Consolidated Water (CWCO) investor relations material

Executive summary

• Q1 2026 revenue declined 11% year-over-year to $30 million, mainly due to lower manufacturing and retail segment revenues, partially offset by growth in bulk and services segments.

• Net income from continuing operations attributable to stockholders was $3.8 million ($0.24 per diluted share), down from $4.9 million ($0.31 per diluted share) in Q1 2025, mainly due to weaker retail and manufacturing performance.

• Retail segment was impacted by a 10.2% drop in water volume sold in Grand Cayman due to wetter weather, though record-breaking tourism partially offset this decline.

• Bulk and services segments showed continued growth, with services revenue up 15% year-over-year, driven by new O&M contracts, including a significant new municipal client in California.

• Cash and cash equivalents rose to $126.3 million, with working capital at $144.3 million as of March 31, 2026.

Financial highlights

• Gross profit for Q1 2026 was $10.9 million (36% margin), down from $12.3 million (37% margin) in Q1 2025.

• Net income from continuing operations was $3.8 million ($0.24 per diluted share), compared to $4.9 million ($0.31 per diluted share) in Q1 2025.

• Cash and cash equivalents stood at $126.3 million as of March 31, 2026, with working capital at $144.3 million and stockholders’ equity at $223.6 million.

• Dividends declared per share increased to $0.14 from $0.11 year-over-year, with $2.3 million paid in April 2026.

• No significant outstanding debt; cash increased by $18.5 million and working capital by $8.1 million year-over-year.

Outlook and guidance

• Manufacturing revenue for full-year 2026 is projected to be below 2025’s record level, though improvement is expected for the remainder of the year based on backlog.

• Construction revenue in Hawaii expected to rise once the 1.7 MGD desalination plant project commences, with permitting delays pushing revenue recognition into future periods.

• Anticipated growth in U.S. manufacturing, design-build, and O&M businesses, with strong demand in Florida and ongoing opportunities in Colorado, California, and Arizona.

• Management expects diversified business lines and a strong balance sheet to support growth in 2026 and beyond.

• Continued focus on strategic acquisitions, especially to replicate successful design-build operations in Florida.