Global Water Resources, Inc. Q4 FY2025 earnings call

Key Initiatives - 2025 included large successful initiatives growing rate base by $70 million (59%) over 2024-2025. - Near-record capital investments in 2025, such as recommissioning the Southwest Plant and capital improvements for growing communities and Tucson water systems acquisition. ### Organic Growth - Total active service connections increased 6.3% to 68,577 at Dec 31, 2025 from the prior 12 months. - 3.2% total active service connection growth rate in 2025 excluding Tucson acquisition. - Invested $67.3 million in infrastructure improvements. ### Regulatory Activity - Secured approval to acquire Tucson water systems in Jan 2025, closed in Jul 2025. - Arizona Corporation Commission approved new revenues for Global Water Farmers Utility in Apr 2025. - Progressing on Santa Cruz and Palo Verde rate reviews, filed testimony for $4.3M revenue increase, hearing scheduled for Aug 2026

Total revenue for 2025 was $55.8 million, an increase of $3.1 million or 5.8% compared to 2024. Operating expenses in 2025 rose approximately $5.3 million or 12.2% to $48.6 million from $43.3 million in 2024. Net income for 2025 was $3 million or 11 cents per diluted share, down from $5.8 million or 24 cents per diluted share in 2024. Adjusted net income in 2025 was $3.9 million or $0.14 per diluted share, compared to $6.3 million or $0.26 per diluted share in 2024. Adjusted EBITDA decreased 0.7% to $26.5 million in 2025 from $26.7 million in the prior year. The two largest utilities, Santa Cruz Water Company and Palo Verde Utilities Company, had significant capital investments, and total active service connections increased 6.3% to 68,577 at December 31, 2025

Forward Look - 2026 focused on controlling expenses and reducing capital investment pace. - Anticipated benefits from Ag to Urban water legislation and Highway 347 expansion construction starting in summer 2026. - Population growth in Maricopa supports growth projections and correlates with consumption/revenue growth. - Evaluating options for rate case outcomes, including refiling if needed

Risks - Regulatory lag in Arizona test year environment impacting income/earnings per share. - Uncertain market conditions leading to pullback in building permits. - Medical costs and other expenses growing at an unprecedented pace. - Security considerations with AI implementation across utility operations

Q: On rate case and AI use.

A: Ron Fleming discussed rate case uniqueness due to Southwest Plant recommissioning and lessons learned, Chris Krieger added on regulatory dialogue and uniqueness; Ron spoke on AI use in call centers for better service and security considerations for broader utility operation implementation.

Q: Follow up on rate case refiling.

A: Chris Krieger said evaluating all options for rate case outcomes if needed