| Deal value | $40M |
|---|---|
| Share of market cap | 8.6% |
| Share of annual revenue | 30.1% |
Key highlights
- Fixed-price design-build contract valued at approximately $39.8 million
- Construction of a drought-resistant facility utilizing ultrafiltration and reverse osmosis
- Initial production capacity of 500 acre-feet per year with expansion potential to 750
- Substantial completion targeted for September 2028 after a 703-day project schedule
- Includes 600 hours of staff training and support following facility commissioning
What Is the Contract?
The City of Pismo Beach awarded PERC Water Corporation, a U.S. subsidiary of Consolidated Water, a $39.8 million fixed-price agreement for the Central Coast Blue project. Under the terms, PERC is responsible for the design, procurement, construction, and commissioning of an advanced purification plant at Grover Beach. The facility will employ a multi-stage treatment process including ultrafiltration, three-stage reverse osmosis, and ultraviolet oxidation. Work is scheduled to begin on October 15, 2026, with substantial completion expected by mid-September 2028. The agreement includes a provision for 600 hours of operational training for city staff to ensure a smooth transition upon completion.
Client Profile
- The City of Pismo Beach acts as the lead agency for the Central Coast Blue regional water resilience initiative
- The municipality serves the southern portion of San Luis Obispo County, a region facing persistent drought challenges
- Local authorities aim to protect the groundwater basin from seawater intrusion via injection wells included in the scope
- The procurement followed a rigorous two-step competitive process involving three qualified design-build teams
Business Impact
This award significantly bolsters Consolidated Water’s presence in the California municipal market and expands its existing project backlog. As of June 30, 2026, the company reported a contract backlog of $143.1 million, a figure this $39.8 million win will further augment. The project reinforces the technical standing of the PERC Water subsidiary in delivering complex, drought-resistant infrastructure. Management indicated that the facility design allows for future expansion to 750 acre-feet per year, potentially creating future service or amendment opportunities as regional water demand grows and additional funding becomes available for Phase 2 expansion.
Strategic Capability
“This award reflects the strength of our advanced water-treatment capabilities and our ability to compete successfully for technically sophisticated design-build projects. We are proud that PERC Water was selected following a rigorous competitive evaluation, and we look forward to supporting the City of Pismo Beach as it advances a reliable, locally controlled, and drought-resistant water supply.”
Financial Context
Consolidated Water maintains a market capitalization of approximately $460.5 million and generated $132.1 million in annual revenue over the last trailing twelve-month period. The company operates across multiple segments, including retail water, bulk water, and manufacturing, with a focus on desalination and advanced treatment. With a P/E ratio of 29.3x, the company is navigating a transition year for its manufacturing division, which management previously guided to finish below 2025 records before a projected rebound in 2027. This contract provides a stable revenue stream for the Services segment over the next two fiscal years as work progresses through the construction phase.
| Date | Announcement | Amount |
|---|---|---|
| 12 Oct 2026 | PERC Water awarded design-build agreement by City of Pismo Beach for Central Coast Blue Advanced Water Purification FacilitySource: globenewswire.com | $39.8 Million |
| 22 Jul 2026 | Awarded municipal water treatment equipment purchase orders by an east coast Florida municipalitySource: globenewswire.com | $10.1 Million |
| 22 Jul 2026 | Received Limited Notice to Proceed from Honolulu Board of Water Supply authorizing long-lead equipment procurement for Kalaeloa desalination facilitySource: globenewswire.com | $6.0 Million |
| 24 Jun 2026 | Cayman Water Company granted 25-year exclusive water production and supply concession agreement for Grand Cayman operationsSource: SEC filing | – |
| 03 Nov 2025 | PERC Water awarded contract to build wastewater recycling plant for a San Francisco Bay Area golf clubSource: globenewswire.com | $11.7 Million |
| 11 Aug 2025 | PERC Water awarded contract for drinking water plant expansion in Lochbuie, ColoradoSource: globenewswire.com | $3.9 Million |
Management commentary
“This award reflects the strength of our advanced water-treatment capabilities and our ability to compete successfully for technically sophisticated design-build projects. We are proud that PERC Water was selected following a rigorous competitive evaluation, and we look forward to supporting the City of Pismo Beach as it advances a reliable, locally controlled, and drought-resistant water supply.”
| Share price | $28.76 |
|---|---|
| Market cap | $461M |
| Revenue (annual) | $132M |
| P/E (TTM) | 29.3× |
| 1-month price change | +2.68% |
| Sector | UtilitiesUtilities - Regulated Water |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
SEC filing by Consolidated Water Co. Ltd. announcing a design-build agreement with the City of Pismo Beach.
Track Consolidated Water Co. Ltd. live
Get the next Consolidated Water Co. Ltd. SEC filing seconds after it lands.
