Core Insights - Donaldson (DCI) reported quarterly earnings of $1.03 per share, exceeding the Zacks Consensus Estimate of $1.02 per share, and up from $0.94 per share a year ago, representing an earnings surprise of +0.98% [1] - The company posted revenues of $980.7 million for the quarter ended July 2025, surpassing the Zacks Consensus Estimate by 2.82%, and an increase from $935.4 million year-over-year [2] - Donaldson has outperformed the S&P 500, gaining about 12.3% since the beginning of the year compared to the S&P 500's gain of 9.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.93 on revenues of $923.02 million, and for the current fiscal year, it is $3.90 on revenues of $3.78 billion [7] - The estimate revisions trend for Donaldson was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Pollution Control industry, to which Donaldson belongs, is currently ranked in the top 11% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]

Industry Overview - The Zacks Pollution Control industry is experiencing strong demand for air pollution control products due to increasing greenhouse gas emissions and associated health risks [1] - Stringent regulations and emission standards globally are expected to continue driving demand for industry participants [1][5] Major Trends - Rapid urbanization and rising greenhouse gas emissions from the industrial sector are increasing the demand for air quality control systems [4] - Public awareness of health risks related to air pollution is fueling market growth [4] - The expansion of infrastructure projects in developing countries is boosting demand for pollution abatement equipment [4] - Strict emission standards and laws implemented globally are augmenting demand for pollution-control equipment [5] - The adoption of AI and IoT in industrial processes is enabling real-time monitoring of air pollution sources, driving demand for pollution abatement technologies [5] Challenges - The growing preference for renewable energy sources is restraining demand for industrial emission-abatement products [6] - Supportive government policies for renewable energy and the rapid adoption of electric vehicles are negatively impacting the industry's prospects [6] Industry Performance - The Zacks Pollution Control industry has underperformed the broader Industrial Products sector and the S&P 500 index over the past year, declining 7.3% compared to the sector's increase of 9.6% and the S&P 500's increase of 15.5% [9] Valuation - The industry is currently trading at a forward P/E ratio of 20.20X, compared to the S&P 500's 22.85X and the sector's 19.81X [12] Key Companies - **Atmus Filtration**: A leader in industrial filtration with a Zacks Rank 2 (Buy), has seen a 32.3% share price increase over the past year [17][18] - **Donaldson Company**: Engaged in manufacturing filtration systems, holds a Zacks Rank 2, and has gained 1% in the past year [21][22] - **Fuel Tech**: Develops air pollution control technology, with a Zacks Rank 2 and a 163.9% share price increase over the past year [25][26] - **Tetra Tech**: Provides consulting and engineering services, holds a Zacks Rank 3 (Hold), and has seen a 20.1% increase in shares over the past six months despite a 23.5% decline over the past year [29][30]

Helios Technologies (HLIO) is another Industrial Products stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 13.2%. The consensus estimate for Helios Technologies' current year EPS has increased 34.1% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy). To break things down more, Fuel Tech, Inc. belongs to the Pollution Control industry, a group that includes 7 individual companies and currently sits at #28 in the Zac ...

Company Performance - LiqTech International, Inc. reported a quarterly loss of $0.22 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.21, representing an earnings surprise of -4.76% [1] - The company posted revenues of $4.96 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 0.86%, but showing an increase from $4.49 million in the same quarter last year [2] - Over the last four quarters, the company has not surpassed consensus EPS estimates and has topped consensus revenue estimates only once [2] Stock Performance - LiqTech International shares have increased by approximately 6.9% since the beginning of the year, compared to the S&P 500's gain of 9.6% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.17 on revenues of $5 million, and for the current fiscal year, it is -$0.81 on revenues of $19.6 million [7] Industry Outlook - The Pollution Control industry, to which LiqTech belongs, is currently ranked in the top 12% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact LiqTech's stock performance [5][6]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the strategy of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps investors identify stocks with momentum by focusing on key metrics [2] Group 2: Fuel Tech, Inc. (FTEK) Analysis - Fuel Tech, Inc. currently holds a Momentum Style Score of A and a Zacks Rank of 2 (Buy), indicating strong potential for outperformance [3][4] - FTEK shares have increased by 16.73% over the past week, significantly outperforming the Zacks Pollution Control industry, which remained flat [6] - Over the last quarter, FTEK shares have surged by 93.24%, and over the past year, they have gained 186%, while the S&P 500 has only increased by 13.05% and 20.74%, respectively [7] Group 3: Trading Volume and Earnings Outlook - FTEK's average 20-day trading volume is 470,017 shares, which is a useful indicator of market interest and price movement [8] - In the past two months, one earnings estimate for FTEK has been revised upward, improving the consensus estimate from -$0.06 to -$0.05 [10] - The positive earnings outlook and momentum indicators suggest that FTEK is a strong candidate for near-term investment [12]

Company Performance - Fuel Tech, Inc. reported a quarterly loss of $0.02 per share, which was better than the Zacks Consensus Estimate of a loss of $0.03, representing an earnings surprise of +33.33% [1] - The company posted revenues of $5.56 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 8.74%, and down from $7.04 million year-over-year [2] - Over the last four quarters, Fuel Tech has surpassed consensus EPS estimates only once and has not beaten consensus revenue estimates during this period [2] Stock Movement and Outlook - Fuel Tech shares have increased approximately 166.7% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.6% [3] - The future performance of Fuel Tech's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $0.01 on revenues of $9.43 million, and for the current fiscal year, it is -$0.06 on revenues of $29.9 million [7] Industry Context - The Pollution Control industry, to which Fuel Tech belongs, is currently ranked in the top 30% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - The performance of Fuel Tech's stock may also be influenced by the overall outlook for the industry, as empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions [5][8]

Core Insights - Tetra Tech (TTEK) reported quarterly earnings of $0.43 per share, exceeding the Zacks Consensus Estimate of $0.37 per share, and showing an increase from $0.32 per share a year ago, resulting in an earnings surprise of +16.22% [1] - The company achieved revenues of $1.15 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.59% and up from $1.11 billion year-over-year [2] - Tetra has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The future performance of Tetra's stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's price movement based on recent earnings and future expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.42 on revenues of $1.16 billion, and for the current fiscal year, it is $1.47 on revenues of $4.6 billion [7] Industry Context - Tetra Tech operates within the Zacks Pollution Control industry, which is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable industry outlook [8] - The performance of Tetra's stock may also be influenced by the overall outlook for the pollution control industry, as historical data shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Company Performance - CECO Environmental reported quarterly earnings of $0.24 per share, exceeding the Zacks Consensus Estimate of $0.20 per share, and up from $0.20 per share a year ago, adjusted for non-recurring items [1] - The earnings surprise for this quarter was +20.00%, and the company has surpassed consensus EPS estimates two times over the last four quarters [2] - Revenues for the quarter ended June 2025 were $185.39 million, surpassing the Zacks Consensus Estimate by 3.41%, and up from $137.52 million year-over-year [3] Market Performance - CECO shares have increased approximately 14.8% since the beginning of the year, compared to the S&P 500's gain of 8.6% [4] - The current consensus EPS estimate for the upcoming quarter is $0.22 on revenues of $176.61 million, and for the current fiscal year, it is $0.97 on revenues of $733.6 million [8] Industry Outlook - The Pollution Control industry, to which CECO belongs, is currently ranked in the top 38% of over 250 Zacks industries, indicating a favorable outlook [9] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact CECO's stock performance [6]

Company Performance - LiqTech International, Inc. reported a quarterly loss of $0.25 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.18, representing an earnings surprise of -38.89% [1] - The company posted revenues of $4.62 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 2.62%, compared to revenues of $4.24 million a year ago [2] - Over the last four quarters, the company has not surpassed consensus EPS estimates and has topped consensus revenue estimates only once [2] Stock Movement and Outlook - LiqTech International shares have declined approximately 21.3% since the beginning of the year, while the S&P 500 has gained 0.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is -$0.16 on revenues of $4.7 million, and -$0.60 on revenues of $19 million for the current fiscal year [7] Industry Context - The Pollution Control industry, to which LiqTech International belongs, is currently ranked in the bottom 36% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for LiqTech International is currently favorable, resulting in a Zacks Rank 2 (Buy) for the stock, suggesting it is expected to outperform the market in the near future [6]

Financial Data and Key Metrics Changes - Revenues for the first quarter of 2025 rose 29% to $6,400,000 from $5,000,000 in the prior year period, primarily driven by the robust performance from the FUEL CHEM business segment [17][5] - Consolidated gross margin improved to 46% from 41% in the prior year, reflecting a higher proportion of FUEL CHEM segment revenue [18] - The operating loss narrowed to $952,000 from $1,700,000 in the previous year, indicating improved revenue profit [22] - The net loss for the quarter was $739,000 or $0.02 per share, compared to net income of $281,000 or $0.01 per share in the same period last year [22] Business Segment Data and Key Metrics Changes - FUEL CHEM segment revenue increased by 92% to $5,100,000 from $2,600,000 in the prior year, comprising nearly 80% of total revenues for the quarter [17][8] - APC segment revenue declined to $1,300,000 from $2,300,000 in the previous year, primarily due to the timing of project execution [17][9] - APC backlog improved significantly, reaching $10,300,000 as of March 31, 2025, up from $6,200,000 at December 31, 2024 [19] Market Data and Key Metrics Changes - The company is encouraged by the global landscape of business development activities, driven by manufacturing expansion and growing demand for power generation [6] - The demand for emissions control solutions is increasing due to the need for compliance with environmental regulations across various markets [7] Company Strategy and Development Direction - The company aims to maintain its revenue guidance for 2025, expecting total revenues to approximate $30,000,000, with both business segments exceeding their performance in 2024 [14] - The company is pursuing additional FUEL CHEM opportunities both domestically and internationally, including a new demonstration of TIFI technology [8] - Investment in water quality and infrastructure is growing, with the company planning to demonstrate its dissolved gas infusion technology [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the near-term outlook for business development opportunities, indicating that 2025 will be a year of growth [4] - The company does not expect specific tailwinds from new regulations but is confident in capturing opportunities driven by general business expansion [11][31] - Management noted that the extension of life for coal-fired units could benefit the company due to increased demand for reliable power [31] Other Important Information - The company has no long-term debt and maintains a strong financial position with approximately $31,000,000 in cash and investments [6][24] - Research and development expenses increased to $570,000, reflecting ongoing investment in water and wastewater treatment technologies [21] Q&A Session Summary Question: How is the company positioned regarding the current political environment and regulations? - Management indicated that the current administration is not deterring business opportunities, and general business expansion is driving growth [29][31] Question: Can the company share any names of partners in the data center market? - Management refrained from naming specific partners but mentioned working with OEM suppliers and large tech companies [33] Question: What is the potential size of the data center opportunity? - Management noted that opportunities could be significant, with costs per unit ranging from $1,000,000 to $2,000,000 [35] Question: What is needed for the Mexican opportunity to materialize? - The Mexican government needs to allocate funds for pollution remediation systems to begin receiving orders [39] Question: Is there a plan for stock buybacks given the current trading levels? - Management discussed the potential for stock buybacks but believes there is enough positive momentum to drive stock price without using cash for buybacks at this time [68]