Aug 13, 2026 earnings call — Rate case settlement and earnings impact
A unanimous rate case settlement contemplates net increased revenues of approximately $1.9 million effective November 1, 2020.
Revenue $0.0B (est $0.0B) · EPS $0.04 (est $0.03)
Key quotes
"As you saw in our press release, we concluded the hearing on the settlement agreement on August 3, 2026, and the case is now pending a recommended opinion in order from the administrative law judge."
"Total active service connections increased 5.8% to 69.4 thousand as of 06/30/2026 from the 12-months prior."
"Such expenses continue to adversely impact net income and earnings per share in the second quarter of 26."
Analyst Q&A 3
Phoenix development and company costs
Q (Brandon Rogers · ROTH Capital): He asked how big projects in the Phoenix area (Intel, TMC, state route work) might affect the region and the company. He also asked about G&A run rate for the rest of the year and the company's 2026–2027 capital expenditure outlook.
A: Management said permits had steadied and were starting a slight upward trend, and they are optimistic the 47 state route work and Intel will help growth. They noted the Arizona Commerce Authority reported 26 thousand projected new jobs and an investment of more than a 109 billion in fiscal year 26. They plan to keep G&A as flat as possible, and they do not give guidance but said 2027 capex would be lower than 2025 and around historical norms.
"The 2027 would definitely be lower than that, kind of somewhere around what historical norms have been." — Michael J. Liebman (CFO)
Acquisitions and funding mix
Q (Andrew McLaren · Viking Capital): He asked how the acquisition pipeline looks today versus the last 3–5 years. He also asked how the company would evaluate equity versus debt if more capital is needed at current share prices.
A: Management said acquisitions remain on their radar, but their current focus is integrating past deals, filing necessary rate reviews, and recovering the capital investments from those utilities. For new capital, they start with a target of 50% equity and 50% debt and will balance that based on the stock price, capital markets and debt rates while being mindful of dilution.
"Obviously, we have had a pretty significant program over the past 5 years." — Christopher D. Krygier (COO)
Permits, housing timing and growth
Q (Verik Kotnick · Divide Capital Partners): He asked what the company is seeing on the ground now: permits, absorption, new communities, and how long it takes for those indicators to show up in the company's results.
A: Management said single-family permits had slowed but bottomed in 2025 and early 2026 in the high 2% range, and their organic growth rate recently ticked up to 3.2%. They said they are seeing more large multifamily and commercial projects, which is why revenue growth can diverge from meter connections, and that the full cycle from announcements to finished lots and operations is roughly a 2- to 3-year cycle (developers typically take about 18 months from breaking ground to finished lots and employers often hire a year before operations).
"I just think we are just now experiencing all the major stuff that is been announced and going on over the last 2 to 3 years." — Ron L. Fleming (CEO)