Watlington Waterworks Ltd reported a bump in revenue in 2025 as rising costs and higher depreciation weighed on profits, according to audited financial statements filed by the company.

The utility and bottled water company reported net profit attributable to shareholders of $3.2 million for the year ended December 31, down from $3.47 million in 2024, while revenue climbed to $14.71 million from $13.8 million.

In a directors’ report to shareholders, the company said profitability moderated from the previous year’s “exceptional performance” but that it continued to deliver “strong operating results driven by stable demand, disciplined cost management and improved investment income”.

Production costs rose to $3.19 million from $3.03 million, while total expenditure increased to $11.89 million from $10.58 million. Depreciation and amortisation expenses also increased sharply to $1.86 million from $1.5 million a year earlier.

The metered water division sold 239 million gallons in 2025, compared with 222 million gallons in 2024.

The company’s utility division remained its largest profit driver, generating net profit of just over $3 million in 2025. The bottled water division also remained profitable, earning about $1.25 million, up from $1.18 million the previous year. The company said bottled water net income increased 6.03 per cent year-over-year.

Financial statements show the company continued to invest heavily in infrastructure and equipment during the year. Property, plant and equipment rose to $32 million from $29.1 million, while capital expenditure totalled approximately $1.43 million.

Watlington said it focused during the year on plant upgrades, pipeline improvements and system reliability. The company added that construction of the Luke’s Pond Reservoir was completed in January 2025, describing it as “a major milestone” in its long-term water security strategy.

Watlington’s cash and cash equivalents increased to $5.16 million at year-end, compared with $3.98 million in 2024. The company also paid dividends of more than $2.1 million during the year.

Segment disclosures in the statements show the company’s “other” category — which includes plumbing supply retail operations, property rentals, investment income and shared administrative costs — recorded a loss of about $1.07 million.

The company also disclosed that no provision for Bermuda corporate income tax had been included in the statements because the group was not within the scope of the Corporate Income Tax Act 2023.