Why Is Consolidated Water (CWCO) Down 11.4% Since Last Earnings Report?

A month has gone by since the last earnings report for Consolidated Water (CWCO). Shares have lost about 11.4% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Consolidated Water due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

CWCO Q2 Earnings Beat, Revenues Miss on Manufacturing Weakness

Consolidated Water Co. Ltd. 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 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.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

At this time, Consolidated Water has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Interestingly, Consolidated Water has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Consolidated Water belongs to the Zacks Utility - Water Supply industry. Another stock from the same industry, American States Water (AWR), has gained 1.3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

American States Water reported revenues of $181.29 million in the last reported quarter, representing a year-over-year change of +11.2%. EPS of $1.09 for the same period compares with $0.87 a year ago.

For the current quarter, American States Water is expected to post earnings of $1.09 per share, indicating a change of +2.8% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for American States Water. Also, the stock has a VGM Score of D.

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This article originally published on Zacks Investment Research (zacks.com).

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