GEORGE TOWN, Cayman Islands, May 11, 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 quarter ended March 31, 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).
First Quarter 2026 Financial Summary
- Total revenue decreased 11% to $30.0 million.
- Retail revenue decreased 9% to $8.6 million due to significantly greater rainfall on Grand Cayman during the quarter.
- Bulk revenue increased 4% to $8.7 million primarily due to new revenue from the recently commissioned seawater desalination facility in Cat Island, The Bahamas.
- Services revenue increased by 12% to $11.3 million.
- Manufacturing revenue decreased by 76% to $1.4 million primarily due to a decrease in the total dollar amount of new purchase orders and, to a lesser extent, the timing of the receipt and the commencement of work on these new orders. Net income from continuing operations attributable to company stockholders totaled $3.8 million or $0.23 per diluted share, compared to $4.9 million or $0.31 per diluted share in the first quarter of 2025.
- Including discontinued operations, net income attributable to company stockholders totaled $3.8 million or $0.23 per diluted share, compared to $4.8 million or $0.30 per diluted share in the first quarter of 2025.
- Cash and cash equivalents increased to $126.3 million and working capital increased to $144.3 million as of March 31, 2026.
Management Commentary
“In Q1, consolidated revenue declined due to revenue declines in our manufacturing and retail segments,” said Consolidated Water CEO Rick McTaggart. “Manufacturing revenue was lower due to the timing of receipt of new purchase orders for 2026 projects compared to last year. We had received a large purchase order in late 2024 which favorably impacted our first quarter revenue last year. Retail revenue was impacted by much wetter weather conditions this past quarter which reduced the water volume we sold in Grand Cayman by about 10%. However, revenue in our bulk and services segments continued to grow this past quarter, which partially offset the decline in our other two operating segments. Gross profit and operating income in our bulk and services segments also increased, underscoring the stable, recurring nature of our Caribbean-based bulk water business and the momentum in our operations and maintenance (O&M) services.
“Our bulk segment revenue increase reflects contributions from one of two new desalination plants on Cat Island, The Bahamas, which supply potable water to the Water and Sewerage Corporation of The Bahamas. The second plant is expected to be commissioned in the second quarter of this year. Our services segment revenue increase was mainly due to a 15% increase in revenue from O&M contracts. The O&M revenue increase was partially due to revenue from a new municipal client in southern California under a three-year contract that was awarded to PERC in November last year, which is expected to generate approximately $4.5 million in revenue over the three-year term.
“While our manufacturing segment revenue decreased compared to Q1 last year, based on current backlog, we expect manufacturing revenue for the rest of this year will improve. However, we also expect that manufacturing revenue for the full 2026 fiscal year will be less than the manufacturing revenue generated in 2025, which was a record year. Some of our production capacity this year will be used to manufacture seawater reverse osmosis units and piping for our Hawaii project. Accounting rules require that this Hawaii-related manufacturing revenue is eliminated in consolidation, although they will eventually be recognized through our services segment as the Hawaii project advances.
“We are seeing a very active market for our manufacturing segment products and services for the remainder of this year, particularly for municipal water projects in Florida. We believe that our extensive experience manufacturing large-scale membrane-based water treatment systems, as well as our location in Ft. Pierce, Florida, position us well to continue growing that part of our business in the Florida market. We believe this activity will positively impact 2026 and 2027 performance.
“As we previously announced last year, we were awarded two water treatment plant construction projects, including a $3.9 million drinking water plant expansion in Colorado and an $11.7 million wastewater recycling plant in California. The combined value of these projects totals approximately $15.6 million, and the remaining revenue of more than $13 million attributable to these projects is expected to be realized primarily in 2026.
“Our construction service segment revenue is anticipated to remain below the record achieved in 2023 until the initiation of construction of a 1.7 million gallon per day seawater desalination plant in Kalaeloa, Hawaii for the Honolulu Board of Water Supply. We continue to focus on the permitting process, respond to regulatory inquiries and coordinate with the Honolulu Board of Water Supply to mitigate project schedule impacts. Although we are still unable to provide a firm construction start date for the project, we made some progress to obtain a key permit for the project and are encouraged by recent meetings with the responsible governmental authority. The deferral of construction activities has shifted anticipated revenue recognition and associated cash flows related to the Hawaii project into future periods. We continue to anticipate that construction of the project will commence later this year and see the construction phase of this major project substantially adding to our revenue and earnings growth in later reporting periods.
“In 2026 and beyond, we expect our diversified business to continue to deliver strong year-over-year results for shareholders, supported by our Grand Cayman retail operations, stable recurring revenue from our Caribbean bulk water business, and growth opportunities in our U.S. manufacturing, design-build and O&M businesses. With global demand for clean water rising, our strong balance sheet positions us to act quickly on desalination and water infrastructure opportunities in the Caribbean and North America, as well as potential strategic acquisitions or partnerships.”
First Quarter 2026 Financial Results
Revenue totaled $30.0 million, decreasing 11% from $33.7 million in the first quarter of 2025. The decrease was due to decreases of $4.4 million in the manufacturing segment and $834,000 in the retail segment. The decreases were partially offset by increases of $333,000 in the bulk segment and $1.2 million in the services segment.
Retail revenue decreased due to a 10.2% decrease in the volume of water sold. The decrease resulted from significantly greater rainfall on Grand Cayman during the quarter, as 2025 rainfall was well below historical norms.
The slight increase in bulk segment revenue was primarily due to new revenue from the CW-Bahamas Cat Island plant.
The increase in services segment revenue was primarily due to revenue generated under O&M contracts that totaled $8.9 million for the first quarter of 2026, an increase of 15% from the first quarter of 2025. A portion of the increase in O&M revenue was attributable to a new three-year contract for a California municipality obtained by PERC in November last year. About $500,000 of the O&M revenue increase was due to additional construction work and maintenance services completed in 2026 for an O&M contract that expired at the end of March 2026. Construction revenue remained relatively consistent at $2.1 million in the first quarter of 2026 as compared to $2.2 million in the same year-ago quarter.
Manufacturing segment revenue decreased by $4.4 million, or 76%, to $1.4 million, as compared to $5.8 million in the first quarter of 2025. The decrease was due to a decrease in the total dollar volume of new purchase orders and, to a lesser extent, the timing of the receipt and commencement of work on new purchase orders.
Gross profit for 2026 was $10.9 million (36% of total revenue), as compared to $12.3 million (37% of total revenue) in the first quarter of 2025. The decrease was due to the decline in retail and manufacturing revenue mentioned above.
Net income from continuing operations attributable to Consolidated Water stockholders for the first quarter of 2026 was $3.8 million, or $0.24 per diluted share, compared to net income of $4.9 million, or $0.31 per diluted share, in the first quarter of 2025.
Including discontinued operations, net income attributable to Consolidated Water stockholders for the first quarter of 2026 was $3.8 million or $0.23 per diluted share, compared to net income of $4.8 million, or $0.30 per diluted share, in the first quarter of 2025.
Cash and cash equivalents totaled $126.3 million as of March 31, 2026, with working capital of $144.3 million and stockholders’ equity of $223.6 million.
First Quarter 2026 Segment Results
Three Months Ended March 31, 2026 Retail BulkServices Manufacturing Corporate TotalRevenue$8,577,058 $8,744,769 $11,251,344 $1,400,529 $— $29,973,700 Cost of revenue 3,642,157 5,735,986 8,427,156 1,252,388 — 19,057,687 Gross profit 4,934,901 3,008,783 2,824,188 148,141 — 10,916,013 General and administrative expenses 902,607 404,223 1,785,996 485,908 3,840,334 7,419,068 Gain (loss) on asset dispositions, net (76,754) — 19,549 — — (57,205)Income (loss) from operations 3,955,540 2,604,560 1,057,741 (337,767) (3,840,334) 3,439,740 Interest income 46,233 177,507 239,875 1 183,612 647,228 Interest expense — — (2,736) — — (2,736)Income (loss) from affiliates — — — (8,634) 60,243 51,609 Other 25,858 10,023 1 7,468 115 43,465 Other income (loss), net 72,091 187,530 237,140 (1,165) 243,970 739,566 Income (loss) before income taxes 4,027,631 2,792,090 1,294,881 (338,932) (3,596,364) 4,179,306 Provision for income taxes — — 316,049 (113,349) — 202,700 Net income (loss) from continuing operations 4,027,631 2,792,090 978,832 (225,583) (3,596,364) 3,976,606 Income from continuing operations attributable to non-controlling interests — 156,135 — — — 156,135 Net income (loss) from continuing operations attributable to Consolidated Water Co. Ltd. stockholders$4,027,631 $2,635,955 $978,832 $(225,583) $(3,596,364) 3,820,471 Net loss from discontinued operations (43,042)Net income attributable to Consolidated Water Co. Ltd. stockholders $3,777,429
Bulk
Services Manufacturing Corporate TotalRevenue$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 on asset dispositions, 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 from affiliate — — — (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
The following table presents the company’s revenue disaggregated by revenue source.
2026
2025
Retail revenue$8,577,058 $9,411,342 Bulk revenue 8,744,769 8,411,716 Services revenue 11,251,344 10,078,268 Manufacturing revenue 1,400,529 5,814,059 Total revenue$29,973,700 $33,715,385
Services revenue consists of the following:
2026
2025
Construction revenue$2,101,137 $2,218,230 Operations and maintenance revenue 8,888,458 7,725,298 Design and consulting revenue 261,749 134,740 Total services revenue$11,251,344 $10,078,268
Annual General Meeting of Shareholders
The company has set June 1, 2026 as the date of its Annual General Meeting of Shareholders to be held at 3:00 p.m. Cayman Islands time (4:00 p.m. EDT) at the Westin Grand Cayman Seven Mile Beach Resort & Spa, Seven Mile Beach, Grand Cayman, Cayman Islands. Holders of record of the company’s stock as of April 2, 2026 will be entitled to vote at the meeting.
Conference Call
Consolidated Water management will host a conference call tomorrow to discuss these results, followed by a question-and-answer period.
Date: Tuesday, May 12, 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: 3191190
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 May 19, 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: 3191190
About Consolidated Water Co. Ltd.
Consolidated Water Co. Ltd. develops and operates advanced water treatment plants and water distribution systems. The company designs, constructs and operates seawater desalination facilities in the Cayman Islands, The Bahamas and the British Virgin Islands, and designs, constructs and operates water treatment and reuse facilities in the United States.
The company also manufactures and services a wide range of products and provides design, engineering, management, operating and other services applicable to commercial and municipal water production, supply and treatment, and industrial water and wastewater treatment.
For more information, visit cwco.com.
Cautionary Note Regarding Forward-Looking Statements
This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe", "estimate", "project", "intend", "expect", "should", "will" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to (i) continued acceptance of the company's products and services in the marketplace; (ii) changes in its relationships with the governments of the jurisdictions in which it operates; (iii) the outcome of its negotiations with the Cayman government regarding a new retail license agreement; (iv) the collection of its delinquent accounts receivable in the Bahamas; and (v) various other risks such as economic, operational, and industry-specific risks, as detailed in the company's periodic report filings with the Securities and Exchange Commission (“SEC”). For more information about risks and uncertainties associated with the company’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of the company’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting the company’s Secretary at the company’s executive offices or at the “Investors – SEC Filings” page of the company’s website at ir.cwco.com/docs. Except as otherwise required by law, the company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Company Contact:
David W. Sasnett
Executive Vice President and CFO
Tel (954) 509-8200
Email Contact
Investor & Media Contact:
Ron Both or Grant Stude
Encore Investor Relations
Tel (949) 432-7450
Email Contact
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31,
December 31,
2026
2025
(Unaudited)
ASSETS Current assets Cash and cash equivalents$126,331,873 $123,788,390 Accounts receivable, net 36,232,930 32,768,537 Inventory 4,323,265 3,736,845 Prepaid expenses and other current assets 4,560,239 5,927,675 Contract assets 1,293,848 3,290,815 Current assets of discontinued operations 131,954 124,630 Total current assets 172,874,109 169,636,892 Property, plant and equipment, net 56,708,697 55,151,758 Construction in progress 5,144,291 6,695,656 Inventory, noncurrent 5,586,869 5,563,142 Investment in affiliates 1,049,083 1,186,849 Goodwill 12,861,404 12,861,404 Intangible assets, net 2,029,129 2,101,555 Operating lease right-of-use assets 2,712,619 2,930,441 Other assets 1,189,321 1,437,648 Total assets$260,155,522 $257,565,345 LIABILITIES AND EQUITY Current liabilities Accounts payable, accrued expenses and other current liabilities$9,619,209 $9,620,880 Accrued compensation 2,747,410 3,039,142 Dividends payable 2,280,461 2,285,317 Current maturities of operating leases 619,659 661,047 Current portion of long-term debt 16,804 47,549 Contract liabilities 12,875,169 11,528,634 Deferred revenue 179,546 248,719 Current liabilities of discontinued operations 271,067 271,159 Total current liabilities 28,609,325 27,702,447 Long-term debt, noncurrent 4,555 25,954 Deferred tax liabilities 487,747 707,444 Noncurrent operating leases 2,146,943 2,297,161 Other liabilities 153,000 153,000 Total liabilities 31,401,570 30,886,006 Commitments and contingencies Equity Consolidated Water Co. Ltd. stockholders' equity Redeemable preferred stock, $0.60 par value. Authorized 200,000 shares; issued and outstanding 38,923 and 39,507 shares, respectively 23,354 23,704 Common stock, $0.60 par value. Authorized 24,800,000 shares; issued and outstanding 16,000,190 and 15,945,233 shares, respectively 9,600,114 9,567,140 Additional paid-in capital 95,666,040 95,310,630 Retained earnings 118,279,492 116,749,048 Total Consolidated Water Co. Ltd. stockholders' equity 223,569,000 221,650,522 Non-controlling interests 5,184,952 5,028,817 Total equity 228,753,952 226,679,339 Total liabilities and equity$260,155,522 $257,565,345
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED) Three Months Ended March 31, 2026 2025Revenue$29,973,700 $33,715,385 Cost of revenue 19,057,687 21,409,098 Gross profit 10,916,013 12,306,287 General and administrative expenses 7,419,068 7,723,959 Gain (loss) on asset dispositions, net (57,205) 28,435 Income from operations 3,439,740 4,610,763 Other income (expense): Interest income 647,228 616,594 Interest expense (2,736) (1,528)Equity in the earnings of affiliates 51,609 30,474 Other 43,465 43,351 Other income, net 739,566 688,891 Income before income taxes 4,179,306 5,299,654 Provision for income taxes 202,700 210,117 Net income from continuing operations 3,976,606 5,089,537 Income from continuing operations attributable to non-controlling interests 156,135 165,427 Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders 3,820,471 4,924,110 Net loss from discontinued operations (43,042) (133,081)Net income attributable to Consolidated Water Co. Ltd. stockholders$3,777,429 $4,791,029 Basic earnings (loss) per common share attributable to Consolidated Water Co. Ltd. common stockholders Continuing operations$0.24 $0.31 Discontinued operations — (0.01)Basic earnings per share$0.24 $0.30 Diluted earnings (loss) per common share attributable to Consolidated Water Co. Ltd. common stockholders Continuing operations$0.24 $0.31 Discontinued operations — (0.01)Diluted earnings per share$0.23 $0.30 Dividends declared per common and redeemable preferred shares$0.14 $0.11 Weighted average number of common shares used in the determination of: Basic earnings per share 16,000,081 15,915,867 Diluted earnings per share 16,107,053 16,041,847