Consolidated Water (CWCO) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue increased 5% year-over-year to $35.1 million, driven by growth in retail, services, and manufacturing, while bulk segment revenue declined.

• Net income from continuing operations rose to $5.6 million ($0.34 per diluted share), up from $5 million ($0.31) in Q3 2024.

• Gross profit margin improved to 37% from 35% year-over-year, reflecting higher-margin products and cost reductions.

• Secured new water treatment plant construction contracts valued at $15.6 million, with revenue expected in 2026.

• Appointed three new independent directors, enhancing board expertise in water infrastructure and finance.

Financial highlights

• Q3 2025 revenue: $35.1 million (up 5% year-over-year); nine months: $102.4 million (down 3% year-over-year).

• Q3 2025 gross profit: $12.9 million (37% margin); nine months: $38.1 million (37% margin).

• Q3 2025 net income from continuing operations: $5.6 million; nine months: $15.7 million.

• Cash and cash equivalents totaled $123.6 million as of September 30, 2025; working capital at $141.7 million.

• Dividends declared per share: $0.14 for Q3 2025 (up from $0.11 in Q3 2024).

Outlook and guidance

• Revenue from new construction projects and the Hawaii desalination plant is expected to be recognized primarily in 2026 and 2027.

• Ongoing negotiations for a new retail license in the Cayman Islands could materially impact future operating income.

• One major O&M contract in the services segment is unlikely to be renewed beyond March 2026.

• Anticipates continued growth in Grand Cayman, U.S. construction, and Florida manufacturing opportunities.

• Projected capital expenditures for 2025 are $4.5 million.