Cayman's Consolidated Water Q1 revenue falls on weaker manufacturing, retail sales

Overview

• Cayman Islands water treatment firm's Q1 revenue fell 11% yr/yr on lower manufacturing and retail sales

• Q1 net income from continuing operations declined compared to prior year

• Retail segment impacted by higher rainfall in Grand Cayman, reducing water sales volume

Outlook

• Company expects manufacturing revenue for 2026 to be below 2025 record levels

• Consolidated Water anticipates construction revenue to rise after Hawaii project begins later in 2026

• Company expects remaining revenue from U.S. construction projects to be realized primarily in 2026

Result Drivers

• MANUFACTURING REVENUE DROP - Co said manufacturing revenue fell 76% due to fewer and later purchase orders compared to last year, which included a large order in late 2024

• RETAIL SALES IMPACTED BY RAINFALL - Retail revenue decreased 9% as significantly greater rainfall on Grand Cayman reduced water sales volume by about 10%

• BULK AND SERVICES SEGMENT GROWTH - Bulk revenue rose due to new revenue from a recently commissioned Bahamas plant; services revenue increased 12% on higher O&M contract activity, including a new California municipal client

Company press release: ID:nGNXcclzLB

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the water & related utilities peer group is "buy"

• Wall Street's median 12-month price target for Consolidated Water Co Ltd is $43.00, about 30.6% above its May 8 closing price of $32.92

• The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 24 three months ago

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