Consolidated Water (CWCO) Q2 2025 earnings summary

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.

• Gross profit margin improved to 38% from 36% year-over-year, 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 from $32.5 million in Q2 2024); six-month revenue was $67.3 million (down from $72.2 million year-over-year).

• Q2 2025 gross profit was $12.8 million (38% margin); six-month gross profit was $25.1 million (37% margin).

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

• Including discontinued operations, net income was $5.1 million ($0.32 per share), down from $15.9 million ($0.99 per share) last year due to a one-time gain in 2024.

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

Outlook and guidance

• Construction of the Hawaii desalination project is expected to begin early next year, pending permit approvals, and will drive services segment growth in 2026-2027.

• Projected capital expenditures for 2025 are $8.5 million, including new plants in the Bahamas and manufacturing facility expansion.

• Management expects continued steady long-term growth, enhanced profitability, and increased shareholder value.

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

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