Core Insights - Consolidated Water Co. Ltd. (CWCO) reported first-quarter 2025 earnings per share (EPS) of 31 cents, exceeding the Zacks Consensus Estimate of 22 cents by 40.9%, although this represents a 27.9% decrease from the previous year's EPS of 43 cents [1] - The market reacted positively to the earnings report, with CWCO shares increasing by 5.43% following the announcement [1] Revenue Performance - Total revenues for the first quarter of 2025 were $33.7 million, surpassing the Zacks Consensus Estimate of $32 million by 4.2%, but down 15% year-over-year due to a decline in services revenues following the completion of two large construction projects [2] - Retail revenues increased by 9% to $9.4 million, driven by higher sales volumes [2] - Bulk revenues rose by 1% to $8.4 million, while manufacturing revenues increased by 10% to $5.8 million [3] - Services revenues saw a significant decline of 42% to $10.1 million, attributed to decreases in construction revenues by $7 million and design and consulting revenues by $980,000 [3] Profitability Metrics - Gross profit for the first quarter of 2025 was $12.3 million, down from $13.9 million in the same quarter of 2024, primarily due to a $2.7 million decrease in the service segment's gross profit [4] - Retail water sales in Grand Cayman increased by 13%, supported by population growth and increased business activity in the service area [4] Financial Position - As of March 31, 2025, cash and cash equivalents totaled $107.9 million, up from $99.4 million at the end of 2024, with working capital at $136.2 million [6] - Total long-term debt was minimal at $0.06 million, down from $0.07 million at the end of 2024 [6] - Cash flow from operating activities for the first quarter of 2025 was $11.8 million, compared to $5.9 million in the prior year [6] Strategic Developments - CWCO received a new concession from the Cayman Islands government, granting exclusive rights to produce and supply potable water in its service area [5] - On May 13, 2025, CWCO's subsidiary, Kalaeloa Desalco LLC, received approval for a $204 million multi-year project, which is expected to align with current water supply needs without negatively impacting existing infrastructure [8]