Consolidated Water (CWCO) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue declined 15% year-over-year to $33.7M, mainly due to a significant decrease in services segment revenue after completion of major projects.

• Retail, bulk, and manufacturing segments posted revenue growth, with retail up 9%, bulk up 1%, and manufacturing up 10% year-over-year.

• Net income from continuing operations attributable to stockholders was $4.9M ($0.31 per diluted share), down from $6.9M ($0.43) in Q1 2024, mainly due to lower services revenue and higher G&A expenses.

• Cash and cash equivalents rose to $107.9M; working capital increased to $136.2M as of March 31, 2025.

• Major operational milestone achieved with client approval for the Hawaii desalination project, expected to begin construction in early 2026.

Financial highlights

• Total revenue: $33.7M, down from $39.7M in Q1 2024.

• Gross profit: $12.3M (37% margin), down from $13.9M (35%) in Q1 2024.

• Net income from continuing operations: $4.9M ($0.31/diluted share) vs. $6.9M ($0.43/diluted share) prior year.

• Cash and cash equivalents: $107.9M as of March 31, 2025; working capital: $136.2M.

• Dividends declared per share increased to $0.11 from $0.095 year-over-year; $1.8M paid in April.

Outlook and guidance

• Construction of the $204M Hawaii desalination project expected to begin in early 2026, pending permit approvals.

• Three new design-build projects (~$20M total) set to start in H2 2025, with revenue recognized over 12 months.

• Anticipates design-build revenues to improve in H2 2025 and strong long-term growth from a robust project pipeline, especially in Arizona and Colorado.

• Retail water sales expected to remain elevated due to sustained population and business growth in Grand Cayman.

• Projected 2025 capital expenditures of $9.1M, including $800K for Bahamas and $1.2M for manufacturing expansion.