Consolidated Water (CWCO) Earnings Transcript

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Wed, March 18, 2026 astatine 10:51 AM CDT 25 min read

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Tuesday, March 17, 2026 astatine 11 a.m. ET

• Chief Executive Officer — Frederick McTaggart

• Chief Financial Officer — David Sasnett

Frederick McTaggart: Thank you, Chloe, and bully morning, everyone. Our retail, bulk and manufacturing revenues and operating incomes successful 2025 were accordant with our expectations for the year. However, our services gross did not execute arsenic expected owed wholly to a permitting hold relating to our 1.7 cardinal gallon per time seawater desalination task successful Kalaeloa, Hawaii. We judge this benignant of hold is communal for the analyzable multi-agency permitting process required for a task of this standard and has not been owed to immoderate failures connected the portion of consolidated water.

In fact, implicit the past year, we person achieved each different large task milestones nether this signifier of the Hawaii project, which see palmy aviator testing, receipt of confirmation from the Honolulu Board of Water Supply that we are capable to nutrient h2o that is simply a tenable lucifer to the prime of their existent h2o proviso and that we are capable to nutrient h2o that causes nary detrimental interaction to the Board of Water Supply strategy oregon their customers' assets. And past finally, we completed 100% of the plan for this project. Achieving these different important task milestones enables america to statesman operation erstwhile each permits person been issued.

We proceed to enactment intimately with the Honolulu Board of Water Supply and the regulatory authorities to beforehand the permitting process and mitigate docket impacts. While our full gross connected a consolidated ground was somewhat down compared to the erstwhile year, our consolidated gross borderline successful presumption of percent and dollars improved and our consolidated nett income from continuing operations noticeably accrued compared to 2024. Gross nett generated by each 4 of our concern segments accrued successful presumption of percentage, which speaks precise good for our attraction to ratio and outgo control.

Our retail h2o operations continued to turn successful 2025, driven by the spot of the Cayman Islands system and historically debased rainfall successful our exclusive inferior work country connected Grand Cayman. We saw ongoing maturation successful colonisation and concern enactment connected the island, coupled with precise debased precipitation, which resulted successful a grounds measurement of h2o sold to a grounds fig of customers successful 2025. Although our Caribbean-based bulk conception gross declined somewhat this past year, chiefly owed to little fuel-related charges that we walk done to our customers, we achieved higher profitability successful dollars and gross nett percent successful this segment.