Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Mueller Water Products (NYSE: MWA) and the best and worst performers in the water infrastructure industry.

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 7% since the latest earnings results.

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 exceeded analysts’ expectations by 0.8%. Overall, it was a strong quarter for the company with a solid beat of analysts’ adjusted operating income estimates.

“We are pleased with our strong second quarter results, which were achieved through disciplined execution and resilient end-market demand. We set new quarterly records for net sales, adjusted EBITDA and adjusted net income per diluted share, demonstrating the strength of our brands and impact of our ongoing commitment to operational excellence and cost management. I want to thank our employees for their continued dedication and effort in supporting our customers and delivering value for all our stakeholders,” said Paul McAndrew, President and Chief Executive Officer of Mueller Water Products.

The stock is down 4% since reporting and currently trades at $26.45.

We think Mueller Water Products is a good business, but is it a buy today? Read our full report 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 a solid beat of analysts’ organic revenue and EBITDA estimates.

Watts Water Technologies delivered the fastest revenue growth among its peers. The market seems content with the results as the stock is up 3.2% since reporting. It currently trades at $301.37.

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 25.2% since the results and currently trades at $8.68.

Read our full analysis of Energy Recovery’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 $2.13 billion, up 2.7% year on year. This number beat analysts’ expectations by 0.7%. Taking a step back, it was a satisfactory quarter as it also logged a solid beat of analysts’ EBITDA estimates and full-year EPS guidance meeting analysts’ expectations.

Xylem delivered the highest full-year guidance raise but had the weakest performance against analyst estimates and weakest performance against analyst estimates among its peers. The stock is down 10.5% since reporting and currently trades at $110.54.

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

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 surpassed analysts’ expectations by 3%. It was an exceptional quarter as it also produced a beat of analysts’ EPS and EBITDA estimates.

Tennant had the weakest full-year guidance update among its peers. The stock is up 1.4% since reporting and currently trades at $83.09.

Read our full, actionable report on Tennant 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 Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.