Looking back on water infrastructure stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Tennant (NYSE: TNC) 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 a very strong Q1. As a group, revenues beat analysts’ consensus estimates by 6.8%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8.1% since the latest earnings results.

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 $297.9 million, up 2.7% year on year. This print exceeded analysts’ expectations by 3%. Overall, it was an exceptional quarter for the company with a beat of analysts’ EPS and EBITDA estimates.

“Our first quarter results reflect strong net sales growth and solid order demand as we advanced key strategic priorities across the business,” said Dave Huml, Tennant President and Chief Executive Officer.

Tennant delivered the weakest full-year guidance update of the whole group. Interestingly, the stock is up 4.4% since reporting and currently trades at $85.56.

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

Best Q1: 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 $677.3 million, up 21.4% year on year, outperforming analysts’ expectations by 6.2%. The business had a stunning quarter with an impressive beat of analysts’ organic revenue and EBITDA estimates.

Watts Water Technologies scored the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 7.3% since reporting. It currently trades at $313.41.

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

Weakest Q1: 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 $9.71 million, up 20.3% year on year, exceeding analysts’ expectations by 23.6%. Still, it was a mixed quarter as it posted a significant miss of analysts’ EBITDA estimates.

As expected, the stock is down 32.1% since the results and currently trades at $7.88.

Read our full analysis of Energy Recovery’s results here.

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 $384.4 million, up 5.5% year on year. This print surpassed analysts’ expectations by 0.8%. It was a strong quarter as it also logged an impressive beat of analysts’ adjusted operating income estimates.

The stock is down 7.1% since reporting and currently trades at $25.59.

Read our full, actionable report on Mueller Water Products 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 $2.13 billion, up 2.7% year on year. This result beat analysts’ expectations by 0.7%. Zooming out, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ EBITDA estimates but full-year EPS guidance meeting analysts’ expectations.

Xylem delivered the highest full-year guidance raise but had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is down 13% since reporting and currently trades at $107.45.

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

Market Update

Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.