Consolidated Water Co. Ltd. reported financial results for the third quarter ended September 30, 2026, revealing a decline in net income compared to the prior year. Net income from continuing operations attributable to the company totaled $2.4 million, or $0.15 per diluted share, down from $5.6 million, or $0.34 per diluted share, in the third quarter of 2025. Including discontinued operations, net income was $2.3 million, or $0.14 per diluted share, compared to $5.5 million, or $0.34 per diluted share, in the prior year.
Total revenue for the third quarter decreased 11.9% to $30.9 million from $35.1 million. The decline was driven by lower manufacturing and services revenue, which was partially offset by increases in retail and bulk revenue.
Specific segment performance included:
- Retail Revenue: Increased 5.7% to $8.2 million, driven by higher energy pass-through charges and a rate increase for a major commercial customer, offset by lower retail rates under a new 25-year license effective August 1, 2026.
- Bulk Revenue: Increased 20.8% to $10.1 million, primarily due to higher energy pass-through charges and revenue from new desalination plants in Cat Island, Bahamas.
- Manufacturing Revenue: Decreased 39.7% to $2.8 million due to a decrease in the total dollar amount of contracts completed and in progress.
- Services Revenue: Decreased 31.7% to $9.8 million. Construction revenue declined to $3.5 million, while recurring operations and maintenance revenue decreased to $6.1 million due to the expiration of contracts with three customers in California in the first quarter of 2026.
As of September 30, 2026, the company reported cash and cash equivalents of $129.2 million and working capital of $145.1 million.
Management noted that the new 25-year retail license in the Cayman Islands establishes a long-term regulatory framework. However, the lower base rates under the new structure reduced quarterly retail gross profit, though this was offset by higher energy pass-through charges and increased water sales volume. The company also highlighted significant project milestones, including a $39.8 million design-build agreement for the Central Coast Blue Advanced Water Purification Facility in Pismo Beach, California, and approximately $6 million in long-lead equipment procurement for a desalination project in Hawaii.
