CWCO

Image source: The Motley Fool. Tuesday, Aug. 11, 2026 at 11:00 a.m. ET Chief Executive Officer - Frederick McTaggart Chief Accounting Officer - Douglas Vizzini Operator: Good morning. Thank you for joining us today to discuss Consolidated Water Company's Second Quarter of 2026 Operating and Financial Results. Hosting the call today is the Chief Executive Officer of Consolidated Water, Rick McTaggart; and the company's Chief Accounting Officer, Doug Vizzini. . I'd like to remind everyone that today's call is being recorded, and it will be made available for telecom replay. Please see the instructions in yesterday's press release that has been posted to the Investor Relations section of the company's website. Now I'd like to turn the call over to Consolidated Water CEO, Rick McTaggart. Sir, please go ahead. Frederick McTaggart: Thanks, Nick. Good morning, everyone. I appreciate you joining us today. While our consolidated second quarter revenue reflected softness in manufacturing, we were pleased to see growth across our retail, bulk and services segments along with some important developments that support our outlook for the balance of this year and into 2027. Retail revenue increased modestly despite wetter weather, which reduced Grand Cayman water sales volume by 2%. The increase in retail revenue was driven by a base water rate increase for a major non-potable water customer. And this was following the May 2026 expiration of its concessionary water purchase agreement. Our bulk revenue increased 20% and bulk gross profit increased 27%, mainly due to higher energy pass-through charges to our buyer Bahamas company. Results also benefited from two new Cat Island desalination plants, which are supplying potable water to the water and storage corporation of the Bahamas. Cost reductions, lower G&A expenses across our retail, bulk and service segments. In our Services segment, those savings were offset by higher cost of revenue due to a greater mix of construction revenue and a lower proportion of higher margin O&M design and consulting revenue in our Services segment. Services O&M revenue declined after two contracts expired in Q1 of this year. This decline was partially offset by a new Southern California municipal O&M contract that is expected to generate approximately $4.5 million over 3 years. Our Services segment construction revenue increased driven by two previously announced water treatment projects 1 in Colorado, which is a $3.9 million drinking water plant expansion and the second $11.7 million wastewater recycling plant in California. Both projects are scheduled for substantial completion this year. In July, our Hawaii client issued a limited notice to proceed for our project to design, construct, operate and maintain a 1.7 million gallon per day seawater desalination plant in Kalaeloa, Hawaii. This limited notice to proceed authorizes us to begin procuring certain long lead materials and equipment for the project with the value of approximately $6 million. Communications and information exchanges with important permitting agencies have recently increased in Hawaii, which supports our expectation that construction on this project will start later this year. Once construction starts, we believe the project will significantly contribute to revenue and earnings growth in future periods. Subsequent to the end of the second quarter, we announced the receipt of purchase orders totaling approximately $10.1 million for municipal water treatment equipment in Florida. These purchase orders represent our largest municipal membrane equipment order in dollar terms and our largest horizontal cartridge filter ordered to date, demonstrating the strength and breadth of our manufacturing capabilities. Now before getting into recent developments and our outlook for the rest of the year beyond, I would like to note that our Chief Financial Officer, David Sasnett, who normally joins us on these calls, is unable to participate today as he is recovering from the flu. In his place, I will turn the call over to our Chief Accounting Officer, Doug Vizzini, who will take us through the financial details for the quarter. Douglas Vizzini: Thanks, Rick. Good morning, everyone, and thank you for joining us today. Our revenue totaled $32.9 million for the second quarter of 2026, representing a 2% decrease from the second quarter of 2025. The decrease was due to lower manufacturing revenue, which was partially offset by revenue increases in our retail, bulk and services segments. Retail revenue was $8.7 million and remained relatively consistent versus the prior quarter despite an approximate 2% decrease in the volume of water sold. The impact of the lower sales volume was mitigated by a higher rate charged to a major non-potable water customer and an increase in the volume of water sold to that customer. Bulk revenue was $9.9 million, increasing 20% versus the prior year quarter, primarily due to higher energy pass-through charges by CW Bahamas driven by higher energy costs. Bulk revenue also benefited to a lesser extent from revenue earned from Cw Bahama's new plans on Cat Island in the Bahamas. [indiscernible] revenue was $11.6 million, increasing 1% versus the prior year quarter due to a higher construction revenue, partially offset by lower O&M revenue following the expiration of contracts with two customers in the first quarter of 2026. Construction revenue increased $2.5 million due to work on two water treatment plant projects. Manufacturing revenue was $2.7 million, decreasing 49% from the prior year quarter due to a decrease in the total dollar amount of new purchase orders. Based on our current projections, we continue to believe that manufacturing revenue for the full 2026 year will be less than the manufacturing revenue generated in 2025. Gross profit was $11.0 million or 33% of total revenue compared to $12.8 million or 38% of total revenue in the prior year quarter. The decrease was primarily due to lower manufacturing gross profit and a change in revenue mix in the Services segment. Net income from continuing operations attributable to Consolidated Water stockholders was $4.0 million or $0.25 per diluted share compared to $5.2 million or $0.32 per diluted share in the prior year quarter. Including discontinued operations, net income attributable to Consolidated Water stockholders was $3.9 million or $0.24 per diluted share compared to $5.1 million or $0.32 per diluted share in the second quarter of 2025. Now turning to our balance sheet. Cash and cash equivalents totaled $132.6 million as of June 30, 2026, with working capital of $144.6 million and stockholders' equity attributable to Consolidated Water of $225.6 million. Our balance sheet continues to have no significant debt. CW Bahamas accounts receivable, which represents the majority of our consolidated accounts [indiscernible] decreased to $18.8 million as of June 30, 2026, from $20.7 million as of December 31, 2025. We continue to be in frequent contact with officials of the Bahamas government who continue to express their intention to significantly reduce CW Bahama's delinquent accounts receivable balances. However, we are unable to determine when such reduction will occur. Our projected liquidity requirements for the balance of 2026 include capital expenditures for our existing operations of approximately $4.8 million. We also paid approximately $2.3 million in dividends in July 2026, and our liquidity requirements may also include future quarterly dividends if such dividends are declared by our Board. We continue to evaluate how to best utilize our strong cash position to increase shareholder value. This completes our financial summary for the quarter. Now I'll turn the call back over to Rick. Frederick McTaggart: Thank you, Doug. I'll just run through some updates here. During the quarter, we completed negotiations with the Cayman Islands water utility regulator, OfReg, for our retail water utility license in Grand Cayman. We received a new license from off-rig in mid-June, and it became effective on August 1. After so many years of negotiations, this new 25-year license provides certainty to this very important part of our business. The license preserves Cayman Water's exclusive right to produce and distribute potable water to customers in our licensed area and gives us long-term earnings visibility as we continue investing and reliable water infrastructure for residents, businesses and visitors on Seven Mile Beach and West Bay Grand Cayman. The new license sets out reduced water rates base water rates and an annual inflation-based rate adjustment mechanism that is similar to our previous license. For customers, the new rates are expected to lower the average cost of water per gallon by about 6.5% compared with the prior license. For consolidated water, it provides long-term regulatory clarity for a business that has historically been a significant contributor to our revenue and gross profit. The new license comes as Grand Cayman continues to experience strong tourism momentum a key demand driver for our retail water sales. As mentioned on previous calls, demand for our water in the Cayman Islands is affected by, number one, stay over tourism and number 2, rainfall. The Cayman Islands continued its strong tourism momentum in Q2. Stay over visitations increased year-over-year in April, May and June, in the first half of 2026, stayover arrivals totaled more than 288,000 visitors, which is up 11.3% from the first half of 2025 and 2.8% above the Island's comparable 2019 precoded level. The local newspapers reported that if current trends continue, 2026 could set a new annual stay-over tourism record. This growth has been supported by strong North American tourism demand, expanded airlift, including a new direct flight from Austin, Texas and new hotel inventory and Cayman. Looking ahead, public tourism announcements point to a positive outlook for the balance of 2026. While the weather is always difficult to predict the Cayman Islands National Weather Service has indicated a greater than 70% probability of below average rainfall during this current wet season. If this prediction is realized, those conditions could provide an additional driver for retail water demand this year. We were pleased with the performance of our Caribbean-based bulk businesses which remain a stable source of long-term recurring revenue. During the quarter, bulk results benefited from our two new desalination plants on Cat Island and the Bahamas, as supply potable water to the Water and Sewage Corporation of the Bahamas. The first facility was commissioned in December last year and the second in April this year. So the quarter reflected contributions from both plants. Turning to manufacturing. We still expect full year, as Doug mentioned earlier, full year 2026 results to fall below last year's record level but current backlog and recent order activity that we mentioned earlier, gives us confidence that manufacturing revenue can improve in future quarters. In particular, the orders we have received and the active municipal market in Florida support a strong outlook for 2027. This outlook is supported in part by the a $10.1 million purchase orders we received last month for a municipal water treatment project in Florida with delivery currently scheduled for November of 2027. We continue to see an active market for our products and services, particularly with municipal projects in Florida. The key driver is the growing need for membrane-based treatment systems as utilities look to alternative water sources, including brackish groundwater to meet long-term supply needs and drinking water requirements. Our extensive experience manufacturing large-scale membrane-based water treatment systems, combined with our Fort Peers Florida manufacturing location positions us well to capitalize on growth opportunities in the Florida market which we believe will benefit 2026 and 2027 performance. As mentioned earlier, our construction revenue increased $2.5 million due to work on two previously announced projects, construction projects, both of which are scheduled to be substantially completed this year. The Colorado drinking water plant expansion has been a good entry point for us in that market with the current O&M customer and helps position us for additional design-build opportunities in the future. Although new O&M and design-build opportunities in California are not as active as they were over the last 2 to 3 years. We continue to pursue some very attractive opportunities some of which are larger than previous projects we have done in California. As I mentioned on past earnings conference calls, our customized design report or CDR program remains an important business development tool for identifying and advancing potential design build and O&M opportunities. Through the CDR process, we prepare comprehensive project-specific plans that incorporate life cycle cost, schedule and performance metrics helping prospective clients evaluate project scope, cost, schedule and water quality certainty before committing to construction. In Arizona, we have several CDRs outstanding with residential developers and are broadening our CDR sales effort to include industrial clients. So based on recent developments I mentioned at the beginning of the call, we remain cautiously optimistic that construction of the Hawaii project will begin before the end of this year. The limited notice to proceed with the procurement of long-lead equipment should help reduce potential scheduling pressure and allow the project to move forward more efficiently once the required permits are in place. The recent uptick in communications and information exchanges with key regulatory authorities in Hawaii supports our cautious optimism. Looking ahead, we feel very good about where we are today. Our Grand Cayman retail operations, recurring Caribbean bulk water revenue and expanding opportunities across U.S. manufacturing design build and O&M markets gives us multiple ways to grow with strong demand for reliable water infrastructure and a healthy balance sheet we believe we are well positioned to continue creating value for our shareholders. To support this growth, we also strengthened our leadership team with the appointment of Sachin Chawla as our Senior Vice President of Business Development. Sachin brings meaningful experience across water infrastructure and treatment markets and we believe he can help us identify and advance additional opportunities in desalination, water reuse, industrial water and other areas where our technical and operating expertise is highly relevant. Our strong balance sheet gives us the flexibility to move decisively on desalination and water infrastructure opportunities across all of our markets while also evaluating strategic acquisitions and partnerships that could accelerate growth. So now with that, Nick, I'd like to open the call up for questions. Operator: . The first question will come from Gerry Sweeney with ROTH Capital. Gerard Sweeney: I know you touched upon it in your prepared remarks around the Hawaii [ deisel ] project. But my understanding, I believe it's just one permit, the archeological permit that is maybe the last gate to getting the project going. And you did mention increased talks, I think, with regulatory agencies. But I was curious if you could just give any more detail, if possible, is that the last permit? Is that the gating factor? And any additional information on maybe when that permit can be received? Frederick McTaggart: Yes. Sure, Gerry. Just to clarify, it's not the last permit. That's sort of a in sort of permit and it prevents us at the moment from applying for other important permits because you have to have that archeological permit in place. So we're discussing ways to proceed with the applications with -- on some of the other permits we need with the blessing of the archeological regulator. So, yes, I mean, it's definitely not the last one we need, but it is -- we have to have that as a prerequisite for some other permits. Gerard Sweeney: I got you. And the other permits are sort of -- for lack of a better term standard construction permits that are normal in any of these type of projects. Is that fair to say? Frederick McTaggart: Yes. Some of them are other ones are with the, I think, the drinking water regulator there in Hawaii. So I mean, we're looking at ways similar to the limited notice to proceed. We're looking at ways to speed up the process without suffering further delays because of this linchpin permit delay. Gerard Sweeney: Switching gears to manufacturing. Obviously, a nice win for the Florida membrane project. Just curious as to opportunities maybe even outside of Florida, how the market is developing and potential opportunities? Frederick McTaggart: Yes. I mean we're definitely looking at the West Coast because we have PERC out there and they get involved in some projects that require the types of piping and equipment that Rx manufacturers. So we're looking at other states as well that have the sorts of membrane treatment systems like Texas that may need equipment that [indiscernible] manufacturers. So -- but I think the main point is that Florida is really busy right now. I don't think -- I mean I don't know. I mean I think there's a lot of work there. So it's not vital that we look elsewhere for work. I mean we try to get it when we can, but the state is very busy, and we have excellent relationships with the consulting engineers and the people that are driving these projects. Gerard Sweeney: Got it. Makes sense. And then finally, maybe just on the O&M front. Obviously, that's a nice recurring type revenue. Curious as the market opportunity on that front. I think you got a little bit more competitive in the past year to but any commentary would be appreciated. Frederick McTaggart: Sorry, just the first couple of lines that you say, what was the basis of the question? Gerard Sweeney: The O&M market. How it's developing? Yes. Frederick McTaggart: Yes, there's some big O&M opportunities in California. There's not like a lot of them, but there's certainly some things that are coming up that are a lot of interest to us. As I mentioned in the remarks, much larger than what we currently do there. So it will be a bit of a challenge to land these jobs. I mean, you have a lot of competition out there now. There's companies that were not involved in O&M that are now engineering companies that are in our market. So we'll do our best. We think that we have a better value proposition being a smaller company and less overheads. It's just a matter of getting qualified for some of these larger projects, which we think we can do. Operator: . Showing no further questions, this will conclude our question-and-answer session. I'd like to now turn the call back over to Mr. McTaggart. Sir, please go ahead. Frederick McTaggart: Thanks, Nick. I'd just like to again thank everybody for joining us today. And I look forward to, again in November when we release our Q3 results. Take care. Operator: Before we conclude today's call, I would like to provide the company's safe harbor statement that includes cautions regarding forward-looking statements made during today's call. The information that we have provided in this conference call includes statements that may constitute forward-looking statements usually containing the words believe, estimate, project, intend, expect, should, will or other similar expressions. These forward-looking statements include, but are not limited to, statements regarding the anticipated construction schedule and completion of the Kalaeloa desalination facility, the effect of permitting delays on that schedule the companies and the Honolulu Board of Water supplies efforts to mitigate those delays the company's ability to perform its design, build, operate and maintain obligations with respect to the Kalaeloa facility, including the anticipated 20-year operating term and then the exercise of the related extension options and the company's ability to design, fabricate and deliver the Ford purchase orders on the anticipated schedule including by November 2027. These forward-looking 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. For more information about risks and uncertainties associated with the company's business, please refer to the management 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 any publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Any forward-looking statements made during the conference call speaks as of today's date. The company expressly disclaims any obligations or undertaking to update or revise any forward-looking statements made during the conference call to reflect any changes in its expectations with regard thereto or any changes in its events, conditions or circumstances of which any forward-looking statement is based, except as required by law. I would like to remind everyone that this call will be available for replay starting later this evening. Please refer to yesterday's earnings release for dial-in replay instructions available via the company's website at cwco.com. Thank you for attending today's presentation. This concludes the conference call. You may now disconnect. Before you buy stock in Consolidated Water, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Consolidated Water wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Consolidated Water (CWCO) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Total Revenue: $32.9 million in Q2 2026, a 2% decrease from Q2 2025, due to lower manufacturing revenue partially offset by growth in retail, bulk, and services segments. Retail Revenue: $8.7 million, relatively consistent year over year despite a 2% decrease in water sales volume, helped by a higher rate for a major non-potable water customer. Bulk Revenue: $9.9 million, up 20% year over year, driven by higher energy pass-through charges in the Bahamas and contributions from two new Cat Island desalination plants. Services Revenue: $11.6 million, up 1% year over year, due to higher construction revenue partially offset by lower O&M revenue after two contracts expired in Q1 2026. Manufacturing Revenue: $2.7 million, down 49% year over year, due to a decrease in new purchase orders; full-year 2026 revenue expected to be below 2025 levels. Gross Profit: $11.0 million, or 33% of total revenue, down from $12.8 million (38%) in Q2 2025, due to lower manufacturing gross profit and a change in services revenue mix. Net Income (Continuing Operations): $4.0 million, or $0.25 per diluted share, compared to $5.2 million ($0.32 per diluted share) in Q2 2025. Net Income (Including Discontinued Operations): $3.9 million, or $0.24 per diluted share, versus $5.1 million ($0.32 per diluted share) in the prior year quarter. Cash and Cash Equivalents: $132.6 million as of June 30, 2026, with working capital of $144.6 million and stockholders' equity of $225.6 million. Accounts Receivable (Bahamas): Decreased to $18.8 million as of June 30, 2026, from $20.7 million at December 31, 2025. Capital Expenditures: Projected liquidity requirements for the balance of 2026 include approximately $4.8 million for existing operations. Warning! GuruFocus has detected 9 Warning Signs with NSE:EPACK. Is CWCO fairly valued? Test your thesis with our free DCF calculator. Release Date: August 11, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Retail revenue increased despite a 2% drop in water sales volume, driven by a base water rate increase for a major non-potable customer. Bulk revenue grew 20% and bulk gross profit rose 27%, aided by higher energy pass-through charges and two new Cat Island desalination plants. Secured a new 25-year retail water utility license in Grand Cayman, providing long-term regulatory certainty and earnings visibility. Received $10.1 million in purchase orders for municipal water treatment equipment in Florida, the largest municipal membrane order to date. Strong balance sheet with $132.6 million in cash and no significant debt, supporting future growth and strategic opportunities. Consolidated revenue decreased 2% year-over-year due to a 49% decline in manufacturing revenue. Gross profit margin fell to 33% from 38%, impacted by lower manufacturing gross profit and a less favorable services revenue mix. Services O&M revenue declined after two contracts expired in Q1 2026, partially offset by a new California contract. Manufacturing revenue for full-year 2026 is expected to be below 2025 levels, with current backlog and order activity only supporting future improvement. Delays in the Hawaii desalination project persist due to a prerequisite archaeological permit, with construction start uncertain despite recent regulatory communications. Q: Can you provide more detail on the status of the Hawaii desalination project, specifically regarding the archaeological permit and other regulatory hurdles?A: CEO Frederick McTaggart clarified that the archaeological permit is not the last permit needed but is a prerequisite for applying for other important permits. The company is in discussions with the archaeological regulator to find ways to proceed with applications for other permits. Some of the other permits are standard construction permits, while others are with the drinking water regulator in Hawaii. They are looking at ways to speed up the process, similar to the limited notice to proceed, to avoid further delays. Q: How is the market developing for manufacturing opportunities, particularly outside of Florida?A: CEO Frederick McTaggart stated that while Florida is currently very busy, the company is also looking at opportunities on the West Coast, leveraging its PERC subsidiary, and in other states like Texas that may need membrane treatment systems. He emphasized that Florida's active market and strong relationships with consulting engineers make it a primary focus, but they are pursuing work elsewhere when possible. Q: Can you provide commentary on the O&M market and its development?A: CEO Frederick McTaggart noted that there are some large O&M opportunities in California, which are much larger than their current projects there. He acknowledged increased competition from engineering companies entering the O&M space but believes the company has a better value proposition as a smaller company with lower overheads. The challenge is qualifying for these larger projects, which they believe they can do. Q: What is the outlook for the company's manufacturing segment for the full year 2026?A: Chief Accounting Officer Douglas Pizzini stated that based on current projections, manufacturing revenue for the full 2026 year is expected to be less than the record level generated in 2025. However, CEO Frederick McTaggart added that the current backlog and recent order activity, including the $10.1 million purchase orders for a Florida municipal water treatment project, provide confidence that manufacturing revenue can improve in future quarters, supporting a strong outlook for 2027. Q: What are the key drivers behind the recent $10.1 million purchase orders for municipal water treatment equipment in Florida?A: CEO Frederick McTaggart explained that the orders represent the company's largest municipal membrane equipment order and largest horizontal cartridge filter order to date. The active Florida market is driven by the growing need for membrane-based treatment systems as utilities look to alternative water sources, including brackish groundwater, to meet long-term supply needs. The company's extensive experience and Fort Pierce, Florida manufacturing location position it well to capitalize on these opportunities. Q: Can you elaborate on the new 25-year retail water utility license in Grand Cayman and its impact?A: CEO Frederick McTaggart stated that the new license, effective August 1, provides long-term regulatory clarity and preserves Cayman Water's exclusive right to produce and distribute potable water in its licensed area. The license sets reduced base water rates, expected to lower the average cost of water per gallon by about 6.5% for customers, and includes an annual inflation-based rate adjustment mechanism. This provides long-term earnings visibility for a business that has historically been a significant contributor to revenue and gross profit. Q: What is the current status of the accounts receivable from the Bahamas government?A: Chief Accounting Officer Douglas Pizzini reported that CW Bahamas accounts receivable decreased to $18.8 million as of June 30, 2026, from $20.7 million at the end of 2025. The company remains in frequent contact with Bahamas government officials who continue to express their intention to significantly reduce delinquent balances, but the company cannot determine when such a reduction will occur. Q: What are the company's liquidity requirements for the balance of 2026?A: Chief Accounting Officer Douglas Pizzini stated that projected liquidity requirements include capital expenses for existing operations of approximately $4.8 million. The company also paid approximately $2.3 million in dividends in July 2026, and future quarterly dividends may be included if declared by the board. The company continues to evaluate how to best utilize its strong cash position to increase shareholder value. Q: How is the company positioned for growth in the Cayman Islands retail market?A: CEO Frederick McTaggart highlighted that Grand Cayman continues to experience strong tourism momentum, with stay-over visitations increasing year-over-year in April, May, and June. First-half 2026 stay-over arrivals totaled more than 288,000 visitors, up 11.3% from the first half of 2025 and 2.8% above pre-COVID levels. Additionally, the Cayman Islands National Weather Service has indicated a greater than 70% probability of below-average rainfall during the current wet season, which could provide an additional driver for retail water demand. Q: What is the company's strategy for business development and growth?A: CEO Frederick McTaggart mentioned the appointment of Sachin Chawla as Senior Vice President of Business Development, who brings experience across water infrastructure and treatment markets. The company's strong balance sheet provides flexibility to move decisively on desalination and water infrastructure opportunities across all markets while also evaluating strategic acquisitions and partnerships that could accelerate growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed the 2% consolidated revenue decline primarily to a 49% drop in manufacturing revenue due to a decrease in new purchase orders compared to a record 2025. Retail revenue remained stable despite a 2% volume decline in Grand Cayman caused by wetter weather, offset by a base rate increase for a major non-potable customer following a contract expiration. Bulk segment growth of 20% was driven by higher energy pass-through charges in the Bahamas and the successful commissioning of two new desalination plants on Cat Island. The Services segment saw a shift in revenue mix toward construction, which increased costs and lowered margins compared to higher-margin O&M and consulting work. A new 25-year retail water utility license in Grand Cayman was finalized, providing long-term earnings visibility and exclusive rights, though it includes a 6.5% average rate reduction for customers. Management highlighted strong tourism momentum in the Cayman Islands, with stay-over arrivals exceeding 2019 pre-pandemic levels by 2.8%, as a primary demand driver for retail water. The company expects full-year 2026 manufacturing revenue to fall below 2025 levels, but recent $10.1 million in Florida municipal orders supports a stronger outlook for 2027. Construction on the Hawaii desalination project is cautiously expected to begin later in 2026, supported by a limited notice to proceed for $6 million in long-lead equipment procurement. Management is targeting the Florida municipal market as a key growth driver, citing the increasing need for membrane-based systems to treat brackish groundwater. The company is expanding its Customized Design Report (CDR) program to include industrial clients and residential developers in Arizona to identify future design-build opportunities. With $132.6 million in cash and no significant debt, the company is actively evaluating strategic acquisitions and partnerships to accelerate growth in desalination and water reuse. Delinquent accounts receivable from the Bahamas government totaled $18.8 million; while officials expressed intent to reduce this balance, management cannot determine the timing of payments. The expiration of two O&M contracts in the first quarter of 2026 created a revenue headwind for the Services segment that was only partially offset by new contract wins. The new Grand Cayman license introduces an annual inflation-based rate adjustment mechanism, providing a structured framework for future pricing changes. Management noted that while the current wet season in Cayman has seen rainfall, there is a 70% probability of below-average rainfall for the remainder of the season, which could boost retail demand. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that the archaeological permit is a 'linchpin' prerequisite that must be in place before applying for other essential construction and drinking water permits. The company is currently negotiating with regulators to find ways to advance other permit applications simultaneously to mitigate further scheduling delays. While Florida remains the primary focus due to high demand and established relationships, the company is exploring opportunities in Texas and the West Coast. Management leverages its PERC subsidiary to identify projects requiring specialized piping and membrane equipment in these secondary markets. The company is pursuing several large-scale O&M opportunities in California that are significantly larger than its current projects in the state. Management acknowledged increased competition from engineering firms entering the O&M space but believes their lower overhead and specialized value proposition remain competitive.

Consolidated Water Co. Ltd. CWCO reported second-quarter 2026 earnings of 25 cents per share, beating the Zacks Consensus Estimate of 22 cents by 13.64%. Earnings declined 21.9% from 32 cents in the year-ago quarter. Revenues of $32.9 million missed the Zacks Consensus Estimate of $35 million by 6.07%. The top line also decreased 2.1% from the year-ago figure of $33.6 million. Manufacturing weakness weighed on the top line, while bulk water revenues advanced 20%. Consolidated Water Co. Ltd. price-consensus-eps-surprise-chart | Consolidated Water Co. Ltd. Quote Retail revenues were $8.66 million, up 0.3% year over year. Water sales volume declined 2% amid slightly wetter weather in Grand Cayman, but this was offset by higher rates and increased sales volume to a major non-potable water customer.Bulk revenues increased 20.1% to $9.93 million. Growth primarily reflected higher energy-related revenues in the Bahamas and contributions from two new seawater desalination plants on Cat Island, commissioned in 2026.Manufacturing revenues plunged 48.6% to $2.69 million due to the lower dollar amount of new purchase orders.Services revenues increased 1.2% to $11.59 million. Construction revenues surged 88.9% to $5.34 million, driven by projects involving a drinking water plant expansion in Colorado and a wastewater recycling plant in California. Both projects are scheduled for completion in 2026. Gross profit declined 14.6% year over year to $10.96 million from $12.83 million in the prior-year quarter.Total general and administrative expenses decreased nearly 4.4% to $7.24 million.The company secured a 25-year exclusive concession and water utility license to produce and supply water to Seven Mile Beach and West Bay, two of Grand Cayman’s three most populated areas.The company commissioned a second seawater desalination plant on Cat Island, The Bahamas, in 2026, expanding its supply of potable water to the Water and Sewerage Corporation of The Bahamas. As of June 30, 2026, cash and cash equivalents totaled $132.6 million compared with $123.8 million as of Dec. 31, 2025.As of June 30, 2026, total debt was $0.016 million, down from $0.074 million at Dec. 31, 2025.Net cash provided by operating activities totaled $18.57 million in the first six months of 2026 compared with $20.52 million a year earlier. Capital spending on property, plant and equipment and construction in progress was $5.19 million in the first six months of 2026 compared with $4.22 million a year earlier. Consolidated Water currently has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. American Water Works Company Inc. AWK reported second-quarter 2026 adjusted earnings of $1.61 per share, which beat the Zacks Consensus Estimate of $1.59 by 1.3%. The bottom line increased 8.1% from $1.49 in the year-ago quarter.The Zacks Consensus Estimate for 2026 and 2027 EPS is pinned at $6.09 and $6.59, indicating year-over-year growth of 7.98% and 8.35%, respectively.American States Water Company AWR reported second-quarter 2026 earnings of $1.09 per share, up 25.3% year over year and beating the Zacks Consensus Estimate of 93 cents by 17.2%. Higher earnings at the water utility, driven largely by CPUC-approved rate increases, supported the gain.The Zacks Consensus Estimate for 2026 and 2027 EPS is pinned at $3.68 and $3.80, indicating year-over-year growth of 9.20% and 3.13%, respectively.California Water Service Group CWT reported second-quarter 2026 earnings of 93 cents per share, up 31% year over year. The figure beat the Zacks Consensus Estimate of 79 cents by 17.72%.The Zacks Consensus Estimate for 2026 and 2027 EPS is pinned at $2.55 and $2.73, indicating year-over-year growth of 18.60% and 7.06%, respectively. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Consolidated Water Co. Ltd. (CWCO) : Free Stock Analysis Report American Water Works Company, Inc. (AWK) : Free Stock Analysis Report California Water Service Group (CWT) : Free Stock Analysis Report American States Water Company (AWR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Consolidated Water Co. Ltd.? Here are five stocks we like better. Second-quarter performance weakened: Revenue fell 2% year over year to $32.9 million, while net income from continuing operations declined to $4.0 million, or $0.25 per diluted share. Manufacturing revenue plunged 49% to $2.7 million, offsetting growth in bulk water, retail and services. New projects strengthen the outlook: Consolidated Water received a $10.1 million Florida equipment order after the quarter and advanced procurement for its planned Hawaii desalination facility. Management expects these and other projects to support results through 2027, although Hawaii construction still depends on additional permitting. Financial position remains strong: The company ended June with $132.6 million in cash, $144.6 million in working capital and no significant debt. A new 25-year Grand Cayman license preserves its exclusive market position while reducing customers’ average water cost by about 6.5%. Top 3 Utilities Stocks Powering Up as Recession Fears Rise Consolidated Water (NASDAQ:CWCO) reported second-quarter 2026 revenue of $32.9 million, down 2% from the second quarter of 2025, as lower manufacturing sales outweighed growth in its retail, bulk water and services businesses. Net income from continuing operations attributable to stockholders was $4.0 million, or $0.25 per diluted share, compared with $5.2 million, or $0.32 per diluted share, a year earlier. Including discontinued operations, net income attributable to stockholders was $3.9 million, or $0.24 per diluted share, versus $5.1 million, or $0.32 per diluted share, in the prior-year quarter. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat Chief Executive Officer Rick McTaggart said the company saw softness in manufacturing but was encouraged by operating developments across its other businesses and by new project activity that could support results through 2027. Chief Accounting Officer Douglas Pizzini said retail revenue totaled $8.7 million and remained relatively steady despite a roughly 2% decline in water sales volume in Grand Cayman. Wetter weather reduced demand, but the effect was offset by a higher base rate charged to a major non-potable water customer after that customer’s concessionary water purchase agreement expired in May 2026. → 3 Dividend Champion Utilities for a Market That Can't Sit Still Bulk water revenue rose 20% to $9.9 million, primarily because Consolidated Water’s Bahamas business recorded higher energy pass-through charges associated with increased energy costs. Bulk revenue also benefited from contributions from two new desalination plants on Cat Island that provide potable water to the Water and Sewerage Corporation of The Bahamas. The first plant was commissioned in December 2025 and the second in April 2026. Services revenue increased 1% to $11.6 million. Construction revenue rose by $2.5 million from work on a $3.9 million drinking water plant expansion in Colorado and an $11.7 million wastewater recycling plant in California. Both projects are expected to be substantially completed this year. → Is Wingstop's Growth Story Losing Steam? Those gains were partially offset by lower operations and maintenance, or O&M, revenue after two customer contracts expired during the first quarter. The company said a new Southern California municipal O&M contract is expected to generate about $4.5 million over three years. Manufacturing revenue fell 49% to $2.7 million as the total dollar amount of new purchase orders declined. Consolidated Water continues to expect full-year 2026 manufacturing revenue to be below the record level generated in 2025. Gross profit was $11.0 million, representing 33% of revenue, compared with $12.8 million, or 38% of revenue, in the prior-year period. Pizzini attributed the decline primarily to lower manufacturing gross profit and a less favorable services revenue mix, with construction representing a greater share than higher-margin O&M, design and consulting work. During the quarter, Consolidated Water completed negotiations with Cayman Islands utility regulator OfReg for a new retail water utility license in Grand Cayman. The 25-year license was received in mid-June and became effective Aug. 1. McTaggart said the license preserves Cayman Water’s exclusive right to produce and distribute potable water within its licensed territory, which includes Seven Mile Beach and West Bay. The license includes reduced base water rates and an annual inflation-based adjustment mechanism similar to the previous framework. The company said the new rates are expected to reduce the average cost per gallon for customers by approximately 6.5% relative to the prior license. The company also pointed to tourism as an important driver of Grand Cayman water demand. Stayover arrivals exceeded 288,000 during the first half of 2026, up 11.3% from the same period in 2025 and 2.8% above the comparable pre-pandemic 2019 level. McTaggart said the Cayman Islands National Weather Service has indicated a greater than 70% probability of below-average rainfall during the current wet season, which could support water demand if realized. In July, a Hawaii client issued a limited notice to proceed for Consolidated Water’s planned 1.7 million-gallon-per-day seawater desalination facility in Kalaeloa. The authorization permits procurement of long-lead equipment and materials with an approximate value of $6 million. McTaggart said increased communications with permitting agencies support the company’s cautious expectation that construction could begin later this year. However, he told analysts that an archaeological permit remains a key prerequisite to applying for some additional permits and is not the final permit required for the project. Separately, the company received approximately $10.1 million in purchase orders for municipal water-treatment equipment in Florida after the quarter ended. McTaggart described the orders as the company’s largest municipal membrane equipment order by dollar value and its largest horizontal cartridge filter order. Delivery is currently scheduled for November 2027. Management said Florida remains an active market for membrane-based treatment systems as utilities seek alternative water sources, including brackish groundwater. The company is also evaluating opportunities in other states, including Texas and on the West Coast. Consolidated Water ended June with $132.6 million in cash and cash equivalents, $144.6 million in working capital and no significant debt. The company said it expects approximately $4.8 million of capital expenditures for existing operations during the remainder of 2026. It paid about $2.3 million in dividends in July and said it continues to evaluate uses of its cash position, including water infrastructure opportunities, acquisitions and partnerships. Consolidated Water Co Ltd. is a developer, operator and manufacturer of water treatment and desalination systems. The company designs, engineers, builds and operates reverse-osmosis desalination plants and water treatment facilities, offering both turnkey project delivery and ongoing operations and maintenance services. Its product portfolio includes modular desalination units, water distribution systems, filtration membranes and associated equipment for potable water production. Consolidated Water serves municipalities, resorts, commercial enterprises and private customers in the Caribbean and the southeastern United States. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Consolidated Water Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

GEORGE TOWN, Cayman Islands, Aug. 10, 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 second quarter ended June 30, 2026. 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). Second Quarter 2026 Financial Summary Total revenue decreased 2% to $32.9 million. Retail revenue was relatively consistent at $8.7 million, up 0.3%. Bulk revenue increased 20% to $9.9 million primarily due to a significant increase in energy-related revenue in the Bahamas operations and, to a lesser extent, revenue from two new seawater desalination plants on Cat Island, The Bahamas, commissioned in 2026. Services revenue increased slightly by 1% to $11.6 million. Manufacturing revenue decreased by 49% to $2.7 million primarily due to a decrease in the total dollar amount of new purchase orders. Net income from continuing operations attributable to company stockholders totaled $4.0 million or $0.25 per diluted share, compared to $5.2 million or $0.32 per diluted share in the second quarter of 2025. Including discontinued operations, net income attributable to company stockholders totaled $3.9 million or $0.24 per diluted share, compared to $5.1 million or $0.32 per diluted share in the second quarter of 2025. Cash and cash equivalents increased to $132.6 million, and working capital increased to $144.6 million as of June 30, 2026. Second Quarter 2026 Operational Highlights Received a 25-year exclusive water production and supply concession and water utility license to provide water to Seven Mile Beach and West Bay, two of the three most populated areas of Grand Cayman. Commissioned a seawater desalination plant on Cat Island, The Bahamas, bringing to two the total plants commissioned on the island in 2026. The plants supply potable water to the Water and Sewerage Corporation of The Bahamas. Received an extension of the operating and maintenance agreements for the Water Authority-Cayman’s North Sound and North Side Water Works plants in Grand Cayman from July 1, 2026, through March 31, 2027. Appointed Sachin Chawla to the new position of senior vice president, strategy and growth. He brings to Consolidated Water more than 25 years of water industry leadership experience spanning public and private sector businesses, including a deep background in large-scale desalination projects, public utility operations and complex project development. Management Commentary “In Q2, revenue grew across our retail, bulk and services segments, while manufacturing revenue fell by about half, reducing consolidated revenue by 2%,” said Consolidated Water CEO Rick McTaggart. “Manufacturing revenue declined due to a decline in the total dollar amount of new purchase orders for 2026 projects compared with last year, when a large late-2024 order benefited first-half revenue in 2025. “Retail revenue was relatively consistent despite slightly wetter weather, which contributed to a 2% decline in the water volume we sold in Grand Cayman. The volume decline was offset by a base water rate increase for a major non-potable water customer resulting from the expiration of that customer’s concessionary water purchase agreement in May 2026. “Bulk revenue increased 20% and gross profit increased 27%, primarily due to higher energy pass-through charges by CW-Bahamas driven by significantly higher energy costs. Revenue and gross profit also benefited from two new Cat Island desalination plants supplying potable water to the Water and Sewerage Corporation of The Bahamas. “Cost reductions lowered G&A expenses in the retail and bulk segments, contributing to income from operations growth in both segments. Services G&A expenses also decreased but were offset by higher cost of revenue due to a revenue mix this past quarter comprising a higher proportion of construction revenue and a lower proportion of higher-margin O&M, design and consulting revenue. “Services revenue from O&M contracts declined by about $2.2 million due to the expiration of PERC’s contracts with two customers in the first quarter of 2026. Lower O&M revenue was partially offset by a new municipal contract in southern California, awarded to PERC in November 2025, that is expected to generate approximately $4.5 million in revenue over the three-year contract term. “Construction revenue increased $2.5 million, driven by two previously announced water treatment plant construction projects, specifically a $3.9 million drinking water plant expansion in Colorado, and an $11.7 million wastewater recycling plant in California. Both of these projects are scheduled to be completed this year. “In July, our client issued a limited notice to proceed 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 notice authorizes approximately $6 million for procurement of long-lead equipment. Procuring long-lead equipment at this stage should help reduce potential scheduling pressure and enable the project to move forward more efficiently once all of the required permits are in place. We continue to expect construction to start later this year and believe the project will significantly contribute to revenue and earnings growth in future periods. “Subsequent to the quarter, we announced the receipt of purchase orders totaling approximately $10.1 million for municipal water treatment equipment in Florida. These purchase orders represent our largest municipal membrane equipment order and our largest horizontal cartridge filter order to date, demonstrating the strength and breadth of our manufacturing capabilities. “Based on current backlog, we expect manufacturing revenue to improve in future periods. We are seeing a very active market for our products and services for the remainder of this year, particularly for municipal water projects in Florida. Our extensive experience manufacturing large-scale membrane-based water treatment systems, combined with our Ft. Pierce, Florida location, positions us well to capitalize on growth opportunities in the Florida market, which we believe will benefit 2026 and 2027 performance. “We expect our diversified water solutions platform to continue driving growth and enhanced shareholder value. Our Grand Cayman retail operations, recurring Caribbean bulk water revenue, and expanding opportunities across U.S. manufacturing, design-build and O&M provide multiple avenues for sustained performance. Supported by a strong balance sheet, we believe we are well positioned to move decisively on desalination and water infrastructure opportunities across the Caribbean and North America, while also pursuing strategic acquisitions and partnerships that can further accelerate growth.” Second Quarter 2026 Financial Results Revenue totaled $32.9 million, decreasing 2% from $33.6 million in the second quarter of 2025 The decrease was due to a $2.5 million decline in the manufacturing segment, partially offset by increases of $23,000 in the retail segment, $1.7 million in the bulk segment and $137,000 in the services segment. Retail revenue remained consistent despite a 2% decrease in the volume of water sold. The decrease was offset by an increase in the rate charged and volume of water sold to a major non-potable water customer. The increase in bulk segment revenue was primarily due to an increase in energy-related revenue in the Bahamas operations, and to a lesser extent from revenue earned from CW-Bahamas’ new plants on Cat Island, The Bahamas. The increase in services segment revenue was primarily due to construction revenue that totaled $5.3 million, up 89% from the second quarter of 2025. The increase in construction revenue was due to incremental revenue generated by a project in Colorado and a project in California. The increase in services segment revenue was partially offset by a decrease of revenue generated under O&M contracts that totaled $6.0 million for the second quarter of 2026, a decrease of 27% from the second quarter of 2025. The decrease in O&M revenue was due to the expiration of two PERC contracts. Manufacturing segment revenue decreased by $2.5 million, or 49%, to $2.7 million, as compared to $5.2 million in the second quarter of 2025. The decrease was due to a decrease in the total dollar amount of new purchase orders. Gross profit for the second quarter of 2026 was $11.0 million (33% of total revenue), as compared to $12.8 million (38% of total revenue) in the second quarter of 2025. The decrease was due to the decline in manufacturing revenue mentioned above. Net income from continuing operations attributable to Consolidated Water stockholders for the second quarter of 2026 was $4.0 million, or $0.25 per diluted share, compared to net income of $5.2 million, or $0.32 per diluted share, in the second quarter of 2025. Including discontinued operations, net income attributable to Consolidated Water stockholders for the second quarter of 2026 was $3.9 million or $0.24 per diluted share, compared to net income of $5.1 million, or $0.32 per diluted share, in the second quarter of 2025. Cash and cash equivalents totaled $132.6 million as of June 30, 2026, with working capital of $144.6 million and stockholders’ equity of $225.6 million. First Half 2026 Financial Results Revenue for the first half of 2026 was $62.8 million, a decrease of 7% from $67.3 million in the same year-ago period. The decrease was due to decreases of $811,000 in the retail segment and $7.0 million in the manufacturing segment. These decreases were partially offset by increases of $2.0 million in the bulk segment and $1.3 million in the services segment. Retail revenue decreased due to a 6.3% decrease in the volume of water sold. The decrease was attributable to significantly greater rainfall on Grand Cayman in 2026, as 2025 rainfall was well below historical norms. The increase in bulk segment revenue was primarily due to an increase in energy-related revenue in the Bahamas operations and, to a lesser extent, from revenue earned from CW-Bahamas’ new plants on Cat Island, The Bahamas. The increase in services segment revenue was primarily due to construction revenue that totaled $7.4 million, up 47% from the first half of 2025. The increase in construction revenue was due to incremental revenue generated by a project in Colorado and a project in California. The increase in services segment revenue was partially offset by a decrease of revenue generated under O&M contracts that totaled $14.9 million for the first half of 2026, a decrease of 7% from the first half of 2025. The decrease in O&M revenue was due to the expiration of two PERC contracts. Manufacturing segment revenue decreased by $7.0 million, or 63%, to $4.1 million as compared to $11.0 million in the first half of 2025. Gross profit for the first half of 2026 was $21.9 million (35% of total revenue), as compared to $25.1 million (37% of total revenue) in the first half of 2025. The decrease was primarily due to a decrease of $2.7 million in manufacturing segment gross profit and, to a lesser extent, decreases in the retail segment and the services segment gross profit. The decrease in gross profit was partially offset by an increase in gross profit for the bulk segment. The improvement in bulk segment gross profit reflects a $226,000 decrease in insurance expense for CW-Bahamas. Net income from continuing operations attributable to Consolidated Water stockholders for the first half of 2026 was $7.9 million, or $0.49 per diluted share, compared to net income of $10.1 million, or $0.63 per diluted share, in the first half of 2025. Including discontinued operations, net income attributable to Consolidated Water stockholders for the first half of 2026 was $7.7 million or $0.48 per diluted share, compared to net income of $9.9 million or $0.62 per diluted share in the first half of 2025. Second Quarter 2026 Segment Results First Half Segment Results The following table presents the company’s revenue disaggregated by revenue source. Services revenue consists of the following: Conference CallConsolidated Water management will host a conference call tomorrow to discuss these results, followed by a question-and-answer period. Date: Tuesday, August 11, 2026Time: 11:00 a.m. Eastern time (8:00 a.m. Pacific time)Toll-free dial-in number: 1-844-875-6913International dial-in number: 1-412-317-6709Participant web phone: click hereConference ID: 4016150 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 August 18, 2026, as well as available for replay via the Investors section of the Consolidated Water website at www.cwco.com. Toll-free replay number: 1-855-669-9658International replay number: 1-412-317-0088Replay ID: 4016150 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 forward-looking statements include, but are not limited to, statements regarding the anticipated construction schedule and completion of the Kalaeloa desalination facility; the effect of permitting delays on that schedule; the company’s and the Honolulu Board of Water Supply’s efforts to mitigate those delays; the company’s ability to perform its design, build, operate and maintain obligations with respect to the Kalaeloa facility, including the anticipated 20-year operating term and any exercise of the related extension options; and the company’s ability to design, fabricate and deliver the Florida purchase orders on the anticipated schedule, including by November 2027. These forward-looking 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 and clients of the jurisdictions in which it operates; (iii) the timing and outcome of permitting and other regulatory approvals affecting the Kalaeloa facility; (iv) the company’s ability to procure equipment and perform its contractual obligations on the anticipated timeline and budget, including with respect to the Kalaeloa facility and the Florida purchase orders; (v) the collection of its delinquent accounts receivable in The Bahamas; and (vi) 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. SasnettExecutive Vice President and CFOTel (954) 509-8200Email ContactInvestor & Media Contact:Ron Both or Grant StudeEncore Investor RelationsTel (949) 432-7450Email Contact

A month has gone by since the last earnings report for Consolidated Water (CWCO). Shares have lost about 0.6% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Consolidated Water due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Consolidated Water Q1 Earnings Miss Estimates, Revenues Decrease Y/YConsolidated Water Co. Ltd. delivered first-quarter 2026 earnings per share of 24 cents, which missed the Zacks Consensus Estimate of 27 cents by 11.11%. The bottom line also declined 22.58% from the year-ago period’s earnings of 31 cents. CWCO’s total revenues for first-quarter 2026 were $30 million, missing the Zacks Consensus Estimate of $33.4 million by 10.18%. The top line also decreased 11.1% from the year-ago figure of $33.7 million. Retail revenues for the quarter decreased 8.86% to $8.6 million. The decrease was primarily due to a 10.2% decline in water sales volume because of significantly higher rainfall in Grand Cayman during the quarter compared with 2025.Bulk revenues increased 3.96% to $8.7 million. The slight growth was driven by new revenue contributions from the recently commissioned seawater desalination facility in Cat Island, the Bahamas.Manufacturing revenues decreased 76% to $1.4 million. The decline was mainly due to the lower total value of new purchase orders and, to a lesser extent, delays in the receipt and commencement of work related to these orders.Services revenues increased 11.64% to $11.3 million. The increase was mainly attributed to revenues generated under O&M contracts, which amounted to $8.9 million for the first quarter of 2026, up 15% from the prior-year quarter. The company’s first-quarter 2026 revenues decreased due to lower contributions from its manufacturing and retail segments. These declines were partly offset by growth in the bulk water and services segment revenues.Gross profit for the first quarter of 2026 was $10.91 million, down 11.30% from $12.31 million in the first quarter of 2025. Total general and administrative expenses increased nearly 3.95% to $7.42 million. Cash and cash equivalents totaled $126.3 million as of March 31, 2026, compared with $123.8 million as of Dec. 31, 2025.Total long-term debt was $0.005 million as of March 31, 2026, down from $0.03 million at 2025-end.Cash flow from operating activities during first-quarter 2026 totaled $6.5 million compared with $11.8 million in the year-ago period. It turns out, estimates revision have trended downward during the past month. The consensus estimate has shifted -16.98% due to these changes. At this time, Consolidated Water has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a score of F on the value side, putting it in the bottom 20% quintile for value investors. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Consolidated Water has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months. Consolidated Water belongs to the Zacks Utility - Water Supply industry. Another stock from the same industry, California Water Service Group (CWT), has gained 6.8% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026. California Water Service Group reported revenues of $214.57 million in the last reported quarter, representing a year-over-year change of +5.2%. EPS of $0.07 for the same period compares with $0.22 a year ago. For the current quarter, California Water Service Group is expected to post earnings of $0.79 per share, indicating a change of +11.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.3% over the last 30 days. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for California Water Service Group. Also, the stock has a VGM Score of C. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Consolidated Water Co. Ltd. (CWCO) : Free Stock Analysis Report California Water Service Group (CWT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research