CWCO Q2 Earnings Beat, Revenues Miss on Manufacturing Weakness

Consolidated Water Co. Ltd. CWCO reported second-quarter 2026 earnings of 25 cents per share, beating the Zacks Consensus Estimate of 22 cents by 13.64%. Earnings declined 21.9% from 32 cents in the year-ago quarter.

Total Revenues of CWCO

Revenues of $32.9 million missed the Zacks Consensus Estimate of $35 million by 6.07%. The top line also decreased 2.1% from the year-ago figure of $33.6 million. Manufacturing weakness weighed on the top line, while bulk water revenues advanced 20%. 

CWCO's Segment Revenue Mix

Retail revenues were $8.66 million, up 0.3% year over year. Water sales volume declined 2% amid slightly wetter weather in Grand Cayman, but this was offset by higher rates and increased sales volume to a major non-potable water customer.

Bulk revenues increased 20.1% to $9.93 million. Growth primarily reflected higher energy-related revenues in the Bahamas and contributions from two new seawater desalination plants on Cat Island, commissioned in 2026.

Manufacturing revenues plunged 48.6% to $2.69 million due to the lower dollar amount of new purchase orders.

Services revenues increased 1.2% to $11.59 million. Construction revenues surged 88.9% to $5.34 million, driven by projects involving a drinking water plant expansion in Colorado and a wastewater recycling plant in California. Both projects are scheduled for completion in 2026.

CWCO's Profitability and Operational Highlights

Gross profit declined 14.6% year over year to $10.96 million from $12.83 million in the prior-year quarter.

Total general and administrative expenses decreased nearly 4.4% to $7.24 million.

The company secured a 25-year exclusive concession and water utility license to produce and supply water to Seven Mile Beach and West Bay, two of Grand Cayman’s three most populated areas.

The company commissioned a second seawater desalination plant on Cat Island, The Bahamas, in 2026, expanding its supply of potable water to the Water and Sewerage Corporation of The Bahamas.

CWCO's Balance Sheet and Cash Flow Highlights

As of June 30, 2026, cash and cash equivalents totaled $132.6 million compared with $123.8 million as of Dec. 31, 2025.

As of June 30, 2026, total debt was $0.016 million, down from $0.074 million at Dec. 31, 2025.

Net cash provided by operating activities totaled $18.57 million in the first six months of 2026 compared with $20.52 million a year earlier. 

Capital spending on property, plant and equipment and construction in progress was $5.19 million in the first six months of 2026 compared with $4.22 million a year earlier.

CWCO’s Zacks Rank

Consolidated Water currently has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Releases

American Water Works Company Inc. AWK reported second-quarter 2026 adjusted earnings of $1.61 per share, which beat the Zacks Consensus Estimate of $1.59 by 1.3%. The bottom line increased 8.1% from $1.49 in the year-ago quarter.

The Zacks Consensus Estimate for 2026 and 2027 EPS is pinned at $6.09 and $6.59, indicating year-over-year growth of 7.98% and 8.35%, respectively.

American States Water Company AWR reported second-quarter 2026 earnings of $1.09 per share, up 25.3% year over year and beating the Zacks Consensus Estimate of 93 cents by 17.2%. Higher earnings at the water utility, driven largely by CPUC-approved rate increases, supported the gain.

The Zacks Consensus Estimate for 2026 and 2027 EPS is pinned at $3.68 and $3.80, indicating year-over-year growth of 9.20% and 3.13%, respectively.

California Water Service Group CWT reported second-quarter 2026 earnings of 93 cents per share, up 31% year over year. The figure beat the Zacks Consensus Estimate of 79 cents by 17.72%.

The Zacks Consensus Estimate for 2026 and 2027 EPS is pinned at $2.55 and $2.73, indicating year-over-year growth of 18.60% and 7.06%, respectively.

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