A Look Back at Water Infrastructure Stocks’ Q4 Earnings: Tennant (NYSE:TNC) Vs The Rest Of The Pack

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Tennant (NYSE:TNC) and the rest of the water infrastructure stocks fared in Q4.

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 2.4% on average since the latest earnings results.

Weakest Q4: Tennant (NYSE:TNC)

Tennant reported revenues of $328.9 million, up 5.6% year on year. This print exceeded analysts’ expectations by 1.7%. Despite the top-line beat, it was still a slower quarter for the company with full-year revenue guidance missing analysts’ expectations.

“We are pleased to report on Tennant’s strong finish to a successful 2024. We achieved record results in 2024 with strong organic sales growth and margin expansion aligned with our long-range targets,” said Dave Huml, Tennant President and Chief Executive Officer.

Tennant delivered the weakest full-year guidance update of the whole group. The stock is down 6.4% since reporting and currently trades at $81.78.

Is now the time to buy Tennant? Find out by reading the original article on StockStory, it’s free.

Best Q4: Energy Recovery (NASDAQ:ERII)

Energy Recovery reported revenues of $67.08 million, up 17.3% year on year, in line with analysts’ expectations. The business had a very strong quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ EPS estimates.

The market seems content with the results as the stock is up 3% since reporting. It currently trades at $15.12.

Xylem (NYSE:XYL)

Xylem reported revenues of $2.26 billion, up 6.5% year on year, exceeding analysts’ expectations by 3.4%. It may have had the worst quarter among its peers, but its results were still good as it also locked in an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ EBITDA estimates.

Interestingly, the stock is up 5.8% since the results and currently trades at $129.78.

Watts Water Technologies (NYSE:WTS)

Watts Water Technologies reported revenues of $540.4 million, down 1.3% year on year. This print topped analysts’ expectations by 0.6%. Overall, it was a strong quarter as it also logged an impressive beat of analysts’ adjusted operating income estimates.

Watts Water Technologies had the slowest revenue growth among its peers. The stock is flat since reporting and currently trades at $209.77.

Mueller Water Products (NYSE:MWA)

Mueller Water Products reported revenues of $304.3 million, up 18.7% year on year. This result surpassed analysts’ expectations by 5.4%. It was a stunning quarter as it also recorded a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Mueller Water Products scored the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The stock is up 9% since reporting and currently trades at $25.19.

Want to invest in winners with rock-solid fundamentals? Check out our and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

This content was originally published on Stock Story