Key Highlights

  • Active service connections rose 2.4%, or 1,667, to 69,797 at September 30, 2026 from 68,130 a year earlier, all from organic growth in its service areas.
  • Phoenix-area single-family permits fell 5% in the third quarter to 4,480 and 10% over nine months to 15,337, while City of Maricopa single-family permits rose 7% to 175 in the quarter.
  • About 87.5% of the 69,797 active connections are served by just two of its utilities, GW-Santa Cruz and GW-Palo Verde, which concentrates its customer base.
  • The Tucson Water systems bought in July 2025 for about USD 8.1 million have added roughly USD 1.5 million of annual revenue, and a 5.0% rate increase took effect in July 2026.

Organic Connection Growth Reaches 69,797

Global Water Resources (NASDAQ:GWRS), which owns and operates 39 water, wastewater and recycled water Utility systems mainly around Phoenix and Tucson, Arizona, filed its Quarterly Report for the period ended September 30, 2026 on November 3, 2026. Active service connections grew 2.4% year over year to 69,797, with the gain coming from organic growth rather than acquisitions. Because Revenue and variable expenses move with connections, the company says population and community growth directly affect earnings. The extract supplied contains no income statement, so revenue, Net Income and Dividend figures are not covered here.

Maricopa Housing, a Highway Project and Mixed Permit Data

Management ties organic growth to lower housing costs in the City of Maricopa, where the median home sales price in September 2026 was 24% below the City of Phoenix. Construction on the State Route 347 Improvement Project began in June 2026, with completion scheduled for 2029. Permit data are mixed. Multi-family housing equivalent permits in Maricopa fell to zero in the third quarter from 278 a year earlier, down 62% over nine months to 215, and Phoenix-area single-family permits are down 10% year to date. A university-based consensus panel forecasts 21,065 single-family permits in 2026 and 21,862 in 2027. Management says the pace of new connections and permits has slowed recently.

Rate Regulation, Tucson Water Systems and What Could Slow Growth

Rates are set by the Arizona Corporation Commission using a historical test year, so cost increases can lag before they reach customers. The fixed basic service charge is generally set to produce about 50% of water revenue, which cushions weather swings. The July 2025 purchase of seven Tucson Water systems, with about 2,200 connections and a rate base of about USD 7.7 million, lifted Pima County customers above 7,200. Risks include slowing construction, inflation, interest rates, and Middle East conflict, which did not materially affect the quarter but could in future. The digest holds no peer comparison. Watch permit trends in Maricopa, fourth-quarter connection counts and the next rate filings.

Where Things Stand

Growth can probably continue, but at a pace that depends on housing activity. Global Water Resources (NASDAQ:GWRS) added 1,667 connections organically and benefits from relatively affordable Maricopa housing and the State Route 347 project. Still, nine-month permit counts are lower across the Phoenix area, and management itself describes recent connection activity as slower. Without income figures in the supplied filing extract, the effect on Earnings cannot be measured here. Connection growth in the fourth quarter will be the next signal.