Consolidated Water Co. Ltd. reported a decline in revenue and profitability for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, total revenue was $33.4 million, down from $49.9 million in the prior year. This decline was primarily attributed to a significant drop in services revenue, which fell to $12.7 million from $29.4 million, largely due to reduced construction revenue. Gross profit for the quarter also decreased to $11.6 million, representing 35% of total revenue, compared to $16.6 million (33% of total revenue) in 2023.

Net income from continuing operations for Q3 2024 was $5.1 million, down from $9.0 million in Q3 2023. Net income attributable to stockholders decreased to $4.5 million ($0.28 per share) from $8.6 million ($0.54 per share) in the same quarter last year. For the nine months ended September 30, 2024, total revenue was $105.6 million, a decrease from $127.0 million in 2023. However, net income attributable to stockholders increased to $26.8 million ($1.68 per share) from $19.7 million ($1.24 per share) in the prior year, driven by gains from discontinued operations.

The company’s cash and cash equivalents significantly increased to $104.9 million as of September 30, 2024, compared to $42.6 million at the end of 2023. This increase was bolstered by net cash provided by operating activities, which reached $37.3 million for the nine months ended September 30, 2024, compared to $8.4 million in the same period of 2023. Notably, the company recognized $33.3 million in proceeds from a settlement agreement related to a discontinued project in Mexico.

Strategically, Consolidated Water Co. Ltd. made two significant acquisitions: it acquired a 100% ownership interest in Ramey Environmental Compliance, Inc. for approximately $4.1 million, and in January 2023, it purchased the remaining 39% interest in PERC for $2.4 million in cash and shares. The company also signed a definitive agreement to construct a seawater reverse osmosis desalination plant in Oahu, Hawaii, further expanding its operational footprint.

Despite these strategic moves, the company faces challenges, including increased general and administrative expenses, which rose to $20.1 million in 2024 from $17.9 million in 2023, primarily due to the integration of REC's expenses. Additionally, the company is navigating potential restructuring of its retail license in the Cayman Islands, which could impact future operating income and cash flows.