Consolidated Water (CWCO) Q4 2024 earnings summary

Executive summary

• Revenue for 2024 was $134 million, down 26% from 2023, mainly due to the completion of two major construction projects early in the year.

• Net income from continuing operations was $17.9 million ($1.12 per diluted share), down from $30.7 million ($1.93 per share) in 2023.

• Including discontinued operations, net income was $28.2 million ($1.77 per share) versus $29.6 million ($1.86 per share) in 2023.

• Retail water sales in Grand Cayman reached record volumes, driven by a 4.3% increase in customer accounts.

• Recurring O&M revenue expanded, supported by the REC acquisition and new contracts.

Financial highlights

• Gross profit was $45.6 million (34% margin), compared to $61.9 million (34% margin) in 2023.

• Retail revenue rose by $1.6 million to $31.7 million, with a 4.5% increase in water volume sold.

• Cash and cash equivalents stood at $99.4 million, with working capital of $132.8 million and minimal debt.

• Stockholders' equity reached $210 million, up from $187 million a year earlier.

• Quarterly dividend increased by 15.8% to $0.11 per share in Q4 2024.

Outlook and guidance

• Construction revenue is expected to remain below 2023 levels until the Hawaii desalination project begins construction, anticipated in early 2025, with major growth projected for 2026–2027.

• Three construction projects totaling $20 million are underway or being negotiated, expected to impact revenue and profit through early 2026.

• 80% of Hawaii project construction costs are inflation-adjusted, protecting margins.

• Continued growth in Grand Cayman retail water sales and U.S. O&M contracts is expected.

• Ongoing investments in infrastructure and manufacturing capacity are planned.