Nasdaq Global Select: CWCO Corporate Presentation March 2026 Important Cautions Regarding Forward -Looking Statements Factors that would cause or contribute to such differences include, but are not limited to ( i) continued acceptance of the company's products and services in the marketplace; (ii) changes in its relationships with the governments of the jurisdictions in which it operates; (iii) the outcome of its negotiations with the Cayman government regarding a new retail license agreement; (iv) the coll ...

Financial Data and Key Metrics Changes - Total revenue for 2025 was $132.1 million, a slight decrease of 1% from 2024, primarily due to decreased revenue in the services segment and a modest decrease in the bulk segment [10][11] - Gross profit for 2025 was $48.4 million, representing 30% of total revenue, compared to $45.6 million or 34% of total revenue in 2024 [12] - Net income from continuing operations in 2025 was $18.6 million or $1.16 per diluted share, compared to $17.9 million or $1.12 per diluted share in 2024 [13] Business Line Data and Key Metrics Changes - Retail revenue increased by 6.6% to $33.6 million, driven by an 8.3% increase in the volume of water sold to a record 1.09 billion gallons [10][12] - Bulk segment revenue decreased less than 1% due to lower energy prices affecting the energy pass-through component of rates [11] - Services segment revenue decreased from $18.6 million in 2024 to $13.5 million in 2025, primarily due to the completion of major projects and a decline in construction revenue [11][12] Market Data and Key Metrics Changes - Tourist air arrivals in the Cayman Islands increased by 2.9% to approximately 450,000 in 2025, contributing to retail sales growth [17] - The company anticipates that construction of the Hawaii desalination project will commence later in 2025, which is expected to significantly add to revenue and earnings growth in future periods [19] Company Strategy and Development Direction - The company is focused on diversifying its business segments, including retail water operations in Grand Cayman, stable recurring revenue from bulk water, and growth potential in U.S.-based manufacturing and O&M businesses [25] - The completion of a new manufacturing facility in Florida is expected to enhance efficiency and support growth in municipal water projects [9][24] Management's Comments on Operating Environment and Future Outlook - Management noted that permitting delays for the Hawaii desalination project are common and not due to failures on the company's part, with expectations for construction to start later in the year [3][19] - The company is optimistic about the growth in retail and manufacturing segments, driven by strong demand for clean water and a solid balance sheet [25] Other Important Information - The company increased its quarterly cash dividend by 27.3% to $0.14 per share starting in the third quarter of 2025 [15] - Cash and cash equivalents totaled $123.8 million as of December 31, 2025, representing a $24.4 million increase from the previous year [14][15] Q&A Session Summary Question: What is the status of the Hawaii desalination project permit? - The permit is required from the State Historic Preservation Department and is necessary before applying for other building permits [30][34] Question: How long will it take to obtain the other permits after the historical permit is received? - Other permits are expected to be more straightforward, but exact timelines are difficult to predict [38] Question: What is the outlook for O&M revenue? - There are significant opportunities in O&M, particularly in Southern California, with competitive bids being pursued [40] Question: How much of the new water capacity from the West Bay facility is already allocated? - The company plans for a five to ten-year horizon for asset planning, with demand tapering off in wetter months [43] Question: How quickly are energy cost recovery increases reflected in bulk services? - Energy cost recovery is reflected on a monthly basis based on average fuel and electricity costs [51] Question: What is the balance between public-private opportunities versus purely public projects? - The focus is on solid municipal business opportunities, particularly in Florida, due to regulatory changes [55]

Core Viewpoint - The industrial sector is currently facing significant challenges, but high-quality companies within this sector have demonstrated resilience and the ability to continue raising dividends, making them attractive investment opportunities [2][3]. Group 1: Economic Context - The industrial sector is experiencing turmoil due to potential tariffs and economic uncertainty, with the Federal Reserve Bank of Atlanta projecting a 2.8% contraction in U.S. GDP for Q1 2025 [2]. - Industrial stocks are typically sensitive to economic fluctuations, but many companies have successfully navigated these cycles and provided returns to shareholders over time [3]. Group 2: Investment Opportunities - **Lockheed Martin**: - A leading defense contractor with a strong position in government contracts, Lockheed Martin has received a recent contract worth up to $4.94 billion [5]. - The company has a history of paying and raising dividends for 22 consecutive years, with a current dividend yield of 2.85% and a payout ratio of about 50% of 2025 earnings estimates [7]. - Analysts project an average earnings growth of 13% annually, with a P/E ratio of 20, indicating a favorable investment opportunity [8]. - **Union Pacific**: - As a major player in the North American railroad industry, Union Pacific operates 32,693 miles of rail and has a strong balance sheet with an investment-grade credit rating [9][10]. - The company has paid and raised dividends for 18 consecutive years, with a current dividend yield of 2.2% and a payout ratio of 45% of 2025 earnings estimates [10][11]. - Analysts expect earnings growth of 10% annually, with a P/E ratio of 21, reflecting a fair valuation for a company with growth potential [11]. - **A. O. Smith**: - A. O. Smith specializes in water heaters and treatment equipment, having paid and raised dividends for 31 consecutive years [12]. - The company anticipates significant growth opportunities in emerging markets, with a current dividend yield of just over 2% and a payout ratio of 36% of 2025 earnings estimates [13]. - Analysts project an average earnings growth of 12% annually, with a P/E ratio of 18, suggesting it is a compelling investment [14].