Consolidated Water Profit Falls as Services and Manufacturing Drop

The Tip Desk · November 12, 2026 · 3 min read

Third-quarter revenue was $30.9 million, down 11.9% from a year earlier, as construction and manufacturing contracts thinned.

Consolidated Water Co. Ltd. (CWCO), a designer, builder and operator of advanced water treatment plants, reported third-quarter revenue of $30.9 million, down 11.9% from $35.1 million a year earlier, as services and manufacturing contracts thinned.

Net income from continuing operations attributable to stockholders fell to $2.4 million, or $0.15 a share, from $5.6 million, or $0.34 a share, in the third quarter of 2025. Including discontinued operations, net income was $2.3 million, or $0.14 a share.

Gross profit was $9.8 million, or 31.8% of revenue, compared with $12.9 million, or 36.9% of revenue, a year earlier.

Services revenue decreased 31.7% to $9.8 million from $14.3 million. Construction revenue declined to $3.5 million from $6.4 million, which the company attributed to a decrease in the number and total value of construction projects. Recurring operations and maintenance revenue decreased to $6.1 million from $7.7 million, primarily due to the expiration of contracts with three customers in California in the first quarter of 2026. Design and consulting revenue was $177,000.

Manufacturing revenue decreased 39.7% to $2.8 million from $4.7 million due to a decrease in the total dollar amount of contracts completed and in progress. Based on current projections, the company said it continues to expect full-year 2026 manufacturing revenue to be below 2025 levels.

Retail revenue increased 5.7% to $8.2 million from $7.8 million, principally due to higher energy pass-through charges and an increased rate for a major commercial customer, offsetting lower retail water rates that took effect August 1, 2026, under a new 25-year retail license for Cayman Water. Water sales volume increased approximately 1%. Chief executive Rick McTaggart said the new rate structure lowers base rates and retains an annual water-rate adjustment mechanism, subject to regulatory verification and approval, and that lower retail rates reduced quarterly retail gross profit.

Bulk revenue increased 20.8% to $10.1 million from $8.4 million, principally due to higher energy pass-through charges at CW-Bahamas and, to a lesser extent, revenue from new Cat Island, Bahamas desalination plants. McTaggart said bulk gross profit increased, but higher diesel costs and incremental maintenance expenses reduced gross margin as a percentage of revenue.

After quarter-end, the company said it was awarded an approximately $39.8 million design-build agreement on October 12 by the City of Pismo Beach, California, for the Central Coast Blue Advanced Water Purification Facility. Construction is anticipated to begin in spring 2027, with design, permitting, construction, startup and commissioning expected to span approximately 24 months.

During the quarter the company received approximately $10.1 million in purchase orders from a municipality on Florida’s east coast for nanofiltration membrane equipment and horizontal cartridge filters, which it described as its largest municipal membrane-based equipment and cartridge-filter orders to date. Delivery is scheduled for November 2027. It also said it had bid for water-equipment manufacturing projects valued at approximately $10 million expected to be decided in the fourth quarter and was tracking approximately $45 million in Florida municipal water projects expected to go out for bid within the next six months.

In Hawaii, the Honolulu Board of Water Supply issued a Limited Notice to Proceed in July 2026 releasing approximately $6 million for long-lead equipment for the planned Kalaeloa desalination facility. The company said design and construction of the Hawaii project represents more than $150 million of contracted backlog not yet recognized as revenue, that it anticipates beginning construction in the first half of 2027 subject to remaining permits, and that once construction commences it expects a significant impact on revenue and earnings. Following commissioning, it is contracted to operate and maintain the facility for 20 years, with two additional five-year extension options.

Cash and cash equivalents totaled $129.2 million and working capital was $145.1 million as of September 30, 2026. Equity attributable to stockholders was $226.2 million.