Consolidated Water Co. Ltd. Q4 FY2024 earnings call

• Strong retail water sales in Grand Cayman with record volume and customers due to population/business growth.
• Bulk segment revenue/gross profit consistent, Bahamas revenue down due to reduced energy pass-through, offset by new O&M contract for Red Gate II plant.
• Services revenue declined due to completed construction projects, but recurring O&M revenue increased via REC subsidiary and PERC.
• Hawaii seawater desalination project advanced, expected to start construction early next year, with construction phase impacting revenue/earnings in 2026-2027.
• Cayman Water received new concession, working on new operating license; West Bay plant expansion near completion.

Retail segment: Revenue increased almost $1.6 million to $31.7 million for the year due to a 4.5% increase in water sold volume, reflecting a 4.3% increase in customer accounts. Bulk segment: Revenue declined slightly from $34.6 million in 2023 to $33.7 million in 2024 due to lower energy prices for CW-Bahamas. Services segment: Revenue declined by 48% due to completion of large construction projects in 2023, but recurring revenue from O&M contracts increased 51% to $29.3 million, with REC subsidiary and PERC contributing. Manufacturing segment: Revenue increased slightly to $17.6 million. Gross profit in 2024 was $45.6 million, 34% of total revenue compared to $61.9 million, 34% in 2023.

• Construction revenue expected to remain below 2023 until Hawaii project commences, but Hawaii construction phase to boost revenue/earnings in 2026-2027.
• O&M business sees growth potential in Colorado and California.
• Manufacturing business expected to continue positive trend with expansion of facility, enhancing capacity later in 2025.
• Currently constructing/negotiating $20 million in construction projects, expected to impact revenue/profit in remainder of 2025 and early 2026.

• Regulatory changes, including negotiations for new operating license in Cayman.
• Tourism and weather conditions in areas served impacting business.
• Economic, political, and social conditions in countries where business is conducted.
• Uncertainties related to the Hawaii desalination project's timeline and regulatory approvals.