Financial Data and Key Metrics Changes - Revenue decreased by 15% year-over-year to $33.7 million, primarily due to a $7.3 million decline in the services segment related to completed construction projects [7][10] - Net income from continuing operations attributable to shareholders was $4.9 million or $0.31 per diluted share, down from $6.9 million or $0.43 per diluted share in the same quarter last year [10] - Cash and cash equivalents increased to $107.9 million, with working capital rising to $436.2 million [11] Business Segment Data and Key Metrics Changes - Services segment revenue declined significantly due to the completion of major design-build projects, partially offset by a 9% increase in recurring revenue from operations and maintenance contracts [3][4] - Retail segment revenue increased by $786,000, driven by a 13% rise in water sales volume [8] - Manufacturing segment revenue rose by approximately 10% to $5.8 million, reflecting improved production activity and a higher margin product mix [9][15] Market Data and Key Metrics Changes - Retail water sales in Grand Cayman showed much higher volumes due to population growth and increased business activity [3] - The Caribbean-based Bulk Water segment revenue remained stable year-over-year, indicating consistent income generation [3] Company Strategy and Development Direction - The company is focused on expanding its services in Hawaii, with a significant seawater desalination project expected to drive growth in the services segment in 2026 and 2027 [5][6] - The company is pursuing additional projects in Colorado and the Southern Caribbean, indicating a strategy to diversify its geographical presence and service offerings [17][19] - Management emphasized the importance of long-term recurring revenue from Caribbean bulk water operations and retail water sales growth as key drivers for future profitability [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a decline in design-build work for 2025 but expects improvement in the second half of the year with several smaller projects set to begin construction [18] - The company remains confident in delivering steady long-term growth in revenue and profit, supported by strong retail water sales and ongoing projects [20] Other Important Information - The company is evaluating how to best utilize its large cash balance to increase shareholder value, including the potential for increasing quarterly dividends [12] - The company has resumed discussions with the utility regulator in the Cayman Islands for a new operating license, which is crucial for future operations [13][14] Q&A Session Summary Question: Construction revenue flow for Hawaii project - Management explained that the construction revenue will ramp up as costs are incurred, with a significant portion of the revenue recognized during the construction phase [21][24] Question: Retail segment growth sustainability - Management confirmed that the increase in retail water sales is driven by permanent population growth and business activity, not just seasonal variations [30][32] Question: Permitting responsibilities for the Hawaii project - Management clarified that permitting responsibilities are shared between the company and the client, with some permits taking longer than expected due to government agency processes [39][44] Question: Future opportunities in Asia Pacific - Management indicated that while there are no current pursuits in the Asia Pacific region, there are sufficient opportunities closer to home, particularly in Florida [47][48]

Revenue Performance - Total revenue declined 15% to $33.7 million, primarily due to a $7.3 million decrease in services revenue[5] - Retail revenue increased 9% to $9.4 million, driven by a 13% increase in the volume of water sold[5][14] - Total revenue for Q1 2025 was $33,715,385, a decrease of 15% from $39,689,390 in Q1 2024[23] - Revenue for Q1 2025 was $33,715,385, a decrease of 15.5% compared to $39,689,390 in Q1 2024[33] - Services revenue significantly decreased to $10,078,268, down 42% from $17,417,611 in Q1 2024[24] Income and Profitability - Net income from continuing operations attributable to company stockholders was $4.9 million or $0.31 per diluted share, down from $6.9 million or $0.43 per diluted share in Q1 2024[19] - Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders was $4,924,110 in Q1 2025, down from $6,941,414 in Q1 2024[23] - Gross profit for Q1 2025 was $12,306,287, compared to $13,878,023 in Q1 2024, reflecting a decline of 11%[23] - Gross profit for Q1 2025 was $12,306,287, down from $13,878,023 in Q1 2024, reflecting a gross margin of 36.5%[33] - Net income attributable to Consolidated Water Co. Ltd. stockholders for Q1 2025 was $4,791,029, a decline of 26.1% from $6,474,348 in Q1 2024[33] - Basic earnings per share for Q1 2025 was $0.30, compared to $0.41 in Q1 2024, representing a decrease of 26.8%[33] Cash and Assets - Cash and cash equivalents increased to $107.9 million, with working capital rising to $136.2 million as of March 31, 2025[21] - Total assets increased to $250,368,965 as of March 31, 2025, up from $243,313,181 at the end of 2024[32] - Total current assets rose to $165,061,588, an increase of 4.1% from $157,788,165 at December 31, 2024[32] - Cash and cash equivalents as of March 31, 2025, were $107,852,232, up from $99,350,121 at December 31, 2024, indicating a growth of 8.5%[32] Liabilities and Expenses - Total liabilities increased to $31,557,366, compared to $28,003,534 at the end of 2024, marking an increase of 9.1%[32] - General and administrative expenses for Q1 2025 were $7,723,959, an increase of 17.7% from $6,564,029 in Q1 2024[33] - Contract liabilities increased to $12,401,797 in Q1 2025, up from $9,126,654 in Q1 2024, reflecting a growth of 36.8%[32] Segment Performance - Manufacturing segment revenue increased by 10% to $5.8 million, with operating income rising by approximately 44% due to higher production activity[9] - Operations and maintenance (O&M) revenue increased 9% to $7.7 million, reflecting growth from both PERC and REC subsidiaries[17] - Operations and maintenance revenue increased to $7,725,298 in Q1 2025, up from $7,099,354 in Q1 2024[24] - Services revenue declined by 42% to $10.1 million, largely due to a $7.0 million drop in construction revenue[5] - Construction revenue within services dropped to $2,218,230 in Q1 2025 from $9,203,662 in Q1 2024, a decline of 76%[24] Future Outlook - The company completed pilot testing for a seawater desalination plant project in Hawaii, valued at $204 million, with construction expected to begin early next year[10][11] - The company anticipates design/build services revenue to improve in the second half of the year, with three smaller projects valued at approximately $20 million set to begin construction[12] - The company is entering the U.S. desalination market with a new contract in Hawaii[27] Corporate Events - The Annual General Meeting of Shareholders is scheduled for May 27, 2025[25]

Core Insights - Consolidated Water Co. Ltd. has achieved a significant milestone with its subsidiary, Kalaeloa Desalco LLC, for a $204 million seawater desalination project in Hawaii, which will produce 1.7 million gallons of water per day [1][3] - The Honolulu Board of Water Supply has approved the pilot test results, confirming that the desalinated water meets existing supply standards and will not harm current infrastructure [2] - The project includes a two-year development phase followed by two years of construction, with a 20-year operations and maintenance agreement in place post-completion [3] Company Overview - Consolidated Water Co. Ltd. specializes in designing, constructing, and operating advanced water supply and treatment facilities, including seawater desalination plants in various regions [4] - The company has recently entered the U.S. desalination market with the Hawaii project, expanding its operational footprint [4][5] - In addition to desalination, the company provides a range of services related to water production, supply, treatment, and wastewater management [5]

Core Insights - Consolidated Water reported a revenue of $33.72 million for the quarter ended March 2025, reflecting a decrease of 15.1% year-over-year, while EPS was $0.31 compared to $0.43 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $32.37 million by 4.16%, and the EPS surpassed the consensus estimate of $0.22 by 40.91% [1] Revenue Breakdown - Manufacturing revenue was $5.81 million, exceeding the average estimate of $4.78 million by two analysts, representing a year-over-year increase of 9.6% [4] - Services revenue was reported at $10.08 million, slightly below the average estimate of $10.30 million, showing a significant decline of 42.1% year-over-year [4] - Retail revenue reached $9.41 million, surpassing the estimated $8.57 million, marking a year-over-year increase of 9.1% [4] - Bulk revenue was $8.41 million, in line with the average estimate of $8.42 million, indicating a modest year-over-year increase of 0.8% [4] Stock Performance - Over the past month, shares of Consolidated Water have returned -2.2%, contrasting with the Zacks S&P 500 composite's increase of 3.8% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Viewpoint - Consolidated Water Co. Ltd. reported a 15% decline in total revenue for Q1 2025, primarily due to a significant drop in services revenue following the completion of major construction projects in the previous year. However, growth was observed in retail, bulk, and manufacturing segments, indicating a mixed performance across different business areas [5][11][17]. Financial Summary - Total revenue for Q1 2025 was $33.7 million, down from $39.7 million in Q1 2024, with services revenue decreasing by $7.3 million [5][11]. - Retail revenue increased by 9% to $9.4 million, bulk revenue rose by 1% to $8.4 million, and manufacturing revenue grew by 10% to $5.8 million [5][21]. - Net income from continuing operations was $4.9 million or $0.31 per diluted share, compared to $6.9 million or $0.43 per diluted share in the same quarter last year [17][34]. Operational Highlights - The services segment experienced a 42% decline in revenue to $10.1 million, attributed to a $7.0 million drop in construction revenue and a $980,000 decrease in design and consulting revenue [5][22]. - Operations and maintenance (O&M) revenue increased by 9% to $7.7 million, driven by growth in the PERC Water subsidiary in California and Arizona, and the REC acquisition in Colorado [4][15]. - Retail water sales in Grand Cayman increased by 13%, reflecting population growth and increased business activity [6][12]. Segment Performance - The manufacturing segment's revenue increased by 10%, with operating income rising by approximately 44% due to higher production activity and a favorable product mix [7][11]. - The bulk water segment's revenue remained stable, indicating the long-term, stable income-generating nature of this business [7][11]. - The company anticipates improved design/build services revenue in the second half of 2025, with three smaller projects valued at approximately $20 million set to begin construction [10][11]. Strategic Developments - The company completed pilot testing for a seawater desalination plant project in Hawaii, with the Honolulu Board of Water Supply approving the pilot test reports, paving the way for construction to begin early next year [8][9]. - Consolidated Water received a new concession from the Cayman Islands government, granting exclusive rights to produce and supply potable water in its service area [5][11].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number: 0-25248 CONSOLIDATED WATER CO. LTD. (Exact name of registrant as specified in its charter) ...

Core Insights - Consolidated Water (CWCO) is expected to report quarterly earnings of $0.22 per share, a decline of 48.8% year-over-year, with revenues forecasted at $32.37 million, reflecting an 18.4% decrease compared to the same period last year [1][2] Earnings Estimates - The consensus EPS estimate has been revised downward by 6.7% over the past 30 days, indicating a collective reassessment by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3] Revenue Projections - Analysts project 'Revenue- Manufacturing' to reach $4.78 million, indicating a year-over-year decline of 10% [5] - 'Revenue- Services' is expected to be $10.30 million, reflecting a significant decrease of 40.9% from the previous year [5] - 'Revenue- Retail' is forecasted at $8.57 million, showing a slight decline of 0.7% year-over-year [5] - 'Revenue- Bulk' is anticipated to reach $8.42 million, marking a year-over-year increase of 0.9% [6] Stock Performance - Shares of Consolidated Water have returned -2.1% over the past month, contrasting with the Zacks S&P 500 composite's increase of +10.6% [7] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [7]

Core Viewpoint - Consolidated Water Co. Ltd. will hold a conference call on May 13, 2025, to discuss its first-quarter financial results for the period ending March 31, 2025 [1][2]. Group 1: Conference Call Details - The conference call is scheduled for May 13, 2025, at 11:00 a.m. Eastern time [2]. - A press release with financial results will be issued prior to the call [2]. - Participants can join the call using a toll-free number or an international dial-in number, with a conference ID provided [2]. Group 2: Replay Information - A replay of the conference call will be available after 1:00 p.m. Eastern time on the same day and will remain accessible until May 20, 2025 [3]. - The replay can be accessed via the Investors section of the Consolidated Water website [3]. Group 3: Company Overview - Consolidated Water Co. Ltd. specializes in the development and operation of advanced water supply and treatment plants, including seawater desalination facilities in the Cayman Islands, The Bahamas, and the British Virgin Islands [3][4]. - The company has recently entered the U.S. desalination market with a contract for a seawater desalination plant in Hawaii [3]. - In addition to desalination, the company provides a range of services related to water production, supply, treatment, and wastewater management [4].

Company Performance - Consolidated Water (CWCO) closed at $23.89, down 0.87% from the previous trading session, underperforming the S&P 500's gain of 2.03% [1] - Over the last month, the company's shares decreased by 0.74%, while the Utilities sector gained 1.72% and the S&P 500 lost 5.07% [1] Earnings Forecast - The upcoming earnings report is expected to show an EPS of $0.22, reflecting a 48.84% decrease from the same quarter last year [2] - Revenue is projected at $32.37 million, down 18.44% from the previous year [2] Fiscal Year Estimates - For the entire fiscal year, earnings are estimated at $0.88 per share, a decline of 21.43%, with revenue expected to be $130.03 million, down 2.94% from the prior year [3] - Recent changes in analyst estimates indicate a shifting business landscape, with positive revisions suggesting optimism about the company's profitability [3] Valuation Metrics - Consolidated Water has a Forward P/E ratio of 27.49, which is higher than the industry average of 22.95 [6] - The Utility - Water Supply industry ranks in the top 16% of all industries, with a current Zacks Industry Rank of 38 [6] Analyst Ratings - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently rates Consolidated Water at 3 (Hold) [5] - Over the past month, the Zacks Consensus EPS estimate has decreased by 15.97% [5]

Consolidated Water (CWCO) closed the latest trading day at $24.10, indicating a -0.99% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 1.67% for the day. At the same time, the Dow added 1.07%, and the tech-heavy Nasdaq gained 2.5%.The developer and operator of desalination plants's stock has climbed by 0.37% in the past month, falling short of the Utilities sector's gain of 1.72% and outpacing the S&P 500's loss of 6.57%.The investment community will b ...