CWCO · Consolidated Water Co. Ltd.

Consolidated Water Co. Ltd. reported first quarter 2026 results with total revenue of $30.0 million, a decline of 11% from $33.7 million in the prior year quarter, primarily driven by sharp drops in manufacturing and retail segments. Manufacturing revenue plummeted 76% to $1.4 million due to lower volume of new purchase orders and timing shifts compared to a large order received in late 2024 that boosted last year's figures. Retail revenue decreased 9% to $8.6 million, reflecting a 10.2% reduction in water sales volume from significantly higher rainfall on Grand Cayman versus drought-like conditions in 2025. Offsetting these declines, bulk revenue grew 4% to $8.7 million, fueled by contributions from the newly commissioned seawater desalination plant on Cat Island, Bahamas, with the second plant expected in Q2 2026. Services revenue rose 12% to $11.3 million, led by a 15% increase in operations and maintenance (O&M) contracts to $8.9 million, including revenue from a new three-year $4.5 million municipal contract in southern California awarded to PERC in November 2025. Gross profit margin slipped slightly to 36% from 37%, aligning with the revenue mix shift toward lower-margin segments. Net income from continuing operations attributable to stockholders was $3.8 million or $0.24 per diluted share, down from $4.9 million or $0.31. Including discontinued operations, net income was $3.8 million or $0.23 per share. CEO Rick McTaggart highlighted the stable recurring nature of Caribbean bulk water and O&M services, with expectations for manufacturing improvement later in 2026 despite a full-year decline from 2025's record, partly due to Hawaii project work eliminated in consolidation. Upcoming revenue from $15.6 million in awarded U.S. construction projects and progress on the Hawaii desalination plant permitting are anticipated to drive growth in services and construction.