
3. Land Development Progress
Phase 2C and 2D of the land development project are nearing completion, with Phase 2E set to deliver 160 lots by summer 2027, maintaining the company’s accelerated lot delivery schedule.
4. Infrastructure and Outlook
The new interchange project timeline slipped to 2028 due to permitting and design delays, and data center land opportunities face uncertainty from inconsistent tax incentives and power availability challenges.