Consolidated Water Q2 revenue falls 2% to $32.9 million

Consolidated Water Co (NASDAQ: CWCO ) held its second-quarter earnings conference call on Tuesday.

Below is the complete transcript from the call.

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The full earnings call is available at Summary Consolidated Water Co Ltd reported a 2% decrease in revenue for Q2 2026, totaling $32.9 million, mainly due to lower manufacturing revenue.

Retail revenue increased modestly despite a 2% drop in sales volume, driven by a rate increase for a major customer.

Bulk revenue rose by 20% due to higher energy pass-through charges in the Bahamas and contributions from new desalination plants.

Services segment revenue increased 1% due to higher construction revenue from projects in Colorado and California, despite a decline in O&M revenue.

The company received $10.1 million in purchase orders for municipal water treatment equipment in Florida, indicating strong future prospects.

A new 25-year retail water utility license was secured for Grand Cayman, providing long-term earnings visibility.

The Hawaii desalination project is progressing, with expectations to start construction by year-end, contingent on key permitting hurdles.

The company maintains a strong balance sheet with $132.6 million in cash and no significant debt, supporting growth initiatives and potential strategic acquisitions.

Future outlook includes cautious optimism for growth in retail, bulk, and manufacturing segments, with strategic expansion in U.S. markets.

Full Transcript Nick, Investor Relations Good morning.

Thank you for joining us today to discuss Consolidated Water Co Ltd's second quarter of 2026 operating and financial results.

Hosting the call today is the Chief Executive Officer of Consolidated Water, Rick McTaggart, and the company's Chief Accounting Officer, Doug Bazzini.

Following their remarks, we'll open the call to your questions at any time.

During the call, you may join the Q and A queue by pressing star then one on your telephone keypad.

Before we conclude today's call, I'll provide some important cautions regarding the forward-looking statements made by management during the call.

I'd like to remind everyone that today's call is being recorded and it will be made available for telephone replay.

Please see the instructions in yesterday's press release that has been posted to the Investor Relations section of the company's website.

Now I'd like to turn the call over to Consolidated Water CEO, Rick McTaggart.

Sir, please go ahead.

Rick McTaggart, CEO Thanks, Nick.

Good morning, everyone.

I appreciate you joining us today.

While our consolidated second quarter revenue reflected softness in manufacturing, we were pleased to see growth across our retail, bulk and services segments along with some important developments that support our outlook for the balance of this year and into 2027.

Retail revenue increased modestly despite wetter weather which reduced Grand Cayman water sales volume by 2%.

The increase in retail revenue is driven by a base water rate increase for a major non-potable water customer following the May 2026 expiration of its concessionary water purchase agreement.

Our bulk revenue increased 20% and bulk gross profit increased 27% mainly due to higher energy pass-through charges by our Bahamas company.

Results also benefited from two new Cat Island desalination plants which are supplying potable water to the Water and Sewerage Corporation of the Bahamas.

Cost reductions lowered G&A expenses across our retail, bulk and service segments.

In our services segment, those savings were offset by higher cost of revenue due to a greater mix of construction revenue and a lower proportion of higher-margin O&M, design and consulting revenue.

In our services segment, services O&M revenue declined after two contracts expired in Q1 of this year.

This decline was partially offset by a new Southern California municipal O&M contract that is expected to generate approximately $4.5 million over three years.

In our services segment, construction revenue increased driven by two previously announced water treatment projects, one in Colorado, which is a $3.9 million drinking water plant expansion, and the second an $11.7 million wastewater recycling plant in California.