Consolidated Water Reports Full Year 2025 Results

GEORGE TOWN, Cayman Islands, March 16, 2026 (GLOBE NEWSWIRE) -- Consolidated Water Co. Ltd. (NASDAQ Global Select Market: CWCO), a leading designer, builder and operator of advanced water treatment plants, reported results for the year ended December 31, 2025. All comparisons are to the same prior year period unless otherwise noted. Consolidated Water will hold a conference call at 11:00 a.m. Eastern time tomorrow to discuss the results (see dial-in information below). 2025 Financial Summary Total revenue decreased 1% to $132.1 million.Retail revenue increased 6% to $33.6 million.Bulk revenue decreased 1% to $33.5 million.Services revenue decreased by 9% to $46.3 million primarily due to a decline in construction revenue.Manufacturing revenue increased by 6% to $18.7 million.Net income from continuing operations attributable to company stockholders totaled $18.6 million or $1.16 per diluted share, compared to $17.9 million or $1.12 per diluted share in 2024.Including discontinued operations, net income attributable to company stockholders totaled $18.3 million or $1.14 per diluted share, compared to $28.2 million or $1.77 per diluted share in 2024.Cash and cash equivalents increased to $123.8 million and working capital increased to $141.9 million as of December 31, 2025. 2025 Operational Highlights Retail water sold by the company’s Grand Cayman water utility increased 8.3% to a record volume of 1.09 billion gallons. The increase was due to increased customer connections and significantly less rainfall on Grand Cayman during the year.CW-Bahamas supplied to the WSC under long-term supply agreements approximately 4.8 billion gallons of water produced from two seawater reverse osmosis desalination plants in Nassau, New Providence. This is consistent with the 4.8 billion gallons supplied in 2024.The company was awarded two water treatment plant construction projects, including a $3.9 million drinking water plant expansion in Colorado and an $11.7 million wastewater recycling plant in California. The revenue attributable to these projects is expected to be realized primarily in 2026, and the combined value of these projects totals approximately $15.6 million.Completed 100% design of the 1.7 million gallon per day seawater desalination plant in Kalaeloa, Hawaii for the Honolulu Board of Water Supply (BWS). In addition, the company received confirmation from BWS that the company is able to produce water that is a “reasonable match” to the quality of BWS’s current water supply and that the company is able to produce water that causes “no detrimental impact” to the BWS water system or their customers’ assets. These significant project milestones help pave the way to begin construction once all permits have been issued.Completed the expansion of the West Bay seawater desalination plant to meet growing demand for water in the company’s Grand Cayman service area. The expansion added an additional 1 million gallons per day of desalinated water production capacity.Received a new concession from the Cayman Islands government that granted the company’s Grand Cayman water utility continued exclusive rights to produce and supply potable water within its service area and resumed discussions with the utility regulator for a new operating license. The existing operating license remains in effect until a new one is granted.Appointed three new independent directors, Kim Adamson, Maria Elena Giner, and Gerónimo Gutiérrez Fernández, effective October 1, 2025. Dividend Increase In June 2025, the company increased its quarterly dividend by 27.3% to $0.14 per share beginning in the third quarter of 2025. Management Commentary “Our retail, bulk and manufacturing revenues and operating incomes in 2025 were consistent with our expectations,” commented Consolidated Water CEO, Rick McTaggart. “However, our services revenue from continuing operations did not meet our expectations due to a permitting delay related to our 1.7 million gallon per day seawater desalination plant project in Kalaeloa, Hawaii. We believe that this type of delay is common for the complex, multi-agency permitting process required for a project of this scale and is not due to any failures on the part of Consolidated Water. We have achieved all other major project milestones and continue to work closely with the Honolulu Board of Water Supply and regulatory authorities to advance the permitting process and mitigate schedule impacts. “Although our services segment revenue was less than expected, total revenue on a consolidated basis was relatively consistent from the previous year. In addition, our gross margin improved across all segments — up 2.6 percentage points on a consolidated basis — and our consolidated net income from continuing operations increased 4% compared to 2024. “The continued strength of the Cayman Islands economy and historically low rainfall in our exclusive utility service area on Grand Cayman resulted in our retail segment revenue increasing about 6% compared to the previous year, reflecting a record volume of water sold to a record number of customers. This increase in customers was due to the ongoing growth in population and business activity on the island. “While bulk segment revenue decreased less than 1% this past year due to lower fuel pass-through charges, bulk profitability increased in dollars and gross profit percentage due to lower costs of revenue reflecting our unwavering focus on operational excellence. “Our services segment revenue decreased 9% due to a $5.1 million decrease in construction revenue from two major design-build projects completed in 2024. Construction revenue recognized on the Hawaii contract also declined by $2.9 million in 2025 due to the completion of the pilot plant testing phase of the project in early 2025. The services segment revenue decrease is also due to a $2.3 million decrease in design and consulting revenue as a result of the completion in the fourth quarter of 2024 of a contract for a major plant commissioning and startup project. “The decrease in services segment construction and consulting revenue was partially offset by a 9% increase in recurring revenue from O&M contracts. The increase in O&M revenue was attributable to incremental revenue generated by both our PERC Water subsidiary and REC, and includes revenue from a new municipal client in southern California and from additional services provided to a large federal client under a contract which expires at the end of the month. “During the year, our manufacturing segment continued to improve its performance. Manufacturing revenue grew by 6% and gross margin increased 4.6 percentage points to 34.8%, which reflects the production this past year of primarily higher margin products as well as our continued focus on maximizing production efficiency and capacity. The completion of our new 17,500-square-foot manufacturing facility expansion in the third quarter of 2025 has further enhanced efficiency and throughput and is key to growing that business segment through continued customer and product diversification. “In the fourth quarter of 2025, we completed 100% of the design of the seawater desalination plant for the Honolulu Board of Water Supply in Kalaeloa, Hawaii, and we now are focused on obtaining the remaining permits needed to allow our client to issue a notice to proceed with construction of the project. We continue to focus on the permitting process, respond to regulatory inquiries and coordinate with the Honolulu Board of Water Supply to mitigate schedule impacts. The deferral of construction activities has shifted anticipated revenue recognition and associated cash flows related to the Hawaii project into future periods. We anticipate that construction of the project will commence later this year and see the construction phase of this major project substantially adding to our revenue and earnings growth in later reporting periods. “Our construction service segment revenue is anticipated to remain below the record achieved in 2023 until the initiation of construction of the desalination project in Hawaii. However, as we move through the year ahead, we believe our diversified business segments will continue to deliver improved results to shareholders. This includes the continued growth in retail water business in Grand Cayman; the long-term, stable recurring revenue from our Caribbean-based bulk water business; and the growth potential of our U.S.-based manufacturing, design-build and O&M businesses. As the global demand for clean water continues to grow, our strong balance sheet enables us to move quickly on desalination and water infrastructure opportunities in the Caribbean and North America as well as any potential strategic acquisitions or partnerships.” 2025 Financial Results Revenue totaled $132.1 million, decreasing 1% from $134.0 million in 2024. The decrease was due to decreases of $4.6 million in the services segment and $192,000 in the bulk segment. The decreases were partially offset by increases of $1.8 million in the retail segment and $1.1 million in the manufacturing segment. Retail revenue increased due to an 8.3% increase in the volume of water sold to a record 1.09 billion gallons. This increase resulted from significantly lower rainfall on Grand Cayman and a 6.6% increase in the number of customer accounts in the company’s license area. The slight decrease in bulk segment revenue was due to a decline in energy-related revenue in the Bahamas operations. The decrease in services segment revenue was primarily due to plant construction revenue decreasing from $18.6 million in 2024 to $13.5 million in 2025. The decrease was the result of $8.2 million of additional revenue from PERC’s contract with Liberty Utilities and $1.3 million in revenue from the Red Gate contract in Grand Cayman in 2024. These contracts were substantially completed in mid-2024. Construction revenue recognized on the Hawaii contract also declined by $2.9 million in 2025 due to the completion of the pilot plant testing phase of the project. These decreases in construction revenue were partially offset by construction revenue generated under new contracts. Services segment revenue generated under O&M contracts totaled $32.1 million in 2025, an increase of 9% from 2024. The increase was due to incremental revenue generated by both PERC and REC. Manufacturing segment revenue increased by $1.1 million, or 6%, to $18.7 million, as compared to $17.6 million in 2024. Gross profit for 2025 was $48.4 million (37% of total revenue), as compared to $45.6 million (34% of total revenue) in 2024. The increase was due to increases in retail and manufacturing revenue, as well as decreased cost of revenue for the bulk segment. Net income from continuing operations attributable to Consolidated Water stockholders in 2025 was $18.6 million, or $1.16 per diluted share, compared to net income of $17.9 million, or $1.12 per diluted share, in 2024. Including discontinued operations, net income attributable to Consolidated Water stockholders in 2025 was $18.3 million or $1.14 per diluted share, compared to net income of $28.2 million, or $1.77 per diluted share, in 2024. Cash and cash equivalents totaled $123.8 million as of December 31, 2025, with working capital of $141.9 million and stockholders’ equity of $221.7 million. 2025 Segment Results Year Ended December 31, 2025 Retail Bulk Services Manufacturing Corporate TotalRevenue $33,587,952 $33,481,307 $46,312,325 $18,691,784 $— $132,073,368 Cost of revenue 14,593,693 22,470,197 34,449,844 12,180,824 — 83,694,558 Gross profit 18,994,259 11,011,110 11,862,481 6,510,960 — 48,378,810 General and administrative expenses 3,734,676 1,614,759 7,885,756 2,102,759 14,778,378 30,116,328 Gain on asset dispositions, net 40,578 — 52,131 5,000 — 97,709 Income (loss) from operations 15,300,161 9,396,351 4,028,856 4,413,201 (14,778,378) 18,360,191 Interest income 171,351 772,514 839,190 3 886,982 2,670,040 Interest expense — — (4,420) — — (4,420)Income (loss) from affiliates — — — (29,354) 257,240 227,886 Other 71,262 (9,322) 69,735 344 (581) 131,438 Other income (loss), net 242,613 763,192 904,505 (29,007) 1,143,641 3,024,944 Income (loss) before income taxes 15,542,774 10,159,543 4,933,361 4,384,194 (13,634,737) 21,385,135 Provision for income taxes — — 1,132,590 1,026,316 5,742 2,164,648 Net income (loss) from continuing operations 15,542,774 10,159,543 3,800,771 3,357,878 (13,640,479) 19,220,487 Income from continuing operations attributable to non-controlling interests — 593,179 — — — 593,179 Net income (loss) from continuing operations attributable to Consolidated Water Co. Ltd. stockholders $15,542,774 $9,566,364 $3,800,771 $3,357,878 $(13,640,479) 18,627,308 Net loss from discontinued operations (290,635)Net income attributable to Consolidated Water Co. Ltd. stockholders $18,336,673 Year Ended December 31, 2024 Retail Bulk Services Manufacturing Corporate TotalRevenue $31,741,343 $33,673,387 $50,956,489 $17,595,414 $— $133,966,633 Cost of revenue 14,199,088 23,360,360 38,511,535 12,271,202 — 88,342,185 Gross profit 17,542,255 10,313,027 12,444,954 5,324,212 — 45,624,448 General and administrative expenses 3,263,593 1,564,975 6,055,409 2,456,807 14,196,652 27,537,436 Gain on asset dispositions, net 2,286 — 2,714 — 192,786 197,786 Income (loss) from operations 14,280,948 8,748,052 6,392,259 2,867,405 (14,003,866) 18,284,798 Interest income 198,180 865,584 458,732 4 571,690 2,094,190 Interest expense (93,368) — (8,409) — (70) (101,847)Income from affiliates — — — 16,701 252,754 269,455 Other 78,647 39,625 (5,634) 11,993 7,247 131,878 Other income, net 183,459 905,209 444,689 28,698 831,621 2,393,676 Income (loss) before income taxes 14,464,407 9,653,261 6,836,948 2,896,103 (13,172,245) 20,678,474 Provision for income taxes — — 1,528,398 672,040 18,076 2,218,514 Net income (loss) from continuing operations 14,464,407 9,653,261 5,308,550 2,224,063 (13,190,321) 18,459,960 Income from continuing operations attributable to non-controlling interests — 577,590 — — — 577,590 Net income (loss) from continuing operations attributable to Consolidated Water Co. Ltd. stockholders $14,464,407 $9,075,671 $5,308,550 $2,224,063 $(13,190,321) 17,882,370 Net income from discontinued operations 10,355,184 Net income attributable to Consolidated Water Co. Ltd. stockholders $28,237,554 Year Ended December 31, 2023 Retail Bulk Services Manufacturing Corporate TotalRevenue $30,158,051 $34,595,058 $97,966,650 $17,491,474 $— $180,211,233 Cost of revenue 13,891,229 24,128,132 66,797,762 13,467,005 — 118,284,128 Gross profit 16,266,822 10,466,926 31,168,888 4,024,469 — 61,927,105 General and administrative expenses 2,978,164 1,737,264 4,271,808 1,838,284 13,926,846 24,752,366 Gain (loss) on asset dispositions, net (21,716) 12,720 — 2,233 (349) (7,112)Income (loss) from operations 13,266,942 8,742,382 26,897,080 2,188,418 (13,927,195) 37,167,627 Interest income 181,468 362,422 151,706 4 808 696,408 Interest expense (123,867) — (21,417) — — (145,284)Income from affiliate — — — — 169,728 169,728 Other 93,795 10,793 1,024 2,020 (171) 107,461 Other income, net 151,396 373,215 131,313 2,024 170,365 828,313 Income (loss) before income taxes 13,418,338 9,115,597 27,028,393 2,190,442 (13,756,830) 37,995,940 Provision (benefit) for income taxes — — 6,388,457 440,111 (78,554) 6,750,014 Net income (loss) from continuing operations 13,418,338 9,115,597 20,639,936 1,750,331 (13,678,276) 31,245,926 Income from continuing operations attributable to non-controlling interests — 573,791 — — — 573,791 Net income (loss) from continuing operations attributable to Consolidated Water Co. Ltd. stockholders $13,418,338 $8,541,806 $20,639,936 $1,750,331 $(13,678,276) 30,672,135 Net loss from discontinued operations (1,086,744)Net income attributable to Consolidated Water Co. Ltd. stockholders $29,585,391 Revenue earned by major geographic region was: Year ended December 31, 2025 2024 2023Cayman Islands $37,840,267 $37,137,424 $41,728,340The Bahamas 29,298,791 29,675,947 31,221,633United States 64,421,664 66,662,406 106,768,621Revenue earned from management services agreement with OC-BVI 512,646 490,856 492,639 $132,073,368 $133,966,633 $180,211,233 The following table presents the company’s revenue disaggregated by revenue source. Year Ended December 31, 2025 2024 2023Retail revenue $33,587,952 $31,741,343 $30,158,051Bulk revenue 33,481,307 33,673,387 34,595,058Services revenue 46,312,325 50,956,489 97,966,650Manufacturing revenue 18,691,784 17,595,414 17,491,474Total revenue $132,073,368 $133,966,633 $180,211,233 Services revenue consists of the following: Year Ended December 31, 2025 2024 2023Construction revenue $13,470,641 $18,602,919 $77,306,704Operations and maintenance revenue 32,075,046 29,307,405 19,368,365Design and consulting revenue 766,638 3,046,165 1,291,581Total services revenue $46,312,325 $50,956,489 $97,966,650 Annual General Meeting of Shareholders The company has set June 1, 2026 as the date of its Annual General Meeting of Shareholders to be held at 3:00 p.m. Cayman Islands time (4:00 p.m. EDT) at the Westin Grand Cayman Seven Mile Beach Resort & Spa, Seven Mile Beach, Grand Cayman, Cayman Islands. Holders of record of the company’s stock as of April 2, 2026 will be entitled to vote at the meeting. Conference Call Consolidated Water management will host a conference call tomorrow to discuss these results, followed by a question-and-answer period. Date: Tuesday, March 17, 2026 Time: 11:00 a.m. Eastern time (8:00 a.m. Pacific time) Toll-free dial-in number: 1-844-875-6913 International dial-in number: 1-412-317-6709 Conference ID: 1518479 Please call the conference telephone number five minutes prior to the start time. An operator will register your name and organization. If you require any assistance connecting with the call, please contact Encore at 1-949-432-7450. A replay of the call will be available after 1:00 p.m. Eastern time on the same day through March 24, 2026, as well as available for replay via the Investors section of the Consolidated Water website at www.cwco.com. Toll-free replay number: 1-855-669-9658 International replay number: 1-412-317-0088 Replay ID: 1518479 About Consolidated Water Co. Ltd. Consolidated Water Co. Ltd. develops and operates advanced water treatment plants and water distribution systems. The company designs, constructs and operates seawater desalination facilities in the Cayman Islands, The Bahamas and the British Virgin Islands, and designs, constructs and operates water treatment and reuse facilities in the United States. The company also manufactures and services a wide range of products and provides design, engineering, management, operating and other services applicable to commercial and municipal water production, supply and treatment, and industrial water and wastewater treatment. For more information, visit cwco.com . Cautionary Note Regarding Forward-Looking Statements This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe", "estimate", "project", "intend", "expect", "should", "will" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to (i) continued acceptance of the company's products and services in the marketplace; (ii) changes in its relationships with the governments of the jurisdictions in which it operates; (iii) the outcome of its negotiations with the Cayman government regarding a new retail license agreement; (iv) the collection of its delinquent accounts receivable in the Bahamas; and (v) various other risks such as economic, operational, and industry-specific risks, as detailed in the company's periodic report filings with the Securities and Exchange Commission (“SEC”). For more information about risks and uncertainties associated with the company’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of the company’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting the company’s Secretary at the company’s executive offices or at the “Investors – SEC Filings” page of the company’s website at ir.cwco.com/docs. Except as otherwise required by law, the company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Company Contact: David W. Sasnett Executive Vice President and CFO Tel (954) 509-8200 Email Contact Investor & Media Contact: Ron Both or Grant Stude Encore Investor Relations Tel (949) 432-7450 Email Contact CONSOLIDATED WATER CO. LTD. CONSOLIDATED BALANCE SHEETS December 31, 2025 2024 ASSETS Current assets Cash and cash equivalents $123,788,390 $99,350,121Accounts receivable, net 32,768,537 39,580,982Inventory 3,736,845 8,960,350Prepaid expenses and other current assets 5,927,675 5,112,183Contract assets 3,290,815 4,470,243Current assets of discontinued operations 124,630 272,485Total current assets 169,636,892 157,746,364Property, plant and equipment, net 55,151,758 52,432,282Construction in progress 6,695,656 5,143,717Inventory, noncurrent 5,563,142 5,338,961Investment in affiliates 1,186,849 1,504,363Goodwill 12,861,404 12,861,404Intangible assets, net 2,101,555 2,696,815Operating lease right-of-use assets 2,930,441 3,232,786Other assets 1,437,648 2,356,489Total assets $257,565,345 $243,313,181 LIABILITIES AND EQUITY Current liabilities Accounts payable, accrued expenses and other current liabilities $9,620,880 $9,057,179Accrued compensation 3,039,142 3,336,946Dividends payable 2,285,317 1,780,841Current maturities of operating leases 661,047 634,947Current portion of long-term debt 47,549 126,318Contract liabilities 11,528,634 9,126,654Deferred revenue 248,719 365,879Current liabilities of discontinued operations 271,159 509,745Total current liabilities 27,702,447 24,938,509Long-term debt, noncurrent 25,954 70,320Deferred tax liabilities 707,444 210,893Noncurrent operating leases 2,297,161 2,630,812Other liabilities 153,000 153,000Total liabilities 30,886,006 28,003,534Commitments and contingencies Equity Consolidated Water Co. Ltd. stockholders' equity Redeemable preferred stock, $0.60 par value. Authorized 200,000 shares; issued and outstanding 39,507 and 44,004 shares, respectively 23,704 26,402Common stock, $0.60 par value. Authorized 24,800,000 shares; issued and outstanding 15,945,233 and 15,846,345 shares, respectively 9,567,140 9,507,807Additional paid-in capital 95,310,630 93,550,905Retained earnings 116,749,048 106,875,581Total Consolidated Water Co. Ltd. stockholders' equity 221,650,522 209,960,695Non-controlling interests 5,028,817 5,348,952Total equity 226,679,339 215,309,647Total liabilities and equity $257,565,345 $243,313,181CONSOLIDATED WATER CO. LTD. CONSOLIDATED STATEMENTS OF INCOME Year Ended December 31, 2025 2024 2023 Revenue $132,073,368 $133,966,633 $180,211,233 Cost of revenue 83,694,558 88,342,185 118,284,128 Gross profit 48,378,810 45,624,448 61,927,105 General and administrative expenses 30,116,328 27,537,436 24,752,366 Gain on asset dispositions, net 97,709 197,786 (7,112)Income from operations 18,360,191 18,284,798 37,167,627 Other income (expense): Interest income 2,670,040 2,094,190 696,408 Interest expense (4,420) (101,847) (145,284)Equity in the earnings of affiliates 227,886 269,455 169,728 Other 131,438 131,878 107,461 Other income, net 3,024,944 2,393,676 828,313 Income before income taxes 21,385,135 20,678,474 37,995,940 Provision for income taxes 2,164,648 2,218,514 6,750,014 Net income from continuing operations 19,220,487 18,459,960 31,245,926 Income from continuing operations attributable to non-controlling interests 593,179 577,590 573,791 Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders 18,627,308 17,882,370 30,672,135 Net income (loss) from discontinued operations (290,635) 10,355,184 (1,086,744)Net income attributable to Consolidated Water Co. Ltd. stockholders $18,336,673 $28,237,554 $29,585,391 Basic earnings (loss) per common share attributable to Consolidated Water Co. Ltd. common stockholders Continuing operations $1.17 $1.13 $1.95 Discontinued operations (0.02) 0.65 (0.07)Basic earnings per share $1.15 $1.78 $1.88 Diluted earnings (loss) per common share attributable to Consolidated Water Co. Ltd. common stockholders Continuing operations $1.16 $1.12 $1.93 Discontinued operations (0.02) 0.65 (0.07)Diluted earnings per share $1.14 $1.77 $1.86 Dividends declared per common and redeemable preferred shares $0.53 $0.41 $0.36 Weighted average number of common shares used in the determination of: Basic earnings per share 15,923,032 15,832,328 15,739,056 Diluted earnings per share 16,008,063 15,935,962 15,865,897 Source: Consolidated Water Co. Ltd.