The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how water infrastructure stocks fared in Q4, starting with Tennant (NYSE: TNC).

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 slower Q4. As a group, revenues missed analysts’ consensus estimates by 4.5%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 10.4% 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 $291.6 million, down 11.3% year on year. This print fell short of analysts’ expectations by 9%. Overall, it was a disappointing quarter for the company with full-year EBITDA guidance missing analysts’ expectations and a significant miss of analysts’ revenue estimates.

“Our fourth‑quarter performance fell short of expectations due to production disruptions during the North America ERP transition,” said Dave Huml, Tennant President and Chief Executive Officer.

Tennant scored the highest full-year guidance raise but had the slowest revenue growth of the whole group. Still, the market seems discontent with the results. The stock is down 4.8% since reporting and currently trades at $78.26.

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

Best Q4: 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 $625.1 million, up 15.7% year on year, outperforming analysts’ expectations by 2.3%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates.

Watts Water Technologies delivered the biggest analyst estimates beat and fastest revenue growth among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 4.8% since reporting. It currently trades at $299.75.

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

Weakest Q4: 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 $66.87 million, flat year on year, falling short of analysts’ expectations by 19%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue andadjusted operating income estimates.

Energy Recovery delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 35.2% since the results and currently trades at $10.45.

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 $2.40 billion, up 6.3% year on year. This number beat analysts’ expectations by 1.1%. It was a strong quarter as it also put up an impressive beat of analysts’ organic revenue and EBITDA estimates.

Xylem had the weakest full-year guidance update among its peers. The stock is down 10.6% since reporting and currently trades at $125.33.

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

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 $318.2 million, up 4.6% year on year. This result topped analysts’ expectations by 2%. Overall, it was a very strong quarter as it also produced an impressive beat of analysts’ adjusted operating income estimates and full-year EBITDA guidance beating analysts’ expectations.

The stock is up 3.6% since reporting and currently trades at $28.51.

Read our full, actionable report on Mueller Water Products 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 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.