Consolidated Water Co. Ltd.

Second-quarter 2026 revenue was $32.9 million, down 2% year over year. Gross profit was $11.0 million, or 33% of revenue, versus $12.8 million, or 38% in the prior-year quarter. Net income from continuing operations attributable to stockholders was $4.0 million, or $0.25 per diluted share, versus $5.2 million, or $0.32 per diluted share a year ago; including discontinued operations, net income was $3.9 million, or $0.24 per diluted share, versus $5.1 million, or $0.32 per diluted share. Retail revenue was $8.7 million; bulk revenue was $9.9 million, up 20%; services revenue was $11.6 million, up 1%; and manufacturing revenue was $2.7 million, down 49%. Cash and cash equivalents were $132.6 million, working capital was $144.6 million, and stockholders’ equity attributable to Consolidated Water was $225.6 million, with no significant debt. Management said full-year 2026 manufacturing revenue is expected to be below 2025 levels, and it expects the Florida municipal order activity and backlog to support a stronger 2027 outlook.

Rick McTaggart’s tone was constructive and cautiously optimistic. He emphasized that Cayman retail now has a new 25-year license, giving long-term regulatory clarity and preserving the exclusive right to produce and distribute potable water in the licensed area. He also pointed to strong Cayman tourism, expected lower rainfall, the Cat Island plants, the Hawaii project’s limited notice to proceed, and the recent $10.1 million Florida equipment orders as evidence of multiple growth drivers.

Doug Vizzini focused on the quarter’s mix-driven margin pressure and balance sheet strength. He said gross profit fell to $11.0 million from $12.8 million, with margin at 33% versus 38%, primarily because manufacturing gross profit was lower and Services had a different revenue mix. He noted cash of $132.6 million, working capital of $144.6 million, no significant debt, delinquent Bahamas receivables of $18.8 million, and about $4.8 million of remaining 2026 capex needs, plus approximately $2.3 million in dividends paid in July. He also said the company continues to evaluate how best to use its strong cash position to increase shareholder value.

Analysts pressed for detail on Hawaii permitting, asking whether an archaeological permit was the final gate; management said it is not the last permit, but it is a prerequisite for some other permits and is currently blocking certain applications. McTaggart said they are working with regulators to speed the process without adding delays, and the company remains cautiously optimistic construction can start later this year. Questions also focused on manufacturing and O&M; management said Florida is very busy for municipal membrane projects, but they are also looking at the West Coast and Texas, while noting O&M opportunities in California are larger and more competitive than before, with many engineering firms now bidding.