CWCO Q1 2026 Earnings Transcript

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DATE

Monday, May 18, 2026 astatine 11 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Frederick W. McTaggart

• Chief Financial Officer — David W. Sasnett

Full Conference Call Transcript

Frederick W. McTaggart: And bully morning, everyone. In Q1, consolidated gross declined owed to gross declines successful our manufacturing and retail segments. Manufacturing gross was little owed to the timing of receipt of caller acquisition orders for 26 projects compared to past year. We had received a ample acquisition bid successful precocious 24 which had favorably impacted our archetypal 4th gross past year. Retail gross was impacted by overmuch wetter upwind conditions this past quarter, which reduced the h2o measurement we sold successful Grand Cayman by 10.2%. This alteration was partially offset by what turned retired to beryllium grounds breaking tourism successful the Cayman Islands during the quarter.

However, gross successful our bulk and work segments continued to turn this past quarter, which partially offset the diminution successful our different 2 operating segments. Gross nett and operating income successful our bulk and services segments besides accrued underscoring the unchangeable recurring quality of our Caribbean based bulk h2o concern and the momentum successful our O&M services. Our services conception gross summation was chiefly owed to a 15% summation successful gross from O&M contracts. The O&M gross summation was partially owed to gross from a caller municipal lawsuit successful Southern California, which contracted with america successful November. Under a 3-year contract, it is expected to make astir $4.5 cardinal successful gross implicit the adjacent 3 years.

Now earlier getting into much caller developments and our outlook for the remainder of the twelvemonth and beyond, I would similar to crook the telephone implicit to our CFO, David W. Sasnett, who volition instrumentality america done the fiscal details for the quarter.

David W. Sasnett: 1, our 2026 gross totaled $30 million. This is down 11% from the archetypal 4th of past year. This gross alteration was owed to declines of $4.4 cardinal successful our manufacturing conception revenue, and $834 1000 successful our retail conception revenue. These decreases were partially offset by increases of $133 1000 successful the bulk conception and $1.2 cardinal successful the work segment. Our retail gross decreased owed to a 10.2% alteration successful the measurement of h2o sold. The alteration for the Q1 of this twelvemonth resulted from importantly greater rainfall connected Grand Cayman during the quarter, arsenic Q1 2020 rainfall was good beneath humanities norms for the island.

The flimsy summation successful our bulk gross was chiefly owed to caller gross from CW Bahamas caller island, Cat Island plant. The summation successful services conception gross chiefly owed to gross generated nether O&M contracts that totaled $8.9 cardinal for the 2026, an summation of 15% from the 2025. A information of the summation successful O&M gross is attributable to the caller 3-year declaration mentioned antecedently by Rick for a California municipality obtained by PERC successful November. In addition, astir $500 1000 of the gross summation was owed to further operation enactment and attraction services completed successful 2026 for an O&M declaration that expired astatine March 2026. Our operation gross remained comparatively accordant astatine $2.1 cardinal for the 2026.