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Consolidated Water 2025 Earnings Miss Estimates, Revenues Decrease Y/Y

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Key Takeaways

  • CWCO reported 2025 EPS of $1.16, missing estimates, while revenues fell 1.41% y/y.
  • Consolidated Water saw services revenues drop 9.11%, led by lower construction activity.
  • CWCO boosted retail sales volume 8.3% and expanded desalination capacity to meet demand.

Consolidated Water Co. Ltd. (CWCO - Free Report) delivered 2025 earnings per share (EPS) of $1.16, which missed the Zacks Consensus Estimate of $1.25 by 7.2%. The bottom line improved 3.57% from the year-ago period’s earnings of $1.12.

Total Revenues of CWCO

The company’s total revenues for 2025 were $132.07 million, which missed the Zacks Consensus Estimate of $137.31 million by 3.82%.

Revenues decreased 1.41% year over year from $134 million due to reduced contribution from its service and bulk segment.

Consolidated Water Co. Ltd. Price, Consensus and EPS Surprise

 

CWCO’s Segmental Details

Retail revenues for 2025 increased 5.82% to $33.6 million. The increase was driven by an 8.3% rise in water sales volume, reflecting lower rainfall in the Grand Cayman region and a 6.6% increase in the number of customer accounts.

Bulk revenues decreased 0.57% to $33.5 million due to a reduction in energy-related revenues in the Bahamas operations.

Manufacturing revenues increased 6.23% to $18.7 million.

Services revenues decreased 9.11% to $46.3 million due to a decline in construction revenues.

Highlights of CWCO’s  2025 Earnings Release

The company’s retail water sales at the Grand Cayman utility rose 8.3% to a record 1.09 billion gallons, driven by markedly lower rainfall than the previous year and an increase in the total number of service connections. CWCO expanded an existing seawater desalination plant in West Bay to meet the rising Grand Cayman demand, increasing desalinated water production capacity by an additional 1 million gallons per day.

CWCO entered an agreement with the Cayman Islands government for the production and supply of potable water under its current license until the new license is approved.

The company secured two water treatment plant construction projects, including a drinking water plant expansion and a wastewater recycling plant. The combined value of these projects will be $15.6 million, and revenues are expected to be realized in 2026.

The company has finished designing a large seawater desalination plant capable of producing 1.7 million gallons per day in Kalaeloa, HI, which has been approved by the Honolulu Board of Water Supply. The construction will start once all permits are finalized.

Gross profit for 2025 was $48.38 million, up 6.04% from $45.62 million in 2024.

Total general and administrative expenses increased 9.37% to $30.12 million.

Net income from continuing operations amounted to $19.2 million, up 4.12% from $18.5 million in the previous year.

CWCO’s Financial Highlights

Cash and cash equivalents totaled $123.8 million as of Dec. 31, 2025, compared with $99.4 million as of Dec. 31, 2024.

Total long-term debt was $0.03 million as of Dec. 31, 2025, down from $0.07 million at 2024-end.

The cash flow from operating activities in 2025 totaled $41.7 million compared with $36.5 million in 2024.

CWCO’s Zacks Rank

Consolidated Water currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Releases

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The dividend yield for the company is expected to be 3.34%. It delivered an average earnings surprise of 28.14% in the last four quarters. 

California Water Service Group (CWT - Free Report) posted fourth-quarter 2025 adjusted EPS of 19 cents, which missed the Zacks Consensus Estimate of 36 cents by 47.22%.

CWT’s long-term (three to five year) earnings growth rate is 8.78%. The company missed the Zacks Consensus Estimate in two of the trailing four quarters and surpassed it in two quarters, delivering an average surprise of 7.62%. 

American Water Works (AWK - Free Report) posted fourth-quarter 2025 adjusted EPS of $1.24 per share, which missed the Zacks Consensus Estimate of $1.28 by 3.1%.

AWK’s long-term earnings growth rate is 7.04%. The company missed the Zacks Consensus Estimate in two of the trailing four quarters and surpassed it in two quarters, delivering an average negative surprise of 0.18%. 

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