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Consolidated Water Q2 revenue falls on manufacturing segment weakness

Consolidated Water Q2 revenue falls on manufacturing segment weakness


Overview

  • Water treatment operator Q2 revenue fell 2% yr/yr

  • Q2 net income from continuing operations dropped to $4.0 mln from $5.2 mln

  • Manufacturing segment revenue declined 49%, offsetting gains in retail, bulk, and services


Outlook

  • Company expects manufacturing revenue to improve in future periods based on current backlog

  • Construction on Hawaii desalination project expected to start later this year

  • Company sees growth opportunities in U.S. and Caribbean water infrastructure markets


Result Drivers

  • MANUFACTURING DECLINE - Co said manufacturing revenue fell 49% due to a decrease in new purchase orders compared to the prior year, which had benefited from a large late-2024 order

  • BULK REVENUE GROWTH - Bulk revenue increased 20% mainly due to higher energy-related revenue in the Bahamas and new desalination plants on Cat Island

  • RETAIL SEGMENT OFFSET - Retail revenue remained steady as a rate increase for a major non-potable water customer offset a 2% decline in water volume sold


Company press release: ID:nGNX529QJv


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

Beat

$32.90 mln

$30.60 mln (1 Analyst)

Q2 Gross Profit

$11 mln

Q2 Net Income from Cont Ops

$4 mln


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 41% above its August 7 closing price of $30.49

  • The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 26 three months ago


Reuters Recommended Reads

  • Aug 10 - CECO Environmental Q2 revenue slightly beats on increase in orders, backlog

  • Aug 10 - Almost three-quarters of England now in drought, UK government says

  • Aug 10 - Drought scorches Italy's rice belt as water supplies hit record lows​


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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