Consolidated Water's 2025 Q2 Earnings Call: Unpacking Key Contradictions on Manufacturing Expansion and Market Potential

Manufacturing expansion and market opportunities, manufacturing capacity and growth opportunities, reshoring manufacturing opportunities, and the expansion of Aerex facility are the key contradictions discussed in Consolidated Water Co. Ltd.'s latest 2025Q2 earnings call.



Strong Financial Performance:
- Consolidated Water Co. Ltd. reported a 3% increase in total revenues and a 23% increase in fully diluted earnings per share from continuing operations for Q2 2025 compared to the same quarter of the previous year.
- The growth was driven by increases in retail and manufacturing segments, particularly higher retail water sales due to reduced rainfall and higher production and margin products in manufacturing, while reduced fuel pass-through charges impacted bulk water segment revenue.

Retail and Manufacturing Growth:
- The retail segment reported 6% revenue increase, and the manufacturing segment saw a 33% increase in revenue, with a 17% increase in O&M revenue for recurring operations and maintenance contracts in California and Colorado.
- The growth in retail was driven by increased water sales due to reduced rainfall, while manufacturing benefited from increased production and higher-margin products, despite some challenges in the bulk segment due to reduced fuel pass-through charges.

Manufacturing Stability and Expansion:
- Manufacturing revenue increased by $1.3 million or 33%, with gross profit rising due to efficient operations and higher margins on specific projects.
- The expansion of the Aerex facility in Fort Pierce, Florida, will increase capacity, enabling the company to take on larger simultaneous projects and increase throughput capacity, which is expected to drive further revenue growth.

Hawaii Project Milestone:
- The Honolulu Board of Water Supply (BWS) approved the pilot test report for the Hawaii seawater desalination project, confirming the suitability of the desalinated water for their distribution system.
- This approval paves the way for the construction phase, which is expected to commence in early 2026 and will be a major revenue driver for the Services segment in the following years.