Consolidated Water Co. Ltd. Q4 FY2025 earnings call

• Retail water operations growth in 2025 driven by Cayman Islands economy and low rainfall, with record water sold and customers. • Caribbean bulk segment had slight revenue decline but higher profitability due to cost control. • Services segment revenue decrease due to project delays and consulting revenue drop, but O&M contract revenue increased. • Manufacturing segment improved revenue and gross margin, with new facility enhancing efficiency. • Hawaii project: 100% design completed, focused on obtaining permits; deferral of construction shifted revenue recognition; anticipate construction to resume later in 2026. • Awarded new water treatment plant construction projects in Colorado and Northern California; Perkwater's projects and CDR program details. • Florida manufacturing facility expansion to handle more production volume and pursue municipal water projects.

Retail water operations: Revenue increased 6.6% to $33.6 million in 2025, driven by Cayman Islands economy and low rainfall; volume of water sold and number of customers reached records. Caribbean-based bulk segment: Revenue slightly declined due to lower fuel-related charges passed through, but profitability in dollars and gross profit percentage increased due to lower costs of revenue. Services segment: Revenue decreased in 2025, mainly due to completion of major projects in 2024, Lowell and Hawaii project delays, and lesser extent non-recurring consulting revenue decrease; offset partially by 9% increase in O&M contract revenue. Manufacturing segment: Revenue increased by 1.1 million or 6% to $18.7 million, and continued to improve gross margin; completion of new 17,500 square foot facility enhanced efficiency and throughput.

• Anticipate construction of Hawaii project to recommence later this year, which will substantially add to revenue and earnings growth in later periods. • Revenue from newly awarded projects in Colorado and Northern California expected to be realized primarily in 2026. • Expect growth in manufacturing segment due to increased bidding activity for municipal water projects in Florida, with contributions likely in 2027.

• Permitting delays for Hawaii project, which is a complex multi-agency process and could impact schedule. • Uncertainty regarding the resolution of negotiations for the renewal of the retail license on Grand Cayman. • Tourism and weather conditions in areas served could impact sales. • Economic, political, and social conditions in countries where business is conducted could affect operations.

Q: Questions about Hawaii Desal project permit responsibility, timeline post-historical permit, and O&M revenue pipeline.

A: Client is responsible for historical permit; other permits are more straightforward but timing is open-ended; there are big O&M opportunities being chased.

Q: Questions about energy cost recovery in bulk services, federal contract renewal, and municipal vs private projects.

A: Energy cost recovery is monthly; federal contract is being given to a municipal entity; focus is on municipal projects, especially in Florida for drinking water expansion.

Q: Questions about new market opportunities for manufacturing segment.

A: Focus on municipal RO system market and nuclear market, with nuclear products used domestically and globally