Water Tech 2Q26 earnings preview

Research evidence excerpt

Water Tech 2Q26 earnings preview

Equity Research

13 July 2026

North America Environmental Services

Investor sentiment toward Water Tech has improved in recent

weeks with multiples recovering off early June lows. 2Q focus

will be on reinforcing confidence in the implied 2H growth North America Environmental Services POSITIVE

Unchangedinflection for VLTO/XYL/BMI, in our view.

2Q26 expectations William Grippin, CFA +1 617 330 5804

For 2Q prints, we think investors will be primarily focused on gaining further clarity/confidence william.grippin@barclays.com

in the implied 2H growth acceleration embedded in FY2026 guides/mgmt commentary for XYL/ BCI, US

VLTO/BMI. We currently estimate organic growth for these 3 companies to recover to 6% y/y in

Alec Scheibelhoffer

2H26 from -2.5% in 1H26. For Applied Water names (WTS/ZWS) we expect growth to decelerate +1 212 526 1021

modestly in 2Q partially due to lapping elevated tariff related pricing, although this dynamic is alec.scheibelhoffer@barclays.com

already reflected in current consensus expectations and management guidance, in our view. BCI, US

Overall, for our Water Tech coverage we forecast 2Q26 organic revenue growth of 2.1% y/y (4.2%

y/y total) and adj. EBITDA growth of 4.9% y/y. More broadly, we look for any incremental

updates on capital allocation progress, particularly around M&A given under-levered balance

sheets and ample dry powder across our Water Tech coverage.

• Names best positioned for guidance increases, in our view: WTS, ZWS, VLTO driven by a

mix of conservative initial 2026 guides, 1Q outperformance, and share repurchase accretion.

• We recently initiated coverage of ZWS, MWA, and HWKN expanding our total Water Tech

coverage to 7 names and ~$80bn of market cap. For our full note please see: Expanding