Consolidated Water (CWCO) investor relations material

Executive summary

• Total revenue increased 3% year-over-year to $33.6 million in Q2 2025, led by retail and manufacturing growth, while services and bulk segments declined.

• Net income from continuing operations rose to $5.2 million ($0.32 per diluted share), up from $4.2 million ($0.26) in Q2 2024, with EPS from continuing operations up 23%.

• Gross profit margin improved to 38% in Q2 2025 from 36% in Q2 2024, with G&A expenses rising due to higher employee and IT costs.

• Cash and cash equivalents reached $112.2 million, with working capital at $137.4 million as of June 30, 2025.

• Quarterly dividend increased 27% to $0.14 per share for Q3 2025.

Financial highlights

• Q2 2025 revenue was $33.6 million (up 3% year-over-year); first half 2025 revenue was $67.3 million, down 7% year-over-year due to lower services revenue.

• Gross profit rose to $12.8 million (38% margin) from $11.6 million (36%) year-over-year.

• Net income from continuing operations was $5.2 million ($0.32 per diluted share), up from $4.2 million ($0.26) last year.

• Including discontinued operations, net income was $5.1 million ($0.32 per share), down from $15.9 million ($0.99) last year due to a prior one-time gain.

• Stockholders' equity stood at $216.6 million at quarter-end.

Outlook and guidance

• Construction on the $204 million Hawaii desalination project is expected to begin early next year, pending permit approvals, and will drive major revenue growth for the Services segment in 2026 and 2027.

• Additional water storage and production capacity planned for Grand Cayman to meet rising demand.

• Manufacturing segment expected to benefit from increased demand in the nuclear power industry.

• Ongoing negotiations for a new Cayman Water retail license could materially impact future operating income and cash flows.

• Management expects sufficient liquidity for ongoing operations, barring collection issues in the Bahamas segment.