Consolidated Water Reports Decline in Revenue and Net Income for Q2 2026

Consolidated Water Co. Ltd. reported a decline in financial performance for the second quarter of 2026, with total revenue of $32.87 million, down from $33.59 million in the same period of 2025. The company's net income attributable to stockholders decreased to $3.93 million, or $0.24 per diluted share, compared to $5.10 million, or $0.32 per diluted share, in the prior year. The decrease in revenue was primarily attributed to a downturn in the manufacturing segment, which was partially offset by increases in retail, bulk, and services segments. Gross profit also fell to $10.96 million, representing 33% of total revenue, down from 38% in the previous year.

For the first half of 2026, Consolidated Water's revenue totaled $62.84 million, a decrease from $67.31 million in the same period of 2025. Net income from continuing operations attributable to stockholders was $7.86 million, or $0.49 per diluted share, compared to $10.10 million, or $0.63 per diluted share, in the prior year. The decline in revenue was largely driven by reduced manufacturing output and a slight decrease in retail revenue due to a 6.3% drop in water volume sold, attributed to increased rainfall in Grand Cayman.

Operationally, the company has seen a significant change in its retail segment, which generated $8.66 million in revenue for the second quarter of 2026, nearly flat compared to the previous year. The bulk segment, however, reported a revenue increase to $9.93 million, driven by higher energy pass-through rates. The services segment also saw a slight increase in revenue, reaching $11.59 million. The manufacturing segment, in contrast, experienced a sharp decline in revenue to $2.69 million, down from $5.23 million, reflecting a decrease in purchase orders.

In terms of strategic developments, Consolidated Water has secured a new 25-year license from the Cayman Islands government, effective August 1, 2026, which allows the company to produce and distribute potable water in its licensed area. This license is expected to provide a stable regulatory framework and includes provisions for annual rate adjustments. The company is also advancing a significant project in Hawaii, where it is constructing a seawater reverse osmosis desalination plant, although permitting delays have impacted the timeline.

Looking ahead, Consolidated Water anticipates continued challenges in its manufacturing segment and potential impacts from the collection of accounts receivable, particularly from its subsidiary in The Bahamas. The company reported cash and cash equivalents of $132.63 million as of June 30, 2026, indicating a solid liquidity position, but it remains cautious about future cash flows and operational performance amid ongoing market conditions.