Consolidated Water Reports Second Quarter 2025 Results

GEORGE TOWN, Cayman Islands, Aug. 11, 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 second quarter ended June 30, 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). Second Quarter 2025 Financial Summary Total revenue increased 3% to $33.6 million.Retail revenue increased 6% to $8.6 million on higher sales volumes.Bulk revenue decreased 2% to $8.3 million.Services revenue decreased by 4% to $11.4 million due to a $1.2 million decrease in construction revenue and a $0.5 million decrease in design and consulting revenue. These decreases were partially offset by a $1.2 million increase in operations and maintenance (O&M) revenue which increased 17% to $8.3 million.Manufacturing revenue increased by 33% to $5.2 million.Net income from continuing operations attributable to company stockholders totaled $5.2 million or $0.32 per diluted share, compared to $4.2 million or $0.26 per diluted share in the second quarter of 2024.Including discontinued operations, net income attributable to company stockholders totaled $5.1 million or $0.32 per diluted share, compared to $15.9 million or $0.99 per diluted share in the second quarter of 2024.Cash and cash equivalents increased to $112.2 million and working capital increased to $137.4 million as of June 30, 2025. Second Quarter Operational Highlights Retail water sold by the company’s Grand Cayman water utility increased 7% due to significantly less rainfall on Grand Cayman during this past quarter compared to the second quarter of 2024 and to a lesser extent ongoing population growth and increased business activity within the company’s service area.The company’s client approved the pilot test reports and recommendations for its $204 million project to design, construct, operate and maintain a 1.7 million gallon per day seawater desalination plant in Kalaeloa, Hawaii. This significant project milestone helps pave the way to begin construction once all permits have been obtained.Completed the expansion of its West Bay seawater desalination plant to meet growing demand for water in its Grand Cayman service area. The expansion added an additional 1 million gallons per day of desalinated water production capacity.Increased its quarterly cash dividend and declared a dividend of $0.14 per share for the third quarter of 2025. This third quarter dividend of $0.14 per share represented an increase of 27.3% from the second quarter 2025 dividend of $0.11 per share. Management Commentary “All four of our business segments performed well this past quarter with revenue growth of 6% in our retail segment and 33% in our manufacturing segment compared to the same period last year,” commented Consolidated Water CEO, Rick McTaggart. “Services segment revenue from recurring O&M contracts increased by 17%, which partially offset decreases in construction revenue and design and consulting revenue. While bulk segment revenue decreased slightly this past quarter due to lower fuel passthrough charges, bulk profitability increased in dollar terms and gross profit percentage due to lower costs of revenue. “Our diversified water business model – spanning regulated utility operations, O&M services and manufacturing – continues to serve the company and its shareholders well, with our consolidated revenue increasing by 3% and our fully diluted earnings per share from continuing operations increasing 23% compared to the same period in 2024. “As previously communicated, the performance of our manufacturing segment has greatly improved and stabilized over the past couple of years. This was evident this past quarter with manufacturing revenue increasing 33% and gross margin improving by six percentage points. A meaningful part of our manufacturing revenue is generated by water purification equipment we fabricate for the nuclear power industry. We are Nuclear Quality Assurance (NQA-1) certified by two large nuclear industry players and are very encouraged by the revitalized interest in nuclear power solutions for the U.S. We expect our unique manufacturing qualifications to create opportunities for continued growth in our manufacturing business. “Our 1.7 million gallons per day seawater desalination plant in Hawaii continued to advance in accordance with the schedule. As previously disclosed, in April, our client, the Honolulu Board of Water Supply, approved and accepted our pilot test report and recommendations -- achieving a critical milestone for the project. In July, we submitted our 90% design for the project and are currently addressing comments from our client’s consultants. Provided all permitting milestones are achieved, we expect to commence construction of the plant early next year.” Q2 2025 Financial Results Revenue totaled $33.6 million, increasing 3% from $32.5 million in the second quarter of 2024. The increase was due to increases of $456,000 in the retail segment and $1.3 million in the manufacturing segment. This increase was partially offset by decreases of $173,000 in the bulk segment and $474,000 in the services segment. Retail revenue increased due to a 7% increase in the volume of water sold. The 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 $4.0 million in the second quarter of 2024 to $2.8 million in the second quarter of 2025. The decrease was a result of a $1.0 million decrease in revenue recognized for the Hawaii project due to the completion of the pilot plant testing phase of the project, which resulted in a decrease in project expenditures pending commencement of the construction phase of the project. Services segment revenue generated under O&M contracts totaled $8.3 million in the second quarter of 2025, an increase of 17% from the second quarter of 2024. The increase was a result of incremental revenue generated by both PERC and REC. Manufacturing segment revenue increased by $1.3 million, or 33%, to $5.2 million, as compared to $3.9 million in the second quarter of 2024. Gross profit for 2025 was $12.8 million (38.2% of total revenue), as compared to $11.6 million (35.8% of total revenue) in the second quarter of 2024. The increase was due to increases in retail and manufacturing revenue, as well as decreased cost of revenue for the bulk segment. The increase in gross profit was partially offset by a decrease in gross profit for the services segment. Net income from continuing operations attributable to Consolidated Water stockholders for the second quarter of 2025 was $5.2 million, or $0.32 per diluted share, compared to net income of $4.2 million, or $0.26 per diluted share, in the second quarter of 2024. Including discontinued operations, net income attributable to Consolidated Water stockholders for the second quarter of 2025 was $5.1 million or $0.32 per diluted share, compared to net income of $15.9 million, or $0.99 per diluted share, in the second quarter of 2024. The decrease was due to discontinued operations, as the company recognized a gain on sale of the land and documentation for the discontinued project in Mexico totaling $12.1 million in the second quarter of 2024. Cash and cash equivalents totaled $112.2 million as of June 30, 2025, with working capital of $137.4 million and stockholders’ equity of $216.6 million. First Half 2025 Financial Results Revenue for the first half of 2025 was $67.3 million, a decrease of 7% from $72.2 million in the same year-ago period. The decrease was due to decreases of $7.8 million in the services segment and $104,000 in the bulk segment. This decrease was partially offset by increases of $1.2 million in the retail segment and $1.8 million in the manufacturing segment. Retail revenue increased due to a 10% increase in the volume of water sold. The decrease in bulk segment revenue was partly 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 $13.4 million in the first half of 2024 to $5.0 million in the first half of 2025 primarily as a result of two construction projects that were completed in the first half of 2024. Construction revenue recognized on the Hawaii contract also declined by $2.1 million in 2025 due to the completion of the pilot plant testing phase of the project. Revenue generated under operations and maintenance contracts totaled $16.0 million in the first half of 2025, an increase of 13% from the first half of 2024. The increase was a result of incremental revenue generated by both PERC and REC. Manufacturing segment revenue increased by $1.8 million to $11.0 million as compared to $9.2 million in the first half of 2024. Gross profit for 2025 was $25.1 million (37.3% of total revenue), as compared to $25.5 million (35.3% of total revenue) in the first half of 2024. The decrease was due to a decrease in services segment gross profit of $2.8 million primarily as a result of the decrease in construction revenue. The decrease in gross profit was partially offset by an increase in gross profit for the retail, bulk and manufacturing segments. Net income from continuing operations attributable to Consolidated Water stockholders for the first half of 2025 was $10.1 million, or $0.63 per diluted share, compared to net income of $11.2 million, or $0.70 per diluted share, in the first half of 2024. Including discontinued operations, net income attributable to Consolidated Water stockholders for the first half of 2025 was $9.9 million or $0.62 per diluted share, compared to net income of $22.3 million or $1.40 per diluted share in the first half of 2024. The decrease was due to discontinued operations, as the company recognized a gain on sale of the land and documentation for the discontinued project in Mexico totaling $12.1 million in the year-ago period. Second Quarter 2025 Segment Results Three Months Ended June 30, 2025 Retail Bulk Services Manufacturing Corporate TotalRevenue $8,638,026 $8,274,816 $11,448,202 $5,230,035 $— $33,591,079 Cost of revenue 3,775,758 5,738,907 8,056,883 3,187,546 — 20,759,094 Gross profit 4,862,268 2,535,909 3,391,319 2,042,489 — 12,831,985 General and administrative expenses 985,617 394,750 1,993,042 530,552 3,676,277 7,580,238 Gain on asset dispositions and impairments, net 840 — 31,177 — — 32,017 Income (loss) from operations 3,877,491 2,141,159 1,429,454 1,511,937 (3,676,277) 5,283,764 Interest income 45,049 227,470 261,335 1 223,133 756,988 Interest expense — — (1,185) — — (1,185)Income (loss) from affiliates — — — (259) 52,538 52,279 Other 7,395 6,942 (1,996) 90 (331) 12,100 Other income (loss), net 52,444 234,412 258,154 (168) 275,340 820,182 Income (loss) before income taxes 3,929,935 2,375,571 1,687,608 1,511,769 (3,400,937) 6,103,946 Provision for income taxes — — 414,180 381,627 — 795,807 Net income (loss) from continuing operations 3,929,935 2,375,571 1,273,428 1,130,142 (3,400,937) 5,308,139 Income from continuing operations attributable to non-controlling interests — 129,378 — — — 129,378 Net income (loss) from continuing operations attributable to Consolidated Water Co. Ltd. stockholders $3,929,935 $2,246,193 $1,273,428 $1,130,142 $(3,400,937) 5,178,761 Net loss from discontinued operations (82,556)Net income attributable to Consolidated Water Co. Ltd. stockholders $5,096,205 Three Months Ended June 30, 2024 Retail Bulk Services Manufacturing Corporate TotalRevenue $8,181,884 $8,447,958 $11,922,469 $3,926,847 $— $32,479,158 Cost of revenue 3,670,133 6,097,460 8,458,537 2,632,814 — 20,858,944 Gross profit 4,511,751 2,350,498 3,463,932 1,294,033 — 11,620,214 General and administrative expenses 781,706 363,268 1,196,624 667,586 3,597,110 6,606,294 Gain (loss) on asset dispositions and impairments, net (6,130) — 3,000 — — (3,130)Income (loss) from operations 3,723,915 1,987,230 2,270,308 626,447 (3,597,110) 5,010,790 Interest income 50,825 213,393 116,623 1 12 380,854 Interest expense (31,123) — (2,315) — — (33,438)Income from affiliate — — — — 48,797 48,797 Other 15,680 6,468 10 116 (61) 22,213 Other income, net 35,382 219,861 114,318 117 48,748 418,426 Income (loss) before income taxes 3,759,297 2,207,091 2,384,626 626,564 (3,548,362) 5,429,216 Provision for income taxes — — 593,438 144,752 325,743 1,063,933 Net income (loss) from continuing operations 3,759,297 2,207,091 1,791,188 481,812 (3,874,105) 4,365,283 Income from continuing operations attributable to non-controlling interests — 122,872 — — — 122,872 Net income (loss) from continuing operations attributable to Consolidated Water Co. Ltd. stockholders $3,759,297 $2,084,219 $1,791,188 $481,812 $(3,874,105) 4,242,411 Net income from discontinued operations 11,607,846 Net income attributable to Consolidated Water Co. Ltd. stockholders $15,850,257 First Half Segment Results Six Months Ended June 30, 2025 Retail Bulk Services Manufacturing Corporate TotalRevenue $18,049,368 $16,686,532 $21,526,470 $11,044,094 $— $67,306,464 Cost of revenue 7,481,821 11,322,996 16,118,760 7,244,615 — 42,168,192 Gross profit 10,567,547 5,363,536 5,407,710 3,799,479 — 25,138,272 General and administrative expenses 1,774,429 740,831 4,188,380 1,194,630 7,405,927 15,304,197 Gain on asset dispositions and impairments, net 30,816 — 29,636 — — 60,452 Income (loss) from operations 8,823,934 4,622,705 1,248,966 2,604,849 (7,405,927) 9,894,527 Interest income 77,915 431,573 404,654 2 459,438 1,373,582 Interest expense — — (2,713) — — (2,713)Income (loss) from affiliates — — — (34,263) 117,016 82,753 Other 35,703 21,875 (1,960) 164 (331) 55,451 Other income (loss), net 113,618 453,448 399,981 (34,097) 576,123 1,509,073 Income (loss) before income taxes 8,937,552 5,076,153 1,648,947 2,570,752 (6,829,804) 11,403,600 Provision for income taxes — — 378,287 627,637 — 1,005,924 Net income (loss) from continuing operations 8,937,552 5,076,153 1,270,660 1,943,115 (6,829,804) 10,397,676 Income from continuing operations attributable to non-controlling interests — 294,805 — — — 294,805 Net income (loss) from continuing operations attributable to Consolidated Water Co. Ltd. stockholders $8,937,552 $4,781,348 $1,270,660 $1,943,115 $(6,829,804) 10,102,871 Net loss from discontinued operations (215,637)Net income attributable to Consolidated Water Co. Ltd. stockholders $9,887,234 Six Months Ended June 30, 2024 Retail Bulk Services Manufacturing Corporate TotalRevenue $16,806,822 $16,790,052 $29,340,080 $9,231,594 $— $72,168,548 Cost of revenue 7,221,477 11,662,718 21,127,476 6,658,640 — 46,670,311 Gross profit 9,585,345 5,127,334 8,212,604 2,572,954 — 25,498,237 General and administrative expenses 1,548,404 707,409 2,794,478 1,185,288 6,934,744 13,170,323 Gain (loss) on asset dispositions and impairments, net (6,130) — 3,000 — — (3,130)Income (loss) from operations 8,030,811 4,419,925 5,421,126 1,387,666 (6,934,744) 12,324,784 Interest income 107,417 417,713 189,827 2 37 714,996 Interest expense (62,246) — (4,693) — — (66,939)Income from affiliate — — — — 126,363 126,363 Other 36,278 12,428 611 11,776 1,097 62,190 Other income, net 81,449 430,141 185,745 11,778 127,497 836,610 Income (loss) before income taxes 8,112,260 4,850,066 5,606,871 1,399,444 (6,807,247) 13,161,394 Provision for income taxes — — 1,371,724 313,905 — 1,685,629 Net income (loss) from continuing operations 8,112,260 4,850,066 4,235,147 1,085,539 (6,807,247) 11,475,765 Income from continuing operations attributable to non-controlling interests — 291,940 — — — 291,940 Net income (loss) from continuing operations attributable to Consolidated Water Co. Ltd. stockholders $8,112,260 $4,558,126 $4,235,147 $1,085,539 $(6,807,247) 11,183,825 Net income from discontinued operations 11,140,780 Net income attributable to Consolidated Water Co. Ltd. stockholders $22,324,605 The following table presents the Company’s revenue disaggregated by revenue source. Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024Retail revenue $8,638,026 $8,181,884 $18,049,368 $16,806,822 Bulk revenue 8,274,816 8,447,958 16,686,532 16,790,052 Services revenue 11,448,202 11,922,469 21,526,470 29,340,080 Manufacturing revenue 5,230,035 3,926,847 11,044,094 9,231,594 Total revenue $33,591,079 $32,479,158 $67,306,464 $72,168,548 Services revenue consists of the following: Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024Construction revenue $2,825,935 $4,004,072 $5,044,167 $13,381,536 Operations and maintenance revenue 8,255,408 7,068,922 15,980,704 14,168,275 Design and consulting revenue 366,859 849,475 501,599 1,790,269 Total services revenue $11,448,202 $11,922,469 $21,526,470 $29,340,080 Conference CallConsolidated Water management will host a conference call tomorrow to discuss these results, followed by a question-and-answer period. Date: Tuesday, August 12, 2025Time: 11:00 a.m. Eastern time (8:00 a.m. Pacific time)Toll-free dial-in number: 1-844-875-6913International dial-in number: 1-412-317-6709Conference ID: 9065693 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 19, 2025, as well as available for replay via the Investors section of the Consolidated Water website at www.cwco.com. Toll-free replay number: 1-877-344-7529International replay number: 1-412-317-0088Replay ID: 9065693 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 has in progress a $204 million design-build-operate project for 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. SasnettExecutive Vice President and CFOTel (954) 509-8200Email ContactInvestor Relations Contact:Ron Both or Grant StudeEncore Investor RelationsTel (949) 432-7557Email Contact CONSOLIDATED WATER CO. LTD.CONDENSED CONSOLIDATED BALANCE SHEETS June 30, December 31, 2025 2024 (Unaudited) ASSETS Current assets Cash and cash equivalents $112,246,599 $99,350,121 Accounts receivable, net 41,952,382 39,580,982 Inventory 6,211,193 8,960,350 Prepaid expenses and other current assets 3,542,059 5,153,984 Contract assets 5,759,030 4,470,243 Current assets of discontinued operations 123,625 272,485 Total current assets 169,834,888 157,788,165 Property, plant and equipment, net 53,746,797 52,432,282 Construction in progress 6,522,936 5,143,717 Inventory, noncurrent 5,593,954 5,338,961 Investment in affiliates 1,314,416 1,504,363 Goodwill 12,861,404 12,861,404 Intangible assets, net 2,368,629 2,696,815 Operating lease right-of-use assets 3,240,112 3,190,985 Other assets 2,020,432 2,356,489 Total assets $257,503,568 $243,313,181 LIABILITIES AND EQUITY Current liabilities Accounts payable, accrued expenses and other current liabilities $12,795,154 $9,057,179 Accrued compensation 2,809,311 3,336,946 Dividends payable 2,268,256 1,780,841 Current maturities of operating leases 681,140 634,947 Current portion of long-term debt 77,188 126,318 Contract liabilities 12,898,666 9,126,654 Deferred revenue 616,556 365,879 Current liabilities of discontinued operations 271,078 509,745 Total current liabilities 32,417,349 24,938,509 Long-term debt, noncurrent 45,309 70,320 Deferred tax liabilities — 210,893 Noncurrent operating leases 2,680,470 2,630,812 Other liabilities 153,000 153,000 Total liabilities 35,296,128 28,003,534 Commitments and contingencies Equity Consolidated Water Co. Ltd. stockholders' equity Redeemable preferred stock, $0.60 par value. Authorized 200,000 shares; issued and outstanding 49,844 and 44,004 shares, respectively 29,906 26,402 Class A common stock, $0.60 par value. Authorized 24,655,000 shares; issued and outstanding 15,916,685 and 15,846,345 shares, respectively 9,550,011 9,507,807 Class B common stock, $0.60 par value. Authorized 145,000 shares; none issued — — Additional paid-in capital 94,212,568 93,550,905 Retained earnings 112,771,198 106,875,581 Total Consolidated Water Co. Ltd. stockholders' equity 216,563,683 209,960,695 Non-controlling interests 5,643,757 5,348,952 Total equity 222,207,440 215,309,647 Total liabilities and equity $257,503,568 $243,313,181 CONSOLIDATED WATER CO. LTD.CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024Revenue $33,591,079 $32,479,158 $67,306,464 $72,168,548 Cost of revenue 20,759,094 20,858,944 42,168,192 46,670,311 Gross profit 12,831,985 11,620,214 25,138,272 25,498,237 General and administrative expenses 7,580,238 6,606,294 15,304,197 13,170,323 Gain (loss) on asset dispositions and impairments, net 32,017 (3,130) 60,452 (3,130)Income from operations 5,283,764 5,010,790 9,894,527 12,324,784 Other income (expense): Interest income 756,988 380,854 1,373,582 714,996 Interest expense (1,185) (33,438) (2,713) (66,939)Equity in the earnings of affiliates 52,279 48,797 82,753 126,363 Other 12,100 22,213 55,451 62,190 Other income, net 820,182 418,426 1,509,073 836,610 Income before income taxes 6,103,946 5,429,216 11,403,600 13,161,394 Provision for income taxes 795,807 1,063,933 1,005,924 1,685,629 Net income from continuing operations 5,308,139 4,365,283 10,397,676 11,475,765 Income from continuing operations attributable to non-controlling interests 129,378 122,872 294,805 291,940 Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders 5,178,761 4,242,411 10,102,871 11,183,825 Net income (loss) from discontinued operations (82,556) 11,607,846 (215,637) 11,140,780 Net income attributable to Consolidated Water Co. Ltd. stockholders $5,096,205 $15,850,257 $9,887,234 $22,324,605 Basic earnings (loss) per common share attributable to Consolidated Water Co. Ltd. common stockholders Continuing operations $0.33 $0.27 $0.63 $0.71 Discontinued operations (0.01) 0.73 (0.01) 0.70 Basic earnings per share $0.32 $1.00 $0.62 $1.41 Diluted earnings (loss) per common share attributable to Consolidated Water Co. Ltd. common stockholders Continuing operations $0.32 $0.26 $0.63 $0.70 Discontinued operations — 0.73 (0.01) 0.70 Diluted earnings per share $0.32 $0.99 $0.62 $1.40 Dividends declared per common and redeemable preferred shares $0.14 $0.095 $0.25 $0.19 Weighted average number of common shares used in the determination of: Basic earnings per share 15,916,685 15,829,120 15,916,278 15,829,024 Diluted earnings per share 16,044,311 15,983,671 16,043,532 15,984,154

Consolidated Water Reports Second Quarter 2025 Results

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