Global Water Resources Applauds Inclusion of State Route 347 Improvements in ADOT’s $11.6 Billion Five-Year Plan

Rhea-AI Summary

Global Water Resources (NASDAQ: GWRS) welcomes the Arizona Department of Transportation's (ADOT) inclusion of State Route 347 (SR 347) improvements in its $11.6 billion 2026-2030 Five-Year Transportation Plan. The project includes $249 million for expanding SR 347, which currently serves over 58,000 vehicles daily.

The improvement project will add one lane in each direction along a 13-mile stretch between the City of Maricopa and Interstate 10, while eliminating traffic signals and upgrading intersections and bridges. Design work will begin in 2025, with construction starting in fiscal year 2026.

This infrastructure development aligns with Maricopa's growth projections, with the city's population expected to increase by nearly 90% to approximately 140,000 by 2040. Global Water Resources anticipates this expansion will drive increased demand for water and recycled water services throughout Maricopa and western Pinal County.

Positive

• Infrastructure improvements will support company's long-term organic growth strategy
• Project expected to drive expanded residential and commercial development, increasing water service demand
• Alignment with strong regional growth outlook of 90% population increase by 2040

Negative

• None.

Insights

Utilities Infrastructure Analyst

ADOT's $249M highway expansion project will likely accelerate GWRS's connection growth in a region projected for 90% population increase.

The $249 million investment in State Route 347 represents a significant growth catalyst for Global Water Resources' service territory. This infrastructure project addresses a critical transportation bottleneck between Maricopa and Phoenix that currently handles 58,000 vehicles daily. By expanding the highway, eliminating traffic signals, and upgrading intersections, ADOT is effectively removing a major constraint on development in western Pinal County.

The strategic value for GWRS lies in the acceleration of residential and commercial development that typically follows transportation improvements. The company's utility franchise in Maricopa positions it to directly benefit from the projected 90% population growth (to approximately 140,000 residents by 2040) in the city. Each new home or business represents a new water and wastewater connection - the fundamental driver of recurring revenue for regulated water utilities.

Water utilities possess natural monopolies in their service territories, making organic growth highly predictable once development occurs. Unlike many utilities that must invest heavily in infrastructure before seeing returns, GWRS can expand incrementally as developments connect to their systems. The timing of construction (beginning in fiscal 2026) aligns well with development cycles, potentially creating a sustained growth period for GWRS as the corridor develops over the coming decade.

PHOENIX, June 30, 2025 (GLOBE NEWSWIRE) -- Global Water Resources, Inc. (NASDAQ: GWRS), a pure-play water resource management company, applauds the Arizona Department of Transportation (ADOT) for adopting its $11.6 billion 2026–2030 Five-Year Transportation Facilities Construction Program, including more than $249 million for several planned improvement projects on the State Route 347 (SR 347) corridor.

The projects represent a transformative investment in regional infrastructure that will enhance safety, improve mobility, and support the continued growth of the City of Maricopa and surrounding areas.

SR 347 serves as the primary transportation corridor connecting Maricopa to the greater Phoenix metropolitan area. Currently accommodating more than 58,000 vehicles daily, the highway has long been a bottleneck for commuters and commercial traffic.

The projects will expand SR 347 by one lane in each direction over a 13-mile stretch between City of Maricopa Limits and Interstate 10, eliminate key traffic signals, and upgrade critical intersections and bridges. Design work is slated to begin later this year, with construction anticipated to commence in fiscal year 2026.

“ADOT’s decision to prioritize the SR 347 improvements is a major milestone for the region and a catalyst for sustainable growth,” said Ron Fleming, president and CEO of Global Water Resources. “This infrastructure investment directly supports our long-term strategy of organic growth in active water and wastewater connections. Specifically, as construction activity accelerates on SR 347, this will drive expanded residential and commercial development, increasing demand for water and recycled water services throughout the City of Maricopa and all of western Pinal County.”

The SR 347 projects align with Maricopa’s strong growth outlook. According to the Maricopa Association of Governments, the City of Maricopa’s population is projected to grow nearly 90% reaching approximately 140,000 by 2040.

“Global Water remains committed to supporting the City of Maricopa’s infrastructure and economic development,” added Fleming. “The SR 347 expansion is not just a road project—it’s a foundation for the region’s future.”

For more information on the SR 347 corridor widening project, visit ADOT’s website here.

About Global Water Resources

Global Water Resources, Inc. is a leading water resource management company that owns and operates 32 systems which provide water, wastewater, and recycled water service. The company’s service areas are located primarily in growth corridors around metropolitan Phoenix and Tucson. Global Water recycles over 1 billion gallons of water annually with 18.1 billion gallons recycled since 2004.

The company has been recognized for its highly effective implementation of Total Water Management (TWM). TWM is an integrated approach to managing the entire water cycle that involves owning and operating water, wastewater and recycled water utilities within the same geographic area in order to maximize the beneficial use of recycled water. It enables smart water management programs such as remote metering infrastructure and other advanced technologies, rate designs, and incentives that result in real conservation. TWM helps protect water supplies in water-scarce areas experiencing population growth.

Global Water has received numerous industry awards, including national recognition as a ‘Utility of the Future Today’ for its superior water reuse practices by a national consortium of water and conservation organizations led by the Water Environment Federation (WEF). The company also received Cityworks’ Excellence in Departmental Practice Award for demonstrating leadership and creativity in applying public asset management strategies to daily operations and long-term planning.
To learn more, visit www.gwresources.com.

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this press release include certain forward-looking statements which reflect the company's expectations regarding future events. The forward-looking statements involve a number of assumptions, risks, uncertainties, and other factors that could cause actual results to differ materially from those contained in the forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning anticipated infrastructure development; future growth in active service connections; customer demand; housing and economic trends; the Company’s strategy and financial outlook; regulatory and ACC proceedings, decisions, and approvals, such as the anticipated benefits resulting from rate decisions, including any collective revenue increases due to new water and wastewater rates, as well as the outcome and timing of our rate cases and other applications with the ACC; the company’s plans relating to future filings of its rate cases with the ACC; acquisition plans and the company’s ability to complete additional acquisitions; population and growth projections; technologies, including expected benefits from implementing such technologies; and other statements that are not historical facts, as well as statements identified by words such as "expects", "anticipates", "intends", "plans", "believes", "seeks", "estimates", or the negative of these terms, or other words of similar meaning. These statements are based on the company’s current beliefs or expectations and are inherently subject to a number of risks, uncertainties, and assumptions, most of which are difficult to predict and many of which are beyond the company’s control. Actual results may differ materially from these expectations due to changes in political, economic, business, market, regulatory, and other factors. Factors that may also affect future results are disclosed under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company’s filings with the Securities and Exchange Commission (the "SEC"), which are available at the SEC's website at www.sec.gov. This includes, but is not limited to, the company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings with the SEC. Accordingly, investors are cautioned not to place undue reliance on any forward-looking statements, which reflect management’s views as of the date hereof. The company undertakes no obligation to publicly update any forward-looking statement, except as required by law, whether as a result of new information, future developments or otherwise.

Company Contact:
Michael Liebman
CFO and SVP
Tel (480) 999-5104
Email Contact

Investor Relations Contact:
Ron Both or Grant Stude
Encore Investor Relations
Tel (949) 432-7450
Email contact

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/a14d1531-07a1-4bd1-9e22-b5fd77e3d9c6

FAQ

What is the total cost of the SR 347 improvement project in ADOT's five-year plan?

ADOT has allocated $249 million for several planned improvement projects on the State Route 347 corridor as part of its $11.6 billion 2026-2030 Five-Year Transportation Plan.

How will the SR 347 expansion project benefit Global Water Resources (GWRS)?

The project is expected to drive expanded residential and commercial development, increasing demand for GWRS's water and recycled water services throughout the City of Maricopa and western Pinal County.

When will construction begin on the SR 347 improvement project?

Design work will begin in late 2025, with construction anticipated to commence in fiscal year 2026.

What specific improvements are planned for State Route 347?

The project will add one lane in each direction over a 13-mile stretch between City of Maricopa Limits and Interstate 10, eliminate key traffic signals, and upgrade critical intersections and bridges.

How many vehicles currently use State Route 347 daily?

SR 347 currently accommodates more than 58,000 vehicles daily as the primary transportation corridor connecting Maricopa to the greater Phoenix metropolitan area.