Financial Data and Key Metrics Changes - The company's 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 decline in the bulk segment revenue [10] - 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, indicating an improvement in gross margin [12] - Net income from continuing operations 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 due to historically low rainfall [10][11] - The bulk segment revenue decreased less than 1%, attributed 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 in 2024 and a lull in Hawaii project activity [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 [18] - 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 [20] Company Strategy and Development Direction - The company is focused on diversifying its business segments, including retail water operations in Grand Cayman, Caribbean-based bulk water business, and U.S.-based manufacturing and O&M businesses [25] - The completion of a new manufacturing facility in Florida is expected to enhance efficiency and throughput, positioning the company for growth in the municipal water market [24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that permitting delays for the Hawaii project are common and not due to failures on the company's part, emphasizing ongoing efforts to mitigate schedule impacts [3][4] - The company expects continued growth in its retail business and stable recurring revenue from its bulk water operations, while also pursuing new project opportunities in the municipal sector [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 [16] - Cash and cash equivalents totaled $123.8 million as of December 31, 2025, representing a $24.4 million increase from the prior year-end [15] Q&A Session Summary Question: What is the status of the Hawaii desalination project permit? - The permit required is from the State Historic Preservation Division, and it is the client's responsibility to obtain it. Progress is being made, but the process is slow [29][34] Question: How does the O&M revenue pipeline look going forward? - There are significant opportunities in O&M, particularly in Southern California, where the company believes it has competitive advantages [40] Question: How is the energy cost recovery reflected in bulk services? - Energy cost recovery increases are reflected on a monthly basis based on average fuel and electricity costs [52] Question: What is the balance between public-private opportunities versus purely public projects? - The company is focusing on solid municipal business opportunities, particularly in Florida, due to regulatory changes affecting water capacity [56] Question: Are there new market opportunities for the manufacturing segment? - The expanded facility allows the company to participate more significantly in the municipal water market, focusing on larger assemblies and production skids [58]