Cadiz Inc. (CDZI): Marketing Mix Analysis [Dec-2025 Updated]

You're looking for the straight facts on Cadiz Inc.'s market position as of late 2025, and frankly, the story is a clear pivot from land-holder to essential water utility. Forget the noise; this company is monetizing its 2.5 million acre-feet of storage and supply through 40-50 year contracts, while their ATEC filtration arm is already delivering a high-margin business, pulling in $10.1 million in revenue year-to-date 2025. We'll map out how their strategic Tribal partnership and push to finance infrastructure-aiming to raise up to $400 million-ties directly into their product offerings and pricing structure in drought-prone Southern California. Dive in below for the precise 4P breakdown.

Cadiz Inc. (CDZI) - Marketing Mix: Product

You're looking at the core physical and service offerings of Cadiz Inc. (CDZI) as of late 2025. This is about what the company actually has in the ground and what it can deliver, which is a mix of water rights, infrastructure, and technology.

The primary product is the water itself, managed through the Mojave Groundwater Bank project. This asset is positioned to address regional water scarcity by conserving and storing naturally recharging groundwater. The aquifer system itself is estimated to hold between 30 and 50 million acre-feet of high-quality groundwater.

The specific product capacity approved for the Mojave Groundwater Bank is substantial, designed for both direct supply and storage:

• Water Supply Approval: Approved to supply 2.5 million acre-feet over 50 years for beneficial uses.
• Storage Capacity: Capacity for carry-over and imported storage up to 1 million acre-feet.

The expected annual yield from the Cadiz Ranch aquifer is estimated at 50,000 acre-feet over the next 50 years, contingent upon successful environmental reviews.

Cadiz Inc. supports its water product with tangible infrastructure assets. The company owns 45,000 acres of land in California, which is fully entitled. This land is also a product opportunity for renewable energy development.

The Water Conveyance Assets include the 220 miles of existing pipeline, which was acquired from El Paso Natural Gas in 2021. The Northern Pipeline component of this network stretches approximately 220-miles and has a total capacity of 25,000 AFY. This infrastructure is key to wheeling water to markets.

The Long-term Water Contracts are structured to provide revenue stability for the water supply component. The project is expected to deliver an annual supply under "take-or-pay" agreements spanning 40 - 50 years. For instance, the Northern Pipeline has secured water purchase agreements covering 85% of its capacity, totaling 21,275 acre-feet per year.

For immediate revenue generation, Cadiz Inc. offers the product line through its subsidiary, ATEC Water Systems. This technology provides cost-effective filtration for contaminants like Arsenic, Iron, and Manganese. As of the third quarter of 2025, ATEC had shipped 308 filtration systems year-to-date, more than double the volume from 2024. The year-to-date revenue for ATEC reached $10.1 million for the first nine months of 2025, with a Q3 gross margin of approximately 50%.

Finally, the Land Leases at Cadiz Ranch represent a product offering for renewable energy partners. The development plan with RIC Energy involves using up to 3,000 acres of land to create a self-sufficient hydrogen hub powered by solar energy. This facility is designed to produce 50,000 kilograms of green hydrogen daily, utilizing up to 500 acre-feet of water annually from Cadiz. Another development plan mentions utilizing up to 1,200 acres of the ranch for a facility powered by 700MW-1GW of off-grid solar power and 1GWh of battery storage.

Cadiz Inc. (CDZI) - Marketing Mix: Place

You're looking at how Cadiz Inc. (CDZI) physically gets its water and treatment solutions to the end-user, which is all about infrastructure and direct engagement in the arid Southwest.

The core distribution strategy for Cadiz Inc. centers on its extensive pipeline assets and its direct-to-agency sales approach, primarily targeting the most water-stressed areas.

Southern California/Southwest: Primary market focus on drought-prone regions and the Colorado River Basin. The physical assets, including 45,000 acres of land in California and 220 miles of existing pipeline assets, position Cadiz Inc. squarely within the primary market of Southern California and the broader Southwest region, where water scarcity is a persistent issue.

The distribution capacity is segmented across two major pipeline projects, which you can see summarized here:

Northern Pipeline: 85% of its 25,000 AFY capacity is already contracted to public water systems. You have secured water purchase agreements for 85% of this pipeline's capacity, which amounts to 21,275 acre-feet per year (AFY) under contract. These agreements are structured as "take-or-pay" contracts spanning 40 - 50 years. Construction to convert this 220-mile pipeline, originally an idle natural gas line, was anticipated to begin in 2025, with initial water delivery targeted for as early as 2026.

Southern Pipeline: Planned 43-mile connection to the Colorado River Aqueduct via a railroad right-of-way. This planned 43-mile extension is designed to deliver an additional 25,000 AFY of water supply and allow for storage of up to one-million acre-feet of imported water in the Cadiz aquifer. The company is working to secure the capital necessary to begin construction in 2025.

Direct Sales Model: Targeting public agencies, investor-owned utilities (like EPCOR), and commercial enterprises. The sales channel relies heavily on long-term contracts with large entities. For instance, Cadiz Inc. executed a Memorandum of Understanding (MOU) for the purchase and sale of 25,000 AFY of water supply via the Southern Pipeline with EPCOR, Arizona's largest private water utility. This deal also includes EPCOR contributing capital toward the Southern Pipeline's construction.

ATEC Distribution: Direct sales of filtration systems to large-scale water conservancy districts. The ATEC Water Systems subsidiary handles the distribution of treatment solutions directly to customers needing to clean up groundwater. This segment shows strong unit volume growth.

• Year-to-date (nine months ending September 30, 2025), ATEC shipped 308 filtration systems.
• This volume is more than double the volume achieved in 2024.
• Year-to-date revenue for ATEC reached $10.1 million for the first nine months of 2025.
• New sales contracts totaling $1.6 million were awarded in late 2024 for systems to be delivered in 2025.
• The largest project completed year-to-date 2025 was for the Central Utah Water Conservancy District.
• Systems are being delivered to serve close to 100,000 people in California, Washington, and Oregon.
• The filters are capable of processing up to 10 million gallons per day.

The price per acre-foot of water from the Northern Pipeline, inclusive of all capital, operating, and maintenance costs, is set not to exceed $1,650 per AFY, subject to annual adjustments.

The company's balance sheet as of September 30, 2025, shows current assets of $11.8 million.

Finance: draft 13-week cash view by Friday.

Cadiz Inc. (CDZI) - Marketing Mix: Promotion

You're looking at how Cadiz Inc. (CDZI) communicates the value of its water infrastructure and technology assets to stakeholders as of late 2025. The promotion strategy centers on validating the Mojave Groundwater Bank project through strategic partnerships and demonstrating near-term operational success via its ATEC subsidiary.

Strategic Tribal Partnership

The promotion around the Mojave Groundwater Bank project heavily features the strategic partnership with the Lytton Rancheria of California. This agreement was publicized as securing up to $51 million in capital as the first tranche of financing for the project. This initial funding is structured as an unsecured loan that is convertible into membership interests in Mojave Water Infrastructure Company, LLC (MWI). The initial draw proceeds are expected to be approximately $15 million, earmarked for reimbursing prior development expenses.

This partnership is promoted as establishing a new business model for critical infrastructure development. The narrative emphasizes that this investment positions the project as Tribal-led, with Lytton Rancheria Tribal Chairperson Andy Mejia stating that this shows how 'when Tribal leadership is part of the solution, every community benefits.'

Investor Relations Focus

Investor communication has been consistent, focusing on moving the major water project toward construction. The most recent formal update was the Q3 2025 Investor Update, issued on November 13, 2025. These updates consistently highlight construction financing milestones and operational proof points. For instance, the updates confirmed the execution of the definitive agreement with Lytton Rancheria and the final stages of diligence with private infrastructure investors.

The promotion of milestones includes:

• Secured first tranche of construction financing.
• Executed MOU for 25,000 AFY water supply sale.
• Anticipated wrap-up of Northern Pipeline federal right of way process in the next 8 weeks.

Public Relations Narrative

The core public relations messaging for Cadiz Inc. (CDZI) centers on addressing regional water scarcity through tangible, large-scale solutions. The narrative consistently promotes the concepts of water equity, climate adaptation, and sustainable water management. Cadiz Inc. is positioned as a California water solutions company providing access to clean, reliable, and affordable water.

The company's assets are promoted as a comprehensive suite to address climate change impacts:

• Land: 45,000 acres in California.
• Water Supply: 2.5 million acre-feet.
• Pipeline Assets: 220 miles.
• Technology: Most cost-effective water treatment filtration technology.

Infrastructure Financing

A significant promotional effort is directed toward the financing structure for the Mojave Groundwater Bank, utilizing the special-purpose entity, Mojave Water Infrastructure Company (MWI). The goal is to raise up to approximately $450 million in total equity capital through MWI. The Lytton investment is the first tranche, and the company is actively promoting the path to secure the remainder. Specifically, Cadiz Inc. is promoting that it is finalizing diligence with private equity investors for up to an additional $400 million in equity capital for MWI.

The financing promotion details the commitment structure:

ATEC Performance

To support the long-term infrastructure narrative, Cadiz Inc. promotes the strong, near-term performance of its ATEC Water Systems subsidiary as proof of market value and operational capability. The gross margin for ATEC in Q3 2025 was reported at approximately 50%, a significant increase from 32% in the prior year. This margin improvement is attributed to production efficiencies and scale.

The operational success metrics used in promotion include:

• Q3 2025 Revenue: $4.0 million.
• Year-over-Year Q3 Revenue Growth: 42%.
• Year-to-Date Revenue (9 months ended Sept 30, 2025): $10.1 million.
• Systems Shipped Year-to-Date: 308 filtration systems.

This performance is framed as confirming strong market adoption, as Q3 2025 marked the second consecutive quarter of operating profit for ATEC. Finance: draft 13-week cash view by Friday.

Cadiz Inc. (CDZI) - Marketing Mix: Price

Water Supply Rate

Net revenue estimated to start at approximately $\text{\$850}$ per acre-foot per year ($\text{AFY}$) to Cadiz Inc. from public water agencies purchasing supply via the Fenner Gap Mutual Water Company ($\text{FGMWC}$), subject to annual inflation adjustment.

Storage Revenue Model

The estimated cumulative total gross payments for water storage over the 50-year life of the permit is approximately $\text{\$1.5}$ billion.

ATEC Product Pricing

ATEC Water Systems generated year-to-date revenue of $\text{\$10.1}$ million for the first nine months of 2025. The gross margin in Q3 2025 was approximately $\text{50\%}$.

Capital-Light Strategy & Financing Structure

The strategy involves shifting capital expenditure ($\text{CAPEX}$) costs to Mojave Water Infrastructure Company ($\text{MWI}$), a newly-formed $\text{LLC}$ established to finance, construct, and own the Project assets. Lytton Rancheria of California provided up to $\text{\$51}$ million as the first tranche of financing into $\text{MWI}$. Total equity capital being raised by the Company through $\text{MWI}$ is up to approximately $\text{\$450}$ million.

Competitive Pricing Context

Cadiz water price is competitive with new storage and supply rates in California and existing wholesale water rates. Wholesale water prices in the Southern California market have escalated at a Compound Annual Growth Rate ($\text{CAGR}$) of approximately $\text{5.8\%}$ for the past 45 years.

Key Revenue and Capacity Metrics for Cadiz Inc. as of Late 2025:

Capacity and Contractual Pricing Commitments:

• Water Supply: Expected annual yield of $\text{50,000}$ acre-feet ($\text{AFY}$) over 50 years.
• Northern Pipeline Capacity Contracted: $\text{85\%}$ of full capacity ($\text{25,000}$ $\text{AFY}$), representing $\text{21,275}$ $\text{AFY}$.
• Northern Pipeline Water Purchase Agreements: $\text{15,000}$ $\text{AFY}$ under agreements signed in Q1 2024.
• Water Supply Contracts: Agreements with utilities/developer for over $\text{16,000}$ $\text{AFY}$.
• Wholesale Water Price Escalation (SoCal): $\text{CAGR}$ of approximately $\text{5.8\%}$ over the past 45 years.