With recession fears rising, stocks near annual lows, and companies facing challenging year-on-year comparisons, many investors feared the worst heading into the second-quarter reporting cycle. Results were generally not as dire as expected, however, leading to a largely positive earnings season where most water stocks responded favourably to earnings. Key positive themes in the quarter included strength in agricultural, municipal, and industrial demand, continued substantial pricing gains, and ongoing growth for in-home water treatment solutions. The municipal market continues to belie slowdown concerns, with order intake remaining robust, although a number of companies noted wastewater projects outpacing those in drinking water. Evoqua CEO Ron Keating told investors that due to rising wastewater reuse project activity, Evoqua sees a "green light" ahead for municipal wastewater. "Wastewater reuse has become vital in protecting diminishing water supplies and reducing the strain on municipalities," he noted.
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