Core Insights - Ave Maria Value Fund reported a return of 0.43% in Q3 2025, significantly underperforming the S&P 500 Index which returned 8.12% and the S&P MidCap 400® Index which gained 5.55% [1] Company Overview - WaterBridge Infrastructure LLC (NYSE:WBI) is highlighted as a new position in the Ave Maria Value Fund's portfolio, specializing in water infrastructure [2][3] - The company is the largest pure-play integrated water infrastructure firm in the U.S., primarily operating in the Permian Basin, a key area for oil and natural gas production [3] Stock Performance - As of January 6, 2026, WaterBridge Infrastructure LLC's stock closed at $18.99 per share, with a one-month return of -12.97% and a 52-week loss of 5.10% [2] - The market capitalization of WaterBridge Infrastructure LLC is reported at $821.6 million [2] Investment Strategy - The Ave Maria Value Fund maintained a stable portfolio with no liquidations and established only one new position in WaterBridge during Q3 2025 [3] - The fund aims to provide reliable and cost-effective water management solutions to meet the evolving needs of the exploration and production industry [3] Hedge Fund Interest - WaterBridge Infrastructure LLC was held by 44 hedge fund portfolios at the end of Q3 2025, indicating some level of interest among institutional investors [4] - Despite this interest, the analysis suggests that certain AI stocks may offer greater upside potential and lower downside risk compared to WaterBridge [4]

Group 1 - WaterBridge Infrastructure (WBI) has seen a rise in stock price and is approaching its first buy point after its September initial public offering [1] - The company is recognized as Investor's Business Daily's IPO Stock Of The Week and is included in IBD's IPO Leaders screen [1] - WaterBridge operates primarily in the Delaware Basin and focuses on integrated water infrastructure [1]

Core Insights - WaterBridge Infrastructure LLC reported strong financial and operational growth in its first public quarter, with pro forma revenue increasing by 8% quarter-over-quarter and key infrastructure projects progressing on schedule [1][10][13]. Financial Highlights - Total pro forma revenue for Q3 2025 was $205.5 million, an 8% increase compared to Q2 2025, driven by volume growth and higher prices for produced water [10][13]. - Pro forma net loss for Q3 2025 was $18.7 million, with pro forma Adjusted EBITDA at $105.7 million [10][11][13]. - Pro forma gross margin was $55.4 million, with a gross margin per barrel of $0.22 [7][10]. - Total liquidity as of September 30, 2025, was $547 million, with cash and cash equivalents at $347 million [12][14]. Operational Highlights - Combined produced water handling volumes reached 2.5 million barrels per day, a 7% increase from Q2 2025, supported by the development of East Stateline infrastructure and the bpx Kraken pipeline project [6][10][13]. - The bpx Kraken pipeline project, which began service on July 1, 2025, has an initial capacity of approximately 400,000 barrels per day, expandable to 600,000 barrels per day [8][10]. - Construction of the Speedway Pipeline project commenced in October 2025, with an expected capital expenditure of approximately $290 million [9][10]. Strategic Developments - The company successfully completed its IPO on September 18, 2025, raising significant capital and establishing a market capitalization of $3.0 billion as of November 7, 2025 [13][21]. - Following the IPO, WaterBridge closed a $1.425 billion senior notes offering to enhance liquidity and reduce annual interest expenses [16][17][13]. - Credit ratings of BB- / BB- / Ba3 were assigned by S&P Global, Fitch, and Moody's, reflecting positive leverage and growth developments [15][13].

Financial Performance Highlights - FY2025 net sales reached $1,430 million, with a 5-year CAGR of 8.2%[12] - Adjusted EBITDA for FY2025 was $326.2 million, representing 22.8% of net sales and a 5-year CAGR of 11.3%[12] - Free cash flow for FY2025 amounted to $172 million[12] - Net debt stood at $20.1 million as of September 30, 2025, with a net debt to adjusted EBITDA ratio of 0.1x[12] - Q4 Fiscal 2025 net sales were $380.8 million, a 9.4% increase year-over-year[71] - Q4 Fiscal 2025 adjusted EBITDA was $91.8 million, a 26.6% increase year-over-year[71] - Q4 Fiscal 2025 adjusted net income per diluted share was $0.38, a 72.7% increase year-over-year[71] Strategic Priorities and Investments - The company aims to identify a total of 18 billion gallons of water loss by 2029 through EchoShore® leak detection[20] - Capital expenditures are expected to increase to 4% to 5% of net sales over the next 3 years[77] - The company has allocated $95 million to share repurchases since FY2019, including $15 million in FY2025, with $65 million remaining authorization on the share repurchase program as of September 30, 2025[93] FY2026 Outlook - Consolidated net sales are projected to be between $1,450 million and $1,470 million, representing a year-over-year growth of 1.4% to 2.8%[87] - Adjusted EBITDA is expected to range from $345 million to $350 million, indicating a year-over-year growth of 5.8% to 7.3%[87]

Financial Data and Key Metrics Changes - Revenue increased by 9% to $850 million, reflecting strong performance despite market challenges [5][13] - Adjusted EBITDA grew by 17%, resulting in a margin of 33.8%, demonstrating the resilience of the business model [11][13] - Free cash flow for the year-to-date reached $399 million, up from $238 million in the prior year, driven by increased profitability and better working capital performance [15][16] Business Line Data and Key Metrics Changes - Allied product sales rose by 13%, with significant growth in StormTech chambers, Nyloplast catch basins, and water quality products [5][6] - Infiltrator revenue surged by 25%, with 7% organic growth attributed to new tanks and advanced treatment products [6][7] - Pipe revenue saw a modest increase of 1%, with growth in HP pipe products offset by weakness in the agriculture market [7] Market Data and Key Metrics Changes - Non-residential sales grew by 15%, driven by broad-based geographic growth across the U.S., with organic growth of 12% [7][8] - The residential market showed mixed results, with strong growth in multi-family development but challenges in single-family housing starts due to interest rates [8][10] - Land development activity was stronger in the Atlantic Coast and south-central U.S., while the DIY channel faced challenges [8] Company Strategy and Development Direction - The company remains committed to investing in both organic and inorganic growth, including the recent agreement to acquire NDS, a supplier of stormwater and irrigation products [9][10] - The strategy focuses on diversifying and increasing the mix of profitable Allied and Infiltrator products to enhance resiliency and support growth [10][11] - The company aims to leverage its scale, product portfolio, and operational excellence to drive long-term growth in water management solutions [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding market demand in the second half of the year, reflecting potential risks from seasonality and economic factors [18][19] - The long-term outlook remains strong, supported by secular tailwinds driving demand for water management solutions [12][19] - Management highlighted the importance of safety and operational excellence, achieving the safest first half of the year on record [11][12] Other Important Information - The company ended the quarter with a net leverage of 0.7 turns and over $1.4 billion in available liquidity, including $813 million in cash [16][17] - The acquisition of NDS is expected to be accretive to adjusted earnings per share in the first year, with anticipated annual cost synergies of $25 million by year three [17] Q&A Session Summary Question: Outlook for end markets in the second half of the year - Management indicated a conservative outlook for the second half, implying slight degradation year-over-year due to uncertain demand [24][26] Question: Inventory levels in the channel - Management noted that inventory levels are appropriately sized for the current demand environment, with no unusual issues observed [26][27] Question: Margin expectations for the second half - Management expects stable price-cost dynamics, with margins driven by demand and top-line performance [30][31] Question: Residential business growth drivers - Growth in the residential segment was attributed to new products and strong participation in multi-family developments [38][41] Question: Integration progress of Orenco acquisition - Integration is progressing well, with earnings growing faster than sales and positive customer feedback [87][90] Question: Potential revenue synergies from NDS acquisition - Management highlighted complementary product lines and opportunities for cross-selling between ADS and NDS products [99][100] Question: Long-term margin profile expectations - Management sees opportunities for margin expansion through product mix, innovation, and capital allocation strategies [106]

Company Overview and Strategy - NWPX Infrastructure, Inc is rebranding to highlight growth potential in water infrastructure[11] - The company has a 50%+ market share in the water transmission systems (WTS) market[11] - NWPX acquired two precast entities to enter the concrete and environmental solutions market[11] - The company intends to use Northwest Pipe Company name for WTS segment[11] Market and Financial Performance - The addressable market for Water Transmission Systems is $450 - $650 million, with NWPX's share at $338 million (~52%)[32] - The addressable market for Precast Infrastructure and Engineered Systems is $14 billion, with NWPX's share at $155 million (~1%)[32] - The company's Water Transmission Systems backlog is $301 million[63] - The Precast Infrastructure and Engineered Systems order book is $55 million[63] Growth and Capital Allocation - NWPX is pursuing a product spread strategy to produce and ship ParkUSA products out of legacy Northwest Pipe plants[47] - The company is seeking accretive acquisitions in the precast-related space[48] - NWPX repurchased approximately 577,000 shares for approximately $22 million since November 2023[57] Environmental, Social, and Governance (ESG) - The company's 2024 total recordable incident rate is 1.25, and the days away rate is 0.14[71] - NWPX published its first third-party verified Environmental Product Declaration (EPD) for water transmission systems[77]

Core Insights - NWPX Infrastructure, Inc. reported its strongest quarter in company history with consolidated revenue of $151.1 million, a 13.4% increase from the previous quarter, and a gross margin of 21.3%, reflecting a 230 basis points margin expansion [2][4][5] Financial Performance - Record net sales of $151.1 million, up 16.0% year-over-year, and record gross profit of $32.2 million, an increase of 19.0% year-over-year [4][5] - Water Transmission Systems (WTS) segment achieved record net sales of $103.9 million, a 20.9% increase year-over-year, and gross profit of $22.1 million, up 33.0% year-over-year [4][12] - Net income reached $13.5 million, or $1.38 per diluted share, compared to $10.3 million, or $1.02 per diluted share, in the same quarter of 2024 [5][12] Business Segments - WTS backlog was $257 million as of September 30, 2025, with total backlog including confirmed orders at $301 million [4][12] - Precast Infrastructure and Engineered Systems segment reported net sales of $47.2 million, a 6.6% increase year-over-year, with gross profit slightly decreasing to $10.0 million [12] Cash Flow and Capital Allocation - Operating cash flow for the quarter totaled $21.0 million, reflecting strong cash generation capabilities [2][12] - The company repurchased $15.8 million of common stock year-to-date through September 2025, representing 3.8% of shares outstanding [4][12] Future Outlook - The company anticipates WTS revenue and margins to be comparable to last year's levels, while Precast revenue and margins are expected to show modest year-over-year improvement [2][12] - The fourth quarter is expected to be the strongest project bidding period of 2025, which should lead to backlog growth [2][12]

Company Overview - WaterBridge Infrastructure LLC is a leading integrated, pure-play water infrastructure company primarily operating in the Delaware Basin, which is the most prolific oil and natural gas basin in North America [4] - The company also has assets in the Eagle Ford and Arkoma Basins, operating the largest produced water infrastructure network in the United States [4] - As of August 31, 2025, WaterBridge's infrastructure network included approximately 2,500 miles of pipelines and 197 produced water handling facilities, managing over 2.6 million barrels per day (bpd) of produced water with a total handling capacity exceeding 4.5 million bpd [4] Financial Events - WaterBridge will release its financial results for the third quarter of 2025 after market close on November 12, 2025, followed by a conference call on November 13, 2025, at 10:30 a.m. Central Time [1] - The company has announced a pricing of an upsized offering of $1,425 million in senior notes, which includes $825 million of 6.25% senior unsecured notes due 2030 and $600 million of 6.50% senior unsecured notes due 2033 [7] - WaterBridge intends to use the net proceeds from the offering of the notes, along with cash on hand, to repay all outstanding borrowings under its credit facility [8]

Core Viewpoint - The Invesco S&P Global Water Index ETF (CGW) is designed to provide investors exposure to companies involved in water-related technology and management, with a focus on large-cap constituents and a total asset under management of $1.01 billion [2][3]. Group 1: ETF Overview - CGW was launched on May 14, 2007, and is a passively managed sector ETF that tracks the S&P Global Water Index [3]. - The ETF has substantial liquidity, with an average daily trading volume of $1.91 million and a low bid/ask spread of 10 basis points [3]. - The S&P Global Water Index includes companies operating in water-related businesses, requiring a minimum market cap of $300 million and a float-adjusted market cap of $100 million [4]. Group 2: Geographic and Sector Exposure - The portfolio is geographically diversified, with approximately 60% in the US, 11.80% in the UK, 8.33% in Brazil, and 7.33% in Switzerland [5]. - Sector exposure is primarily in industrials (46.74%) and utilities (43.35%), making it a potential portfolio diversifier [7][9]. Group 3: Holdings and Performance - CGW utilizes a sampling method with 64 holdings, where the top 10 holdings account for 55% of the total portfolio weight [12]. - The ETF offers a distribution rate of $1.23 per share, yielding 1.91% on a trailing twelve-month basis, which is higher than the 1.08% yield of the S&P 500 [13]. - Compared to peer ETFs, CGW has a higher concentration in its top holdings, with the First Trust Water ETF (FIW) having a lower concentration at 40.88% for its top 10 holdings [16][18]. Group 4: Investment Strategy and Comparison - The water sector is experiencing secular growth trends, driven by increasing demand for water in various industries, making CGW suitable for both tactical positioning and long-term holding [15]. - CGW is one of the larger water sector ETFs, but FIW may offer a more optimal investment strategy due to its lower expense ratio and relative performance [16][18]. - CGW is best utilized as a satellite position within a diversified portfolio, providing differentiated exposure compared to broader market indices [23].

Core Insights - The panel discussion focuses on the increasing importance of water and land efficiency due to rising temperatures, growing global populations, and resource security concerns [1] Group 1: Industry Challenges - There is a heightened focus on addressing issues related to water supply, including both excess and scarcity, while minimizing environmental impacts [1] - The discussion highlights the need for reliability in resource supply amidst these challenges [1] Group 2: Expert Contributions - The panel features experts from various sectors, including Susan Moisio from Jacobs Solutions, which is recognized as a leader in water infrastructure [2] - Matt Diserio represents Water Asset Management, an investment firm dedicated to water-related investments [2] - Ara Erickson from Weyerhaeuser contributes insights from a major land and timber management perspective [2]