Water markets worldwide are undergoing a transformation, with several factors influencing critical inputs. Company financial reports and presentations indicate that inflation, climate change, conflicts in Europe and the Middle East, and a range of geopolitical and economic shifts are driving this change.
Bluefield Research’s team of water experts supports clients with ongoing quarterly analysis of identifiable trends and market signals 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 Q4 2023, 33 of the 50 top public companies reported quarterly earnings growth compared to Q4 2022. The Network & Distribution segment (one of the six segments tracked in the quarter) reversed its recent declines and posted an average revenue growth of 0.43%. However, it remains the slowest-growing segment due to the continued deceleration of new construction and residential end markets.
In this Quarterly Review:
- The most notable news in the IOU segment is the announcement made by Eversource to sell its Aquarion Water Company
- Expectations for positive impacts from the Infrastructure Investment and Jobs Act funding are being pushed beyond 2024
- Xylem, Tetra Tech, and Energy Recovery reported significant quarterly revenue gains of 40.6%, 37.3%, and 35.2%, respectively
- Q4 2023 featured notable transactions: Stantec acquired 1,150-person engineering firm Morrison Hershfield; FCC Group’s Aqualia entered the U.S. water market by acquiring Municipal District Services; and Rotoplas acquired Mexico’s HiTech Irrigation
