Consolidated Water Reports First Quarter 2025 Results

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].