Cadiz Inc. Reports Third-Quarter Progress for Future Growth
Los Angeles – Cadiz Inc. (NASDAQ: CDZI) has provided a detailed update highlighting its achievements and strategic direction following its recent quarterly report filed for Q3 2025. Susan Kennedy, the Chairman and CEO, shared her enthusiasm regarding several critical milestones that Cadiz has reached. The company is well-positioned to conclude 2025 on a strong note, paving the way for unprecedented growth in 2026.
Key Developments in Mojave Groundwater Bank Project
One of the standout accomplishments for Cadiz this year has been in the development of the Mojave Groundwater Bank. The project recently secured its first tranche of construction financing through an innovative partnership with the Lytton Rancheria of California. This partnership accounts for a $51 million investment, which signifies the initial steps toward funding the Mojave Groundwater Bank. This funding structure will eventually lead to an ownership stake in the Mojave Water Infrastructure Company (MWI), a newly established LLC responsible for the pipeline and storage assets associated with this ambitious project.
Furthermore, the company has executed a Memorandum of Understanding (MOU) with EPCOR, Arizona's largest private water utility, allowing for the purchase and sale of significant water supply. This agreement will enable constructive collaboration to enhance the Southern Pipeline system, which will particularly benefit water delivery efforts within Arizona.
Collaborative Efforts to Manage Water Resources
Cadiz is also actively working with the U.S. Bureau of Reclamation regarding the Mojave Groundwater Bank. This partnership aims to explore the possibility of augmenting water supplies to the Colorado River, a critical resource amid ongoing negotiations among the Colorado River Basin states to establish new water-sharing protocols.
Additionally, the approval of an Addendum related to the Northern Pipeline by the Fenner Valley Water Authority was received smoothly. This decision comes after extensive evaluations, allowing the permit to progress through the Bureau of Land Management’s federal right-of-way process.
ATEC Water Systems Growth and Performance
Cadiz’s subsidiary, ATEC Water Systems, continues on a promising trajectory. This division saw a notable increase in shipments, delivering 308 filtration systems in 2025—more than double compared to 2024. The revenue generated by ATEC reached $4.0 million in Q3 2025, representing a significant year-over-year increase.
The growth doesn’t stop there; ATEC’s overall performance for the year has achieved a revenue total of $10.1 million, and gross margins also improved, showcasing the positive impact of production efficiencies.
Hydrogen Development Initiatives
Hydrogen development at Cadiz Ranch is making strides as the company collaborates with local leaders. Recent amendments to the One Big Beautiful Bill Act have created advantageous conditions for clean hydrogen production, with RIC Development LLC leading efforts to utilize solar energy installations to support green hydrogen initiatives. Their plans include submissions for environmental permits in 2026.
Financial Summary and Future Outlook
Cadiz’s financials reveal a robust revenue performance. The company’s total revenue skyrocketed to $11.2 million for the nine months ending September 30, 2025—a 131% increase from the previous year. While operating losses remain a factor, Cadiz’s focus on scaling operations and leveraging ATEC’s performance appears promising. The company is poised to unlock long-term, recurring cash flows as it transitions into construction phases for critical water supply projects.
About Cadiz, Inc.
Founded in 1983, Cadiz, Inc. (NASDAQ: CDZI) is dedicated to solving water accessibility issues in California. With significant assets and technologies aimed at providing clean, reliable water, Cadiz plays a vital role in combating the impacts of climate change on water resources. The company manages an extensive land portfolio alongside advanced filtration and treatment technologies aimed at enhancing water solutions.
Frequently Asked Questions
What key milestones did Cadiz achieve in Q3 2025?
In Q3 2025, Cadiz secured initial construction financing for its Mojave Groundwater Bank and increased collaborations with EPCOR for water supply.
How has ATEC Water Systems performed recently?
ATEC Water Systems has significantly increased its shipments and revenues, achieving $4.0 million in Q3 2025, representing a year-over-year growth.
What is the importance of the Mojave Groundwater Bank project?
This project is central to Cadiz's strategic initiatives, aimed at enhancing water supply and addressing regional water scarcity issues in the Southwest.
How does hydrogen development fit into Cadiz’s strategy?
Hydrogen development at Cadiz Ranch is a potential growth area, supported by legislative changes that enhance the profitability of clean hydrogen production.
What is Cadiz's overall financial outlook?
Cadiz is positioned for sustainable growth following a strong revenue increase and strategic project advancements heading into 2026.
