GEORGE TOWN, Cayman Islands, March 17, 2025 (GLOBE NEWSWIRE) -- Consolidated Water Co. Ltd. (NASDAQ Global Select Market: CWCO), a leading designer, builder and operator of advanced water supply and treatment plants, reported results for the year ended December 31, 2024. All comparisons are to the prior year period unless otherwise noted.

Consolidated Water will hold a conference call at 11:00 a.m. Eastern time tomorrow to discuss the results (see dial-in information below).

2024 Financial Highlights

Total revenue declined 26% to $134 million, due to two large construction projects that were underway in 2023 but were completed in June 2024. The company's $204 million design-build-operate desalination plant project in Hawaii continues to progress towards the higher-revenue construction phase.
Retail revenue increased 5% to $31.7 million on higher sales volumes.
Bulk revenue decreased 3% to $33.7 million.
Manufacturing revenue increased by 1% to $17.6 million.
Services revenue declined by 48% to $51 million, due to a $60 million decline in construction revenue that was partially offset by a $9.9 million increase in recurring operations and maintenance (O&M) revenue and a $2.7 million increase in design and consulting revenue.
O&M recurring revenue increased 51% to $29.3 million. The increase was comprised of $6.1 million from REC, which was acquired in October 2023, and $3.9 million from PERC.
Net income from continuing operations attributable to company stockholders totaled $17.9 million or $1.12 per diluted share, compared to $30.7 million or $1.93 per diluted share in 2023.
Net income, including discontinued operations attributable to company stockholders, totaled $28.2 million or $1.77 per diluted share, compared to $29.6 million or $1.86 per diluted share in 2023.
Cash and cash equivalents totaled $99.4 million and working capital was $132.8 million as of December 31, 2024.

2024 Operational Highlights

Retail water sold by the company's Grand Cayman water utility increased 4.5% to a record volume of 1.01 billion gallons. The increase was due to a record number of customer connections which were up 4.3% for the year.
Advanced through the piloting, design and permitting stages of a project to design, construct, operate and maintain a seawater desalination plant in Hawaii for the Honolulu Board of Water Supply.
Recognized $7.9 million in operations and maintenance revenue from the company's REC subsidiary, which was acquired in October 2023 to provide a new channel for expansion in water-stressed regions of Colorado.

Dividend Increase

In August 2024, the company increased its quarterly dividend by 15.8% to $0.11 per share beginning in the fourth quarter of 2024.

Management Commentary

"Our revenue and operating income in 2024 from continuing operations were consistent with our expectations, particularly with the completion of the two major design-build projects early in the year," commented Consolidated Water CEO, Rick McTaggart.

"We saw an improvement in profitability across our retail and manufacturing segments. Our strong retail water sales in our exclusive utility service area on Grand Cayman reflect a record volume of water sold to a record number of customers. This was primarily due to the ongoing growth in population and business activity on the island.

"Our bulk water segment revenue and gross profit remained relatively consistent from the previous year. Our services revenue declined due to the completion in the second quarter of the Liberty Utilities and Red Gate II construction projects which had a major impact on our 2023 revenue. The decline was partially offset by a 51% or nearly $10 million increase in recurring revenue from our operations and maintenance or O&M contracts.

"Most of this additional O&M revenue was generated by REC, our new Colorado subsidiary, that has provided us a new channel to expand our design-build and O&M businesses into water-stressed regions of Colorado. Other U.S.-based O&M contracts managed by our PERC Water subsidiary also contributed meaningfully to the increase.

"Our $204 million project to design, construct, operate and maintain a 1.7 million gallons per day seawater desalination plant for the Honolulu Board of Water Supply has been steadily advancing through the pilot, design and permitting stage. Due to delays unrelated to us, we now expect to begin the construction of this project early next year. We expect the construction phase to generate the largest portion of revenue from the project.

"Also important to note, about 80% of the plant's construction fee is subject to adjustments for inflation from the date the contract was executed to the date construction begins. This will help protect our gross margin and profitability against most increases in the cost of goods and services.

"As announced last month, our wholly owned subsidiary, Cayman Water Company, received a new concession from the Cayman Islands government, granting it continued exclusive rights to produce and supply potable water within its service area on Grand Cayman. Discussions with the Cayman Islands utility regulator for the required license are anticipated to begin soon. Our existing operating license will remain in effect until the new one is received.

"Looking ahead, we remain excited about the future of Consolidated Water for many reasons. This includes the continued growth in water sales in Grand Cayman; the long-term, stable recurring revenue from our Caribbean-based bulk water business; and the growth potential of our U.S.-based manufacturing, design-build and O&M businesses.

"Supported by an exceptionally strong balance sheet, we will continue to invest in new infrastructure like the expansion of our West Bay plant to serve the growing water needs of our utility customers in Grand Cayman. We also plan to add additional manufacturing space for Aerex. We expect these investments to ultimately drive future retail and manufacturing revenue growth. Our strong balance sheet also enables us to move quickly and strategically on any potential acquisitions.

"We expect our construction revenue to remain below the record level set in 2023 until we commence construction of the desalination project in Hawaii. However, we see this major construction phase substantially adding to our revenue and earnings growth in 2026 and 2027."

2024 Financial Summary

Revenue totaled $134 million, declining 26% from $180.2 million in 2023. The decrease was due to decreases of $47 million in the services segment and $922,000 in the bulk segment. The decreases were partially offset by increases of $1.6 million in the retail segment and $104,000 in the manufacturing segment.

Retail revenue increased due to a 4.5% increase in the volume of water sold. The volume of water sold increased due to a 4.3% increase in the number of customer accounts in the company's license area during the year.

The decrease in bulk segment revenue was due to a decrease in the price of energy for CW-Bahamas which decreased the energy pass-through component of CW-Bahamas' rates. The decrease in bulk segment revenue was partially offset by the revenue generated by the commencement on May 1, 2024, of the operations and maintenance contract for the new Red Gate desalination plant on Grand Cayman. The decrease also was partially offset by the additional revenue generated by the amendment of the company's North Sound contract which also became effective on May 1, 2024.

The decrease in services segment revenue was due to plant construction revenue decreasing from $77.3 million in 2023 to $17.6 million in 2024 as the result of two construction projects being completed in 2024. Revenue generated under operations and maintenance contracts totaled $29.3 million in 2024, an increase of 51% from 2023. Newly acquired REC contributed $6.1 million to the increase, with the remainder related to incremental PERC contracts.

Manufacturing segment revenue increased by $104,000 to $17.6 million as compared to $17.5 million in 2023.

Gross profit for 2024 was $45.6 million (34.1% of total revenue), as compared to $61.9 million (34.4% of total revenue) in 2023.

Net income from continuing operations attributable to Consolidated Water stockholders for 2024 was $17.9 million or $1.12 per diluted share, compared to net income of $30.7 million or $1.93 per diluted share in 2023.

Including discontinued operations, net income attributable to Consolidated Water stockholders for 2024 was $28.2 million or $1.77 per diluted share, compared to net income of $29.6 million or $1.86 per diluted share in 2023.

Cash and cash equivalents totaled $99.4 million as of December 31, 2024, with working capital of $132.8 million, debt of $0.2 million, and stockholders' equity of $210 million.

Full Year Segment Results


	Year Ended December 31, 2024
	Retail			Bulk		Services			Manufacturing		Corporate			Total
Revenue	$	31,741,343		$	33,673,387	$	50,956,489		$	17,595,414	$	—		$	133,966,633
Cost of revenue		14,199,088			23,360,360		38,511,535			12,271,202		—			88,342,185
Gross profit		17,542,255			10,313,027		12,444,954			5,324,212		—			45,624,448
General and administrative expenses		3,263,593			1,564,975		6,055,409			2,456,807		14,196,652			27,537,436
Gain on asset dispositions and impairments, net		2,286			—		2,714			—		192,786			197,786
Income (loss) from operations		14,280,948			8,748,052		6,392,259			2,867,405		(14,003,866	)		18,284,798
Interest income		198,180			865,584		458,732			4		571,690			2,094,190
Interest expense		(93,368	)		—		(8,409	)		—		(70	)		(101,847	)
Income from affiliates		—			—		—			16,701		252,754			269,455
Other		78,647			39,625		(5,634	)		11,993		7,247			131,878
Other income, net		183,459			905,209		444,689			28,698		831,621			2,393,676
Income (loss) before income taxes		14,464,407			9,653,261		6,836,948			2,896,103		(13,172,245	)		20,678,474
Provision for income taxes		—			—		1,528,398			672,040		18,076			2,218,514
Net income (loss) from continuing operations		14,464,407			9,653,261		5,308,550			2,224,063		(13,190,321	)		18,459,960
Income from continuing operations attributable to non-controlling interests		—			577,590		—			—		—			577,590
Net income (loss) from continuing operations attributable to Consolidated Water Co. Ltd. stockholders	$	14,464,407		$	9,075,671	$	5,308,550		$	2,224,063	$	(13,190,321	)		17,882,370
Net income from discontinued operations															10,355,184
Net income attributable to Consolidated Water Co. Ltd. stockholders														$	28,237,554


	Year Ended December 31, 2023
	Retail			Bulk		Services			Manufacturing		Corporate			Total
Revenue	$	30,158,051		$	34,595,058	$	97,966,650		$	17,491,474	$	—		$	180,211,233
Cost of revenue		13,891,229			24,128,132		66,797,762			13,467,005		—			118,284,128
Gross profit		16,266,822			10,466,926		31,168,888			4,024,469		—			61,927,105
General and administrative expenses		2,978,164			1,737,264		4,271,808			1,838,284		13,926,846			24,752,366
Gain (loss) on asset dispositions and impairments, net		(21,716	)		12,720		—			2,233		(349	)		(7,112	)
Income (loss) from operations		13,266,942			8,742,382		26,897,080			2,188,418		(13,927,195	)		37,167,627
Interest income		181,468			362,422		151,706			4		808			696,408
Interest expense		(123,867	)		—		(21,417	)		—		—			(145,284	)
Income from affiliate		—			—		—			—		169,728			169,728
Other		93,795			10,793		1,024			2,020		(171	)		107,461
Other income, net		151,396			373,215		131,313			2,024		170,365			828,313
Income (loss) before income taxes		13,418,338			9,115,597		27,028,393			2,190,442		(13,756,830	)		37,995,940
Provision (benefit) for income taxes		—			—		6,388,457			440,111		(78,554	)		6,750,014
Net income (loss) from continuing operations		13,418,338			9,115,597		20,639,936			1,750,331		(13,678,276	)		31,245,926
Income from continuing operations attributable to non-controlling interests		—			573,791		—			—		—			573,791
Net income (loss) from continuing operations attributable to Consolidated Water Co. Ltd. stockholders	$	13,418,338		$	8,541,806	$	20,639,936		$	1,750,331	$	(13,678,276	)		30,672,135
Net loss from discontinued operations															(1,086,744	)
Net income attributable to Consolidated Water Co. Ltd. stockholders														$	29,585,391

Revenue earned by major geographic region was:


	Year Ended December 31,
	2024		2023		2022
Cayman Islands	$	37,137,424	$	41,728,340	$	30,375,985
The Bahamas		29,675,947		31,221,633		29,943,615
United States		66,662,406		106,768,621		33,338,466
Revenue earned from management services agreement with OC-BVI		490,856		492,639		446,906
	$	133,966,633	$	180,211,233	$	94,104,972

The following table presents the company's revenue disaggregated by revenue source.


	Year Ended December 31,
	2024		2023		2022
Retail revenue	$	31,741,343	$	30,158,051	$	25,954,013
Bulk revenue		33,673,387		34,595,058		32,991,066
Services revenue		50,956,489		97,966,650		28,835,428
Manufacturing revenue		17,595,414		17,491,474		6,324,465
Total revenue	$	133,966,633	$	180,211,233	$	94,104,972

Services revenue consists of the following:


	Year Ended December 31,
	2024		2023		2022
Construction revenue	$	17,637,432	$	77,306,704	$	11,616,274
Operations and maintenance revenue		29,307,405		19,368,365		14,152,158
Design and consulting revenue		4,011,652		1,291,581		3,066,996
Total services revenue	$	50,956,489	$	97,966,650	$	28,835,428

Annual General Meeting of Shareholders

The company has set May 27, 2025 as the date of its Annual General Meeting of Shareholders to be held at 3:00 p.m. Cayman Islands time (4:00 p.m. EDT) at the Westin Grand Cayman Seven Mile Beach Resort & Spa, Seven Mile Beach, Grand Cayman, Cayman Islands. Holders of record of the company's stock as of March 28, 2025 will be entitled to vote at the meeting.

Conference Call

Consolidated Water management will host a conference call tomorrow to discuss these results, followed by a question-and-answer period.

Date: Tuesday, March 18, 2025

Time: 11:00 a.m. Eastern time (8:00 a.m. Pacific time)

Toll-free dial-in number: 1-844-875-6913

International dial-in number: 1-412-317-6709

Conference ID: 1237348

Please call the conference telephone number five minutes prior to the start time. An operator will register your name and organization. If you require any assistance connecting with the call, please contact CMA at 1-949-432-7566.

A replay of the call will be available after 1:00 p.m. Eastern time on the same day through March 25, 2025, as well as available for replay via the Investors section of the Consolidated Water website at www.cwco.com.

Toll-free replay number: 1-877-344-7529

International replay number: 1-412-317-0088

Replay ID: 1237348

About Consolidated Water Co. Ltd.

Consolidated Water Co. Ltd. develops and operates advanced water supply and treatment plants and water distribution systems. The company designs, constructs and operates seawater desalination facilities in the Cayman Islands, The Bahamas and the British Virgin Islands, and designs, constructs and operates water treatment and reuse facilities in the United States. The company recently entered the U.S. desalination market with a contract to design, construct, operate and maintain a seawater desalination plant in Hawaii.

The company also manufactures and services a wide range of products and provides design, engineering, management, operating and other services applicable to commercial and municipal water production, supply and treatment, and industrial water and wastewater treatment.

For more information, visit cwco.com.

Cautionary Note Regarding Forward-Looking Statements

This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe", "estimate", "project", "intend", "expect", "should", "will" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to (i) continued acceptance of the company's products and services in the marketplace; (ii) changes in its relationships with the governments of the jurisdictions in which it operates; (iii) the outcome of its negotiations with the Cayman government regarding a new retail license agreement; (iv) the collection of its delinquent accounts receivable in the Bahamas; and (v) various other risks such as economic, operational, and industry-specific risks, as detailed in the company's periodic report filings with the Securities and Exchange Commission ("SEC"). For more information about risks and uncertainties associated with the company's business, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of the company's SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting the company's Secretary at the company's executive offices or at the "Investors – SEC Filings" page of the company's website at ir.cwco.com/docs. Except as otherwise required by law, the company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Company Contact:

David W. Sasnett

Executive Vice President and CFO

Tel (954) 509-8200

Email Contact

Investor & Media Contact:

Ron Both or Grant Stude

CMA Investor Relations

Tel (949) 432-7566

Email Contact

CONSOLIDATED WATER CO. LTD.

CONSOLIDATED BALANCE SHEETS

	December 31,
	2024		2023
ASSETS
Current assets
Cash and cash equivalents	$	99,350,121	$	42,621,898
Accounts receivable, net		39,580,982		38,226,891
Inventory		8,960,350		6,044,642
Prepaid expenses and other current assets		5,153,984		4,056,370
Contract assets		4,470,243		21,553,057
Current assets of discontinued operations		272,485		211,517
Total current assets		157,788,165		112,714,375
Property, plant and equipment, net		52,432,282		55,882,521
Construction in progress		5,143,717		495,471
Inventory, noncurrent		5,338,961		5,045,771
Investment in affiliates		1,504,363		1,412,158
Goodwill		12,861,404		12,861,404
Intangible assets, net		2,696,815		3,353,185
Operating lease right-of-use assets		3,190,985		2,135,446
Other assets		2,356,489		3,407,973
Long-term assets of discontinued operations		—		21,129,288
Total assets	$	243,313,181	$	218,437,592

LIABILITIES AND EQUITY
Current liabilities
Accounts payable, accrued expenses and other current liabilities	$	9,057,179	$	11,604,369
Accrued compensation		3,336,946		3,160,030
Dividends payable		1,780,841		1,572,655
Current maturities of operating leases		634,947		456,865
Current portion of long-term debt		126,318		192,034
Contract liabilities		9,126,654		6,237,011
Deferred revenue		365,879		317,017
Current liabilities of discontinued operations		509,745		364,665
Total current liabilities		24,938,509		23,904,646
Long-term debt, noncurrent		70,320		191,190
Deferred tax liabilities		210,893		530,780
Noncurrent operating leases		2,630,812		1,827,302
Other liabilities		153,000		153,000
Total liabilities		28,003,534		26,606,918
Commitments and contingencies
Equity
Consolidated Water Co. Ltd. stockholders' equity
Redeemable preferred stock, $0.60 par value. Authorized 200,000 shares; issued and outstanding 44,004 and 44,297 shares, respectively		26,402		26,578
Class A common stock, $0.60 par value. Authorized 24,655,000 shares; issued and outstanding 15,846,345 and 15,771,545 shares, respectively		9,507,807		9,462,927
Class B common stock, $0.60 par value. Authorized 145,000 shares; none issued		—		—
Additional paid-in capital		93,550,905		92,188,887
Retained earnings		106,875,581		85,148,820
Total Consolidated Water Co. Ltd. stockholders' equity		209,960,695		186,827,212
Non-controlling interests		5,348,952		5,003,462
Total equity		215,309,647		191,830,674
Total liabilities and equity	$	243,313,181	$	218,437,592

CONSOLIDATED WATER CO. LTD.

CONSOLIDATED STATEMENTS OF INCOME

	Year Ended December 31,
	2024			2023			2022
Revenue	$	133,966,633		$	180,211,233		$	94,104,972
Cost of revenue		88,342,185			118,284,128			63,749,849
Gross profit		45,624,448			61,927,105			30,355,123
General and administrative expenses		27,537,436			24,752,366			21,070,234
Gain (loss) on asset dispositions and impairments, net		197,786			(7,112	)		(12,704	)
Income from operations		18,284,798			37,167,627			9,272,185

Other income (expense):
Interest income		2,094,190			696,408			447,186
Interest expense		(101,847	)		(145,284	)		(46,545	)
Equity in the earnings of affiliates		269,455			169,728			102,225
Loss on put/call options		—			—			(128,000	)
Other		131,878			107,461			89,944
Other income, net		2,393,676			828,313			464,810
Income before income taxes		20,678,474			37,995,940			9,736,995
Provision for income taxes		2,218,514			6,750,014			396,739
Net income from continuing operations		18,459,960			31,245,926			9,340,256
Income from continuing operations attributable to non-controlling interests		577,590			573,791			1,112,913
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders		17,882,370			30,672,135			8,227,343
Net income (loss) from discontinued operations		10,355,184			(1,086,744	)		(2,371,049	)
Net income attributable to Consolidated Water Co. Ltd. stockholders	$	28,237,554		$	29,585,391		$	5,856,294

Basic earnings (loss) per common share attributable to Consolidated Water Co. Ltd. common stockholders
Continuing operations	$	1.13		$	1.95		$	0.54
Discontinued operations		0.65			(0.07	)		(0.16	)
Basic earnings per share	$	1.78		$	1.88		$	0.38

Diluted earnings (loss) per common share attributable to Consolidated Water Co. Ltd. common stockholders
Continuing operations	$	1.12		$	1.93		$	0.54
Discontinued operations		0.65			(0.07	)		(0.16	)
Diluted earnings per share	$	1.77		$	1.86		$	0.38

Dividends declared per common and redeemable preferred shares	$	0.41		$	0.36		$	0.34

Weighted average number of common shares used in the determination of:
Basic earnings per share		15,832,328			15,739,056			15,290,509
Diluted earnings per share		15,935,962			15,865,897			15,401,653

Consolidated Water Reports Full Year 2024 Results