Aug 10, 2026, 5:26 PM ETUtilities

Consolidated Water — Second Quarter 2026 Earnings Summary

CWCOCONSOLIDATED WATER CO LTD

Financial Performance

Total revenue decreased 2% year-over-year to $32.9 million in Q2 2026, compared to $33.6 million in Q2 2025.
Net income from continuing operations attributable to stockholders was $4.0 million ($0.25 per diluted share), down from $5.2 million ($0.32 per diluted share) in Q2 2025.
Including discontinued operations, net income was $3.9 million ($0.24 per diluted share), compared to $5.1 million ($0.32 per diluted share) in the prior year period.
Gross profit totaled $11.0 million (33% of revenue) in Q2 2026, down from $12.8 million (38% of revenue) in Q2 2025.
Cash and cash equivalents increased to $132.6 million as of June 30, 2026, with working capital rising to $144.6 million.
Stockholders' equity was $225.6 million as of June 30, 2026.
For the first half of 2026, revenue was $62.8 million, a 7% decrease from $67.3 million in the same period of 2025.
First-half net income from continuing operations was $7.9 million ($0.49 per diluted share), down from $10.1 million ($0.63 per diluted share) in 2025.

Management expects manufacturing revenue to improve in future periods based on current backlog and a very active market for municipal water projects in Florida.
The company anticipates the Kalaeloa, Hawaii desalination project will significantly contribute to revenue and earnings growth in future periods, with construction expected to start later in 2026.
Management believes the company is well-positioned to capitalize on growth opportunities in the Florida market for 2026 and 2027.
The company expects to move decisively on desalination and water infrastructure opportunities across the Caribbean and North America.
Strategic acquisitions and partnerships are being pursued to accelerate growth.

Retail: Revenue was $8.7 million, relatively consistent (up 0.3%), despite a 2% decline in water volume sold in Grand Cayman due to wetter weather; offset by a base rate increase for a major non-potable customer.
Bulk: Revenue increased 20% to $9.9 million, driven by higher energy pass-through charges in Bahamas operations and revenue from two new seawater desalination plants on Cat Island commissioned in 2026.
Services: Revenue increased 1% to $11.6 million; construction revenue rose 89% to $5.3 million due to projects in Colorado and California, partially offset by a 27% decline in O&M revenue ($6.0 million) following the expiration of two PERC contracts.
Manufacturing: Revenue decreased 49% to $2.7 million due to a decline in new purchase orders for 2026 projects compared to a large late-2024 order in the prior year.
New purchase orders totaling approximately $10.1 million for municipal water treatment equipment in Florida were announced subsequent to the quarter.
A new municipal contract in southern California was awarded to PERC in November 2025, expected to generate $4.5 million over three years.

The company received a 25-year exclusive water production and supply concession and utility license for Seven Mile Beach and West Bay in Grand Cayman.
Operating and maintenance agreements for the Water Authority-Cayman's North Sound and North Side Water Works plants were extended from July 1, 2026, through March 31, 2027.
A limited notice to proceed was issued in July for a $204 million project to design, construct, operate, and maintain a 1.7-million gallon-per-day seawater desalination plant in Kalaeloa, Hawaii.
The company views the market for municipal water projects in Florida as very active for the remainder of the year.

Manufacturing revenue is subject to fluctuations in new purchase orders, as evidenced by the 49% decline in Q2 2026.
Retail revenue volume is sensitive to weather conditions, with Q2 2026 volume declining due to significantly greater rainfall compared to 2025.
Services O&M revenue declined due to the expiration of two PERC contracts in Q1 2026.
Forward-looking statements regarding the Kalaeloa facility and Florida purchase orders involve risks including permitting delays, equipment procurement timelines, and regulatory approvals.
Risks include the collection of delinquent accounts receivable in The Bahamas and various economic, operational, and industry-specific risks.

CEO Rick McTaggart noted that while revenue grew in retail, bulk, and services segments, the manufacturing decline reduced consolidated revenue by 2%.
Management highlighted cost reductions in G&A expenses for retail and bulk segments, contributing to income from operations growth in those segments.
The tone regarding the Florida market and the Kalaeloa project is positive, with management expressing confidence in future revenue and earnings growth.
Management emphasized the strength of the company's balance sheet and diversified water solutions platform.

Sachin Chawla was appointed senior vice president, strategy and growth, bringing over 25 years of water industry leadership experience.
The Florida purchase orders represent the company's largest municipal membrane equipment order and largest horizontal cartridge filter order to date.
Dividends declared per common and redeemable preferred shares were $0.14 for the quarter and $0.28 for the first half of 2026.
A conference call was scheduled for August 11, 2026, at 11:00 a.m. Eastern time to discuss results.