Financial Performance - Revenue for Q3 2025 was $35,118,706, an increase of 5.2% compared to $33,390,557 in Q3 2024[13] - Gross profit for Q3 2025 reached $12,945,909, up from $11,634,658 in Q3 2024, reflecting a gross margin improvement[13] - Net income from continuing operations attributable to stockholders was $5,569,564 for Q3 2025, compared to $4,957,318 in Q3 2024, representing a 12.3% increase[13] - Total revenue for the nine months ended September 30, 2025, was $102,425,170, a slight increase from $105,559,105 in the same period of 2024[62][63] - Gross profit for the nine months ended September 30, 2025, was $38,084,181, compared to $37,132,895 in 2024, reflecting a growth of approximately 2.56%[62][63] - Net income attributable to Consolidated Water Co. Ltd. stockholders for the nine months ended September 30, 2025, was $15,419,578, down from $26,779,069 in 2024, indicating a decrease of about 42.5%[62][63] - Basic earnings per share for continuing operations was $0.35 in Q3 2025, compared to $0.31 in Q3 2024[13] - Net income from continuing operations for 2025 was $5,569,564, or $0.34 per share on a fully diluted basis, compared to $4,957,318, or $0.31 per share for 2024[132] Assets and Liabilities - Total assets increased to $257,234,652 as of September 30, 2025, up from $243,313,181 at the end of 2024[11] - Total liabilities rose to $31,033,818 as of September 30, 2025, compared to $28,003,534 at the end of 2024[11] - Cash and cash equivalents increased to $123,554,648 as of September 30, 2025, from $99,350,121 at the end of 2024[11] - Total stockholders' equity increased to $226,200,834 as of September 30, 2025, compared to $215,309,647 at the end of 2024[11] - The company reported total segment assets of $257,097,724 as of September 30, 2025, an increase from $243,040,696 as of December 31, 2024[66] Cash Flow and Investments - Net cash provided by operating activities for continuing operations was $36,390,479 for the nine months ended September 30, 2025, compared to $38,689,596 for the same period in 2024, indicating a decline of about 6%[19] - The company reported a net cash used in investing activities of $(6,045,599) for the nine months ended September 30, 2025, compared to a net cash provided of $29,960,751 in 2024[19] - Total cash flows from operating activities, including discontinued operations, were $35,932,833 for the nine months ended September 30, 2025, down from $37,257,555 in 2024[19] - The balance of cash and cash equivalents at the beginning of the period was $99,350,121 for the nine months ended September 30, 2025, compared to $42,621,898 for the same period in 2024[19] Dividends and Shareholder Returns - The company declared dividends of $0.14 per common share in Q3 2025, up from $0.11 in Q3 2024[13] - Dividends paid to common shareholders increased to $5,718,080 in 2025 from $4,519,412 in 2024, representing an increase of approximately 27%[19] - The company paid approximately $2.3 million in dividends in October 2025, with future dividends dependent on earnings and financial condition[177][199] Segment Performance - Retail revenue for the three months ended September 30, 2025, was $7,770,344, compared to $7,585,992 in 2024, reflecting an increase of about 2.4%[35] - Services revenue for the three months ended September 30, 2025, was $14,289,315, up from $12,677,837 in 2024, indicating a growth of approximately 12.7%[35] - Manufacturing revenue for the three months ended September 30, 2025, reached $4,664,433, compared to $4,359,560 in 2024, marking an increase of about 7%[35] - Retail segment revenue increased to $25,819,712 in 2025 from $24,392,814 in 2024, reflecting a 9% increase in the volume of water sold[160] - Services segment revenue decreased to $14,289,315 for 2025 from $12,677,837 for 2024, primarily due to a decline in construction revenue[142] - Manufacturing segment revenue increased to $15,708,527 in 2025 from $13,591,154 for 2024, attributed to increased production activity[169] Operational Efficiency and Cost Management - The company continues to focus on operational efficiency and cost management strategies to enhance profitability moving forward[57] - General and administrative expenses for Q3 2025 totaled $7,218,722, compared to $6,955,969 in Q3 2024, marking an increase of about 3.8%[61][59] - General and administrative expenses increased to $22,522,919 in 2025 from $20,126,292 in 2024, representing an increase of approximately 11.9%[64][63] Discontinued Operations - The company reported a net loss from discontinued operations of $37,220 in Q3 2025, compared to a net loss of $502,854 in Q3 2024, indicating an improvement[57][59] - The company reported a net loss from discontinued operations of $252,857 in 2025, compared to a net income of $10,637,926 in 2024[62][63] - The discontinued operations related to the Mexico project reported a loss of $37,220 for the three months ended September 30, 2025, compared to a loss of $502,854 in the same period of 2024[78] Future Outlook and Strategic Initiatives - The company plans to continue pursuing opportunities in the desalination sector, as evidenced by the ongoing developments related to the Mexico project[69] - Future outlook and strategies for market expansion and new product development were not explicitly mentioned in the provided content, suggesting potential areas for further exploration in upcoming reports[62][63] - The company is currently evaluating the impact of new accounting standards issued by the FASB, including ASU 2024-03 and ASU 2025-01, which may affect future financial reporting[98][99]

Market Overview - Wall Street's major indexes have reached multiple all-time closing highs recently, but the market has experienced volatility due to economic uncertainties [1][5] - The tech sector, particularly driven by AI optimism, has seen fluctuations, with significant pullbacks in stock prices due to concerns over high valuations [2][6] Economic Concerns - Investors are worried about the health of the economy, particularly with a shrinking labor market and fewer jobs being added [7] - Layoffs surged in October, totaling 153,074, which is a 183% increase sequentially and a 175% increase year-over-year [8] - The ongoing government shutdown has limited access to fresh economic data, contributing to investor uncertainty [9] Defensive Investment Recommendations - In light of market volatility, it is advisable to consider defensive stocks, particularly from the utilities sector, which are characterized by low beta values and high dividend yields [3][4][12] - Five recommended low-beta utility stocks include: - **Atmos Energy Corporation (ATO)**: Expected earnings growth of 6%, beta of 0.73, and a dividend yield of 2.02% [10][11] - **American States Water Company (AWR)**: Expected earnings growth of 4.1%, beta of 0.64, and a dividend yield of 2.72% [13][14] - **Consolidated Water Co. Ltd. (CWCO)**: Expected earnings growth of 0.9%, beta of 0.51, and a dividend yield of 1.61% [15][16] - **Entergy Corporation (ETR)**: Expected earnings growth of 6.9%, beta of 0.63, and a dividend yield of 2.49% [17][18] - **Duke Energy Corporation (DUK)**: Expected earnings growth of 7.3%, beta of 0.45, and a dividend yield of 3.44% [18][19]

Core Insights - Consolidated Water Co. Ltd. has secured an $11.7 million contract to construct a wastewater recycling plant in the San Francisco Bay Area, which will have a capacity of 200,000 gallons per day and 600,000 gallons of treated water storage [1][2] Company Overview - Consolidated Water Co. Ltd. specializes in developing and operating advanced water supply and treatment plants, including seawater desalination facilities in various regions [6][7] - The company is currently engaged in a $204 million design-build-operate project for a seawater desalination plant in Hawaii [6] Project Details - The contract was awarded to PERC Water Corporation, a subsidiary of Consolidated Water, which focuses on water infrastructure in the Southwestern U.S. [2] - The plant will utilize membrane bioreactor technology to treat untreated wastewater, producing high-quality recycled water suitable for irrigation [2][3] - Key design features include the use of precast concrete basins and prefabricated equipment, which are expected to lower construction costs and expedite the project timeline [2] Environmental Impact - The wastewater recycling plant is projected to save 36 to 38 million gallons of potable water annually, thereby reducing dependence on local freshwater resources [3] Management Commentary - The CEO of Consolidated Water, Rick McTaggart, noted that this contract is part of a larger strategy, with three design and/or build projects totaling over $20 million expected in 2025 [4] - The company attributes its success in securing the contract to competitive pricing, extensive permitting experience, and a fast-tracked construction schedule [4]

Core Viewpoint - Consolidated Water Co. Ltd. will hold a conference call on November 11, 2025, to discuss its third-quarter financial results for the period ending September 30, 2025 [1][2]. Company Overview - Consolidated Water Co. Ltd. specializes in designing, building, and operating advanced water supply and treatment plants, including seawater desalination facilities in the Cayman Islands, The Bahamas, and the British Virgin Islands [3]. - The company is currently engaged in a $204 million design-build-operate project for a seawater desalination plant in Hawaii [3]. - In addition to its core operations, the company manufactures and services a variety of products and provides design, engineering, management, and operational services related to commercial and municipal water production, supply, treatment, and industrial water and wastewater treatment [3]. Conference Call Details - The conference call is scheduled for November 11, 2025, at 11:00 a.m. Eastern time, with a toll-free dial-in number of 1-844-875-6913 and an international dial-in number of 1-412-317-6709 [2]. - A replay of the call will be available after 1:00 p.m. Eastern time on the same day through November 18, 2025, with a toll-free replay number of 1-877-344-7529 [3].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Consolidated Water (CWCO) - CWCO currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance [3] Performance Metrics - Over the past week, CWCO shares increased by 0.45%, while the Zacks Utility - Water Supply industry rose by 3.33% [5] - In the last quarter, CWCO shares rose by 15.45%, and over the past year, they increased by 32.21%, significantly outperforming the S&P 500, which rose by 6.67% and 15.74% respectively [6] - The average 20-day trading volume for CWCO is 103,793 shares, indicating a bullish sign if the stock continues to rise on above-average volume [7] Earnings Outlook - In the past two months, one earnings estimate for CWCO has increased, raising the consensus estimate from $1.05 to $1.13 for the full year [9] - For the next fiscal year, one estimate has also moved upwards, with no downward revisions noted [9] Conclusion - Given the strong performance metrics and positive earnings outlook, CWCO is identified as a solid momentum pick with a Momentum Score of A and a Zacks Rank of 2 (Buy) [11]

Group 1 - Consolidated Water (CWCO) closed at $34.23, reflecting a +1.84% increase from the previous day, outperforming the S&P 500's gain of 1.56% [1] - The company's shares gained 1.2% over the past month, underperforming the Utilities sector's 1.93% gain but outperforming the S&P 500's 0.41% increase [1] Group 2 - Upcoming financial results are expected to show an EPS of $0.24, a decline of 22.58% year-over-year, with revenue anticipated at $32.8 million, down 1.77% from the same quarter last year [2] - For the full year, earnings are projected at $1.13 per share and revenue at $133.33 million, representing changes of +0.89% and -0.48% respectively from the prior year [3] Group 3 - Recent analyst estimate revisions indicate a positive trend, with a 2.41% increase in the Zacks Consensus EPS estimate over the last 30 days, and the company currently holds a Zacks Rank of 2 (Buy) [5][3] - The Zacks Rank system has shown a strong track record, with 1 ranked stocks yielding an average annual return of +25% since 1988 [5] Group 4 - Consolidated Water has a Forward P/E ratio of 29.66, which is a premium compared to the industry average Forward P/E of 22.7 [6] - The Utility - Water Supply industry is currently ranked 23 in the Zacks Industry Rank, placing it in the top 10% of over 250 industries [6][7]

Group 1 - Consolidated Water (CWCO) stock closed at $33.13, reflecting a -1.1% change from the previous day's closing price, underperforming the S&P 500, which lost 0.38% [1] - The stock has decreased by 0.06% over the past month, while the Utilities sector gained 2.46% and the S&P 500 increased by 4.06% [1] Group 2 - The upcoming earnings release is anticipated, with expected EPS of $0.24, representing a 22.58% decline from the prior-year quarter, and revenue forecasted at $32.8 million, indicating a 1.77% decrease year-over-year [2] - For the annual period, earnings are projected at $1.13 per share and revenue at $133.33 million, reflecting changes of +0.89% and -0.48% respectively from the previous year [3] Group 3 - Recent modifications to analyst estimates are crucial, as they reflect short-term business trends, with positive revisions indicating analyst optimism regarding business and profitability [4] - Adjustments in estimates are linked to stock price performance, and the Zacks Rank system has been established to leverage these changes for operational ratings [5] Group 4 - The Zacks Rank system ranges from 1 (Strong Buy) to 5 (Strong Sell), with 1 stocks averaging an annual return of +25% since 1988; currently, Consolidated Water holds a Zacks Rank of 2 (Buy) [6] - Over the last 30 days, the Zacks Consensus EPS estimate has increased by 2.41% [6] Group 5 - Consolidated Water is trading at a Forward P/E ratio of 29.56, which is a premium compared to the industry average Forward P/E of 21.55 [7] - The Utility - Water Supply industry ranks in the top 6% of all industries, with a current Zacks Industry Rank of 14 [7] Group 6 - The Zacks Industry Rank evaluates the strength of industry groups by calculating the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [8]

Company Overview - Consolidated Water Co. Ltd. is a leading designer, builder, and operator of advanced water supply and treatment plants, with operations in the Cayman Islands, The Bahamas, and the British Virgin Islands, as well as in the United States [6] - The company is currently engaged in a $204 million design-build-operate project for a seawater desalination plant in Hawaii [6] New Board Appointments - The company announced the appointment of three new independent directors: Kim Adamson, Maria Elena Giner, and Gerónimo Gutiérrez Fernández, effective October 1, 2025 [1] - Kim Adamson brings nearly 30 years of experience in the water industry, including leadership roles in public water utilities and notable companies [2] - Maria Elena Giner has over 35 years of executive leadership experience in water infrastructure and capital planning, having administered a capital program exceeding $1 billion [3] - Gerónimo Gutiérrez Fernández has a strong background in infrastructure development and financing, having served as Mexico's ambassador to the U.S. and as Managing Director of the North American Development Bank [4] Corporate Governance Enhancement - The addition of the new directors is part of the company's ongoing initiatives to strengthen corporate governance and enhance expertise related to its business [5] - Board Chairman Wil Pergande expressed confidence that the new members will enhance the Board's capabilities and assist in executing strategies to increase shareholder value [5]

Economic Overview - Consumer confidence fell to 94.2 in September, a decline of 3.6 points month over month, missing the consensus estimate of 96 [4] - The Present Situation Index dropped 7 points to 125.4, indicating a negative assessment of current business and labor market conditions [4] - Short-term expectations for income, business conditions, and employment declined to 74.8, with readings below 80 suggesting a higher risk of recession [5] - Concerns over a shrinking labor market have negatively impacted consumer confidence, with job availability assessments declining for nine consecutive months [5] - High prices of goods, exacerbated by tariffs, continue to pressure consumer spending, while inflation remains a concern [6] Investment Recommendations - It is advisable to invest in safe-haven defensive stocks from the utility sector, including Atmos Energy Corporation (ATO), Consolidated Water Co. Ltd. (CWCO), NorthWestern Energy Group, Inc. (NWE), and Northwest Natural Holding Company (NWN), all carrying a Zacks Rank 2 (Buy) [2] - Recommended stocks are categorized as low-beta (beta greater than 0 but less than 1), suggesting a focus on low-beta stocks with high dividend yields and favorable Zacks Ranks [3] Company Profiles - **Atmos Energy Corporation (ATO)**: Engaged in regulated natural gas distribution and storage, serving approximately 3.3 million customers across eight states. Expected earnings growth rate is 7.3% for the current year, with a current dividend yield of 2.05% and a beta of 0.75 [7][8] - **Consolidated Water Co. Ltd. (CWCO)**: Focuses on seawater desalination and water distribution in areas with scarce potable water. Expected earnings growth rate is 0.9% for the current year, with a current dividend yield of 1.60% and a beta of 0.58 [9][10] - **NorthWestern Energy Group, Inc. (NWE)**: Provides reliable energy to customers in Montana, South Dakota, and Nebraska. Expected earnings growth rate is 5.6% for the current year, with a current dividend yield of 4.54% and a beta of 0.40 [11][12] - **Northwest Natural Holding Company (NWN)**: Builds and maintains natural gas distribution systems, serving residential, commercial, and industrial customers. Expected earnings growth rate is 25.3% for the current year, with a current dividend yield of 4.37% and a beta of 0.59 [13][14]

Core Insights - The average brokerage recommendation (ABR) for Consolidated Water (CWCO) is 1.67, indicating a position between Strong Buy and Buy, with 66.7% of recommendations being Strong Buy [2][14] - The Zacks Consensus Estimate for CWCO's earnings has increased by 6.3% over the past month to $1.12, reflecting analysts' growing optimism about the company's earnings prospects [13] Brokerage Recommendations - The ABR is calculated based on recommendations from three brokerage firms, with two out of three recommending Strong Buy [2] - Brokerage recommendations may not effectively guide investors, as studies indicate they often lack success in identifying stocks with high potential for price appreciation [5][10] Zacks Rank Comparison - Zacks Rank categorizes stocks from 1 (Strong Buy) to 5 (Strong Sell) and is based on earnings estimate revisions, which are strongly correlated with near-term stock price movements [8][11] - The Zacks Rank for CWCO is 2 (Buy), influenced by the recent increase in consensus earnings estimates [14] Timeliness and Freshness - The ABR may not always be up-to-date, while the Zacks Rank reflects timely revisions in earnings estimates, providing a more current indicator of future price movements [12]