Shares of Consolidated Water Co. Ltd. (NASDAQ:CWCO) declined in after-hours trading on Monday after the water utility and desalination company reported first-quarter results that came in below analyst forecasts.
The stock fell 2.3% following the earnings release.
Adjusted earnings per share totaled $0.24, missing consensus estimates of $0.41, while quarterly revenue reached $30.0 million, well below market expectations of $55 million.
Revenue declined 11% year-on-year from $33.7 million in the first quarter of 2025.
Manufacturing and Retail Segments Weigh on Revenue
The decline was driven primarily by weakness in the company’s manufacturing and retail operations.
Manufacturing revenue dropped 76% year-on-year to $1.4 million, reflecting lower volumes of new purchase orders and differences in project timing compared with the previous year.
Retail revenue also fell 9% to $8.6 million after unusually heavy rainfall in Grand Cayman reduced water demand, leading to a 10.2% decline in water volumes sold.
“In Q1, consolidated revenue declined due to revenue declines in our manufacturing and retail segments,” said CEO Rick McTaggart. “Manufacturing revenue was lower due to the timing of receipt of new purchase orders for 2026 projects compared to last year.”
Bulk Water and Services Operations Show Growth
Despite the weaker overall results, several business areas posted growth during the quarter.
Bulk revenue increased 4% to $8.7 million, supported by operations at a new seawater desalination facility located on Cat Island in The Bahamas.
Services revenue rose 12% to $11.3 million, while operations and maintenance revenue climbed 15% to $8.9 million.
The company said growth in its maintenance segment was partly driven by a new three-year contract secured with a California municipality in November 2025.
Profitability Declines but Balance Sheet Remains Strong
Net income from continuing operations attributable to shareholders came in at $3.8 million, or $0.24 per diluted share, compared with $4.9 million, or $0.31 per diluted share, in the same period last year.
Gross profit declined to $10.9 million, representing 36% of total revenue, versus $12.3 million, or 37% of revenue, in the prior-year quarter.
As of March 31, 2026, Consolidated Water reported cash and cash equivalents of $126.3 million and working capital totaling $144.3 million.