Consolidated Water's Q1 2025: Unpacking Key Contradictions in Project Revenue and Permitting Responsibilities

Project revenue recognition, permitting responsibility, project pipeline and market opportunities, revenue recognition and project timeline, and permitting responsibilities are the key contradictions discussed in Consolidated Water's latest 2025Q1 earnings call.



Services Segment Revenue Decline:
- Services segment revenue decreased by 15% year-over-year to $11.3 million.
- The decline was due to the completion of two major design-build projects, Liberty Utilities and Red Gate 2, in the second quarter of 2024.

Retail Water Sales Growth:
- Retail water sales in Grand Cayman showed a 13% increase in volume, contributing to a $786,000 revenue increase.
- This growth was driven by population growth and increased business activity within the service area.

Manufacturing Segment Revenue and Profitability:
- Manufacturing revenue grew by 10% to $5.8 million, with operating income increasing by 44%.
- The improvement in revenue and profit was attributed to higher production activity and a higher margin product mix.

Caribbean-based Bulk Water Segment Stablity:
- Bulk water segment revenue remained consistent year-over-year at $8.4 million.
- The stability is due to the long-term, stable, income-generating nature of these businesses.

Hawaii Desalination Project Milestone:
- The Honolulu Board of Water Supply approved the pilot test reports, paving the way for construction to begin after obtaining necessary permits.
- This $204 million project is expected to generate significant revenue for the services segment in 2026 and 2027.