Consolidated Water (CWCO) investor relations material

Executive summary

• Q2 2026 revenue was $32.9 million, down 2% year-over-year due to a 49% drop in manufacturing revenue, partially offset by a 20% increase in bulk and stable retail and services segments.

• Net income from continuing operations was $4.0 million ($0.25 per diluted share), down from $5.2 million ($0.32 per share) in Q2 2025.

• Retail revenue remained stable despite a 2% drop in Grand Cayman water sales volume, supported by rate increases and strong tourism.

• Bulk revenue rose 20% year-over-year, driven by higher energy pass-through charges and new Cat Island desalination plants in The Bahamas.

• Operational highlights include a new 25-year exclusive water supply license in Grand Cayman and commissioning of two new desalination plants in The Bahamas.

Financial highlights

• Gross profit for Q2 2026 was $11.0 million (33% margin), down from $12.8 million (38% margin) in Q2 2025, mainly due to lower manufacturing revenue.

• First half 2026 revenue was $62.8 million, down from $67.3 million in 2025; net income from continuing operations was $7.9 million ($0.49 per diluted share).

• Cash and cash equivalents totaled $132.6 million as of June 30, 2026, with working capital of $144.6 million and no significant debt.

• Dividends of $0.14 per share were declared and paid in Q2 2026.

Outlook and guidance

• Manufacturing revenue for full-year 2026 is projected to be lower than 2025, but recent order activity and backlog support a stronger outlook for 2027.

• $10.1 million in new municipal water treatment equipment orders in Florida, with delivery scheduled for November 2027.

• Construction on the Hawaii desalination project is expected to begin later in 2026, pending permitting, with a $204 million contract and limited notice to proceed issued.

• The new Cayman Water license is expected to reduce annual revenue and operating income by $1.1 million for the first half of 2026, with similar impacts projected for future periods.

• Grand Cayman retail operations and Caribbean bulk water revenue provide stable, recurring income, with tourism trends supporting demand.