Consolidated Water Q2: Manufacturing Slump Drags Net Income Down 23% Despite Growth in Bulk and Services
CWCO is trading near its 52-week low of $28.17 (7.3% above the low).
Summary
Consolidated Water reported Q2 2026 net income of $4.0 million, down 23% year-over-year, as a 49% plunge in manufacturing revenue offset growth in bulk and services. The company highlighted a $10.1 million post-quarter order book and progress on its Hawaii desalination project.
Key Events · Earnings and Guidance · CWCO
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Q2 Net Income Falls 23%
Net income attributable to stockholders was $4.0 million, or $0.25 per diluted share, compared to $5.2 million, or $0.32 per diluted share, in Q2 2025. Revenue decreased 2% to $32.9 million.
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Manufacturing Revenue Plunges 49%
Manufacturing segment revenue fell to $2.7 million from $5.2 million a year ago, driven by a decline in new purchase orders. This segment's gross profit dropped by over $1 million.
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Bulk and Services Segments Provide Offset
Bulk revenue rose 20% to $9.9 million on higher energy pass-through charges and new Cat Island plants. Services revenue edged up 1% to $11.6 million, with construction revenue nearly doubling to $5.3 million.
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Strong Balance Sheet and Liquidity
Cash and cash equivalents increased to $132.6 million as of June 30, 2026, with working capital of $144.6 million and no significant debt. Stockholders' equity stood at $225.6 million.
Analysis · CWCO · Energy & Transportation
Consolidated Water's Q2 results reveal a stark divergence across its businesses. While retail, bulk, and services segments grew or held steady, a 49% collapse in manufacturing revenue—the company's highest-margin segment—drove a 23% drop in net income to $4.0 million. The manufacturing weakness stems from a sharp decline in new purchase orders, a cyclical headwind that management expects to reverse based on a $10.1 million post-quarter order book and a strong Florida municipal pipeline. The balance sheet remains fortress-like with $132.6 million in cash, providing ample dry powder for the Hawaii desalination project and strategic M&A. The earnings miss is notable but not thesis-altering given the diversified revenue streams and visible catalysts in construction and new plant commissioning.
At the time of this filing, CWCO was trading at $30.24 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $483.8M. The 52-week trading range was $28.17 to $39.12. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.