Consolidated Water Co. Ltd. 10-Q

ITEM 1. FINANCIAL STATEMENTS ​ CONSOLIDATED WATER CO. LTD. CONDENSED CONSOLIDATED BALANCE SHEETS ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ ​ December 31, ​ ​ ​ ​ ​ 2026 ​ ​ 2025 ​ ​ (Unaudited) ​ ​ ​ ASSETS ​ ​ ​ ​ Current assets ​ ​ ​ ​ Cash and cash equivalents ​ $ 126,331,873 ​ $ 123,788,390 Accounts receivable, net ​ 36,232,930 ​ 32,768,537 Inventory ​ 4,323,265 ​ 3,736,845 Prepaid expenses and other current assets ​ 4,560,239 ​ 5,927,675 Contract assets ​ 1,293,848 ​ 3,290,815 Current assets of discontinued operations ​ 131,954 ​ 124,630 Total current assets ​ ​ 172,874,109 ​ 169,636,892 Property, plant and equipment, net ​ 56,708,697 ​ 55,151,758 Construction in progress ​ 5,144,291 ​ 6,695,656 Inventory, noncurrent ​ 5,586,869 ​ 5,563,142 Investment in affiliates ​ 1,049,083 ​ 1,186,849 Goodwill ​ 12,861,404 ​ 12,861,404 Intangible assets, net ​ 2,029,129 ​ 2,101,555 Operating lease right-of-use assets ​ ​ 2,712,619 ​ ​ 2,930,441 Other assets ​ 1,189,321 ​ 1,437,648 Total assets ​ $ 260,155,522 ​ $ 257,565,345 ​ ​ ​ ​ ​ ​ ​ LIABILITIES AND EQUITY ​ ​ ​ ​ Current liabilities ​ ​ ​ ​ Accounts payable, accrued expenses and other current liabilities ​ $ 9,619,209 ​ $ 9,620,880 Accrued compensation ​ 2,747,410 ​ 3,039,142 Dividends payable ​ 2,280,461 ​ 2,285,317 Current maturities of operating leases ​ ​ 619,659 ​ ​ 661,047 Current portion of long-term debt ​ ​ 16,804 ​ ​ 47,549 Contract liabilities ​ 12,875,169 ​ 11,528,634 Deferred revenue ​ ​ 179,546 ​ ​ 248,719 Current liabilities of discontinued operations ​ 271,067 ​ 271,159 Total current liabilities ​ 28,609,325 ​ 27,702,447 Long-term debt, noncurrent ​ ​ 4,555 ​ ​ 25,954 Deferred tax liabilities ​ 487,747 ​ 707,444 Noncurrent operating leases ​ ​ 2,146,943 ​ ​ 2,297,161 Other liabilities ​ 153,000 ​ 153,000 Total liabilities ​ 31,401,570 ​ 30,886,006 Commitments and contingencies ​ ​ ​ ​ Equity ​ ​ ​ ​ Consolidated Water Co. Ltd. stockholders' equity ​ ​ ​ ​ Redeemable preferred stock, $ 0.60 par value. Authorized 200,000 shares; issued and outstanding 38,923 and 39,507 shares, respectively ​ 23,354 ​ 23,704 Common stock, $ 0.60 par value. Authorized 24,800,000 shares; issued and outstanding 16,000,190 and 15,945,233 shares, respectively ​ 9,600,114 ​ 9,567,140 Additional paid-in capital ​ 95,666,040 ​ 95,310,630 Retained earnings ​ 118,279,492 ​ 116,749,048 Total Consolidated Water Co. Ltd. stockholders' equity ​ 223,569,000 ​ 221,650,522 Non-controlling interests ​ 5,184,952 ​ 5,028,817 Total equity ​ 228,753,952 ​ 226,679,339 Total liabilities and equity ​ $ 260,155,522 ​ $ 257,565,345 ​ The accompanying notes are an integral part of these condensed consolidated financial statements. 4 Table of Contents ​ CONSOLIDATED WATER CO. LTD. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ 2026 ​ ​ ​ 2025 Revenue ​ $ 29,973,700 ​ $ 33,715,385 Cost of revenue ​ 19,057,687 ​ 21,409,098 Gross profit ​ 10,916,013 ​ 12,306,287 General and administrative expenses ​ 7,419,068 ​ 7,723,959 Gain (loss) on asset dispositions, net ​ ( 57,205 ) ​ 28,435 Income from operations ​ 3,439,740 ​ 4,610,763 ​ ​ ​ ​ ​ ​ ​ Other income (expense): ​ ​ ​ ​ Interest income ​ 647,228 ​ 616,594 Interest expense ​ ( 2,736 ) ​ ( 1,528 ) Equity in the earnings of affiliates ​ 51,609 ​ 30,474 Other ​ 43,465 ​ 43,351 Other income, net ​ 739,566 ​ 688,891 Income before income taxes ​ 4,179,306 ​ 5,299,654 Provision for income taxes ​ 202,700 ​ 210,117 Net income from continuing operations ​ 3,976,606 ​ 5,089,537 Income from continuing operations attributable to non-controlling interests ​ 156,135 ​ 165,427 Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders ​ 3,820,471 ​ 4,924,110 Net loss from discontinued operations ​ ​ ( 43,042 ) ​ ​ ( 133,081 ) Net income attributable to Consolidated Water Co. Ltd. stockholders ​ $ 3,777,429 ​ $ 4,791,029 ​ ​ ​ ​ ​ ​ ​ Basic earnings (loss) per common share attributable to Consolidated Water Co. Ltd. common stockholders ​ ​ ​ ​ Continuing operations ​ $ 0.24 ​ $ 0.31 Discontinued operations ​ ​ — ​ ​ ( 0.01 ) Basic earnings per share ​ $ 0.24 ​ $ 0.30 ​ ​ ​ ​ ​ ​ ​ Diluted earnings (loss) per common share attributable to Consolidated Water Co. Ltd. common stockholders ​ ​ ​ ​ Continuing operations ​ $ 0.24 ​ $ 0.31 Discontinued operations ​ ​ — ​ ​ ( 0.01 ) Diluted earnings per share ​ $ 0.23 ​ $ 0.30 ​ ​ ​ ​ ​ ​ ​ Dividends declared per common and redeemable preferred shares ​ $ 0.14 ​ $ 0.11 ​ ​ ​ ​ ​ ​ ​ Weighted average number of common shares used in the determination of: ​ ​ ​ ​ Basic earnings per share ​ 16,000,081 ​ 15,915,867 Diluted earnings per share ​ 16,107,053 ​ 16,041,847 ​ The accompanying notes are an integral part of these condensed consolidated financial statements. ​ 5 Table of Contents CONSOLIDATED WATER CO. LTD. CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Redeemable ​ ​ ​ ​ ​ ​ Additional ​ ​ ​ ​ Non- ​ Total ​ ​ ​ ​ preferred stock ​ ​ ​ Common stock ​ ​ ​ paid-in ​ ​ ​ Retained ​ ​ ​ controlling ​ ​ ​ stockholders’ ​ ​ ​ ​ Shares ​ ​ ​ Dollars ​ ​ ​ Shares ​ ​ ​ Dollars ​ ​ ​ capital ​ ​ ​ earnings ​ ​ ​ interests ​ ​ ​ equity Balance as of December 31, 2025 ​ 39,507 ​ $ 23,704 ​ 15,945,233 ​ $ 9,567,140 ​ $ 95,310,630 ​ $ 116,749,048 ​ $ 5,028,817 ​ $ 226,679,339 Issue of share capital — ​ — 54,761 ​ 32,857 ​ ( 32,857 ) ​ — ​ — ​ — Conversion of preferred stock ( 196 ) ​ ( 117 ) 196 ​ 117 ​ — ​ — ​ — ​ — Buyback of preferred stock ( 388 ) ​ ( 233 ) — ​ — ​ ( 7,631 ) ​ — ​ — ​ ( 7,864 ) Net income — ​ — — ​ — ​ — ​ 3,777,429 ​ 156,135 ​ 3,933,564 Dividends declared — ​ — — ​ — ​ — ​ ( 2,246,985 ) ​ — ​ ( 2,246,985 ) Stock-based compensation — ​ — — ​ — ​ 395,898 ​ — ​ — ​ 395,898 Balance as of March 31, 2026 38,923 ​ $ 23,354 16,000,190 ​ $ 9,600,114 ​ $ 95,666,040 ​ $ 118,279,492 ​ $ 5,184,952 ​ $ 228,753,952 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Redeemable ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ ​ ​ ​ ​ ​ ​ ​ Non- ​ ​ ​ Total ​ ​ preferred stock ​ Common stock ​ paid-in ​ Retained ​ controlling ​ stockholders’ ​ ​ ​ ​ Shares ​ ​ ​ Dollars ​ ​ ​ Shares ​ ​ ​ Dollars ​ ​ ​ capital ​ ​ ​ earnings ​ ​ ​ interests ​ ​ ​ equity Balance as of December 31, 2024 ​ 44,004 ​ $ 26,402 ​ 15,846,345 ​ $ 9,507,807 ​ $ 93,550,905 ​ $ 106,875,581 ​ $ 5,348,952 ​ $ 215,309,647 Issue of share capital — ​ — 66,764 ​ 40,058 ​ ( 40,058 ) ​ — ​ — ​ — Conversion of preferred stock ( 2,486 ) ​ ( 1,492 ) 2,486 ​ 1,492 ​ — ​ — ​ — ​ — Buyback of preferred stock ( 688 ) ​ ( 412 ) — ​ — ​ ( 9,727 ) ​ — ​ — ​ ( 10,139 ) Net income — ​ — — ​ — ​ — ​ 4,791,029 ​ 165,427 ​ 4,956,456 Exercise of options ​ — ​ ​ — ​ 1,090 ​ ​ 654 ​ ​ 12,793 ​ ​ ​ ​ ​ ​ ​ ​ 13,447 Dividends declared — ​ — — ​ — ​ — ​ ( 1,757,183 ) ​ — ​ ( 1,757,183 ) Stock-based compensation — ​ — — ​ — ​ 299,371 ​ — ​ — ​ 299,371 Balance as of March 31, 2025 40,830 ​ $ 24,498 15,916,685 ​ $ 9,550,011 ​ $ 93,813,284 ​ $ 109,909,427 ​ $ 5,514,379 ​ $ 218,811,599 ​ The accompanying notes are an integral part of these condensed consolidated financial statements. ​ ​ 6 Table of Contents CONSOLIDATED WATER CO. LTD. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ 2026 ​ ​ ​ 2025 Cash flows from operating activities ​ ​ ​ ​ ​ Net income attributable to Consolidated Water Co. Ltd. stockholders ​ $ 3,777,429 ​ $ 4,791,029 Income from continuing operations attributable to non-controlling interests ​ ​ 156,135 ​ ​ 165,427 Net income ​ ​ 3,933,564 ​ ​ 4,956,456 Adjustments to reconcile net income to net cash provided by operating activities: ​ ​ ​ ​ Foreign currency transaction adjustment - discontinued operations ​ ​ — ​ ​ 251 Loss from discontinued operations ​ 43,042 ​ 132,830 Depreciation and amortization ​ 1,754,705 ​ 1,692,546 Deferred income tax benefit ​ ( 219,697 ) ​ ( 229,699 ) Provision for credit losses ​ ​ 8,365 ​ ​ 312,902 Amortization of operating lease right-of-use assets ​ ​ 217,822 ​ ​ 154,696 Compensation expense relating to stock and stock option grants ​ 395,898 ​ 299,371 (Gain) loss on asset dispositions, net ​ 57,205 ​ ( 28,435 ) Equity in earnings of affiliates ​ ( 51,609 ) ​ ( 30,474 ) Distribution of earnings from OC-BVI ​ 189,375 ​ 272,700 ​ ​ ​ ​ ​ ​ ​ Change in: ​ ​ ​ ​ Accounts receivable ​ ( 3,453,459 ) ​ 3,075,968 Contract assets ​ ​ 1,996,967 ​ ​ ( 5,047,425 ) Inventory ​ ( 748,201 ) ​ 1,467,930 Prepaid expenses and other assets ​ 1,564,843 ​ 1,060,228 Accounts payable, accrued expenses and other current liabilities ​ 105,199 ​ 561,421 Accrued compensation ​ ​ ( 291,732 ) ​ ​ 612,645 Contract liabilities ​ ​ 1,346,535 ​ ​ 3,275,143 Operating lease liabilities ​ ​ ( 191,606 ) ​ ​ ( 155,997 ) Deferred revenue ​ ​ ( 69,173 ) ​ ​ ( 219,063 ) Net cash provided by operating activities - continuing operations ​ ​ 6,588,043 ​ ​ 12,163,994 Net cash used in operating activities - discontinued operations ​ ( 44,362 ) ​ ( 403,743 ) Net cash provided by operating activities ​ ​ 6,543,681 ​ ​ 11,760,251 ​ ​ ​ ​ ​ ​ ​ Cash flows from investing activities ​ ​ ​ ​ Additions to property, plant and equipment and construction in progress ​ ( 1,686,223 ) ​ ( 1,599,481 ) Proceeds from asset dispositions ​ 3,970 ​ 31,200 Net cash used in investing activities ​ ​ ( 1,682,253 ) ​ ​ ( 1,568,281 ) ​ ​ ​ ​ ​ ​ ​ Cash flows from financing activities ​ ​ ​ ​ Dividends paid to common shareholders ​ ( 2,246,310 ) ​ ( 1,744,891 ) Dividends paid to preferred shareholders ​ ( 5,531 ) ​ ( 4,840 ) Buyback of redeemable preferred stock ​ ( 7,864 ) ​ ( 10,139 ) Proceeds received from exercise of stock options ​ ​ — ​ ​ 13,447 Principal repayments on long-term debt ​ ​ ( 52,144 ) ​ ​ ( 42,188 ) Net cash used in financing activities ​ ( 2,311,849 ) ​ ( 1,788,611 ) Net increase in cash and cash equivalents ​ 2,549,579 ​ 8,403,359 Cash and cash equivalents at beginning of period ​ 123,788,390 ​ 99,350,121 Cash and cash equivalents at beginning of period - discontinued operations ​ ​ 13,776 ​ ​ 127,859 Less: cash and cash equivalents at end of period - discontinued operations ​ ​ ( 19,872 ) ​ ​ ( 29,107 ) Cash and cash equivalents at end of period ​ $ 126,331,873 ​ $ 107,852,232 ​ ​ ​ ​ ​ ​ ​ Non-cash transactions: ​ ​ ​ ​ ​ ​ Dividends declared but not paid ​ $ 2,245,476 ​ $ 1,747,938 Transfers from inventory to property, plant and equipment and construction in progress ​ $ 138,054 ​ $ 187,409 Transfers from construction in progress to property, plant and equipment ​ $ 3,215,533 ​ $ 2,135,224 Transfers from prepaid expenses to property, plant and equipment ​ $ 6,082 ​ $ 144,533 Expenditures for property, plant and equipment and construction in progress not yet paid ​ $ 430,573 ​ $ — ​ The accompanying notes are an integral part of these condensed consolidated financial statements. ​ 7 Table of Contents CONSOLIDATED WATER CO. LTD. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. Principal activity Consolidated Water Co. Ltd. and its subsidiaries (collectively, the “Company”) supply potable water, treat wastewater and water for reuse, and provide water-related products and services to customers in the Cayman Islands, The Bahamas, the United States and the British Virgin Islands. The Company produces potable water from seawater using reverse osmosis technology and sells this water to a variety of customers, including public utilities, commercial and tourist properties, residential properties and government facilities. The Company designs, constructs and sells water production and water treatment infrastructure and manages water infrastructure for commercial and governmental customers. The Company also manufactures a wide range of specialized and custom water industry related products and provides design, engineering, operating and other services applicable to commercial, municipal and industrial water production, supply and treatment. ​ 2. Accounting policies Basis of consolidation: The accompanying condensed consolidated financial statements include the accounts of the Company’s (i) wholly-owned subsidiaries, Aerex Industries, Inc. (“Aerex”), Aquilex, Inc. (“Aquilex”), Cayman Water Company Limited (“Cayman Water”), Consolidated Water Cooperatief, U.A. (“CW-Cooperatief”), Consolidated Water U.S. Holdings, Inc. (“CW-Holdings”), DesalCo Limited (“DesalCo”), Kalaeloa Desalco LLC (“Kalaeloa Desalco”), Ocean Conversion (Cayman) Limited (“OC-Cayman”), PERC Water Corporation ("PERC") and Ramey Environmental Compliance, Inc. (“REC”); and (ii) majority-owned subsidiaries Consolidated Water (Bahamas) Ltd. (“CW-Bahamas”), N.S.C. Agua, S.A. de C.V. (“NSC”), and Aguas de Rosarito S.A.P.I. de C.V. (“AdR”). The Company’s investment in its affiliate Ocean Conversion (BVI) Ltd. (“OC-BVI”) is accounted for using the equity method of accounting. All significant intercompany balances and transactions have been eliminated in consolidation. The accompanying interim condensed consolidated financial statements are unaudited. These condensed consolidated financial statements reflect all adjustments (which are of a normal recurring nature) that, in the opinion of management, are necessary to fairly present the Company’s consolidated financial position, results of operations and cash flows as of and for the periods presented. The consolidated results of operations for these interim periods are not necessarily indicative of the operating results for future periods, including the fiscal year ending December 31, 2026. These condensed consolidated financial statements and notes are presented in accordance with the rules and regulations of the United States Securities and Exchange Commission (“SEC”) relating to interim financial statements and in conformity with accounting principles generally accepted in the United States of America (“US GAAP”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with US GAAP have been condensed or omitted in these condensed consolidated financial statements pursuant to SEC rules and regulations, although the Company believes that the disclosures made herein are adequate to make the information not misleading. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Foreign currency: The Company’s reporting currency is the United States dollar (“US$”). The functional currency of the Company and its foreign operating subsidiaries (other than NSC, AdR, and CW-Cooperatief) is the currency for each respective country. The functional currency for NSC, AdR, and CW-Cooperatief is the US$. NSC and AdR conduct business in US$ and Mexican pesos and CW-Cooperatief conducts business in US$ and euros. The exchange rates for the Cayman Islands dollar and the Bahamian dollar are fixed to the US$. The exchange rates for conversion of Mexican pesos and euros into US$ vary based upon market conditions. Net foreign currency gains arising from transactions and re-measurements were $ 34,836 and $ 29,642 for the three months ended March 31, 2026 and 2025, respectively and are included in “Other income (expense) - Other” in the accompanying condensed consolidated statements of income. 8 Table of Contents Cash and cash equivalents: Cash and cash equivalents consist of demand deposits at banks, certificates of deposit at banks with original maturity of three months or less and a money market fund with a brokerage firm. Cash and cash equivalents as of March 31, 2026 and December 31, 2025 include $ 17.1 million and $ 17.0 million, respectively, of certificates of deposits with original maturities of three months or less and $ 18.3 million and $ 18.1 million, respectively, in the money market fund. Certain transfers from the Company’s Bahamas bank accounts to Company bank accounts in other countries require the approval of the Central Bank of The Bahamas. The equivalent United States dollar cash balances held in The Bahamas as of March 31, 2026 and December 31, 2025 were approximately $ 11.9 million and $ 12.0 million, respectively. Goodwill and intangible assets: Goodwill represents the excess cost of an acquired business over the fair value of the assets and liabilities of the acquired business as of the date of acquisition. Goodwill and intangible assets recorded as a result of a business combination and determined to have an indefinite useful life are not amortized but are tested for impairment annually or upon the identification of a triggering event. Intangible assets with estimable useful lives are amortized over their respective estimated useful lives to their estimated residual values and reviewed periodically for impairment. The Company evaluates the possible impairment of goodwill annually as part of its reporting process for the fourth quarter of each fiscal year. Management identifies the Company’s reporting units for goodwill impairment testing purposes, which consist of Cayman Water, the bulk segment (which is comprised of CW-Bahamas and OC-Cayman), PERC, REC, and the manufacturing segment (i.e., Aerex), and determines the carrying value of each reporting unit by assigning the assets and liabilities, including the existing goodwill and intangible assets, to those reporting units. The Company determines the fair value of each reporting unit and compares these fair values to the carrying amounts of the reporting units. To the extent the carrying amount of a reporting unit exceeds the fair value of the reporting unit, an impairment loss is recorded. ​ For the year ended December 31, 2025, the Company elected to assess qualitative factors to determine whether it was necessary to perform quantitative goodwill impairment testing for its reporting units. The Company assessed the relevant events and circumstances to evaluate whether it is more likely than not that the fair values of such reporting units were less than their carrying values. The events and circumstances assessed for each reporting unit included macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, and other relevant information. Based upon this qualitative assessment, the Company determined that it is more likely than not that the fair values of its reporting units exceeded their carrying values as of December 31, 2025. ​ Income taxes: The Company accounts for the income taxes arising from the operations of its United States subsidiaries under the asset and liability method. Deferred tax assets and liabilities, if any, are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided to the extent any deferred tax asset may not be realized. ​ The Company is not presently subject to income taxes in the other countries in which it operates. ​ Revenue recognition: Revenue is recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. 9 Table of Contents The following table presents the Company’s revenue disaggregated by revenue source. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ ​ ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 Retail revenue ​ ​ $ 8,577,058 ​ $ 9,411,342 Bulk revenue ​ ​ 8,744,769 ​ 8,411,716 Services revenue ​ ​ 11,251,344 ​ 10,078,268 Manufacturing revenue ​ ​ 1,400,529 ​ 5,814,059 Total revenue ​ ​ $ 29,973,700 ​ $ 33,715,385 ​ Services revenue consists of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 Construction revenue ​ $ 2,101,137 ​ $ 2,218,230 Operations and maintenance revenue ​ 8,888,458 ​ 7,725,298 Design and consulting revenue ​ 261,749 ​ 134,740 Total services revenue ​ $ 11,251,344 ​ $ 10,078,268 ​ Retail revenue The Company produces and supplies water to end-users, including residential, commercial and governmental customers in the Cayman Islands under an exclusive retail license issued to Cayman Water by the Cayman Islands government to provide water in two of the three most populated areas on Grand Cayman. Customers are billed on a monthly basis based on metered consumption and bills are typically collected within 30 to 45 days after the billing date. Receivables not collected within 45 days subject the customer to disconnection from water service. ​ The Company recognizes revenue from retail water sales at the end of the billing cycle based on the water supplied to the customers’ premises. The amount of water supplied is determined and invoiced based upon water meter readings performed at the end of each month. All retail water contracts are month-to-month contracts. The Company has elected the “right to invoice” practical expedient for revenue recognition on its retail water sale contracts and recognizes revenue in the amount to which the Company has a right to invoice, recognizing this revenue from the transfer of goods or services to customers during the billing cycle. Bulk revenue The Company produces and supplies water to government-owned utilities in the Cayman Islands and The Bahamas. OC-Cayman provides bulk water to the Water Authority-Cayman (“WAC”), a government-owned utility and regulatory agency, under three agreements. The WAC in turn distributes such water to properties in Grand Cayman outside of Cayman Water’s retail license area. The Company sells bulk water in The Bahamas through its majority-owned subsidiary, CW-Bahamas, under two agreements with the Water and Sewerage Corporation of The Bahamas (“WSC”), which distributes such water through its own pipeline system to residential, commercial and tourist properties on the island of New Providence. The Company has elected the “right to invoice” practical expedient for revenue recognition on its bulk water sale contracts and recognizes revenue in the amount to which the Company has a right to invoice, recognizing this revenue from the transfer of goods or services to customers during the billing cycle. Services and Manufacturing revenue The Company designs, constructs, sells, operates and maintains, and provides consulting services related to water, wastewater and water reuse infrastructure through PERC. All of PERC's customers are companies or governmental entities 10 Table of Contents located in the United States. The Company provides operations and maintenance and consulting services to companies and governmental entities located in the state of Colorado through REC. The Company provides design, engineering, management, procurement and construction services for desalination infrastructure through DesalCo, which serves customers in the Cayman Islands, The Bahamas and the British Virgin Islands. The Company, through Aerex, is a custom and specialty manufacturer of systems and products applicable to commercial, municipal and industrial water production and treatment. Substantially all of Aerex’s customers are U.S. companies. Kalaeloa Desalco has signed a contract with the Honolulu Board of Water Supply pursuant to which it presently expects to construct and operate a 1.7 million gallons per day seawater reverse osmosis desalination plant in Oahu, Hawaii. The Company generates construction, operations and maintenance, design and consulting revenue from PERC and DesalCo; construction revenue from Kalaeloa Desalco; manufacturing revenue from Aerex; and operations and maintenance and consulting revenue from REC. The Company recognizes revenue for its construction and custom/specialized manufacturing contracts (and some of its design contracts) over time under the input method, using costs incurred (which represents work performed) to date relative to the total estimated costs at completion to measure progress toward satisfying a contract’s performance obligations as such measure best reflects the transfer of control of the promised good to the customer. Contract costs include labor, materials, subcontractor costs and other expenses. The Company follows this method since it can make reasonably dependable estimates of the revenue and costs applicable to the various stages of a contract. Under this input method, the Company records revenue and recognizes profit or loss as work on the contract progresses. The Company estimates total costs to be incurred and profit to be earned on each long-term, fixed price contract prior to the commencement of work on the contract and updates these estimates as work on the contract progresses. The cumulative amount of revenue recorded on a contract at a specified point in time is that percentage of total estimated revenue that incurred costs to date comprise of estimated total contract costs. Due to the extended time it may take to complete many of the Company’s contracts and the scope and nature of the work required to be performed on those contracts, the estimations of total revenue and costs at completion are complicated and subject to many variables and, accordingly, are subject to changes. When adjustments in estimated total contract revenue or estimated total contract costs are required, any changes from prior estimates are recognized in the current period for the inception-to-date effect of such changes. The Company recognizes the full amount of any estimated loss on a contract at the time the estimates indicate such a loss. Any contract assets are classified as current assets. Contract liabilities on uncompleted contracts, if any, are classified as current liabilities. The Company has elected the “right to invoice” practical expedient for revenue recognition on its operations and maintenance and consulting contracts and recognizes revenue in the amount to which the Company has a right to invoice, recognizing this revenue from the transfer of goods or services to customers during the billing cycle. ​ 11 Table of Contents For the three months ended March 31, 2026 and 2025, the Company recognized $ 2,210,163 and $ 2,180,261 , respectively, of its services revenue from the transfer of goods or services to customers over time. The remaining services revenue of $ 9,041,181 and $ 7,898,007 , respectively, was recognized from the transfer of goods or services to customers when invoiced. For the three months ended March 31, 2026 and 2025, the Company recognized all of its manufacturing revenue from the transfer of goods or services to customers over time. Revenue recognized and amounts billed on contracts in progress are summarized as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ ​ 2026 ​ 2025 Revenue recognized to date on contracts in progress ​ ​ ​ $ 115,143,750 ​ $ 127,237,229 Amounts billed to date on contracts in progress ​ ( 128,399,341 ) ​ ( 138,121,977 ) Retainage ​ ​ 1,674,270 ​ ​ 2,646,929 Net contract liability ​ $ ( 11,581,321 ) ​ $ ( 8,237,819 ) ​ The above net balances are reflected in the accompanying condensed consolidated balance sheets as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ ​ 2026 ​ 2025 Contract assets ​ ​ ​ $ 1,293,848 ​ ​ ​ $ 3,290,815 Contract liabilities ​ ( 12,875,169 ) ​ ( 11,528,634 ) Net contract liability ​ $ ( 11,581,321 ) ​ $ ( 8,237,819 ) ​ As of March 31, 2026, the Company had unsatisfied or partially unsatisfied performance obligations for contracts in progress representing approximately $ 148.7 million in aggregate transaction price for contracts with an original expected length of greater than one year . The Company expects to earn revenue as it satisfies its performance obligations under those contracts in the amount of approximately $ 26.4 million during the remainder of the year ending December 31, 2026 and approximately $ 122.3 million thereafter . In addition, the Company recognized revenue of approximately $ 653,000 for the three months ended March 31, 2026, that was included in the contract liability balance as of December 31, 2025. Practical Expedients and Exemptions The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed. ​ Comparative amounts: Certain amounts presented in the financial statements previously issued for 2025 have been reclassified to conform to the current period’s presentation . ​ 3. Segment information The Company has five reportable segments: retail, bulk, services, manufacturing and corporate. The retail segment operates the water utility for the Seven Mile Beach and West Bay areas of Grand Cayman pursuant to an exclusive license granted by the Cayman Islands government. The bulk segment supplies potable water to government utilities in Grand Cayman and The Bahamas under long-term contracts. The services segment designs, constructs and sells water infrastructure and provides management and operating services to third parties. The manufacturing segment manufactures and services a wide range of custom and specialized water-related products applicable to commercial, municipal and industrial water production, supply and treatment. The corporate segment consists of various expenses of a general and administrative nature incurred at the parent company level, as well as the expenses incurred by Aquilex, a U.S. subsidiary that provides financial, engineering, information technology, administrative and supply chain management support services to all the Company’s subsidiaries and its affiliate. Frederick W. McTaggart, Chief Executive Officer and President, is the Company’s chief operating decision maker (“CODM”). 12 Table of Contents ​ For the retail, bulk, services, and manufacturing segments, the CODM uses revenue, gross profit, and income before income taxes to assess segment performance and in deciding the allocation of resources to each segment. The CODM considers actual versus budget and current period versus prior period variances on a monthly, quarterly, and annual basis for each of these financial measures. The CODM also considers variances from the budget and the prior period for major corporate expenses (such as employee costs, insurance and professional fees) when making decisions regarding capital and resource allocation. ​ The accounting policies of the segments are consistent with those described in Note 2. All intercompany transactions are eliminated for segment presentation purposes. Intersegment revenue transactions are insignificant to the Company and are eliminated. ​ The Company’s segments are strategic business units that are managed separately because each segment sells different products and/or services, serves customers with distinctly different needs and generates different gross profit margins. ​ The following sets forth the Company’s income statements by segment. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, 2026 ​ Retail ​ ​ ​ Bulk ​ ​ ​ Services ​ ​ ​ Manufacturing ​ ​ ​ Corporate ​ ​ ​ Total Revenue ​ $ 8,577,058 ​ $ 8,744,769 ​ $ 11,251,344 ​ $ 1,400,529 ​ $ — ​ ​ ​ $ 29,973,700 Cost of revenue ​ 3,642,157 ​ 5,735,986 ​ 8,427,156 ​ 1,252,388 ​ — ​ 19,057,687 Gross profit ​ 4,934,901 ​ 3,008,783 ​ 2,824,188 ​ 148,141 ​ — ​ 10,916,013 General and administrative expenses ​ 902,607 ​ 404,223 ​ 1,785,996 ​ 485,908 ​ 3,840,334 ​ 7,419,068 Gain (loss) on asset dispositions, net ​ ( 76,754 ) ​ — ​ 19,549 ​ — ​ — ​ ( 57,205 ) Income (loss) from operations ​ ​ 3,955,540 ​ ​ 2,604,560 ​ ​ 1,057,741 ​ ​ ( 337,767 ) ​ ​ ( 3,840,334 ) ​ 3,439,740 Interest income ​ 46,233 ​ 177,507 ​ 239,875 ​ 1 ​ ​ 183,612 ​ ​ 647,228 Interest expense ​ ​ — ​ ​ — ​ ​ ( 2,736 ) ​ ​ — ​ ​ — ​ ​ ( 2,736 ) Income (loss) from affiliates ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 8,634 ) ​ ​ 60,243 ​ ​ 51,609 Other ​ ​ 25,858 ​ ​ 10,023 ​ ​ 1 ​ ​ 7,468 ​ ​ 115 ​ ​ 43,465 Other income (loss), net ​ ​ 72,091 ​ ​ 187,530 ​ ​ 237,140 ​ ​ ( 1,165 ) ​ ​ 243,970 ​ ​ 739,566 Income (loss) before income taxes ​ 4,027,631 ​ 2,792,090 ​ 1,294,881 ​ ( 338,932 ) ​ ​ ( 3,596,364 ) ​ 4,179,306 Provision for income taxes ​ — ​ — ​ 316,049 ​ ( 113,349 ) ​ ​ — ​ 202,700 Net income (loss) from continuing operations ​ 4,027,631 ​ 2,792,090 ​ 978,832 ​ ( 225,583 ) ​ ​ ( 3,596,364 ) ​ 3,976,606 Income from continuing operations attributable to non-controlling interests ​ — ​ 156,135 ​ — ​ — ​ ​ — ​ 156,135 Net income (loss) from continuing operations attributable to Consolidated Water Co. Ltd. stockholders ​ $ 4,027,631 ​ $ 2,635,955 ​ $ 978,832 ​ $ ( 225,583 ) ​ $ ( 3,596,364 ) ​ 3,820,471 Net loss from discontinued operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 43,042 ) Net income attributable to Consolidated Water Co. Ltd. stockholders ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 3,777,429 ​ 13 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, 2025 ​ ​ ​ ​ Retail ​ ​ ​ Bulk ​ ​ ​ Services ​ ​ ​ Manufacturing ​ ​ ​ Corporate ​ ​ ​ Total Revenue ​ $ 9,411,342 ​ $ 8,411,716 ​ $ 10,078,268 ​ $ 5,814,059 ​ $ — ​ $ 33,715,385 Cost of revenue ​ 3,706,063 ​ 5,584,089 ​ 8,061,877 ​ 4,057,069 ​ — ​ 21,409,098 Gross profit ​ 5,705,279 ​ 2,827,627 ​ 2,016,391 ​ 1,756,990 ​ — ​ 12,306,287 General and administrative expenses ​ 788,812 ​ 346,081 ​ 2,195,338 ​ 664,078 ​ 3,729,650 ​ 7,723,959 Gain on asset dispositions, net ​ 29,976 ​ — ​ ( 1,541 ) ​ — ​ — ​ 28,435 Income (loss) from operations ​ ​ 4,946,443 ​ ​ 2,481,546 ​ ​ ( 180,488 ) ​ ​ 1,092,912 ​ ​ ( 3,729,650 ) ​ 4,610,763 Interest income ​ 32,866 ​ 204,103 ​ 143,319 ​ 1 ​ ​ 236,305 ​ ​ 616,594 Interest expense ​ ​ — ​ ​ — ​ ​ ( 1,528 ) ​ ​ — ​ ​ — ​ ​ ( 1,528 ) Income from affiliate ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 34,004 ) ​ ​ 64,478 ​ ​ 30,474 Other ​ ​ 28,308 ​ ​ 14,933 ​ ​ 36 ​ ​ 74 ​ ​ — ​ ​ 43,351 Other income, net ​ ​ 61,174 ​ ​ 219,036 ​ ​ 141,827 ​ ​ ( 33,929 ) ​ ​ 300,783 ​ ​ 688,891 Income (loss) before income taxes ​ 5,007,617 ​ 2,700,582 ​ ( 38,661 ) ​ 1,058,983 ​ ​ ( 3,428,867 ) ​ 5,299,654 Provision (benefit) for income taxes ​ — ​ — ​ ( 35,893 ) ​ 246,010 ​ ​ — ​ 210,117 Net income (loss) from continuing operations ​ 5,007,617 ​ 2,700,582 ​ ( 2,768 ) ​ 812,973 ​ ​ ( 3,428,867 ) ​ 5,089,537 Income from continuing operations attributable to non-controlling interests ​ — ​ 165,427 ​ — ​ — ​ ​ — ​ 165,427 Net income (loss) from continuing operations attributable to Consolidated Water Co. Ltd. stockholders ​ $ 5,007,617 ​ $ 2,535,155 ​ $ ( 2,768 ) ​ $ 812,973 ​ $ ( 3,428,867 ) ​ 4,924,110 Net loss from discontinued operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ( 133,081 ) Net income attributable to Consolidated Water Co. Ltd. stockholders ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 4,791,029 ​ The Company’s cost of revenue consists of: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, 2026 ​ ​ Retail ​ Bulk ​ Services ​ Manufacturing ​ Corporate ​ Total Subcontractor and other project costs ​ ​ ​ $ — ​ ​ ​ $ 28,750 ​ ​ ​ $ 3,844,014 ​ ​ ​ $ 486,801 ​ ​ ​ $ — ​ ​ ​ $ 4,359,565 Employee costs ​ ​ 794,138 ​ ​ 463,911 ​ ​ 4,249,394 ​ ​ 551,528 ​ ​ — ​ ​ 6,058,971 Electricity ​ ​ 1,149,186 ​ ​ 1,051,071 ​ ​ 28,177 ​ ​ 10,286 ​ ​ — ​ ​ 2,238,720 Fuel oil ​ ​ — ​ ​ 1,841,765 ​ ​ — ​ ​ — ​ ​ — ​ ​ 1,841,765 Depreciation ​ ​ 646,251 ​ ​ 750,339 ​ ​ 107,527 ​ ​ 75,530 ​ ​ — ​ ​ 1,579,647 Maintenance ​ ​ 185,834 ​ ​ 719,967 ​ ​ 132,870 ​ ​ 89,881 ​ ​ — ​ ​ 1,128,552 Insurance ​ ​ 184,570 ​ ​ 309,137 ​ ​ 17,969 ​ ​ — ​ ​ — ​ ​ 511,676 Retail license royalties ​ ​ 533,611 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 533,611 Other ​ ​ 148,567 ​ ​ 571,046 ​ ​ 47,205 ​ ​ 38,362 ​ ​ — ​ ​ 805,180 ​ ​ $ 3,642,157 ​ $ 5,735,986 ​ $ 8,427,156 ​ $ 1,252,388 ​ $ — ​ $ 19,057,687 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, 2025 ​ ​ ​ ​ Retail ​ ​ ​ Bulk ​ ​ ​ Services ​ ​ ​ Manufacturing ​ ​ ​ Corporate ​ ​ ​ Total Subcontractor and other project costs ​ $ — ​ $ — ​ $ 3,457,402 ​ $ 3,284,142 ​ $ — ​ $ 6,741,544 Employee costs ​ ​ 757,868 ​ ​ 543,300 ​ ​ 4,270,363 ​ ​ 589,221 ​ ​ — ​ ​ 6,160,752 Electricity ​ ​ 1,173,586 ​ ​ 1,043,386 ​ ​ 33,027 ​ ​ 10,803 ​ ​ — ​ ​ 2,260,802 Fuel oil ​ ​ — ​ ​ 1,820,056 ​ ​ — ​ ​ — ​ ​ — ​ ​ 1,820,056 Depreciation ​ ​ 613,884 ​ ​ 689,516 ​ ​ 90,598 ​ ​ 38,862 ​ ​ — ​ ​ 1,432,860 Maintenance ​ ​ 220,625 ​ ​ 401,642 ​ ​ 127,517 ​ ​ 99,955 ​ ​ — ​ ​ 849,739 Insurance ​ ​ 171,534 ​ ​ 451,607 ​ ​ 26,284 ​ ​ — ​ ​ — ​ ​ 649,425 Retail license royalties ​ ​ 598,086 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 598,086 Other ​ ​ 170,480 ​ ​ 634,582 ​ ​ 56,686 ​ ​ 34,086 ​ ​ — ​ ​ 895,834 ​ ​ $ 3,706,063 ​ $ 5,584,089 ​ $ 8,061,877 ​ $ 4,057,069 ​ $ — ​ $ 21,409,098 ​ Cost of revenue segment expenses set forth in the “Other” category above primarily include chemicals and other supplies, government fees and licenses, and freight costs. ​ 14 Table of Contents The Company’s general and administrative expenses consist of: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, 2026 ​ ​ Retail ​ Bulk ​ Services ​ Manufacturing ​ Corporate ​ Total Employee costs ​ ​ ​ $ 455,334 ​ ​ ​ $ 89,387 ​ ​ ​ $ 1,193,487 ​ ​ ​ $ 301,272 ​ ​ ​ $ 2,158,045 ​ ​ ​ $ 4,197,525 Professional fees ​ ​ 12,174 ​ ​ 19,291 ​ ​ 178,530 ​ ​ 31,800 ​ ​ 635,780 ​ ​ 877,575 Insurance ​ ​ 126,116 ​ ​ 97,216 ​ ​ 33,662 ​ ​ 61,647 ​ ​ 211,213 ​ ​ 529,854 Depreciation and amortization ​ ​ 10,875 ​ ​ 5,509 ​ ​ 64,649 ​ ​ 27,325 ​ ​ 21,862 ​ ​ 130,220 Other ​ ​ 298,108 ​ ​ 192,820 ​ ​ 315,668 ​ ​ 63,864 ​ ​ 813,434 ​ ​ 1,683,894 ​ ​ $ 902,607 ​ $ 404,223 ​ $ 1,785,996 ​ $ 485,908 ​ $ 3,840,334 ​ $ 7,419,068 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, 2025 ​ ​ ​ ​ Retail ​ ​ ​ Bulk ​ ​ ​ Services ​ ​ ​ Manufacturing ​ ​ ​ Corporate ​ ​ ​ Total Employee costs ​ $ 380,860 ​ $ 88,809 ​ $ 1,002,379 ​ $ 341,560 ​ $ 2,173,287 ​ $ 3,986,895 Professional fees ​ ​ 15,162 ​ ​ 21,265 ​ ​ 340,000 ​ ​ 67,562 ​ ​ 624,690 ​ ​ 1,068,679 Insurance ​ ​ 103,871 ​ ​ 97,009 ​ ​ 37,100 ​ ​ 84,809 ​ ​ 214,949 ​ ​ 537,738 Depreciation and amortization ​ ​ 10,580 ​ ​ 5,327 ​ ​ 155,691 ​ ​ 26,179 ​ ​ 17,071 ​ ​ 214,848 Other ​ ​ 278,339 ​ ​ 133,671 ​ ​ 660,168 ​ ​ 143,968 ​ ​ 699,653 ​ ​ 1,915,799 ​ ​ $ 788,812 ​ $ 346,081 ​ $ 2,195,338 ​ $ 664,078 ​ $ 3,729,650 ​ $ 7,723,959 ​ General and administrative segment expenses set forth in the “Other” category above primarily include Board of Directors fees and expenses, maintenance, office rent, information technology costs, provisions for credit losses and investor relations costs. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Company’s segment assets are presented below. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of March 31, 2026 ​ ​ ​ ​ Retail ​ ​ ​ Bulk ​ ​ ​ Services ​ ​ ​ Manufacturing ​ ​ ​ Corporate ​ ​ ​ Total Cash and cash equivalents ​ $ 19,503,888 ​ $ 21,530,737 ​ $ 48,211,853 ​ $ 8,924,163 ​ $ 28,161,232 ​ $ 126,331,873 Accounts receivable, net ​ $ 3,502,908 ​ $ 24,013,912 ​ $ 7,749,049 ​ $ 750,325 ​ $ 216,736 ​ $ 36,232,930 Inventory, current and non-current ​ $ 3,527,327 ​ $ 4,968,830 ​ $ 713,584 ​ $ 700,393 ​ $ — ​ $ 9,910,134 Contract assets ​ $ — ​ $ — ​ $ 275,167 ​ $ 1,018,681 ​ $ — ​ $ 1,293,848 Property, plant and equipment, net ​ $ 31,800,384 ​ $ 18,535,396 ​ $ 1,542,516 ​ $ 4,628,571 ​ $ 201,830 ​ $ 56,708,697 Construction in progress ​ $ 2,003,223 ​ $ 3,035,105 ​ $ — ​ $ 105,963 ​ $ — ​ $ 5,144,291 Intangibles, net ​ $ — ​ $ — ​ $ 1,578,017 ​ $ 451,112 ​ $ — ​ $ 2,029,129 Goodwill ​ $ 1,170,511 ​ $ 1,948,875 ​ $ 7,756,807 ​ $ 1,985,211 ​ $ — ​ $ 12,861,404 Total segment assets ​ $ 63,162,430 ​ $ 75,010,440 ​ $ 71,171,318 ​ $ 18,922,778 ​ $ 31,756,602 ​ $ 260,023,568 Assets of discontinued operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 131,954 Total assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 260,155,522 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2025 ​ ​ ​ ​ ​ Retail ​ ​ ​ Bulk ​ ​ ​ Services ​ ​ ​ Manufacturing ​ ​ ​ Corporate ​ ​ ​ Total Cash and cash equivalents ​ $ 15,693,394 ​ $ 20,343,683 ​ $ 46,444,679 ​ $ 6,620,358 ​ $ 34,686,276 ​ $ 123,788,390 Accounts receivable, net ​ $ 3,274,109 ​ $ 20,882,114 ​ $ 6,364,226 ​ $ 2,240,036 ​ $ 8,052 ​ $ 32,768,537 Inventory, current and non-current ​ $ 3,555,946 ​ $ 4,999,261 ​ $ 24,178 ​ $ 720,602 ​ $ — ​ $ 9,299,987 Contract assets ​ $ — ​ $ — ​ $ 1,144,943 ​ $ 2,145,872 ​ $ — ​ $ 3,290,815 Property, plant and equipment, net ​ $ 32,371,991 ​ $ 16,284,441 ​ $ 1,666,099 ​ $ 4,608,544 ​ $ 220,683 ​ $ 55,151,758 Construction in progress ​ $ 1,348,572 ​ $ 5,316,061 ​ $ — ​ $ 31,023 ​ $ — ​ $ 6,695,656 Intangibles, net ​ $ — ​ $ — ​ $ 1,627,110 ​ $ 474,445 ​ $ — ​ $ 2,101,555 Goodwill ​ $ 1,170,511 ​ $ 1,948,875 ​ $ 7,756,807 ​ $ 1,985,211 ​ $ — ​ $ 12,861,404 Total segment assets ​ $ 59,410,635 ​ $ 71,300,554 ​ $ 69,172,997 ​ $ 19,454,784 ​ $ 38,101,745 ​ $ 257,440,715 Assets of discontinued operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 124,630 Total assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 257,565,345 ​ ​ ​ 4. Earnings per share ​ Earnings per share (“EPS”) is computed on a basic and diluted basis. Basic EPS is computed by dividing net income (less preferred stock dividends) available to common stockholders by the weighted average number of common shares outstanding during the period. The computation of diluted EPS assumes the issuance of common shares for all potential 15 Table of Contents common shares outstanding during the reporting period and, if dilutive, the effect of stock options as computed under the treasury stock method. ​ The following summarizes information related to the computation of basic and diluted EPS: ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ 2026 ​ ​ ​ 2025 Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders ​ $ 3,820,471 ​ $ 4,924,110 Less: preferred stock dividends ​ ( 5,449 ) ​ ( 4,491 ) Net income from continuing operations available to common shares in the determination of basic earnings per common share ​ 3,815,022 ​ 4,919,619 Loss from discontinued operations ​ ( 43,042 ) ​ ( 133,081 ) Net income available to common shares in the determination of basic earnings per common share ​ $ 3,771,980 ​ $ 4,786,538 ​ ​ ​ ​ ​ ​ ​ Weighted average number of common shares in the determination of basic earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders ​ 16,000,081 ​ 15,915,867 Plus: ​ ​ ​ ​ Weighted average number of preferred shares outstanding during the period ​ 39,252 ​ 41,712 Potential dilutive effect of unexercised options and unvested stock grants ​ 67,720 ​ 84,268 Weighted average number of shares used for determining diluted earnings per common share attributable to Consolidated Water Co. Ltd. common stockholders ​ 16,107,053 ​ 16,041,847 ​ ​ 5. Discontinued operations - Mexico project development ​ In 2010, the Company began the pursuit, through its Netherlands subsidiary, CW-Cooperatief, and its Mexico subsidiary, NSC, of a project (the “Project”) that encompassed the construction, operation and minority ownership of a 100 million gallons per day seawater reverse osmosis desalination plant to be located in northern Baja California, Mexico and accompanying pipelines to deliver water to the Mexican potable water system.Through a series of transactions that began in 2012, NSC purchased 20.1 hectares of land for approximately $ 21.1 million on which the proposed Project’s plant was to be constructed. ​ In November 2015, the State of Baja California (the “State”) officially commenced a public tender for the Project, and in June 2016 a consortium comprised of NSC and two other parties was selected by the State as the winner of the tender process for the Project. Shortly thereafter, NSC formed its wholly owned subsidiary, AdR, to pursue the completion of the Project. ​ Following a public tender process for the Project in which NSC and its consortium were declared the winners, in August, 2016, the Public Private Partnership Agreement for the Project (the “APP Contract”) was executed between AdR, the State Water Commission of Baja, California (“CEA”), and the Government of Baja California, as represented by the Secretary of Planning and Finance and the Public Utilities Commission of Tijuana (“CESPT”). The APP Contract required AdR to design, construct, finance and operate a seawater reverse osmosis desalination plant (and accompanying aqueduct) with a capacity of up to 100 million gallons per day in two phases: the first with a capacity of 50 million gallons per day and an aqueduct to the Mexican public water system in Tijuana, Baja California and the second phase with a capacity of 50 million gallons per day. The APP Contract further provided that AdR would operate and maintain the plant and aqueduct for a period of 37 years starting from the commencement of operation of the first phase. ​ In June 2020, AdR received a letter from CEA and CESPT terminating the APP Contract. ​ CW-Cooperatief, as a Netherlands company, had certain rights relating to its investments in NSC and AdR under the Agreement on Promotion, Encouragement and Reciprocal Protection of Investments between the Kingdom of the Netherlands and the United Mexican States entered into force as of October 1, 1999 (the “Treaty”). In February 2022, 16 Table of Contents CW-Cooperatief filed a Request for Arbitration with the International Centre for Settlement of International Disputes (“ICSID”) requesting that the United Mexican States pay CW-Cooperatief damages in excess of US$ 51 million plus MXN$ 137 million (with the exact amount to be quantified in the proceedings), plus fees, costs and pre- and post-award interest. ​ In May 2024, the Company, through CW-Cooperatief, NSC, and AdR, entered into a settlement agreement (the “Settlement Agreement”) with the State and Banco Nacional de Obras y Servicios Públicos, S.N.C., as trustee under the trust agreement for the trust named Fondo Nacional de Infraestructura (the “Trust”). Under the Settlement Agreement, CW-Cooperatief requested that ICSID discontinue the arbitration and on May 31, 2024, ICSID issued an order discontinuing the arbitration. Pursuant to the Settlement Agreement, the Trust purchased the 20.1 hectares of land on which the Project’s plant was to be constructed, including related rights of way (the “Land”), on an “as-is” basis, from NSC for MXN$ 596,144,000 . The sale of the Land to the Trust was closed on June 14, 2024 at which time the MXN$ 596,144,000 was paid to the Company and converted at the prevailing exchange rate on that date into US$ 31,959,685 . ​ In connection with the Settlement Agreement on June 14, 2024, the State also paid NSC MXN$ 20,000,000 to purchase certain documentation owned by NSC relating to the Project. ​ As a result of the Settlement Agreement: (i) the parties have been released from all obligations owed to each other in connection with the APP Contract and the arbitration; and (ii) no party to the Settlement Agreement may institute any legal proceedings against another party thereto with respect to the matters which have been addressed by the Settlement Agreement. ​ Summarized financial information for the discontinued Mexico project development operation is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ ​ 2026 ​ 2025 Cash ​ ​ $ 19,872 ​ ​ $ 13,776 Prepaid expenses and other current assets ​ ​ 112,082 ​ ​ 110,854 Total assets of discontinued operations ​ $ 131,954 ​ $ 124,630 ​ ​ ​ ​ ​ Total liabilities of discontinued operations ​ $ 271,067 ​ $ 271,159 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ ​ ​ ​ ​ 2026 ​ ​ 2025 Loss from discontinued operations ​ ​ $ ( 43,042 ) ​ $ ( 133,081 ) ​ ​ 6. Leases The Company’s leases consist principally of leases for office and warehouse space. For leases with terms greater than twelve months, the related asset and obligation are recorded at the present value of the lease payments over the term. Many of these leases contain rental escalation clauses which are factored into the determination of the lease payments when appropriate. When available, the lease payments are discounted using the rate implicit in the lease; however, the Company’s current leases do not provide a readily determinable implicit rate. Therefore, the Company’s incremental borrowing rate is estimated to discount the lease payments based on information available at the lease commencement. These leases contain both lease and non-lease components, which the Company has elected to treat as a single lease component. The Company elected not to recognize leases that have an original lease term, including reasonably certain renewal or purchase obligations, of twelve months or less in its condensed consolidated balance sheets for all classes of underlying assets. Lease costs for such short-term leases are expensed on a straight-line basis over the lease term. All lease assets denominated in a foreign currency are measured using the exchange rate at the commencement of the lease. All lease liabilities denominated in a foreign currency are remeasured using the exchange rate as of the condensed consolidated balance sheet date. 17 Table of Contents Lease assets and liabilities The following table presents the lease-related assets and liabilities and their respective classification on the condensed consolidated balance sheets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ ​ 2026 ​ 2025 ASSETS ​ ​ ​ ​ Noncurrent ​ ​ ​ ​ Operating lease right-of-use assets ​ $ 2,712,619 ​ $ 2,930,441 Total operating lease right-of-use assets ​ $ 2,712,619 ​ $ 2,930,441 ​ ​ ​ ​ ​ ​ ​ LIABILITIES ​ ​ ​ ​ ​ ​ ​ Current ​ ​ ​ ​ ​ Current maturities of operating leases ​ $ 619,659 ​ $ 661,047 Noncurrent ​ ​ ​ ​ Noncurrent operating leases ​ ​ 2,146,943 ​ ​ 2,297,161 Total lease liabilities ​ $ 2,766,602 ​ $ 2,958,208 ​ ​ ​ ​ ​ ​ ​ Weighted average remaining lease term: ​ ​ ​ ​ Operating leases ​ 4.0 years ​ 4.2 years ​ ​ ​ ​ ​ Weighted average discount rate: ​ ​ ​ ​ Operating leases ​ 6.62 % ​ 6.55 % ​ The components of lease costs were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ ​ 2026 ​ 2025 Operating lease costs ​ $ 209,571 ​ $ 207,555 Short-term lease costs ​ 57,752 ​ ​ 99,025 Lease costs - discontinued operations ​ ​ 1,176 ​ ​ 2,697 Total lease costs ​ $ 268,499 ​ $ 309,277 ​ Supplemental cash flow information related to leases is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ ​ 2026 ​ 2025 Cash paid for amounts included in measurement of liabilities: ​ ​ ​ ​ ​ Operating cash outflows for operating leases ​ $ 227,041 ​ $ 218,376 ​ 18 Table of Contents Future lease payments relating to the Company’s operating lease liabilities from continuing operations as of March 31, 2026 were as follows: ​ ​ ​ ​ ​ Years ending December 31, ​ ​ ​ Total 2026 ​ $ 586,308 2027 ​ 817,737 2028 ​ 837,819 2029 ​ 546,333 2030 ​ ​ 302,193 Thereafter ​ 76,064 Total future lease payments ​ 3,166,454 Less: imputed interest ​ ( 399,852 ) Total lease obligations ​ 2,766,602 Less: current obligations ​ ( 619,659 ) Noncurrent lease obligations ​ $ 2,146,943 ​ ​ 7. Fair value As of March 31, 2026 and December 31, 2025, the carrying amounts of cash equivalents, accounts receivable, accounts payable, accrued expenses, accrued compensation, dividends payable and other current liabilities approximate their fair values due to the short-term maturities of these instruments. As of March 31, 2026 and December 31, 2025, the Company does not have assets and liabilities measured at fair value to present in the fair value hierarchy. 8 . Commitments and contingencies Cayman Water ​ The Company sells water through its Cayman Water retail operations under a license issued in July 1990 by the Cayman Islands government (the “1990 license”) that granted Cayman Water the exclusive right to provide potable water to customers within its licensed service area. Pursuant to the 1990 license, Cayman Water has the exclusive right to produce potable water and distribute it by pipeline to its licensed service area, which consists of two of the three most populated areas of Grand Cayman Island: Seven Mile Beach and West Bay. For the three months ended March 31, 2026 and 2025, the Company generated approximately 29 % and 28 %, respectively, of its consolidated revenue and 45 % and 46 %, respectively, of its consolidated gross profit from the retail water operations conducted under the 1990 license. The 1990 license was originally scheduled to expire in July 2010 but was extended several times by the Cayman Islands government in order to provide the parties with additional time to negotiate the terms of a new license agreement. The most recent express extension of the 1990 license expired on January 31, 2018. From that date until February 18, 2025, the Company continued to operate under the terms of the 1990 license, treating such terms as operative notwithstanding the expiration of the express extension. The Company continues to pay the royalty of 7.5 % of the revenue that Cayman Water collects as required under the 1990 license. In October 2016, the Government of the Cayman Islands passed legislation which created a new utilities regulation and competition office (“OfReg”) and in April 2017 passed supplemental legislation which transferred responsibility for the economic regulation of the water utility sector and the negotiations with the Company for a new retail license to OfReg. Under the new regulatory legislation passed in October 2016, Cayman Water was required to first be granted a concession by the government before obtaining a new (or renewing the old) retail operating license. On February 18, 2025, Cayman Water received a new concession from the government that authorizes and maintains the terms of the 1990 license until a new license from OfReg is negotiated and enacted. Negotiations between Cayman Water and OfReg for the new license remain on-going. 19 Table of Contents The Company has been informed during its retail license negotiations, both by OfReg and its predecessor in these negotiations, that they seek to restructure the terms of its license in a manner that could significantly reduce the operating income and cash flows the Company has historically generated from its retail license. The Company is presently unable to determine what impact the resolution of its retail license negotiations will have on its consolidated financial condition, results of operations or cash flows but such resolution could result in a material reduction (or the loss) of the operating income and cash flows the Company has historically generated from Cayman Water’s retail operations and could require the Company to record impairment losses to reduce the carrying values of its retail segment assets. Such impairment losses could have a material adverse impact on the Company’s consolidated financial condition and results of operations. CW-Bahamas ​ CW-Bahamas’ accounts receivable balances (which include accrued interest) due from the WSC amounted to $ 23.9 million and $ 20.7 million as of March 31, 2026 and December 31, 2025, respectively. Approximately 75 % and 71 % of the accounts receivable balances were delinquent as of those dates, respectively. ​ From time to time (including presently), CW-Bahamas has experienced delays in collecting its accounts receivable from the WSC. When these delays occur, the Company holds discussions and meetings with representatives of the WSC and the government of The Bahamas. All previous delinquent accounts receivable from the WSC, including accrued interest thereon, were eventually paid in full. Based upon this payment history, CW-Bahamas has not provided a material allowance for credit losses for its accounts receivable from the WSC as of March 31, 2026 or prior periods. ​ In a report dated October 6, 2022, Moody’s Investor Services (“Moody’s”) downgraded The Bahamas’ long-term issuer and senior unsecured ratings to B1 from Ba3. Moody’s also lowered The Bahamas’ local currency ceiling to Baa3 from Baa2 and its foreign currency ceiling to Ba1 from Baa3. Moody’s has maintained these ratings through the date of its most current report issued in April 2025. Based upon the Company’s review of this Moody’s correspondence, CW-Bahamas continues to believe that no material allowance for credit losses is required for CW-Bahamas’ accounts receivable from the WSC. ​ If CW-Bahamas is unable to collect a sufficient portion of its delinquent accounts receivable, one or more of the following events may occur: (i) CW-Bahamas may not have sufficient liquidity to meet its obligations; (ii) the Company may be required to cease the recognition of revenue on CW-Bahamas’ water supply agreements with the WSC; and (iii) the Company may be required to significantly increase its allowance for credit losses for CW-Bahamas’ accounts receivable. Any of these events could have a material adverse impact on the Company’s consolidated financial condition, results of operations, and cash flows. ​ CW-Bahamas Supply Guarantees The contracts to supply water to the WSC from its Blue Hills and Windsor plants require CW-Bahamas to guarantee delivery of a minimum quantity of water per week. If the WSC requires the water and CW-Bahamas does not meet this minimum, CW-Bahamas is required to pay the WSC for the difference between the minimum and actual gallons delivered at a per gallon rate equal to the price per gallon that the WSC is currently paying CW-Bahamas under the contract. The Blue Hills contract expires in 2032 and requires CW-Bahamas to deliver 63.0 million gallons of water each week. The Windsor contract expires in 2033 and requires CW-Bahamas to deliver 16.8 million gallons of water each week. CW-Bahamas has been in compliance with the supply guarantees under these contracts for all periods since the inception of the contracts. ​ Fiscal, Regulation and Other Federal Policies ​ Significant changes in, and uncertainty with respect to, legislation, regulation, government policy and economic conditions could adversely affect the Company’s business. Specific legislative and regulatory proposals that could have a material impact on the Company include, but are not limited to, modifications to international trade policy (such as tariffs); public company reporting requirements; and environmental regulation. ​ 20 Table of Contents The Company cannot predict what actions may ultimately be taken with respect to tariffs or trade relations between the U.S. and other countries, what products may be subject to such actions, or what actions may be taken by the other countries in retaliation. Accordingly, it is difficult to predict how such actions may impact the Company’s business, or the business or habits of its customers. The Company’s business operations, as well as the businesses of its customers on which it is substantially dependent, are located in countries at risk for escalating trade disputes, including the U.S. Any resulting trade wars could have a significant adverse effect on world trade and could adversely impact the Company’s consolidated financial condition, results of operations and cash flows. ​ 9. Impact of recent accounting standards Adoption of new accounting standards: None. ​ Effect of newly issued but not yet effective accounting standards: In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The ASU requires public companies to disclose, in the notes to financial statements, specific information about certain costs and expenses at each interim and annual reporting period. The amended ASU is effective on a prospective basis for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The Company is currently evaluating the impact of this guidance on its financial statements. ​ 10. Subsequent events The Company evaluated subsequent events through the time of the filing of this report on Form 10-Q. The Company is not aware of any significant events that occurred subsequent to the balance sheet date but prior to the filing of this report that would have a material impact on its condensed consolidated financial statements. ​ 21 Table of Contents