Segment information

12 Months Ended

Dec. 31, 2024

Segment information

Segment information

14. 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”).

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 budget and prior period for major corporate expenses (such as employee costs, insurance and professional fee) 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. Segment information previously disclosed in 2023 and 2022 did not separately disclose those expenses currently reported in the corporate segment, as such expenses were previously included in the retail segment. The 2023 and 2022 segment information provided herein has been recast to conform to the current period presentation.

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 Company’s income statements by segment, significant segment expenses, and segment assets are presented below.

	Year Ended December 31, 2024
	Retail		Bulk		Services		Manufacturing		Corporate		Total
Revenue	$	31,741,343	$	33,673,387	$	50,956,489	$	17,595,414	$	—	$	133,966,633
Cost of revenue		14,199,088		23,360,360		38,511,535		12,271,202		—		88,342,185
Gross profit		17,542,255		10,313,027		12,444,954		5,324,212		—		45,624,448
General and administrative expenses		3,263,593		1,564,975		6,055,409		2,456,807		14,196,652		27,537,436
Gain on asset dispositions and impairments, net		2,286		—		2,714		—		192,786		197,786
Income (loss) from operations		14,280,948		8,748,052		6,392,259		2,867,405		(14,003,866)		18,284,798
Interest income		198,180		865,584		458,732		4		571,690		2,094,190
Interest expense		(93,368)		—		(8,409)		—		(70)		(101,847)
Income from affiliates		—		—		—		16,701		252,754		269,455
Other		78,647		39,625		(5,634)		11,993		7,247		131,878
Other income, net		183,459		905,209		444,689		28,698		831,621		2,393,676
Income (loss) before income taxes		14,464,407		9,653,261		6,836,948		2,896,103		(13,172,245)		20,678,474
Provision for income taxes		—		—		1,528,398		672,040		18,076		2,218,514
Net income (loss) from continuing operations		14,464,407		9,653,261		5,308,550		2,224,063		(13,190,321)		18,459,960
Income from continuing operations attributable to non-controlling interests		—		577,590		—		—		—		577,590
Net income (loss) from continuing operations attributable to Consolidated Water Co. Ltd. stockholders	$	14,464,407	$	9,075,671	$	5,308,550	$	2,224,063	$	(13,190,321)		17,882,370
Net income from discontinued operations												10,355,184
Net income attributable to Consolidated Water Co. Ltd. stockholders											$	28,237,554

The Company’s cost of revenue consists of:

	Year Ended December 31, 2024
	Retail		Bulk		Services		Manufacturing		Corporate		Total
Subcontractor and other project costs	$	—	$	3,787	$	20,366,236	$	9,535,078	$	—	$	29,905,101
Employee costs		2,895,606		2,069,920		17,062,858		2,042,518		—		24,070,902
Electricity		4,755,308		3,864,863		212,337		33,551		—		8,866,059
Fuel oil		—		8,330,914		—		—		—		8,330,914
Depreciation		2,427,254		2,689,432		364,473		160,211		—		5,641,370
Maintenance		877,882		2,138,584		439,883		344,042		—		3,800,391
Insurance		686,073		1,721,846		38,408		—		—		2,446,327
Retail license royalties		1,945,470		—		—		—		—		1,945,470
Other		611,495		2,541,014		27,340		155,802		—		3,335,651
	$	14,199,088	$	23,360,360	$	38,511,535	$	12,271,202	$	—	$	88,342,185

Other cost of revenue segment expenses above primarily include chemicals and other supplies, government fees and licenses, and freight costs.

The Company’s general and administrative expenses consist of:

	Year Ended December 31, 2024
	Retail		Bulk		Services		Manufacturing		Corporate		Total
Employee costs	$	1,555,619	$	375,479	$	3,443,005	$	1,286,141	$	8,031,817	$	14,692,061
Professional fees		85,739		82,452		646,610		133,229		2,448,386		3,396,416
Insurance		417,604		384,932		214,983		215,241		834,612		2,067,372
Depreciation and amortization		37,691		25,086		630,544		103,674		73,940		870,935
Other		1,166,940		697,026		1,120,267		718,522		2,807,897		6,510,652
	$	3,263,593	$	1,564,975	$	6,055,409	$	2,456,807	$	14,196,652	$	27,537,436

Other general and administrative segment expenses primarily include Board of Directors fees and expenses, maintenance, office rent, amortization of intangible assets, and investor relations costs.

	As of December 31, 2024
	Retail		Bulk		Services		Manufacturing		Corporate		Total
Cash and cash equivalents	$	19,167,484	$	13,339,206	$	34,181,902	$	4,768,376	$	27,893,153	$	99,350,121
Accounts receivable, net	$	3,223,190	$	28,807,257	$	6,593,276	$	946,846	$	10,413	$	39,580,982
Inventory, current and non-current	$	3,437,771	$	4,865,117	$	167,856	$	5,828,567	$	—	$	14,299,311
Contract assets	$	—	$	—	$	1,204,522	$	3,265,721	$	—	$	4,470,243
Property, plant and equipment, net	$	31,689,586	$	18,093,155	$	858,352	$	1,601,501	$	189,688	$	52,432,282
Construction in progress	$	1,951,559	$	2,480,999	$	—	$	711,159	$	—	$	5,143,717
Intangibles, net	$	—	$	—	$	2,129,037	$	567,778	$	—	$	2,696,815
Goodwill	$	1,170,511	$	1,948,875	$	7,756,807	$	1,985,211	$	—	$	12,861,404
Total segment assets	$	62,994,011	$	71,743,161	$	56,792,772	$	20,095,648	$	31,415,104	$	243,040,696
Assets of discontinued operations											$	272,485
Total assets											$	243,313,181

	Year Ended December 31, 2023
	Retail		Bulk		Services		Manufacturing		Corporate		Total
Revenue	$	30,158,051	$	34,595,058	$	97,966,650	$	17,491,474	$	—	$	180,211,233
Cost of revenue		13,891,229		24,128,132		66,797,762		13,467,005		—		118,284,128
Gross profit		16,266,822		10,466,926		31,168,888		4,024,469		—		61,927,105
General and administrative expenses		2,978,164		1,737,264		4,271,808		1,838,284		13,926,846		24,752,366
Gain (loss) on asset dispositions and impairments, net		(21,716)		12,720		—		2,233		(349)		(7,112)
Income (loss) from operations		13,266,942		8,742,382		26,897,080		2,188,418		(13,927,195)		37,167,627
Interest income		181,468		362,422		151,706		4		808		696,408
Interest expense		(123,867)		—		(21,417)		—		—		(145,284)
Income from affiliate		—		—		—		—		169,728		169,728
Other		93,795		10,793		1,024		2,020		(171)		107,461
Other income, net		151,396		373,215		131,313		2,024		170,365		828,313
Income (loss) before income taxes		13,418,338		9,115,597		27,028,393		2,190,442		(13,756,830)		37,995,940
Provision (benefit) for income taxes		—		—		6,388,457		440,111		(78,554)		6,750,014
Net income (loss) from continuing operations		13,418,338		9,115,597		20,639,936		1,750,331		(13,678,276)		31,245,926
Income from continuing operations attributable to non-controlling interests		—		573,791		—		—		—		573,791
Net income (loss) from continuing operations attributable to Consolidated Water Co. Ltd. stockholders	$	13,418,338	$	8,541,806	$	20,639,936	$	1,750,331	$	(13,678,276)		30,672,135
Net loss from discontinued operations												(1,086,744)
Net income attributable to Consolidated Water Co. Ltd. stockholders											$	29,585,391

The Company’s cost of revenue consists of:

	Year Ended December 31, 2023
	Retail		Bulk		Services		Manufacturing		Corporate		Total
Subcontractor and other project costs	$	—	$	—	$	53,830,817	$	10,869,688	$	—	$	64,700,505
Employee costs		2,797,130		1,927,313		12,311,403		1,899,167		—		18,935,013
Electricity		4,846,974		4,306,439		301,247		48,006		—		9,502,666
Fuel oil		—		9,024,836		—		—		—		9,024,836
Depreciation		2,376,747		2,831,368		256,537		168,347		—		5,632,999
Maintenance		845,596		1,705,585		83,998		357,693		—		2,992,872
Insurance		587,238		1,468,508		5,751		—		—		2,061,497
Retail license royalties		1,842,924		—		—		—		—		1,842,924
Other		594,620		2,864,083		8,009		124,104		—		3,590,816
	$	13,891,229	$	24,128,132	$	66,797,762	$	13,467,005	$	—	$	118,284,128

Other cost of revenue segment expenses above primarily include chemicals and other supplies, government fees and licenses, and freight costs.

The Company’s general and administrative expenses consist of:

	Year Ended December 31, 2023
	Retail		Bulk		Services		Manufacturing		Corporate		Total
Employee costs	$	1,485,647	$	359,923	$	2,529,548	$	1,071,012	$	8,244,023	$	13,690,153
Professional fees		122,067		93,754		422,196		88,882		1,285,193		2,012,092
Insurance		351,259		341,391		127,993		196,539		886,674		1,903,856
Depreciation and amortization		38,883		22,180		528,810		105,013		69,216		764,102
Other		980,308		920,016		663,261		376,838		3,441,740		6,382,163
	$	2,978,164	$	1,737,264	$	4,271,808	$	1,838,284	$	13,926,846	$	24,752,366

Other general and administrative segment expenses primarily include Board of Directors fees and expenses, maintenance, office rent, amortization of intangible assets, and investor relations costs.

	As of December 31, 2023
	Retail		Bulk		Services		Manufacturing		Corporate		Total
Cash and cash equivalents	$	10,982,982	$	7,932,485	$	18,080,724	$	2,879,665	$	2,746,042	$	42,621,898
Accounts receivable, net	$	3,409,973	$	26,965,126	$	6,802,780	$	1,033,037	$	15,975	$	38,226,891
Inventory, current and non-current	$	3,041,460	$	4,858,324	$	55,272	$	3,135,357	$	—	$	11,090,413
Contract assets	$	—	$	—	$	17,715,872	$	3,837,185	$	—	$	21,553,057
Property, plant and equipment, net	$	32,318,148	$	20,370,056	$	1,143,884	$	1,559,094	$	491,339	$	55,882,521
Construction in progress	$	380,436	$	—	$	—	$	115,035	$	—	$	495,471
Intangibles, net	$	—	$	—	$	2,692,074	$	661,111	$	—	$	3,353,185
Goodwill	$	1,170,511	$	1,948,875	$	7,756,807	$	1,985,211	$	—	$	12,861,404
Total segment assets	$	52,120,112	$	63,956,725	$	58,476,773	$	15,888,642	$	6,654,535	$	197,096,787
Assets of discontinued operations											$	21,340,805
Total assets											$	218,437,592

	Year Ended December 31, 2022
	Retail		Bulk		Services		Manufacturing		Corporate		Total
Revenue	$	25,954,013	$	32,991,066	$	28,835,428	$	6,324,465	$	—	$	94,104,972
Cost of revenue		12,548,763		23,032,212		22,973,634		5,195,240		—		63,749,849
Gross profit		13,405,250		9,958,854		5,861,794		1,129,225		—		30,355,123
General and administrative expenses		2,609,571		1,570,732		3,461,294		1,485,342		11,943,295		21,070,234
Gain (loss) on asset dispositions and impairments, net		(39,397)		5,607		23,717		(2,631)		—		(12,704)
Income (loss) from operations		10,756,282		8,393,729		2,424,217		(358,748)		(11,943,295)		9,272,185
Interest income		131,403		313,232		2,441		1		109		447,186
Interest expense		(31,748)		—		(14,797)		—		—		(46,545)
Income from affiliate		—		—		—		—		102,225		102,225
Net loss on put/call options		—		—		(128,000)		—		—		(128,000)
Other		83,682		1,865		1,803		782		1,812		89,944
Other income (loss), net		183,337		315,097		(138,553)		783		104,146		464,810
Income (loss) before income taxes		10,939,619		8,708,826		2,285,664		(357,965)		(11,839,149)		9,736,995
Provision (benefit) for income taxes		—		—		458,659		(61,920)		—		396,739
Net income (loss) from continuing operations		10,939,619		8,708,826		1,827,005		(296,045)		(11,839,149)		9,340,256
Income from continuing operations attributable to non-controlling interests		—		558,353		554,560		—		—		1,112,913
Net income (loss) from continuing operations attributable to Consolidated Water Co. Ltd. stockholders	$	10,939,619	$	8,150,473	$	1,272,445	$	(296,045)	$	(11,839,149)		8,227,343
Net loss from discontinued operations												(2,371,049)
Net income attributable to Consolidated Water Co. Ltd. stockholders											$	5,856,294

The Company’s cost of revenue consists of:

	Year Ended December 31, 2022
	Retail		Bulk		Services		Manufacturing		Corporate		Total
Subcontractor and other project costs	$	—	$	—	$	14,380,940	$	3,436,343	$	—	$	17,817,283
Employee costs		2,759,588		1,831,305		8,156,016		1,289,208		—		14,036,117
Electricity		4,063,303		2,594,723		278,629		38,474		—		6,975,129
Fuel oil		—		10,203,690		—		—		—		10,203,690
Depreciation		2,281,584		2,645,691		155,237		178,951		—		5,261,463
Maintenance		878,880		1,717,319		—		190,059		—		2,786,258
Insurance		501,508		1,280,825		—		—		—		1,782,333
Retail license royalties		1,590,250		—		—		—		—		1,590,250
Other		473,650		2,758,659		2,812		62,205		—		3,297,326
	$	12,548,763	$	23,032,212	$	22,973,634	$	5,195,240	$	—	$	63,749,849

Other cost of revenue segment expenses above primarily include chemicals and other supplies, government fees and licenses, and freight costs.

The Company’s general and administrative expenses consist of:

	Year Ended December 31, 2022
	Retail		Bulk		Services		Manufacturing		Corporate		Total
Employee costs	$	1,321,660	$	332,023	$	1,966,493	$	941,680	$	6,647,780	$	11,209,636
Professional fees		55,756		127,400		286,802		14,736		1,275,585		1,760,279
Insurance		301,306		291,430		336,832		168,486		969,571		2,067,625
Depreciation and amortization		36,544		11,750		519,271		105,452		73,475		746,492
Other		894,305		808,129		351,896		254,988		2,976,884		5,286,202
	$	2,609,571	$	1,570,732	$	3,461,294	$	1,485,342	$	11,943,295	$	21,070,234

Other general and administrative segment expenses primarily include Board of Directors fees and expenses, maintenance, office rent, amortization of intangible assets, and investor relations costs.

Revenue earned by major geographic region was:

	Year ended December 31,
	2024		2023		2022
Cayman Islands	$	37,137,424	$	41,728,340	$	30,375,985
The Bahamas		29,675,947		31,221,633		29,943,615
United States		66,662,406		106,768,621		33,338,466
Revenue earned from management services agreement with OC-BVI		490,856		492,639		446,906
	$	133,966,633	$	180,211,233	$	94,104,972

Revenue earned from major customers was:

	Year ended December 31,
	2024		2023		2022
Revenue earned from the WSC	$	29,675,947	$	31,221,633	$	29,943,615
Percentage of consolidated revenue earned from the WSC		22%		17%		32%
Revenue earned from one service segment customer	$	—	$	64,149,170	$	11,805,752
Percentage of consolidated revenue earned from the one service segment customer		0%		36%		13%

Property, plant and equipment, net by major geographic region was:

	December 31,
	2024		2023
Cayman Islands	$	31,882,111	$	32,902,949
The Bahamas		17,903,191		20,039,049
United States		2,646,980		2,940,523
	$	52,432,282	$	55,882,521