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Consolidated Water Co Ltd (CWCO) Q4 2024 Earnings Call Highlights: Navigating Revenue ...

In This Article:

  • Revenue: $134 million in 2024, down from $180 million in 2023.

  • Retail Revenue: Increased by $1.6 million to $31.7 million due to a 4.5% increase in water volume sold.

  • Bulk Segment Revenue: Declined from $34.6 million in 2023 to $33.7 million in 2024.

  • Services Revenue: Decreased from $77.3 million in 2023 to $17.6 million in 2024.

  • O&M Contracts Revenue: Increased by 51% to $29.3 million in 2024.

  • Manufacturing Segment Revenue: Increased slightly to $17.6 million.

  • Gross Profit: $45.6 million or 34% of total revenue in 2024, compared to $61.9 million or 34% in 2023.

  • Net Income from Continuing Operations: $17.9 million or $1.12 per diluted share in 2024, compared to $30.7 million or $1.93 per diluted share in 2023.

  • Net Income Including Discontinued Operations: $28.2 million or $1.77 per diluted share in 2024, compared to $29.6 million or $1.86 per diluted share in 2023.

  • Cash Equivalents: Increased by $57 million to $99.4 million.

  • Working Capital: Increased by $44 million to $132.8 million.

  • Stockholders' Equity: $210 million.

  • Capital Expenditures for 2025: Approximately $10.3 million.

  • Dividends Paid: Approximately $6.3 million.

Release Date: March 18, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Consolidated Water Co Ltd (NASDAQ:CWCO) reported strong retail water sales and a record volume of water sold in Grand Cayman, driven by population and business growth.

  • The company successfully completed two major design-build projects early in the year, contributing to expected revenue and operating income.

  • Recurring revenue from operations and maintenance contracts increased significantly, with a 51% rise over the previous year.

  • The acquisition of the REC subsidiary in Colorado provided a new channel for business expansion into water-stressed regions.

  • The Hawaii seawater desalination project is advancing, with construction expected to begin next year, potentially boosting revenue and earnings in 2026 and 2027.

Negative Points

  • Overall revenue decreased from $180 million in 2023 to $134 million in 2024, primarily due to a decline in service segment revenue.

  • Net income from continuing operations attributable to shareholders dropped from $30.7 million in 2023 to $17.9 million in 2024.

  • The Bahamas business experienced a revenue decline due to reduced energy pass-through charges, impacting overall financial performance.

  • Construction revenue and services saw a significant decline due to the completion of major projects, affecting total revenue.

  • The Hawaii project faced delays not caused by the company, pushing the expected construction start to the following year.