Consolidated Water Reports Q1 2026 Financial Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 49 minutes ago
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Should l Buy CWCO?
Source: Globenewswire
- Revenue Decline: Consolidated Water reported total revenue of $30 million for Q1 2026, an 11% decrease year-over-year, primarily due to declines in retail and manufacturing segments, reflecting market demand fluctuations and weather impacts.
- Retail and Manufacturing Performance: Retail revenue fell 9% to $8.6 million due to significantly increased rainfall in Grand Cayman, which reduced water sales by approximately 10%; manufacturing revenue plummeted 76% to $1.4 million, mainly due to delays in receiving new orders and commencing work.
- Service and Bulk Growth: Service revenue increased by 12% to $11.3 million, partly driven by new operations and maintenance contracts expected to generate $4.5 million; bulk revenue also rose 4% to $8.7 million, primarily from the newly commissioned seawater desalination facility.
- Net Income and Cash Flow: The net income for Q1 was $3.8 million, with diluted earnings per share at $0.23, down from the previous year, but cash and cash equivalents rose to $126.3 million, indicating strong liquidity management.
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Analyst Views on CWCO
About CWCO
Consolidated Water Co. Ltd. is a Cayman Islands-based company, which engages in the provision of design, build, and operate solutions for water treatment. The Company manufactures components for water treatment equipment and offers distribution, design, installation, and management services. It has five reportable segments, namely retail, bulk, services, manufacturing, and corporate. The retail segment operates the water utility for the Seven-Mile Beach and West Bay areas. The bulk segment supplies potable water to government utilities. The services segment designs, constructs and sells water infrastructure and provides management and operating services to third parties. The manufacturing segment manufactures and services a wide range of custom and specialized water-related products applicable to commercial, municipal, and industrial water production, supply, and treatment. The corporate segment consists of various activities of a general and administrative nature.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Revenue Decline: Consolidated Water reported total revenue of $30 million for Q1 2026, an 11% decrease year-over-year, primarily driven by significant declines in retail and manufacturing revenues, indicating market demand fluctuations and adverse weather impacts.
- Retail and Manufacturing Challenges: Retail revenue fell 9% to $8.6 million due to significantly increased rainfall in Grand Cayman, which reduced water sales by approximately 10%; manufacturing revenue plummeted 76% to $1.4 million due to delays in receiving and executing new orders.
- Growth in Services and Bulk Revenue: Despite the overall revenue decline, bulk revenue increased by 4% to $8.7 million, and services revenue rose by 12% to $11.3 million, demonstrating the company's stability and growth potential in seawater desalination and operations and maintenance services.
- Net Income Decline: The net income for Q1 was $3.8 million, with diluted earnings per share at $0.23, down from $4.9 million and $0.31 in the same quarter last year, reflecting changes in revenue structure and challenges in the market environment.
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- Revenue Decline: Consolidated Water reported total revenue of $30 million for Q1 2026, an 11% decrease year-over-year, primarily due to declines in retail and manufacturing segments, reflecting market demand fluctuations and weather impacts.
- Retail and Manufacturing Performance: Retail revenue fell 9% to $8.6 million due to significantly increased rainfall in Grand Cayman, which reduced water sales by approximately 10%; manufacturing revenue plummeted 76% to $1.4 million, mainly due to delays in receiving new orders and commencing work.
- Service and Bulk Growth: Service revenue increased by 12% to $11.3 million, partly driven by new operations and maintenance contracts expected to generate $4.5 million; bulk revenue also rose 4% to $8.7 million, primarily from the newly commissioned seawater desalination facility.
- Net Income and Cash Flow: The net income for Q1 was $3.8 million, with diluted earnings per share at $0.23, down from the previous year, but cash and cash equivalents rose to $126.3 million, indicating strong liquidity management.
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- Earnings Call Announcement: Consolidated Water will hold a conference call on May 12, 2026, at 11:00 a.m. Eastern time to discuss its Q1 2026 financial results, with a press release expected prior to the call to enhance investor transparency regarding the company's performance.
- Dial-in Information: Participants can join the call by dialing 1-844-875-6913 (toll-free US) or 1-412-317-6709 (international), and are encouraged to call five minutes early for registration, reflecting the company's commitment to investor communication.
- Replay Availability: A replay of the call will be accessible after 1:00 p.m. Eastern time on the same day until May 19, 2026, with access through the Investors section of the company's website, improving information accessibility for stakeholders.
- Company Overview: Consolidated Water specializes in developing and operating advanced water treatment facilities, including seawater desalination projects in the Cayman Islands, The Bahamas, and British Virgin Islands, as well as water treatment and reuse facilities in the U.S., showcasing its expertise and market influence in water resource management.
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- Price Range Analysis: CWCO's 52-week low is $22.69 per share, with a high of $39.12, and the last trade at $31.37 indicates the stock is fluctuating within a cautious market range.
- Technical Indicator Focus: The stock has crossed below its 200-day moving average, suggesting potential downward pressure in the short term, prompting investors to closely monitor future trends to assess risk.
- Market Sentiment Evaluation: Although the current price is in the middle of the 52-week range, mixed market perceptions of CWCO may influence investor decisions and market liquidity.
- Investor Strategy Adjustment: Given the volatility in CWCO's stock price, investors may need to reassess their strategies to navigate potential market risks and uncertainties.
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- Stable Financial Performance: Consolidated Water reported total revenue of $132.1 million for 2025, a slight 1% decrease from 2024, yet retail revenue surged by 6.6% to $33.6 million, indicating strong performance in the retail market, particularly with record water sales in Grand Cayman.
- Project Progress Delayed: Services revenue fell short of expectations due to permitting delays for the Kalaeloa seawater desalination project in Hawaii, although all other major project milestones have been successfully achieved, with construction anticipated to commence in 2026, which will significantly impact future revenue and earnings growth.
- Gross Margin Improvement: The gross profit reached $48.4 million, representing 30% of total revenue, demonstrating enhanced profitability across all business segments, particularly in the manufacturing sector where revenue and gross margins improved due to higher-margin products.
- Increased Shareholder Returns: The company announced a 27.3% increase in its quarterly cash dividend to $0.14 per share, reflecting strong cash flow and no significant outstanding debt, aimed at enhancing shareholder value and boosting market confidence.
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