Consolidated Water Co. Ltd. Reports Q3 2025 Revenue Increase to $35.1 Million

Consolidated Water Co. Ltd. reported its financial results for the third quarter of 2025, revealing a revenue increase to $35.1 million, up from $33.4 million in the same period last year. The company’s net income from continuing operations attributable to stockholders rose to $5.57 million, or $0.34 per diluted share, compared to $4.96 million, or $0.31 per diluted share, in the prior year. The gross profit margin improved to 37% of total revenue, reflecting a gross profit of $12.95 million, compared to 35% and $11.63 million in the previous year.

The company experienced a decline in total revenue for the nine months ended September 30, 2025, which fell to $102.4 million from $105.6 million in 2024. This decrease was primarily attributed to a significant drop in revenue from the services segment, which was partially offset by increases in the retail and manufacturing segments. General and administrative expenses increased to $22.5 million for the nine-month period, up from $20.1 million, largely due to higher employee costs and professional fees.

Operationally, the retail segment generated $25.8 million in revenue for the nine months, a 6% increase attributed to a rise in water sales volume, driven by lower rainfall and an increase in customer connections. The bulk segment reported a slight revenue decrease to $25.1 million, while the services segment saw a significant decline in revenue to $35.8 million, down from $42 million, due to the completion of major contracts in the previous year. The manufacturing segment, however, reported an increase in revenue to $15.7 million, reflecting higher production activity.

In terms of strategic developments, the company continues to navigate ongoing negotiations for a new retail license with the Cayman Islands government, which could significantly impact its operating income and cash flows. The company has also been involved in the legal dissolution of its subsidiaries related to a discontinued project in Mexico, which has resulted in a net loss from discontinued operations of $252,857 for the nine months ended September 30, 2025.

Looking ahead, Consolidated Water Co. Ltd. maintains a positive outlook, with cash and cash equivalents increasing to $123.6 million as of September 30, 2025, up from $99.4 million at the end of 2024. The company is focused on managing its liquidity and capital resources effectively, with projected capital expenditures of approximately $4.5 million for the remainder of the year. The ongoing negotiations for the new retail license and the performance of its subsidiaries will be critical factors influencing the company's future financial performance.