Consolidated Water Company Exceeds Expectations with Strong Q2 2026 Results
Cayman Islands-based Consolidated Water Company (CWC) recently reported its second quarter operating and financial results for 2026, exceeding expectations in various segments. Despite a 2% decrease in water sales volume on the Grand Cayman due to wetter weather, CWC's retail revenue increased modestly.
Chief Executive Officer Rick McTaggart attributed this growth to a base water rate increase for a major non-potable water customer following the expiration of its concessionary water purchase agreement. Additionally, the company saw significant increases in its bulk and services segments, with bulk revenue growing 20% and gross profit rising 27%, driven by higher energy pass-through charges from their Bahamas operation.
The two new Cat Island desalination plants supplied potable water to the Water and Sewerage Corporation of The Bahamas, further contributing to these positive results. CWC's cost-reduction efforts helped lower General and Administrative (G&A) expenses across retail, bulk, and services segments.
However, in their services segment, savings from cost reductions were offset by a greater mix of construction revenue and a lower proportion of higher-margin O&M design and consulting revenue. A decline in Services O&M revenue followed the expiration of two contracts in Q1 2026. This setback was partially mitigated by a new municipal O&M contract in Southern California valued at approximately $4.5 million over three years.
In this services segment, construction revenue increased due to two previously announced water treatment projects – one in Colorado and another in California – which are scheduled for substantial completion this year. Furthermore, CWC received limited notice to proceed from their Hawaii client for a 1.7 million gallon per day seawater desalination plant project.
This authorization allows the company to begin procuring long-lead materials and equipment with an approximate value of $6 million, supporting expectations that construction will start later this year. CWC's recent announcement of purchase orders totaling approximately $10.1 million for municipal water treatment equipment in Florida has further demonstrated their manufacturing capabilities.
Chief Accounting Officer Doug Pizzini highlighted the company's financial details during the call, noting revenue totaled $32.9 million for Q2 2026, a 2% decrease from the same period in 2025 due to lower manufacturing revenue. Despite this decline, retail revenue remained relatively consistent at $8.7 million and was influenced by the increase in water sales volume and rate charged to a major non-potable customer.
