Let’s dig into the relative performance of Watts Water Technologies (NYSE: WTS) and its peers as we unravel the now-completed Q4 water infrastructure earnings season.

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 a strong Q4. As a group, revenues beat analysts’ consensus estimates by 2.1%.

In light of this news, share prices of the companies have held steady as they are up 1.2% on average since the latest earnings results.

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 $540.4 million, down 1.3% year on year. This print exceeded analysts’ expectations by 0.6%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ adjusted operating income estimates.

Chief Executive Officer Robert J. Pagano Jr. commented, “We closed out 2024 with record results for the quarter and full year, including record operating income, adjusted earnings per share and full year sales. I would like to commend the Watts team for their dedication throughout 2024 as we delivered on our commitments to serve our customers, executed on new product development and advanced our long-term strategy.”

Watts Water Technologies delivered the slowest revenue growth of the whole group. The stock is down 2.2% since reporting and currently trades at $204.42.

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

Best Q4: 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 $304.3 million, up 18.7% year on year, outperforming analysts’ expectations by 5.4%. The business had a stunning quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Mueller Water Products delivered the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 10.2% since reporting. It currently trades at $25.45.

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

Weakest Q4: 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 $328.9 million, up 5.6% year on year, exceeding analysts’ expectations by 1.7%. Still, it was a slower quarter as it posted full-year revenue guidance missing analysts’ expectations.

Tennant delivered the weakest full-year guidance update in the group. As expected, the stock is down 8.5% since the results and currently trades at $79.98.

Read our full analysis of Tennant’s results here.

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 $2.26 billion, up 6.5% year on year. This print surpassed analysts’ expectations by 3.4%. It was a strong quarter as it also put up a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ EBITDA estimates.

The stock is down 2.4% since reporting and currently trades at $119.80.

Read our full, actionable report on Xylem 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 $67.08 million, up 17.3% year on year. This result was in line with analysts’ expectations. Overall, it was a very strong quarter as it also produced a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ EPS estimates.

Energy Recovery had the weakest performance against analyst estimates among its peers. The stock is up 8.7% since reporting and currently trades at $15.96.

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

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