Water markets, globally, are in transition with critical inputs being influenced by inflation, climate change, conflicts in Europe and the Middle East, and a range of geopolitical and economic shifts. These factors are evident in company financial reports and presentations.
For this reason, Bluefield Research’s team of water experts supports clients with ongoing quarterly analysis of identifiable trends and market signals highlighted in the financial reports (e.g., 10-K, 10-Q), investor calls, and presentations of publicly traded companies holding positions in water, wastewater, and stormwater for the municipal and industrial sectors.
In the last reporting cycle, Q3 2023, 36 of the 50 top public companies reported quarterly earnings growth compared to the same period in the prior year. Of the six reporting segments, Network & Distribution was the only segment with negative average revenue growth, primarily influenced by a continued slowdown in new construction and residential end markets.
In this Quarterly Review:
- While many supply chain vendors are expressing increasing concerns about the pace of financial distributions from the Infrastructure Investment and Jobs Act, a select group of top companies is reporting benefits
- Companies are reporting alleviated inflationary pressures compared to previous quarters, but firms with major international exposure still present risks
- Consolidated Water, Xylem, and Kurita produced some of the largest quarterly revenue gains of 99.0%, 50.4%, and 48.5%, respectively
- Q3 2023 featured notable transactions: Veralto completed its spin-off from Danaher, private equity firm Ember Infrastructure Management acquired previously public H2O Innovation for US$287 million, and Georg Fischer closed on its US$2.2 billion acquisition of rival Finnish pipe manufacturer Uponor
