GET DAILY SIGNALSConsolidated Water (CWCO) Reports Mixed Third-Quarter Results with Utility Strength Offset by Project Timing
Key Takeaways
- Consolidated Water reported third-quarter 2026 revenue of $30.9 million, down 11.9% from $35.1 million a year earlier and below the roughly $32.1 million consensus estimate.
- Net income attributable to stockholders was $2.3 million, or $0.14 per diluted share, down from $5.5 million, or $0.34 per share, in the prior-year quarter and short of the $0.23–$0.24 consensus.
- Retail revenue rose 5.7% to $8.2 million and bulk revenue climbed 20.8% to $10.1 million, while services revenue fell 31.7% to $9.8 million and manufacturing revenue dropped 39.7% to $2.8 million.
- The company ended the quarter with $129.2 million in cash and cash equivalents, supporting continued investment in growth projects.
- After quarter-end, Consolidated Water announced an approximately $39.8 million design-build agreement with the City of Pismo Beach, California.
Putting the Quarter in Context
Consolidated Water Co. Ltd. runs a diversified water business that includes regulated utility operations, design and construction services, operations and maintenance, and manufacturing in the Cayman Islands, The Bahamas, the British Virgin Islands, and the United States. This quarter offers a useful test of whether the steadier utility segments can balance out the more variable project-driven work in services and manufacturing. After strong manufacturing results in 2025 and beats in five of the prior eight quarters, the latest report shows a split picture: core water supply held steady while timing issues in higher-margin project areas pulled down overall revenue and earnings.
Breaking Down the Reported Numbers
For the three months ended September 30, 2026, CWCO posted total revenue of $30.9 million, an 11.9% drop from $35.1 million in the year-earlier period. Net income attributable to stockholders reached $2.3 million, or $0.14 per diluted share, versus $5.5 million, or $0.34 per diluted share, a year ago. Both top- and bottom-line figures missed consensus estimates of about $32.1 million in revenue and $0.23–$0.24 per share.
Segment performance told two different stories. Retail revenue grew 5.7% to $8.2 million on higher volumes, and bulk revenue advanced 20.8% to $10.1 million. Those gains were more than offset by a 31.7% decline in services revenue to $9.8 million and a 39.7% drop in manufacturing revenue to $2.8 million, both tied to project timing and a softer production mix. The company closed the quarter with $129.2 million in cash and cash equivalents, leaving the balance sheet in solid shape with low debt.
Market Reaction and What Investors Are Weighing
Sentiment had already turned cautious before the release, with the stock trading near its 52-week low in early November 2026 and the consensus rating sitting at “Hold.” The earnings miss is likely to keep near-term focus on project timing in services and manufacturing. At the same time, the steady performance in retail and bulk operations, the healthy cash balance, and the new California design-build award provide some offset that could limit downside pressure. Investors appear to be balancing the immediate shortfall against a longer-term infrastructure pipeline that continues to build.
Forward Outlook and Items to Watch
Several elements will influence how the story develops from here. Construction timing remains central, particularly around the seawater desalination plant in Kalaeloa, Hawaii, which management has flagged as a key driver for revenue and earnings in 2026 and 2027. Milestones such as permitting and notice-to-proceed will be worth tracking.
The manufacturing segment also merits attention. After record levels in 2025, output has eased, and full-year 2026 manufacturing revenue is expected to fall short of the prior peak. Watching whether nuclear and municipal orders rebuild backlog and margins will be useful. On the utility side, retail volumes remain sensitive to rainfall in the Cayman Islands, while bulk results are affected by fuel pass-through and energy costs.
The recently announced $39.8 million Pismo Beach agreement and roughly $10.1 million in Florida municipal equipment orders point to a stronger project backlog heading into 2027. With substantial cash and minimal debt, CWCO has room to pursue acquisitions or expand, including potential moves into Florida. I’m watching closely to see how effectively that balance-sheet strength translates into diversified growth.
Refining My Analysis with Tickeron Tools
I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry. The dedicated promo section about Tickeron AI tools is placed here as required. AI Screener helps me quickly filter stocks by fundamentals, technical patterns, and AI signals, giving a clearer view of relative performance without manual effort. It is a practical addition to my regular review process when evaluating names like this one.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
CWCO sees its Stochastic Oscillator ascends from oversold territory
On November 06, 2026, the Stochastic Oscillator for CWCO moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 57 instances where the indicator left the oversold zone. In 44 of the 57 cases the stock moved higher in the following days. This puts the odds of a move higher at over 77%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where CWCO's RSI Indicator exited the oversold zone, 15 of 20 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 75%.
Following a +1.78% 3-day Advance, the price is estimated to grow further. Considering data from situations where CWCO advanced for three days, in 217 of 293 cases, the price rose further within the following month. The odds of a continued upward trend are 74%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on November 05, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on CWCO as a result. In 43 of 77 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 56%.
The Moving Average Convergence Divergence Histogram (MACD) for CWCO turned negative on October 16, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In 20 of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at 45%.
CWCO moved below its 50-day moving average on October 14, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for CWCO crossed bearishly below the 50-day moving average on October 21, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 10 of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 67%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CWCO declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 62%.
The Aroon Indicator for CWCO entered a downward trend on November 06, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 35 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 84, placing this stock slightly better than average.
The Tickeron PE Growth Rating for this company is 68 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 71 (best 1 - 100 worst), indicating slightly worse than average price growth. CWCO’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 78 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 80 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.932) is normal, around the industry mean (1.884). P/E Ratio (26.950) is within average values for comparable stocks, (24.184). Projected Growth (PEG Ratio) (2.350) is also within normal values, averaging (3.694). Dividend Yield (0.021) settles around the average of (0.033) among similar stocks. P/S Ratio (3.570) is also within normal values, averaging (4.350).
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Fundamental Analysis Ratings
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General Information
a developer of seawater desalination plants, and water distribution systems
Industry WaterUtilities
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