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
Six Months Ended June 30, 2026 Retail Bulk Services Manufacturing Corporate TotalRevenue$17,238,005 $18,678,829 $22,836,917 $4,090,311 $— $62,844,062 Cost of revenue 7,448,127 12,458,230 18,113,702 2,944,601 — 40,964,660 Gross profit 9,789,878 6,220,599 4,723,215 1,145,710 — 21,879,402 General and administrative expenses 1,802,106 744,370 3,260,317 1,004,980 7,850,317 14,662,090 Gain (loss) on asset dispositions, net (52,165) — 19,279 — — (32,886)Income (loss) from operations 7,935,607 5,476,229 1,482,177 140,730 (7,850,317) 7,184,426 Interest income 75,052 362,319 485,054 1 370,387 1,292,813 Interest expense — — (2,973) — (242) (3,215)Income (loss) from affiliates — — — (9,062) 122,092 113,030 Other 43,061 16,245 385 7,558 328 67,577 Other income (loss), net 118,113 378,564 482,466 (1,503) 492,565 1,470,205 Income (loss) before income taxes 8,053,720 5,854,793 1,964,643 139,227 (7,357,752) 8,654,631 Provision (benefit) for income taxes — — 480,509 (10,063) — 470,446 Net income (loss) from continuing operations 8,053,720 5,854,793 1,484,134 149,290 (7,357,752) 8,184,185 Income from continuing operations attributable to non-controlling interests — 326,394 — — — 326,394 Net income (loss) from continuing operations attributable to Consolidated Water Co. Ltd. stockholders$8,053,720 $5,528,399 $1,484,134 $149,290 $(7,357,752) 7,857,791 Net loss from discontinued operations (148,616)Net income attributable to Consolidated Water Co. Ltd. stockholders $7,709,175The following table presents the company’s revenue disaggregated by revenue source.
Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025Retail revenue$8,660,947 $8,638,026 $17,238,005 $18,049,368Bulk revenue 9,934,060 8,274,816 18,678,829 16,686,532Services revenue 11,585,573 11,448,202 22,836,917 21,526,470Manufacturing revenue 2,689,782 5,230,035 4,090,311 11,044,094Total revenue$32,870,362 $33,591,079 $62,844,062 $67,306,464Services revenue consists of the following:
Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025Construction revenue$5,338,043 $2,825,935 $7,439,180 $5,044,167Operations and maintenance revenue 6,044,002 8,255,408 14,932,460 15,980,704Design and consulting revenue 203,528 366,859 465,277 501,599Total services revenue$11,585,573 $11,448,202 $22,836,917 $21,526,470Conference Call
Consolidated Water management will host a conference call tomorrow to discuss these results, followed by a question-and-answer period.
Date: Tuesday, August 11, 2026
Time: 11:00 a.m. Eastern time (8:00 a.m. Pacific time)
Toll-free dial-in number: 1-844-875-6913
International dial-in number: 1-412-317-6709
Participant web phone: click here
Conference 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: 1-855-669-9658
International replay number: 1-412-317-0088
Replay 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. Sasnett
Executive Vice President and CFO
Tel (954) 509-8200
Email Contact
Investor & Media Contact:
Ron Both or Grant Stude
Encore Investor Relations
Tel (949) 432-7450
Email Contact
CONDENSED CONSOLIDATED BALANCE SHEETS June 30, December 31, 2026 2025 (Unaudited) ASSETS Current assets Cash and cash equivalents$132,629,006 $123,788,390Accounts receivable, net 28,627,416 32,768,537Inventory 3,938,124 3,736,845Prepaid expenses and other current assets 5,338,714 5,927,675Contract assets 3,210,683 3,290,815Current assets of discontinued operations 130,470 124,630Total current assets 173,874,413 169,636,892Property, plant and equipment, net 59,456,076 55,151,758Construction in progress 4,084,969 6,695,656Inventory, noncurrent 5,740,401 5,563,142Investment in affiliates 1,110,504 1,186,849Goodwill 12,861,404 12,861,404Intangible assets, net 1,956,703 2,101,555Operating lease right-of-use assets 2,744,138 2,930,441Other assets 1,039,893 1,437,648Total assets$262,868,501 $257,565,345 LIABILITIES AND EQUITY Current liabilities Accounts payable, accrued expenses and other current liabilities$10,596,335 $9,620,880Accrued compensation 2,742,935 3,039,142Dividends payable 2,281,679 2,285,317Current maturities of operating leases 769,837 661,047Current portion of long-term debt 13,110 47,549Contract liabilities 12,407,026 11,528,634Deferred revenue 104,847 248,719Current liabilities of discontinued operations 319,693 271,159Total current liabilities 29,235,462 27,702,447Long-term debt, noncurrent 2,875 25,954Deferred tax liabilities 554,290 707,444Noncurrent operating leases 1,999,465 2,297,161Other liabilities 78,000 153,000Total liabilities 31,870,092 30,886,006Commitments and contingencies Equity Consolidated Water Co. Ltd. stockholders' equity Redeemable preferred stock, $0.60 par value. Authorized 200,000 shares; issued and outstanding 47,734 and 39,507 shares, respectively 28,640 23,704Common stock, $0.60 par value. Authorized 49,800,000 and 24,800,000 shares, respectively; issued and outstanding 16,000,190 and 15,945,233 shares, respectively 9,600,114 9,567,140Additional paid-in capital 96,048,795 95,310,630Retained earnings 119,965,649 116,749,048Total Consolidated Water Co. Ltd. stockholders' equity 225,643,198 221,650,522Non-controlling interests 5,355,211 5,028,817Total equity 230,998,409 226,679,339Total liabilities and equity$262,868,501 $257,565,345
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED) Three Months Ended June 30, Six Months Ended June 30, 2026
2025
2026
2025
Revenue$32,870,362 $33,591,079 $62,844,062 $67,306,464 Cost of revenue 21,906,973 20,759,094 40,964,660 42,168,192 Gross profit 10,963,389 12,831,985 21,879,402 25,138,272 General and administrative expenses 7,243,022 7,580,238 14,662,090 15,304,197 Gain (loss) on asset dispositions, net 24,319 32,017 (32,886) 60,452 Income from operations 3,744,686 5,283,764 7,184,426 9,894,527 Other income (expense): Interest income 645,585 756,988 1,292,813 1,373,582 Interest expense (479) (1,185) (3,215) (2,713)Equity in the earnings of affiliates 61,421 52,279 113,030 82,753 Other 24,112 12,100 67,577 55,451 Other income, net 730,639 820,182 1,470,205 1,509,073 Income before income taxes 4,475,325 6,103,946 8,654,631 11,403,600 Provision for income taxes 267,746 795,807 470,446 1,005,924 Net income from continuing operations 4,207,579 5,308,139 8,184,185 10,397,676 Income from continuing operations attributable to non-controlling interests 170,259 129,378 326,394 294,805 Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders 4,037,320 5,178,761 7,857,791 10,102,871 Net loss from discontinued operations (105,574) (82,556) (148,616) (215,637)Net income attributable to Consolidated Water Co. Ltd. stockholders$3,931,746 $5,096,205 $7,709,175 $9,887,234 Basic earnings (loss) per common share attributable to Consolidated Water Co. Ltd. common stockholders Continuing operations$0.25 $0.33 $0.49 $0.63 Discontinued operations (0.01) (0.01) (0.01) (0.01)Basic earnings per share$0.25 $0.32 $0.48 $0.62 Diluted earnings (loss) per common share attributable to Consolidated Water Co. Ltd. common stockholders Continuing operations$0.25 $0.32 $0.49 $0.63 Discontinued operations (0.01) — (0.01) (0.01)Diluted earnings per share$0.24 $0.32 $0.48 $0.62 Dividends declared per common and redeemable preferred shares$0.14 $0.14 $0.28 $0.25 Weighted average number of common shares used in the determination of: Basic earnings per share 16,000,190 15,916,685 16,000,136 15,916,278 Diluted earnings per share 16,108,177 16,044,311 16,107,696 16,043,532