North America Environmental Services: Key takeaways from ACE 2026 water conference

研报英文原文证据摘录

North America Environmental Services: Key takeaways from ACE 2026 water conference

Barclays | North America Environmental Services

•• Watts Water Technologies (WTS, EW): WTS’s exposure to municipal water utilities remains

de minimis, while non-residential end markets represent the core of the business (~70% of

revenue). Municipal demand is supported by regulatory-driven requirements tied to EPA

Disinfectants and Disinfection Byproducts rules.

•• Badger Meter (BMI, UW): At a high level, our conversations were largely consistent with

messaging provided during BMI's May 2026 Investor Day (as detailed in our recent note).

Demand for cellular AMI continues to be tied to ongoing replacement and conversion cycles,

including migration from mechanical, AMR, and legacy AMI systems. Software and monitoring

solutions are contributing to incremental recurring revenue growth, supported by a growing

installed base.

•• Itron (ITRI, NC): Itron’s Smart Water solution platform centers on data aggregation and AI-

enabled analytics, supporting pipe asset management and network optimization through

predictive tools. These capabilities are monetized via subscription-based offerings layered

onto its meter-agnostic network platform. Water utilities typically replace ~1-2% of pipe

infrastructure per year. Itron’s value proposition centers on improving project selection by

identifying assets with the highest risk and consequence of failure. Hardware sales currently

represent ~60-70% of Itron's global revenue, with management focused on expanding

recurring revenue contribution from its Smart Water offerings.

•• Mueller (MWA, NC): Mueller’s hydrant platform incorporates acoustic leak detection

capabilities, enabling system-wide visibility. Newer hydrant offerings are integrating