The following is a summary of the Consolidated Water Co. Ltd. (CWCO) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Consolidated Water Co. Ltd. reported Q3 2024 revenue of $33.4 million, a 33% decrease from the previous year primarily due to a $20.6 million decrease in construction revenue.

• Net income from continuing operations was $5 million, or $0.31 per diluted share.

• Bulk segment revenue remained consistent, but gross margin increased due to new contracts.

• Retail revenue increased slightly due to a 4.2% increase in water volume sold and a 4.8% increase in customer connections.

• Operations and maintenance contracts revenue increased by 49% to $7.5 million for the quarter.

Business Progress:

• Consolidated Water advanced through piloting, design, and permitting for a $147 million seawater desalination project in Honolulu, Hawaii, with construction expected to begin late next year.

• The company completed two significant design-build projects earlier this year and saw an increase in retail water sales in the Grand Cayman.

• There was expansion into Colorado through the acquisition of REC, creating new opportunities for design-build and operations and maintenance businesses in water-stressed regions.

Opportunities:

• The new business channel in Colorado through REC provides opportunities for expansion in water-stressed regions.

• The $147 million project in Hawaii for seawater desalination represents a significant long-term revenue and earnings growth potential.

Risks:

• Seasonal fluctuations affect quarterly retail revenues, with Q4 generally expected to be weaker.

• The company faces competition in its expansion into the Family Islands in the Bahamas.

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