Consolidated Water Q2 earnings fall to $0.25 per share as manufacturing revenue drops 49%

GEORGE TOWN, Grand Cayman, Aug. 10. Consolidated Water Co. Ltd. (NASDAQ: CWCO) reported second-quarter 2026 net income from continuing operations of $4.0 million, or $0.25 per diluted share, down from $5.2 million, or $0.32 per diluted share, a year earlier. Including discontinued operations, net income attributable to stockholders was $3.9 million, or $0.24 per diluted share. Total revenue slipped 2% to $32.9 million as a sharp drop in the manufacturing segment offset gains in bulk, retail and services.

Segment results: manufacturing weighs, bulk leads

Manufacturing revenue fell 49% to $2.7 million for the quarter ended June 30, 2026. CEO Rick McTaggart attributed the decline to lower new purchase orders for 2026 projects, contrasting with the prior-year period when a large late-2024 order carried through to first-half 2025 manufacturing results. Bulk revenue climbed 20% to $9.9 million, driven by higher energy pass-through charges from the company's Bahamas operations and revenue from two new seawater desalination plants on Cat Island, The Bahamas, commissioned during 2026. Services revenue rose 1% to $11.6 million. Retail revenue was effectively flat at $8.7 million, up 0.3%, as a base water rate increase for a major non-potable customer offset a 2% volume decline in Grand Cayman that McTaggart linked to slightly wetter weather.

Grand Cayman concession and balance sheet

The company received a 25-year exclusive water production and supply concession and water utility license to serve Seven Mile Beach and West Bay, two of the three most populated areas of Grand Cayman. It also obtained an extension of operating and maintenance agreements for the Water Authority-Cayman's North Sound and North Side Water Works plants through March 31, 2027. Cash and cash equivalents stood at $132.6 million and working capital at $144.6 million as of June 30, 2026.

Hawaii project and Florida orders

In July, a client issued a limited notice to proceed on a $204 million contract to design, construct, operate and maintain a 1.7-million-gallon-per-day seawater desalination plant in Kalaeloa, Hawaii, with approximately $6 million authorized for long-lead equipment procurement; construction is expected to begin later in 2026. After the quarter ended, the company disclosed purchase orders totaling approximately $10.1 million for municipal water treatment equipment in Florida. McTaggart described the orders as the company's largest municipal membrane equipment order and its largest horizontal cartridge filter order to date. The company also appointed Sachin Chawla to the newly created position of senior vice president of strategy and growth; he brings more than 25 years of water industry experience spanning large-scale desalination projects and public utility operations.