Consolidated Water's Q3 revenue falls due to lower segment revenue
CWCO•Consolidated Water's Q3 revenue fell 12% year over year to $30.92 million, below the $32.10 million consensus estimate, as services and manufacturing revenue declined. The company expects 2026 manufacturing revenue to be below 2025 levels and says its Hawaii project is expected to boost revenue and earnings once construction begins in the first half of 2027.
1. Quarterly results
Q3 revenue was $30.92 million, down 12% year over year and below the $32.10 million consensus estimate. Net income from continuing operations also declined year over year. Gross profit was $9.82 million.
2. Segment performance
Services revenue fell 31.7% as construction and recurring operations and maintenance revenue declined. Manufacturing revenue decreased due to fewer and smaller contracts completed and in progress. Retail revenue grew, with higher energy pass-through charges and an increased rate for a major commercial customer offsetting lower rates under a new license.
3. Outlook and license
The company secured a new 25-year retail water license in Grand Cayman, effective August 2026. It expects full-year 2026 manufacturing revenue to be below 2025 levels and expects its Hawaii project to significantly boost revenue and earnings once construction begins in the first half of 2027.
