Loading...
•
Mar 31
Consolidated Water Q1 2025 Earnings Report
Consolidated Water Co. Ltd. reported a decrease in revenue and net income for Q1 2025 compared to Q1 2024, primarily due to a significant decrease in services segment revenue.
Key Takeaways
Consolidated Water Co. Ltd. experienced a decline in its financial performance for the first quarter of 2025, with total revenue decreasing to $33.7 million from $39.7 million in the prior year, and net income attributable to stockholders falling to $4.79 million from $6.47 million. This downturn was largely driven by a significant reduction in services segment revenue, although the retail and manufacturing segments showed increased activity and profitability.
Total revenue decreased by 15% to $33.7 million in Q1 2025 from $39.7 million in Q1 2024.
Net income attributable to Consolidated Water Co. Ltd. stockholders decreased to $4.79 million in Q1 2025 from $6.47 million in Q1 2024.
Services segment revenue significantly declined to $10.08 million in Q1 2025 from $17.42 million in Q1 2024, primarily due to the substantial completion of a large contract in Q2 2024.
Retail segment revenue increased by 9% to $9.41 million, driven by a 13% increase in water volume sold.
Consolidated Water
Consolidated Water
Consolidated Water Revenue by Segment
Revenue by Segment
Retail Revenue
CapyFin.comBulk Water Revenue
CapyFin.comServices Revenue
CapyFin.comManufacturing Revenue
CapyFin.com Forward Guidance
The Company's future performance is subject to various risks and uncertainties, including ongoing negotiations for its retail license in Grand Cayman and the collection of accounts receivable in the Bahamas. While the company expects to earn revenue from existing contracts, the resolution of these external factors will significantly impact future financial results.
Positive Outlook
- The Company expects to earn approximately $18.6 million in revenue from unsatisfied performance obligations during the remainder of 2025.
- The Company expects to earn approximately $130.7 million in revenue from unsatisfied performance obligations after 2025.
- The Company is not presently aware of anything that would lead it to believe it will not have sufficient liquidity to meet its needs, with the exception of the CW-Bahamas liquidity matter.
- The Company's water rates in Cayman Islands, The Bahamas, and British Virgin Islands are automatically adjusted for inflation annually.
- Kalaeloa Desalco's construction price for the desalination plant is subject to adjustment based on changes in inflation indices.
Challenges Ahead
- Resolution of retail license negotiations in Grand Cayman could result in a material reduction (or loss) of operating income and cash flows.
- Impairment losses may be required for retail segment assets due to license negotiation outcomes.
- CW-Bahamas experiences substantial delays in collecting accounts receivable, potentially leading to insufficient liquidity.
- Inability to collect delinquent accounts receivable from WSC could force CW-Bahamas to cease revenue recognition or require additional credit loss allowances.
- Increases in fuel and energy costs and other items could create additional credit risks for the Company's customers and adversely affect consolidated results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income