Consolidated Water raises dividend by 27.3% to $0.14/share

GEORGE TOWN, Cayman Islands - Consolidated Water Co. Ltd. (NASDAQ:CWCO), a prominent water supply and treatment plant operator, has announced a significant increase in its quarterly cash dividend. The company declared a dividend of $0.14 per share for the third quarter of 2025, marking a 27.3% rise from the previous quarter’s dividend of $0.11 per share. This dividend is set to be paid on July 31, 2025, to shareholders on record as of July 1, 2025. According to InvestingPro data, CWCO has maintained dividend payments for 29 consecutive years, with a 15.8% dividend growth over the last twelve months.

The decision to increase the dividend follows a period of strong financial performance across the company’s various segments, including retail, bulk, and manufacturing, which has led to enhanced cash flows and liquidity. Rick McTaggart, the president and CEO of Consolidated Water, attributed the dividend hike to the company’s solid financial results, the cash influx from a settlement of the Mexico arbitration last year, and a positive outlook for the company’s services segment. InvestingPro analysis shows the company maintains a strong financial position with more cash than debt on its balance sheet and an impressive current ratio of 5.72, indicating robust liquidity. The company’s overall financial health score is rated as GREAT by InvestingPro analysts.

In the first quarter of 2025, Consolidated Water reported revenues of $33.7 million and earnings per share of $0.30. With a market capitalization of $430 million and analyst price targets ranging between $38-39, InvestingPro’s Fair Value analysis suggests the stock is currently undervalued. The company is engaged in the design, construction, and operation of seawater desalination facilities primarily in the Cayman Islands, The Bahamas, and the British Virgin Islands, as well as water treatment and reuse facilities in the United States. It is currently involved in a $204 million project to build and operate a seawater desalination plant in Hawaii.

The company also manufactures and services a variety of products and offers a range of services, including design, engineering, management, and operations, catering to commercial and municipal water production and supply, as well as industrial water and wastewater treatment.

This announcement is based on a press release statement from Consolidated Water Co. Ltd. The increase in dividend reflects the company’s commitment to delivering value to its shareholders and its confidence in the continued growth and financial stability of the business.

In other recent news, Consolidated Water reported a significant miss in its fourth-quarter 2024 earnings, with earnings per share (EPS) at $0.12, falling short of the anticipated $0.29. The company’s revenue also missed expectations, coming in at $28.41 million compared to the forecasted $33.6 million. This earnings shortfall has raised concerns among investors about the company’s ability to meet future earnings expectations. Despite these challenges, Consolidated Water has increased its cash reserves and working capital, maintaining a strong balance sheet. In a separate development, the company announced progress in its Hawaii desalination project, which received approval from the Honolulu Board of Water Supply. This $204 million project is expected to be a key revenue driver in the coming years. Additionally, Consolidated Water is focusing on infrastructure expansion and strategic acquisitions, with the construction phase of the Hawaii project anticipated to impact revenue in 2026-2027. The company is also expanding its operations and maintenance business, which contributed to an increase in recurring revenue.

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