Q3 Rundown: Tennant (NYSE:TNC) Vs Other Water Infrastructure Stocks

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Q3 Rundown: Tennant (NYSE:TNC) Vs Other Water Infrastructure Stocks

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 Tennant (NYSE:TNC) 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 satisfactory Q3. As a group, revenues were in line with analysts’ consensus estimates.

In light of this news, share prices of the companies have held steady as they are up 1.4% on average 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 $315.8 million, up 3.6% year on year. This print fell short of analysts’ expectations by 1.1%. Overall, it was a slower quarter for the company with a miss of analysts’ EPS and EBITDA estimates.

“We are pleased to report Tennant's strong third quarter results, continuing the trend from the first half of 2024 of delivering growth in organic net sales and Adjusted EBITDA as we progress toward normalized backlog levels by the end of 2024," said Dave Huml, Tennant President and Chief Executive Officer.

Tennant Total Revenue
Tennant Total Revenue

Tennant pulled off the highest full-year guidance raise of the whole group. The results were likely priced in, however, and the stock is flat since reporting. It currently trades at $87.19.

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

Best Q3: 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 $348.2 million, up 15.5% year on year, outperforming analysts’ expectations by 6.5%. The business had a very strong quarter with an impressive beat of analysts’ organic revenue and EBITDA estimates.

Mueller Water Products Total Revenue
Mueller Water Products Total Revenue

Mueller Water Products achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems content with the results as the stock is up 1.8% since reporting. It currently trades at $24.42.

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