Getting a Grip(pin) on Waste & Water Tech

研报英文原文证据摘录

Getting a Grip(pin) on Waste & Water Tech

70 parking spaces and a ~3.8k sq. ft.

building, providing additional infrastructure in a key South Florida operating market.

• Key highlights from our 2Q26 preview for our Water Tech coverage (link to full note): For

2Q prints, we think investors will be primarily focused on gaining further clarity/confidence in

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

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

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

decelerate modestly in 2Q partially due to lapping elevated tariff related pricing, although

this dynamic is already reflected in current consensus expectations and management

guidance, in our view. 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.

• Highlights from Barclays Thematic Investing team's review of data center water usage

disclosures (note on AMZN & GOOG | note on MSFT): Last week, our colleagues on the

Barclays Thematic Investing team published a series of reports examining water usage trends

for AMZN, GOOG, and MSFT, highlighting that water demand continues to increase alongside

AI infrastructure deployment. Recent disclosures showed Google's water withdrawals

increased 33% y/y to ~56bn liters, Microsoft reported a 14% y/y increase in water use to

~13.3bn liters, and Amazon disclosed ~9.4bn liters of data center water withdrawals in 2025.