Looking back on water infrastructure stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Mueller Water Products (NYSE:MWA) and its peers.

Trends towards conservation and reducing groundwater depletion are putting water infrastructure and treatment products front and center. Companies that can innovate and create solutions–especially automated or connected solutions–to address these thematic trends will create incremental demand and speed up replacement cycles. On the other hand, water infrastructure and treatment companies are at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies’ offerings.

The 5 water infrastructure stocks we track reported an impressive Q2. As a group, revenues beat analysts’ consensus estimates by 6.1%.

Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation. Thankfully, water infrastructure stocks have been resilient with share prices up 5.2% on average since the latest earnings results.

Mueller Water Products (NYSE:MWA)

As one of the oldest companies in the water infrastructure industry, Mueller (NYSE:MWA) is a provider of water infrastructure products and flow control systems for various sectors.

Mueller Water Products reported revenues of $356.7 million, up 9.2% year on year. This print exceeded analysts’ expectations by 8.2%. Overall, it was an incredible quarter for the company with an impressive beat of analysts’ organic revenue and earnings estimates.

“We are pleased to report a record third quarter that exceeded our expectations. We experienced healthy order levels supported by steady end market demand. Strong execution from our commercial and operational teams, including ongoing benefits from manufacturing and supply chain efficiencies, and disciplined SG&A spending helped drive records for quarterly earnings and adjusted EBITDA,” said Martie Edmunds Zakas, Chief Executive Officer of Mueller Water Products.

Interestingly, the stock is up 13.2% since reporting and currently trades at $21.47.

Is now the time to buy Mueller Water Products? Access our full analysis of the earnings results here, it’s free.

Energy Recovery (NASDAQ:ERII)

Having saved far more than a trillion gallons of water, Energy Recovery (NASDAQ:ERII) provides energy recovery devices to the water treatment, oil and gas, and chemical processing sectors.

Energy Recovery reported revenues of $27.2 million, up 31.3% year on year, outperforming analysts’ expectations by 18.6%. It was an incredible quarter for the company with an impressive beat of analysts’ earnings estimates.

Energy Recovery achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 11.7% since reporting. It currently trades at $16.29.

Is now the time to buy Energy Recovery? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Tennant (NYSE:TNC)

As the world’s largest manufacturer of autonomous mobile robots, Tennant (NYSE:TNC) designs, manufactures, and sells cleaning products to various sectors.

Tennant reported revenues of $331 million, up 2.9% year on year, exceeding analysts’ expectations by 1.2%. It was still a solid quarter for the company with full-year revenue guidance beating analysts’ expectations and a narrow beat of analysts’ earnings estimates.

Tennant had the highest full-year guidance raise but had the slowest revenue growth in the group. Interestingly, the stock is up 1.9% since the results and currently trades at $97.67.

Read our full analysis of Tennant’s results here.

Watts Water Technologies (NYSE:WTS)

Founded in 1874, Watts Water (NYSE:WTS) specializes in manufacturing water products and systems for residential, commercial, and industrial applications globally.

Watts Water Technologies reported revenues of $597.3 million, up 12.1% year on year, surpassing analysts’ expectations by 1.3%. More broadly, it was a very strong quarter for the company with an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ operating margin estimates.

The stock is up 1.4% since reporting and currently trades at $196.70.

Read our full, actionable report on Watts Water Technologies here, it’s free.

Xylem (NYSE:XYL)

Formed through a spinoff, Xylem (NYSE:XYL) manufactures and services engineered products across a wide variety of applications primarily in the water sector.

Xylem reported revenues of $2.17 billion, up 26% year on year, surpassing analysts’ expectations by 1.2%. Taking a step back, it was a strong quarter for the company with an impressive beat of analysts’ organic revenue estimates and a decent beat of analysts’ operating margin estimates.

Xylem had the weakest performance against analyst estimates and weakest full-year guidance update among its peers. The stock is down 2.2% since reporting and currently trades at $138.30.

Read our full, actionable report on Xylem here, it’s free.

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