Consolidated Water (CWCO) Q4 2025 earnings summary

Executive summary

• 2025 revenue totaled $132.1 million, down 1% year-over-year, mainly due to lower services and bulk segment revenues, partially offset by growth in retail and manufacturing segments.

• Net income from continuing operations rose to $18.6 million ($1.16 per diluted share), up 4% from $17.9 million ($1.12 per diluted share) in 2024.

• Gross profit increased to $48.4 million, with gross margin improving to 37% from 34% in 2024, driven by efficiency and cost control.

• Retail water operations in Grand Cayman achieved record sales volumes and customer growth due to low rainfall, increased tourism, and population expansion.

• Major project milestones were achieved for the Hawaii desalination project, but permitting delays deferred construction and revenue recognition.

Financial highlights

• Retail segment revenue grew 6% to $33.6 million, with an 8.3% increase in water volume sold and a 6.6% rise in customer accounts.

• Manufacturing segment revenue rose 6% to $18.7 million, with gross margin up 4.6 percentage points to 34.8%.

• Services segment revenue declined 9% to $46.3 million due to completion of major projects in 2024 and permitting delays in Hawaii.

• Cash and cash equivalents reached $123.8 million; working capital was $141.9 million; stockholders' equity was $221.7 million as of year-end.

• Dividends declared per share increased to $0.53 from $0.41 in 2024, with a 27.3% dividend hike in Q3 2025.

Outlook and guidance

• Construction on the Hawaii project is expected to commence later in 2026, with substantial revenue and earnings growth anticipated in future periods.

• Services segment revenue is projected to remain below 2023 levels until Hawaii project construction begins.

• Two new water treatment projects in Colorado and California, totaling $15.6 million, will contribute revenue primarily in 2026.

• Anticipated growth in manufacturing segment from increased municipal project bidding in Florida and renewed interest in nuclear power solutions.

• Management expects diversified business segments to deliver improved results as global demand for clean water rises.