Consolidated Water Co. Ltd. reported a decline in financial performance for the first quarter of 2025, with total revenue decreasing to $33.7 million from $39.7 million in the same period of 2024. The company's net income attributable to stockholders also fell to $4.8 million, or $0.30 per share, compared to $6.5 million, or $0.40 per share, in the prior year. The decrease in revenue was primarily driven by a significant drop in the services segment, which saw revenue fall from $17.4 million to $10.1 million, largely due to the completion of a major contract in 2024.
In terms of operational metrics, the company experienced a 13% increase in retail water sales volume, contributing to a rise in retail segment revenue to $9.4 million from $8.6 million. The bulk segment also reported a slight increase in revenue, reaching $8.4 million, attributed to new contracts that offset declines in other areas. However, the services segment's income from operations turned negative, reflecting the challenges faced in construction revenue, which dropped significantly.
The company made strategic moves during the quarter, including the acquisition of Ramey Environmental Compliance, Inc. (REC) for approximately $4.1 million, which is expected to enhance its service offerings in water and wastewater treatment. Additionally, Consolidated Water is in ongoing negotiations with the Cayman Islands government regarding its retail license, which could impact future revenue streams. The company received a new concession on February 18, 2025, allowing it to continue operations under the terms of its previous license while negotiations for a new agreement are finalized.
As of March 31, 2025, Consolidated Water's total assets increased to $250.4 million, up from $243.3 million at the end of 2024, driven by higher cash reserves and contract assets. The company reported cash and cash equivalents of $107.9 million, reflecting a strong liquidity position. However, accounts receivable from its Bahamas subsidiary, CW-Bahamas, remained a concern, with approximately 78% of its $25.5 million receivables being delinquent, which could affect liquidity if not resolved.
Looking ahead, Consolidated Water Co. Ltd. anticipates challenges due to ongoing negotiations regarding its retail license and potential impacts from economic conditions in the regions it serves. The company remains focused on enhancing operational efficiency and expanding its service offerings to mitigate risks and improve financial performance in the coming quarters.
About Consolidated Water Co. Ltd.
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