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Consolidated Water Reports 11% Revenue Drop

Consolidated Water Co. reported first-quarter 2026 revenue of $30.0 million, down 11% from $33.7 million a year earlier, as declines in manufacturing and retail outweighed gains in bulk water and services.

Retail revenue fell 9% to $8.6 million from $9.4 million, with water volume sold down 10.2% amid heavier rainfall in Grand Cayman. Manufacturing revenue dropped 76% to $1.4 million from $5.8 million, a decline of $4.4 million tied to lower new purchase orders and the timing of work on those orders.

By contrast, bulk revenue rose 4% to $8.7 million from $8.4 million, helped by new revenue from the Cat Island desalination facility in the Bahamas. Services revenue increased 12% to $11.3 million from $10.1 million, including an 15% increase in operations and maintenance revenue to $8.9 million from $7.7 million.

Gross profit declined to $10.9 million from $12.3 million a year earlier, while gross margin slipped to 36% from 37%.

Net income attributable to stockholders was $3.8 million, or $0.23 per diluted share, compared with $4.8 million, or $0.30 per diluted share, in the first quarter of 2025. Net income from continuing operations was $3.8 million, or $0.24 per diluted share, versus $4.9 million, or $0.31 per diluted share, last year.

Cash and cash equivalents increased to $126.3 million from the prior year period, and working capital rose to $144.3 million. Stockholders’ equity stood at $223.6 million at March 31, 2026.

Within services, construction revenue was $2.1 million, down slightly from $2.2 million, while design and consulting revenue increased to $261,749 from $134,740. Operations and maintenance revenue rose to $8.9 million from $7.7 million.

On a segment basis, retail operating income was $4.0 million, down from $4.9 million. Bulk operating income rose to $2.6 million from $2.5 million. Services swung to $1.1 million of operating income from a loss of $180,488 a year earlier. Manufacturing posted an operating loss of $337,767, compared with operating income of $1.1 million in the prior-year quarter.

The company said it expects manufacturing revenue to improve from first-quarter levels over the rest of 2026, though full-year manufacturing revenue is still expected to trail 2025’s record. It also said remaining revenue from the Colorado and California projects should exceed $13 million and be realized primarily in 2026. The market has reacted to these announcements by moving the company's shares -7.78% to a price of $30.305. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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