Takeaways from AWWA's ACE Show 2026

Research evidence excerpt

Takeaways from AWWA's ACE Show 2026

TD SECURITIES (USA) LLC INDUSTRY UPDATE

June 30, 2026

■Diversified Industrials, Automation Takeaways from AWWA's ACE Show 2026

& Robotics: Water Infrastructure &

Equipment

■Diversified Industrials, Automation &

Robotics

Joe Giordano, CFA THE TD COWEN INSIGHT

646 562 1405

We attended the AWWA ACE Show in Washington DC. We observed steady muni demand

joe.giordano@tdsecurities.com

despite Fed funding deceleration (supported by hyperscalers increasingly partnering with

Michael Anastasiou utilities to fund resiliency), growing use of real-time demos/pilots to prove efficacy, and

646 562 1437 emergent AI tools delivering tangible value. Note includes takeaways from XYL, VLTO (Hach

michael.anastasiou@tdsecurities.com

and Trojan), WTS, ROP (Neptune), PNR (Hydra-Stop).

Chris Grenga, CFA

646 562 1387 Key Points

chris.grenga@tdsecurities.com

From federal funding cliff to deceleration, with new sources filling the gap

The tone at ACE was constructive, with little evidence of project cancellations and continued

visibility into 2026/2027 activity. While federal funding is no longer a likely incremental

tailwind, only ~20% of IIJA funds have been deployed and utilities remain supported by SRFs,

bonds, and, increasingly, private capital, with companies we visited noting that hyperscalers

are partnering directly with utilities in response to community pushback. This dynamic is

new vs. last year and could help offset the step-down in federal funding. The net result is still

positive muni growth, albeit at a slower pace.

Demand remains need-driven, with increasing pressure on water systems broadening the

opportunity set

The consistent message was that water spend is shifting further toward “need-to-have” driven