Consolidated Water will hold a conference call at 11:00 a.m. Eastern time tomorrow to discuss the results (see dial-in information below).
2025 Financial Summary
Total revenue decreased 1% to $132.1 million.
Retail revenue increased 6% to $33.6 million.
Bulk revenue decreased 1% to $33.5 million.
Services revenue decreased by 9% to $46.3 million primarily due to a decline in construction revenue.
Manufacturing revenue increased by 6% to $18.7 million.
Net income from continuing operations attributable to company stockholders totaled $18.6 million or $1.16 per diluted share, compared to $17.9 million or $1.12 per diluted share in 2024.
Including discontinued operations, net income attributable to company stockholders totaled $18.3 million or $1.14 per diluted share, compared to $28.2 million or $1.77 per diluted share in 2024.
Cash and cash equivalents increased to $123.8 million and working capital increased to $141.9 million as of December 31, 2025.
2025 Operational Highlights
Retail water sold by the company's Grand Cayman water utility increased 8.3% to a record volume of 1.09 billion gallons. The increase was due to increased customer connections and significantly less rainfall on Grand Cayman during the year.
CW-Bahamas supplied to the WSC under long-term supply agreements approximately 4.8 billion gallons of water produced from two seawater reverse osmosis desalination plants in Nassau, New Providence. This is consistent with the 4.8 billion gallons supplied in 2024.
The company was awarded two water treatment plant construction projects, including a $3.9 million drinking water plant expansion in Colorado and an $11.7 million wastewater recycling plant in California. The revenue attributable to these projects is expected to be realized primarily in 2026, and the combined value of these projects totals approximately $15.6 million.
Completed 100% design of the 1.7 million gallon per day seawater desalination plant in Kalaeloa, Hawaii for the Honolulu Board of Water Supply (BWS). In addition, the company received confirmation from BWS that the company is able to produce water that is a "reasonable match" to the quality of BWS's current water supply and that the company is able to produce water that causes "no detrimental impact" to the BWS water system or their customers' assets. These significant project milestones help pave the way to begin construction once all permits have been issued.
Completed the expansion of the West Bay seawater desalination plant to meet growing demand for water in the company's Grand Cayman service area. The expansion added an additional 1 million gallons per day of desalinated water production capacity.
Received a new concession from the Cayman Islands government that granted the company's Grand Cayman water utility continued exclusive rights to produce and supply potable water within its service area and resumed discussions with the utility regulator for a new operating license. The existing operating license remains in effect until a new one is granted.
Appointed three new independent directors, Kim Adamson, Maria Elena Giner, and Gerónimo Gutiérrez Fernández, effective October 1, 2025.
Dividend Increase
In June 2025, the company increased its quarterly dividend by 27.3% to $0.14 per share beginning in the third quarter of 2025.
Management Commentary
"Our retail, bulk and manufacturing revenues and operating incomes in 2025 were consistent with our expectations," commented Consolidated Water CEO, Rick McTaggart. "However, our services revenue from continuing operations did not meet our expectations due to a permitting delay related to our 1.7 million gallon per day seawater desalination plant project in Kalaeloa, Hawaii. We believe that this type of delay is common for the complex, multi-agency permitting process required for a project of this scale and is not due to any failures on the part of Consolidated Water. We have achieved all other major project milestones and continue to work closely with the Honolulu Board of Water Supply and regulatory authorities to advance the permitting process and mitigate schedule impacts.
"Although our services segment revenue was less than expected, total revenue on a consolidated basis was relatively consistent from the previous year. In addition, our gross margin improved across all segments, up 2.6 percentage points on a consolidated basis, and our consolidated net income from continuing operations increased 4% compared to 2024.
"The continued strength of the Cayman Islands economy and historically low rainfall in our exclusive utility service area on Grand Cayman resulted in our retail segment revenue increasing about 6% compared to the previous year, reflecting a record volume of water sold to a record number of customers. This increase in customers was due to the ongoing growth in population and business activity on the island.
"While bulk segment revenue decreased less than 1% this past year due to lower fuel pass-through charges, bulk profitability increased in dollars and gross profit percentage due to lower costs of revenue reflecting our unwavering focus on operational excellence.
"Our services segment revenue decreased 9% due to a $5.1 million decrease in construction revenue from two major design-build projects completed in 2024. Construction revenue recognized on the Hawaii contract also declined by $2.9 million in 2025 due to the completion of the pilot plant testing phase of the project in early 2025. The services segment revenue decrease is also due to a $2.3 million decrease in design and consulting revenue as a result of the completion in the fourth quarter of 2024 of a contract for a major plant commissioning and startup project.
"The decrease in services segment construction and consulting revenue was partially offset by a 9% increase in recurring revenue from O&M contracts. The increase in O&M revenue was attributable to incremental revenue generated by both our PERC Water subsidiary and REC, and includes revenue from a new municipal client in southern California and from additional services provided to a large federal client under a contract which expires at the end of the month.
"During the year, our manufacturing segment continued to improve its performance. Manufacturing revenue grew by 6% and gross margin increased 4.6 percentage points to 34.8%, which reflects the production this past year of primarily higher margin products as well as our continued focus on maximizing production efficiency and capacity. The completion of our new 17,500-square-foot manufacturing facility expansion in the third quarter of 2025 has further enhanced efficiency and throughput and is key to growing that business segment through continued customer and product diversification.
"In the fourth quarter of 2025, we completed 100% of the design of the seawater desalination plant for the Honolulu Board of Water Supply in Kalaeloa, Hawaii, and we now are focused on obtaining the remaining permits needed to allow our client to issue a notice to proceed with construction of the project. We continue to focus on the permitting process, respond to regulatory inquiries and coordinate with the Honolulu Board of Water Supply to mitigate schedule impacts. The deferral of construction activities has shifted anticipated revenue recognition and associated cash flows related to the Hawaii project into future periods. We anticipate that construction of the project will commence later this year and see the construction phase of this major project substantially adding to our revenue and earnings growth in later reporting periods.
"Our construction service segment revenue is anticipated to remain below the record achieved in 2023 until the initiation of construction of the desalination project in Hawaii. However, as we move through the year ahead, we believe our diversified business segments will continue to deliver improved results to shareholders. This includes the continued growth in retail water business in Grand Cayman; the long-term, stable recurring revenue from our Caribbean-based bulk water business; and the growth potential of our U.S.-based manufacturing, design-build and O&M businesses. As the global demand for clean water continues to grow, our strong balance sheet enables us to move quickly on desalination and water infrastructure opportunities in the Caribbean and North America as well as any potential strategic acquisitions or partnerships."
2025 Financial Results
Revenue totaled $132.1 million, decreasing 1% from $134.0 million in 2024. The decrease was due to decreases of $4.6 million in the services segment and $192,000 in the bulk segment. The decreases were partially offset by increases of $1.8 million in the retail segment and $1.1 million in the manufacturing segment.
Retail revenue increased due to an 8.3% increase in the volume of water sold to a record 1.09 billion gallons. This increase resulted from significantly lower rainfall on Grand Cayman and a 6.6% increase in the number of customer accounts in the company's license area.
The slight decrease in bulk segment revenue was due to a decline in energy-related revenue in the Bahamas operations.
The decrease in services segment revenue was primarily due to plant construction revenue decreasing from $18.6 million in 2024 to $13.5 million in 2025. The decrease was the result of $8.2 million of additional revenue from PERC's contract with Liberty Utilities and $1.3 million in revenue from the Red Gate contract in Grand Cayman in 2024. These contracts were substantially completed in mid-2024. Construction revenue recognized on the Hawaii contract also declined by $2.9 million in 2025 due to the completion of the pilot plant testing phase of the project. These decreases in construction revenue were partially offset by construction revenue generated under new contracts.
Services segment revenue generated under O&M contracts totaled $32.1 million in 2025, an increase of 9% from 2024. The increase was due to incremental revenue generated by both PERC and REC.
Manufacturing segment revenue increased by $1.1 million, or 6%, to $18.7 million, as compared to $17.6 million in 2024.
Gross profit for 2025 was $48.4 million (37% of total revenue), as compared to $45.6 million (34% of total revenue) in 2024. The increase was due to increases in retail and manufacturing revenue, as well as decreased cost of revenue for the bulk segment.
Net income from continuing operations attributable to Consolidated Water stockholders in 2025 was $18.6 million, or $1.16 per diluted share, compared to net income of $17.9 million, or $1.12 per diluted share, in 2024.
Including discontinued operations, net income attributable to Consolidated Water stockholders in 2025 was $18.3 million or $1.14 per diluted share, compared to net income of $28.2 million, or $1.77 per diluted share, in 2024.
Cash and cash equivalents totaled $123.8 million as of December 31, 2025, with working capital of $141.9 million and stockholders' equity of $221.7 million.
2025 Segment Results
Year Ended December 31, 2025
Retail
Bulk
Services
Manufacturing
Corporate
Total
Revenue
$
33,587,952
$
33,481,307
$
46,312,325
$
18,691,784
$
—
$
132,073,368
Cost of revenue
14,593,693
22,470,197
34,449,844
12,180,824
—
83,694,558
Gross profit
18,994,259
11,011,110
11,862,481
6,510,960
—
48,378,810
General and administrative expenses
3,734,676
1,614,759
7,885,756
2,102,759
14,778,378
30,116,328
Gain on asset dispositions, net
40,578
—
52,131
5,000
—
97,709
Income (loss) from operations
15,300,161
9,396,351
4,028,856
4,413,201
(14,778,378
)
18,360,191
Interest income
171,351
772,514
839,190
3
886,982
2,670,040
Interest expense
—
—
(4,420
)
—
—
(4,420
)
Income (loss) from affiliates
—
—
—
(29,354
)
257,240
227,886
Other
71,262
(9,322
)
69,735
344
(581
)
131,438
Other income (loss), net
242,613
763,192
904,505
(29,007
)
1,143,641
3,024,944
Income (loss) before income taxes
15,542,774
10,159,543
4,933,361
4,384,194
(13,634,737
)
21,385,135
Provision for income taxes
—
—
1,132,590
1,026,316
5,742
2,164,648
Net income (loss) from continuing operations
15,542,774
10,159,543
3,800,771
3,357,878
(13,640,479
)
19,220,487
Income from continuing operations attributable to non-controlling interests
—
593,179
—
—
—
593,179
Net income (loss) from continuing operations attributable to Consolidated Water Co. Ltd. stockholders
$
15,542,774
$
9,566,364
$
3,800,771
$
3,357,878
$
(13,640,479
)
18,627,308
Net loss from discontinued operations
(290,635
)
Net income attributable to Consolidated Water Co. Ltd. stockholders
$
18,336,673
Year Ended December 31, 2024
Retail
Bulk
Services
Manufacturing
Corporate
Total
Revenue
$
31,741,343
$
33,673,387
$
50,956,489
$
17,595,414
$
—
$
133,966,633
Cost of revenue
14,199,088
23,360,360
38,511,535
12,271,202
—
88,342,185
Gross profit
17,542,255
10,313,027
12,444,954
5,324,212
—
45,624,448
General and administrative expenses
3,263,593
1,564,975
6,055,409
2,456,807
14,196,652
27,537,436
Gain on asset dispositions, net
2,286
—
2,714
—
192,786
197,786
Income (loss) from operations
14,280,948
8,748,052
6,392,259
2,867,405
(14,003,866
)
18,284,798
