Consolidated Water Reports First Quarter 2025 Results
- Strong financial position with $107.9M cash and $136.2M working capital
- Retail water sales volume increased 13% in Grand Cayman
- Growth across multiple segments: retail +9%, bulk +1%, manufacturing +10%
- Manufacturing segment operating income increased 44%
- Approval received for $204M Hawaii desalination plant project
- Three new projects worth approximately $20M expected to begin construction in H2 2025
- Total revenue declined 15% to $33.7M
- Services revenue decreased 42% to $10.1M
- Net income from continuing operations decreased to $4.9M from $6.9M YoY
- Earnings per share declined to $0.31 from $0.43 YoY
Insights
CWCO reports mixed Q1 results with 15% revenue decline but segment-specific growth and margin improvement despite lower construction projects.
Consolidated Water's Q1 2025 results reveal a
The company demonstrated growth across its three other business segments: retail revenue increased
Despite the revenue decline, gross margin improved to
From a liquidity standpoint, CWCO maintains a robust financial position with
The O&M (operations and maintenance) business continues to show strength with a
Looking ahead, management expects design/build services revenue to improve in the second half of 2025 with three smaller projects valued at approximately
GEORGE TOWN, Cayman Islands, May 12, 2025 (GLOBE NEWSWIRE) -- Consolidated Water Co. Ltd. (NASDAQ Global Select Market: CWCO), a leading designer, builder and operator of advanced water supply and treatment plants, reported results for the quarter ended March 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).
First Quarter 2025 Financial Summary
- Total revenue declined
15% to$33.7 million , due to a decline in services revenue as a result of two large construction projects that were completed in the second quarter of 2024. The decline in services revenue was partially offset by revenue increases in all three other operating segments. - Retail revenue increased
9% to$9.4 million on higher sales volumes. - Bulk revenue increased
1% to$8.4 million . - Manufacturing revenue increased by
10% to$5.8 million . - Services revenue declined by
42% to$10.1 million due to a$7.0 million decline in construction revenue and$980,000 decrease in design and consulting revenue that was partially offset by a$626,000 increase in operations and maintenance (O&M) revenue. - Services O&M revenue increased
9% to$7.7 million . - Net income from continuing operations attributable to company stockholders totaled
$4.9 million or$0.31 per diluted share, compared to$6.9 million or$0.43 per diluted share in the first quarter of 2024. - Net income, including discontinued operations attributable to company stockholders, totaled
$4.8 million or$0.30 per diluted share, compared to$6.5 million or$0.40 per diluted share in the first quarter of 2024. - Cash and cash equivalents increased to
$107.9 million and working capital increased to$136.2 million as of March 31, 2025.
First Quarter Operational Highlights
- Retail water sold by the company’s Grand Cayman water utility increased
13% due to ongoing population growth and increased business activity within the company’s service area. - Completed the pilot testing for a project to design, construct, operate and maintain a seawater desalination plant in Hawaii for the Honolulu Board of Water Supply. Prepared and submitted the required pilot test reports to the client for review which were subsequently approved, thus fulfilling one significant condition precedent to the client’s issuance of the notice to proceed with construction of the project.
- 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. In April, resumed discussions with the utility regulator for a new operating license. The existing operating license remains in effect until the new one is received.
Management Commentary
“Our retail, bulk and manufacturing business segments generated meaningful growth and profitability during the first quarter,” commented Consolidated Water CEO, Rick McTaggart. “Our Services segment revenue was comparatively lower versus the same year ago quarter due to the completion of two major design-build projects in the second quarter of last year.”
“The decrease in construction services revenue was partially offset by a
“Our retail and manufacturing segments also produced significant growth. Retail water sales in our exclusive utility service area on Grand Cayman reflected stronger volumes of water sold. This improvement was due to ongoing population growth and increased business activity within our service area.
“Manufacturing segment revenue increased
“We recently achieved a major milestone for our
“This approval milestone helps pave the way to begin construction after we obtain the various permits. We now expect to begin the construction of this project early next year once all permits have been received and the client issues a notice to proceed with construction.
“Aside from this major project, we anticipate our design/build services revenue to improve in the second half of this year, as three smaller projects currently under contract or nearing final contract stage and set to begin construction. We expect the combined value of these three projects to be approximately
“Looking ahead, we are confident in our ability to deliver consistent, long-term revenue and profit growth. Our positive outlook is supported by strong retail water sales growth in Grand Cayman, stable recurring revenue from our Caribbean bulk water operations, our design/build activity (especially the Hawaii project), and the continued positive momentum in our manufacturing segment.”
Q1 2025 Financial Results
Revenue totaled
Retail revenue increased due to a
The increase in bulk segment revenue was partly due to the revenue generated by the commencement on May 1, 2024, of the operations and maintenance contract for the new Red Gate II desalination plant on Grand Cayman. The increase also was due to additional revenue generated by the amendment of the company’s North Sound contract which also became effective on May 1, 2024. These increased contract revenue on Grand Cayman was partially offset by a decline in energy-related revenue in the Bahamas operations.
The decrease in services segment revenue was due to plant construction revenue decreasing from
Revenue generated under operations and maintenance contracts totaled
Manufacturing segment revenue increased by
Gross profit for 2025 was
Net income from continuing operations attributable to Consolidated Water stockholders for the first quarter of 2025 was
Including discontinued operations, net income attributable to Consolidated Water stockholders for the first quarter of 2025 was
Cash and cash equivalents totaled
First Quarter 2025 Segment Results
| Three Months Ended March 31, 2025 | ||||||||||||||||||||||
| Retail | Bulk | Services | Manufacturing | Corporate | Total | |||||||||||||||||
| Revenue | $ | 9,411,342 | $ | 8,411,716 | $ | 10,078,268 | $ | 5,814,059 | $ | — | $ | 33,715,385 | ||||||||||
| Cost of revenue | 3,706,063 | 5,584,089 | 8,061,877 | 4,057,069 | — | 21,409,098 | ||||||||||||||||
| Gross profit | 5,705,279 | 2,827,627 | 2,016,391 | 1,756,990 | — | 12,306,287 | ||||||||||||||||
| General and administrative expenses | 788,812 | 346,081 | 2,195,338 | 664,078 | 3,729,650 | 7,723,959 | ||||||||||||||||
| Gain (loss) on asset dispositions and impairments, net | 29,976 | — | (1,541 | ) | — | — | 28,435 | |||||||||||||||
| Income (loss) from operations | 4,946,443 | 2,481,546 | (180,488 | ) | 1,092,912 | (3,729,650 | ) | 4,610,763 | ||||||||||||||
| Interest income | 32,866 | 204,103 | 143,319 | 1 | 236,305 | 616,594 | ||||||||||||||||
| Interest expense | — | — | (1,528 | ) | — | — | (1,528 | ) | ||||||||||||||
| Income (loss) from affiliates | — | — | — | (34,004 | ) | 64,478 | 30,474 | |||||||||||||||
| Other | 28,308 | 14,933 | 36 | 74 | — | 43,351 | ||||||||||||||||
| Other income, net | 61,174 | 219,036 | 141,827 | (33,929 | ) | 300,783 | 688,891 | |||||||||||||||
| Income (loss) before income taxes | 5,007,617 | 2,700,582 | (38,661 | ) | 1,058,983 | (3,428,867 | ) | 5,299,654 | ||||||||||||||
| Provision (benefit) for income taxes | — | — | (35,893 | ) | 246,010 | — | 210,117 | |||||||||||||||
| Net income (loss) from continuing operations | 5,007,617 | 2,700,582 | (2,768 | ) | 812,973 | (3,428,867 | ) | 5,089,537 | ||||||||||||||
| Income from continuing operations attributable to non-controlling interests | — | 165,427 | — | — | — | 165,427 | ||||||||||||||||
| Net income (loss) from continuing operations attributable to Consolidated Water Co. Ltd. stockholders | $ | 5,007,617 | $ | 2,535,155 | $ | (2,768 | ) | $ | 812,973 | $ | (3,428,867 | ) | 4,924,110 | |||||||||
| Net loss from discontinued operations | (133,081 | ) | ||||||||||||||||||||
| Net income attributable to Consolidated Water Co. Ltd. stockholders | $ | 4,791,029 | ||||||||||||||||||||
| Three Months Ended March 31, 2024 | ||||||||||||||||||||||
| Retail | Bulk | Services | Manufacturing | Corporate | Total | |||||||||||||||||
| Revenue | $ | 8,624,938 | $ | 8,342,094 | $ | 17,417,611 | $ | 5,304,747 | $ | — | $ | 39,689,390 | ||||||||||
| Cost of revenue | 3,551,344 | 5,565,258 | 12,668,939 | 4,025,826 | — | 25,811,367 | ||||||||||||||||
| Gross profit | 5,073,594 | 2,776,836 | 4,748,672 | 1,278,921 | — | 13,878,023 | ||||||||||||||||
| General and administrative expenses | 766,698 | 344,141 | 1,597,854 | 517,702 | 3,337,634 | 6,564,029 | ||||||||||||||||
| Income (loss) from operations | 4,306,896 | 2,432,695 | 3,150,818 | 761,219 | (3,337,634 | ) | 7,313,994 | |||||||||||||||
| Interest income | 56,593 | 204,319 | 73,204 | 1 | 25 | 334,142 | ||||||||||||||||
| Interest expense | (31,123 | ) | — | (2,378 | ) | — | — | (33,501 | ) | |||||||||||||
| Income from affiliate | — | — | — | — | 77,566 | 77,566 | ||||||||||||||||
| Other | 20,599 | 5,960 | 601 | 11,660 | 1,157 | 39,977 | ||||||||||||||||
| Other income, net | 46,069 | 210,279 | 71,427 | 11,661 | 78,748 | 418,184 | ||||||||||||||||
| Income (loss) before income taxes | 4,352,965 | 2,642,974 | 3,222,245 | 772,880 | (3,258,886 | ) | 7,732,178 | |||||||||||||||
| Provision (benefit) for income taxes | — | — | 778,286 | 169,153 | (325,743 | ) | 621,696 | |||||||||||||||
| Net income (loss) from continuing operations | 4,352,965 | 2,642,974 | 2,443,959 | 603,727 | (2,933,143 | ) | 7,110,482 | |||||||||||||||
| Income from continuing operations attributable to non-controlling interests | — | 169,068 | — | — | — | 169,068 | ||||||||||||||||
| Net income (loss) from continuing operations attributable to Consolidated Water Co. Ltd. stockholders | $ | 4,352,965 | $ | 2,473,906 | $ | 2,443,959 | $ | 603,727 | $ | (2,933,143 | ) | 6,941,414 | ||||||||||
| Net loss from discontinued operations | (467,066 | ) | ||||||||||||||||||||
| Net income attributable to Consolidated Water Co. Ltd. stockholders | $ | 6,474,348 | ||||||||||||||||||||
The following table presents the company’s revenue disaggregated by revenue source.
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Retail revenue | $ | 9,411,342 | $ | 8,624,938 | |||
| Bulk revenue | 8,411,716 | 8,342,094 | |||||
| Services revenue | 10,078,268 | 17,417,611 | |||||
| Manufacturing revenue | 5,814,059 | 5,304,747 | |||||
| Total revenue | $ | 33,715,385 | $ | 39,689,390 | |||
Services revenue consists of the following:
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Construction revenue | $ | 2,218,230 | $ | 9,203,662 | |||
| Operations and maintenance revenue | 7,725,298 | 7,099,354 | |||||
| Design and consulting revenue | 134,740 | 1,114,595 | |||||
| Total services revenue | $ | 10,078,268 | $ | 17,417,611 | |||
Annual General Meeting of Shareholders
The company has set May 27, 2025 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 March 28, 2025 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, May 13, 2025
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: 6378486
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 CMA at 1-949-432-7566.
A replay of the call will be available after 1:00 p.m. Eastern time on the same day through May 20, 2025, as well as available for replay via the Investors section of the Consolidated Water website at www.cwco.com.
Toll-free replay number: 1-877-344-7529
International replay number: 1-412-317-0088
Replay ID: 6378486
About Consolidated Water Co. Ltd.
Consolidated Water Co. Ltd. develops and operates advanced water supply and 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 recently entered the U.S. desalination market with a contract to design, construct, operate and maintain a seawater desalination plant in Hawaii.
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
CMA Investor Relations
Tel (949) 432-7566
Email Contact
| CONSOLIDATED WATER CO. LTD. CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| March 31, | December 31, | ||||||
| 2025 | 2024 | ||||||
| (Unaudited) | |||||||
| ASSETS | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 107,852,232 | $ | 99,350,121 | |||
| Accounts receivable, net | 36,192,112 | 39,580,982 | |||||
| Inventory | 7,156,002 | 8,960,350 | |||||
| Prepaid expenses and other current assets | 4,173,867 | 5,153,984 | |||||
| Contract assets | 9,517,668 | 4,470,243 | |||||
| Current assets of discontinued operations | 169,707 | 272,485 | |||||
| Total current assets | 165,061,588 | 157,788,165 | |||||
| Property, plant and equipment, net | 53,543,342 | 52,432,282 | |||||
| Construction in progress | 4,477,700 | 5,143,717 | |||||
| Inventory, noncurrent | 5,487,970 | 5,338,961 | |||||
| Investment in affiliates | 1,262,137 | 1,504,363 | |||||
| Goodwill | 12,861,404 | 12,861,404 | |||||
| Intangible assets, net | 2,532,722 | 2,696,815 | |||||
| Operating lease right-of-use assets | 3,050,106 | 3,190,985 | |||||
| Other assets | 2,091,996 | 2,356,489 | |||||
| Total assets | $ | 250,368,965 | $ | 243,313,181 | |||
| LIABILITIES AND EQUITY | |||||||
| Current liabilities | |||||||
| Accounts payable, accrued expenses and other current liabilities | $ | 9,618,600 | $ | 9,057,179 | |||
| Accrued compensation | 3,949,591 | 3,336,946 | |||||
| Dividends payable | 1,788,293 | 1,780,841 | |||||
| Current maturities of operating leases | 636,075 | 634,947 | |||||
| Current portion of long-term debt | 97,612 | 126,318 | |||||
| Contract liabilities | 12,401,797 | 9,126,654 | |||||
| Deferred revenue | 146,816 | 365,879 | |||||
| Current liabilities of discontinued operations | 235,057 | 509,745 | |||||
| Total current liabilities | 28,873,841 | 24,938,509 | |||||
| Long-term debt, noncurrent | 56,838 | 70,320 | |||||
| Deferred tax liabilities | — | 210,893 | |||||
| Noncurrent operating leases | 2,473,687 | 2,630,812 | |||||
| Other liabilities | 153,000 | 153,000 | |||||
| Total liabilities | 31,557,366 | 28,003,534 | |||||
| Commitments and contingencies | |||||||
| Equity | |||||||
| Consolidated Water Co. Ltd. stockholders' equity | |||||||
| Redeemable preferred stock, | 24,498 | 26,402 | |||||
| Class A common stock, | 9,550,011 | 9,507,807 | |||||
| Class B common stock, | — | — | |||||
| Additional paid-in capital | 93,813,284 | 93,550,905 | |||||
| Retained earnings | 109,909,427 | 106,875,581 | |||||
| Total Consolidated Water Co. Ltd. stockholders' equity | 213,297,220 | 209,960,695 | |||||
| Non-controlling interests | 5,514,379 | 5,348,952 | |||||
| Total equity | 218,811,599 | 215,309,647 | |||||
| Total liabilities and equity | $ | 250,368,965 | $ | 243,313,181 | |||
| CONSOLIDATED WATER CO. LTD. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Revenue | $ | 33,715,385 | $ | 39,689,390 | ||||
| Cost of revenue | 21,409,098 | 25,811,367 | ||||||
| Gross profit | 12,306,287 | 13,878,023 | ||||||
| General and administrative expenses | 7,723,959 | 6,564,029 | ||||||
| Gain on asset dispositions and impairments, net | 28,435 | — | ||||||
| Income from operations | 4,610,763 | 7,313,994 | ||||||
| Other income (expense): | ||||||||
| Interest income | 616,594 | 334,142 | ||||||
| Interest expense | (1,528 | ) | (33,501 | ) | ||||
| Equity in the earnings of affiliates | 30,474 | 77,566 | ||||||
| Other | 43,351 | 39,977 | ||||||
| Other income, net | 688,891 | 418,184 | ||||||
| Income before income taxes | 5,299,654 | 7,732,178 | ||||||
| Provision for income taxes | 210,117 | 621,696 | ||||||
| Net income from continuing operations | 5,089,537 | 7,110,482 | ||||||
| Income from continuing operations attributable to non-controlling interests | 165,427 | 169,068 | ||||||
| Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders | 4,924,110 | 6,941,414 | ||||||
| Net loss from discontinued operations | (133,081 | ) | (467,066 | ) | ||||
| Net income attributable to Consolidated Water Co. Ltd. stockholders | $ | 4,791,029 | $ | 6,474,348 | ||||
| Basic earnings (loss) per common share attributable to Consolidated Water Co. Ltd. common stockholders | ||||||||
| Continuing operations | $ | 0.31 | $ | 0.44 | ||||
| Discontinued operations | (0.01 | ) | (0.03 | ) | ||||
| Basic earnings per share | $ | 0.30 | $ | 0.41 | ||||
| Diluted earnings (loss) per common share attributable to Consolidated Water Co. Ltd. common stockholders | ||||||||
| Continuing operations | $ | 0.31 | $ | 0.43 | ||||
| Discontinued operations | (0.01 | ) | (0.03 | ) | ||||
| Diluted earnings per share | $ | 0.30 | $ | 0.40 | ||||
| Dividends declared per common and redeemable preferred shares | $ | 0.11 | $ | 0.095 | ||||
| Weighted average number of common shares used in the determination of: | ||||||||
| Basic earnings per share | 15,915,867 | 15,828,929 | ||||||
| Diluted earnings per share | 16,041,847 | 15,984,548 | ||||||
FAQ
What were CWCO's Q1 2025 earnings per share?
How much revenue did Consolidated Water (CWCO) generate in Q1 2025?
What is the status of CWCO's Hawaii desalination plant project?
How much cash does Consolidated Water (CWCO) have as of Q1 2025?
What was CWCO's retail water sales growth in Grand Cayman for Q1 2025?
