Monitor the project's progress against the 703-day schedule, particularly the start of construction in spring 2027. Any delays or cost overruns on this fixed-price contract could pressure margins. The company's ability to execute on this project will be a key indicator of its operational capabilities in the U.S. municipal water market.
Price Chart
Executive Summary
Consolidated Water's U.S. subsidiary, PERC Water Corporation, was awarded a $39.8 million fixed-price design-build contract by the City of Pismo Beach, California, for the Central Coast Blue Advanced Water Purification Facility. The project, expected to take approximately 24 months with construction starting in spring 2027, involves designing and building an advanced water purification facility with an initial capacity of 500 acre-feet per year. This is a material contract win that adds a significant project to the company's backlog but carries execution risk as a fixed-price contract with liquidated damages for delays.
Key Financial Metrics
Key Facts
- PERC Water Corporation, a U.S. subsidiary of Consolidated Water, entered into a design-build agreement with the City of Pismo Beach valued at approximately $39.8 million.
- The contract is a fixed-price design-build agreement for the Central Coast Blue Advanced Water Purification Facility.
- Substantial Completion is required within 703 calendar days, with a target date of September 17, 2028.
- Liquidated damages of $2,500 per calendar day apply if Substantial Completion is delayed, capped at 5% of the contract price (approximately $2.0 million).
- PERC's total aggregate liability under the agreement is capped at $14.0 million.
- The project is expected to proceed through design, permitting, construction, startup, and commissioning over approximately 24 months, with construction anticipated to begin in spring 2027.
- The facility is designed to produce approximately 500 acre-feet per year of purified water in its initial phase, with design provisions for future expansion to 750 acre-feet per year.
Financial Impact
The contract adds approximately $39.8 million to the company's backlog. The fixed-price nature means cost overruns would reduce margins, but the $14 million liability cap provides some downside protection. Liquidated damages of $2,500/day (capped at ~$2.0M) create a meaningful incentive for on-time delivery.
Risk Factors
- Fixed-price contract exposes PERC to cost overrun risk on design, site conditions, and construction.
- Liquidated damages of $2,500/day (capped at ~$2.0M) if Substantial Completion is delayed.
- Project is subject to permitting and regulatory approvals that could cause delays.
- The City can terminate the contract for convenience at any time, limiting PERC to cost reimbursement without lost profits.
- The contract requires performance and payment bonds equal to 100% of the contract price, tying up bonding capacity.
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-116231 |
| Document: cwco-20261008x8k.htm | 0001104659-26-116231 |
| Document: cwco-ex99d1.htm | 0001104659-26-116231 |
| Document: 0001104659-26-116231-index-headers.html | 0001104659-26-116231 |
| Document: 0001104659-26-116231-index.html | 0001104659-26-116231 |
| Document: 0001104659-26-116231.txt | 0001104659-26-116231 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 6d ago | 8-K | $27.15 | awaiting T+5 | — | $27.11 (−0.15%) |
Oct 15, 2026 11d ago | 8-K | $28.24 $27.79 | ▼ −1.59% | ▼ −1.16% | $27.11 (−4.00%) |
Jun 24, 2026 17w ago | 8-K | $29.08 $29.49 | ▲ +1.41% | ▼ −0.15% | $27.11 (−6.77%) |
Jun 8, 2026 20w ago | Press Release | $29.44 $29.83 | ▲ +1.32% | ▼ −0.79% | $27.11 (−7.91%) |
Jun 5, 2026 20w ago | Press Release | $29.92 $30.11 | ▲ +0.64% | ▲ +0.07% | $27.11 (−9.39%) |
May 26, 2026 22w ago | DEFA14A | $30.18 $30.05 | ▼ −0.43% | ▼ −1.51% | $27.11 (−10.17%) |
May 12, 2026 24w ago | 8-K | $30.34 $28.66 | ▲ +5.54% | ▲ +5.61% | $27.11 (+10.65%) |
May 11, 2026 24w ago | Press Release | $30.34 $28.66 | ▲ +5.54% | ▲ +5.61% | $27.11 (+10.65%) |
Apr 27, 2026 26w ago | Press Release | $33.80 | awaiting T+5 | — | $27.11 (−19.79%) |
Apr 22, 2026 26w ago | DEFA14A | $33.52 $32.82 | ▼ −2.09% | ▼ −2.14% | $27.11 (−19.12%) |
US Market Status
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