Key Takeaways Pentair posted Q2 adjusted EPS of $1.39, up 14% year over year and above guidance and estimates. PNR raised its 2025 EPS guidance to $4.75-$4.85 and sales growth forecast to 1-2%. Pool segment led gains with 9% higher sales and a 14.3% rise in operating earnings.Pentair plc (PNR) posted adjusted earnings per share (EPS) of $1.39 for the second quarter of 2025, which beat the Zacks Consensus Estimate of $1.33 by a margin of 4.5%. The bottom line also topped its guidance of $1.31-$1.35 and mar ...

Q2 2025 EARNINGS RELEASE JULY 22, 2025 - Picture to be updated Key Definitions 3 Q2 2025 Earnings Release ©2025 Pentair. All Rights Reserved. • Except as otherwise noted, our results represent continuing operations for the period indicated, presented on an adjusted basis • Core sales refers to GAAP net sales from continuing operations excluding: (1) the impact of currency translation and (2) the impact of net sales from acquired businesses recorded prior to the first anniversary of the acquisition, excludin ...

Group 1 - The article discusses Viomi Technology Co., Ltd, a smart home-water appliance provider, and mentions that the last analysis was in January when the stock was rated a 'hold' at a price of $1.57 [1] - The company focuses on providing income through investment setups by acquiring undervalued profitable stocks with strong balance sheets and minimal debt [1] - The investment strategy includes writing calls against positions to generate additional income while managing risk through position sizing and trailing stop losses [1]

Core Insights - The markets started 2025 strong but have faced increased volatility due to the Trump administration's tariff plans and geopolitical uncertainties, leading to cautious investor behavior [1] Stock Selection Strategy - A conventional method for selecting stocks is focusing on those with steady sales growth, with The Walt Disney Company (DIS), Agnico Eagle Mines Limited (AEM), Adobe Inc. (ADBE), and Xylem Inc. (XYL) highlighted as potential candidates [2][10] - Revenue growth is prioritized over earnings as it indicates an expanding customer base and long-term potential, while stagnant revenue may signal operational challenges [3] - An effective investment strategy should also analyze a company's cash position alongside sales, as strong cash reserves and healthy cash flow provide flexibility for growth and stability [4] Screening Parameters - Stocks are shortlisted based on criteria including 5-Year Historical Sales Growth (%) greater than the industry average and Cash Flow exceeding $500 million [5] - Additional metrics include a Price-to-Sales (P/S) Ratio lower than the industry average, positive % Change in F1 Sales Estimate Revisions, Operating Margin greater than 5%, Return on Equity (ROE) above 5%, and a Zacks Rank of 1 or 2 [6][7][8] Company Highlights - The Walt Disney Company (DIS) has a projected sales growth rate of 4.1% for 2025 and currently holds a Zacks Rank of 2 [11] - Agnico Eagle Mines (AEM) is expected to see a sales growth rate of 24.6% in 2025 and has a Zacks Rank of 1 [12] - Adobe Inc. (ADBE) anticipates a sales increase of 9.5% for fiscal 2025 and holds a Zacks Rank of 2 [12] - Xylem Inc. (XYL) has a projected sales growth of 2.2% for 2025 and also carries a Zacks Rank of 2 [13]

Core Insights - The report is the 13th Environmental, Social and Governance (ESG) Report issued by Power Construction Corporation of China Ltd. (POWERCHINA), covering the period from January 1, 2024, to December 31, 2024 [1] - The company aims to enhance its corporate governance, deepen corporate reform, and focus on improving quality and efficiency as part of its strategic initiatives [4][5] - POWERCHINA operates in over 130 countries and regions, positioning itself as a global leader in clean and low-carbon energy, water resources, and environmental construction [2][3] Company Overview - POWERCHINA was founded on November 30, 2009, and was listed on the Shanghai Stock Exchange on October 18, 2011 [2] - The company has total assets of RMB 100 million and total operating revenue of RMB 6,098.44 million in 2023, projected to increase to RMB 6,345.52 million in 2024 [2] - The controlling shareholder is Power Construction Corporation of China Ltd. (POWERCHINA Group), ranked 108th in the 2024 Fortune Global 500 [2] Strategic Orientation - The company aims to become a world-class enterprise by integrating domestic and international markets and focusing on key sectors such as water, energy, urban development, and digitalization [2][3] - POWERCHINA emphasizes seven core capabilities: comprehensive innovation, market expansion, high-quality project execution, lean management, resource integration, asset operation, and risk control [3] ESG Management - The Board of Directors oversees all ESG matters, ensuring that ESG principles are integrated into strategic planning, management, and operations [5] - POWERCHINA has established a multi-level ESG governance framework to manage significant ESG risks and enhance governance capabilities [5][6] - The company recognizes the importance of stakeholder communication and aims to respond to stakeholder concerns regarding sustainable development [5][6] Achievements and Recognition - POWERCHINA received multiple awards, including the "Best Board of Directors" at the 19th "Responsibility Golden Roundtable Awards" and an A-Class Information Disclosure rating by the Shanghai Stock Exchange for 2023-2024 [6][7] - The company was recognized for its efforts in ESG management, including being ranked 19th in CASS's "2024 Top Awarded Outstanding Enterprise Responsibility Development Index" [7] Corporate Culture and Values - The corporate philosophy emphasizes responsibility, innovation, integrity, and win-win cooperation, aiming to build a globally renowned brand [4][5] - POWERCHINA promotes a culture of compliance and integrity, with a zero-tolerance stance on corruption and breaches of business ethics [11][12]

Financial Data and Key Metrics Changes - Consolidated adjusted EBITDA from continuing operations for Q4 was $176.8 million, up approximately 20% from $147.9 million in the prior year [6] - Full year adjusted EBITDA from continuing operations was $622.9 million, exceeding previous guidance of $620 million [7] Business Line Data and Key Metrics Changes - Water Solutions adjusted EBITDA for Q4 was $154.9 million, compared to $123.4 million in the prior year [7] - Physical water disposal volumes increased to 2.73 million barrels per day in Q4 from 2.39 million barrels per day in the prior year [8] - Crude Oil Logistics adjusted EBITDA decreased to $13.1 million in Q4 from $15.3 million in the prior year, primarily due to lower volumes on the Grand Mesa pipeline [10][11] - Liquids Logistics adjusted EBITDA was $17.7 million in Q4, down from $22.2 million in the prior year [12] Market Data and Key Metrics Changes - Total volumes paid for disposal increased by 11% in Q4 compared to the same quarter of the previous year [8] - Operating cost per barrel for fiscal 2025 was $0.22, down from $0.24 in fiscal 2024 [9] Company Strategy and Development Direction - The company is focusing on core assets after divesting non-core businesses, which will reduce volatility and seasonality of adjusted EBITDA [5] - Plans to continue reducing leverage and improve capital structure by addressing Class D Preferred Units [6][19] - The company aims to generate approximately 85% of adjusted EBITDA from the Water Solutions segment moving forward [16] Management's Comments on Operating Environment and Future Outlook - Management noted that despite oil price uncertainty, there has been no drop-off in customer activity in the Corita Basin [10] - The company is well-positioned with 90% of volumes committed through acreage dedications and MVCs, with 80% of total volumes from investment-grade counterparties [10] - Future growth is expected in the Water Solutions segment, with guidance for fiscal 2026 adjusted EBITDA between $615 million and $625 million [12] Other Important Information - The company completed the sale of 18 natural gas liquids terminals and other non-core assets, raising $270 million [4][16] - The biodiesel business has been fully wound down, eliminating approximately $75 million of working capital [5] Q&A Session Summary Question: Can you offer more color on your expectations by business for 2026 guidance? - Management explained that the water guidance midpoint implies about $560 million, accounting for a $20 million decline in skim oil revenues due to lower crude prices [21][22] Question: What are the conversations with customers regarding growth opportunities? - Management indicated that they are recontracting and focusing on core customers, with no slowdown in volumes currently observed [27][29] Question: How much lower could you flex capital spending down? - Management stated that capital expenditures are already low and further reductions may not be significant [35][37] Question: How do you think about your low and high range on volumes for the water business? - Management noted that fluctuations in volumes are normal, with a strong base wedge of business and no significant changes expected from customers [40][46] Question: Will there be a reinstatement of common unit distributions? - Management clarified that there are no plans for near-term distributions as the focus is on reducing Class D preferred units [52][54]

Core Viewpoint - Badger Meter, Inc. (BMI) has shown a strong stock performance with a year-to-date gain of 14.9%, outperforming the S&P 500 and the Instruments-Control industry [1][2] Group 1: Positive Long-Term Outlook - Increasing demand for digital smart water solutions is driven by regulatory pressures, aging infrastructure, and climate-related challenges [3] - Macroeconomic factors such as replacement-driven demand and the rise of Advanced Metering Infrastructure (AMI) adoption are additional growth drivers [3] - BMI is experiencing strong demand for its products, including mechanical and E-Series Ultrasonic meters, ORION Cellular endpoints, and BEACON Software-as-a-Service revenues [4] Group 2: Strategic Acquisitions - BMI's acquisition of SmartCover Systems for $185 million enhances its monitoring solutions and expands its BlueEdge suite [7] - SmartCover contributes $35 million in annual revenues and provides technology that helps utilities monitor sewer levels, reducing costs and protecting public health [8] - The acquisition has already generated $6 million in revenue contribution within months [9] Group 3: Financial Performance - BMI reported a record quarterly free cash flow of $30 million, a 60% increase year over year, supported by improved earnings and effective working capital management [10] - As of March 31, 2025, the company had $131.4 million in cash and cash equivalents, indicating a strong cash position [10] Group 4: Challenges Ahead - Rising expenses and intense competition pose challenges, with ongoing tariff uncertainties expected to impact U.S. manufacturing operations [11] - Tariffs on electronics and components may lead to higher input costs, necessitating selective price increases [12] - The first quarter of 2025 saw SEA expenses rise to $46 million, primarily due to the incorporation of SmartCover [13] Group 5: Market Position and Valuation - BMI's stock is trading at a forward price/earnings ratio of 48.48X, significantly higher than the industry's 18.96X, reflecting its long-term growth potential [16] - Analysts have revised earnings estimates downward by 0.9% for the current quarter, indicating some caution in the market [17] Group 6: Investment Strategy - The company's strong position in the smart water solutions market and strategic acquisitions provide a competitive edge [18] - While the valuation is high and short-term cost pressures exist, robust free cash flow and a solid balance sheet offer financial flexibility [18] - New investors are advised to wait for a better entry point, while existing investors should retain their holdings [19]

Core Viewpoint - Zevia reported a quarterly loss of $0.06 per share, outperforming the Zacks Consensus Estimate of a loss of $0.10, marking a 40% earnings surprise [1][2] Financial Performance - The company achieved revenues of $38.02 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 3.04%, although this represents a decline from $38.8 million in the same quarter last year [2] - Over the last four quarters, Zevia has surpassed consensus EPS estimates three times and topped revenue estimates three times as well [2] Stock Performance - Zevia shares have declined approximately 51.8% since the beginning of the year, contrasting with the S&P 500's decline of 4.7% [3] - The current Zacks Rank for Zevia is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is -$0.04 on revenues of $43.17 million, and for the current fiscal year, it is -$0.24 on revenues of $160.21 million [7] - The trend of estimate revisions for Zevia is currently mixed, which may change following the recent earnings report [6] Industry Context - The Beverages - Soft drinks industry, to which Zevia belongs, is currently ranked in the top 20% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $56.5 million for Q1 2025, marking a 4% sequential increase and a 6% year-over-year increase, driven by record volumes in produced water handling and water solutions [12] - Adjusted operating margin was $0.44 per barrel, reflecting the durability of operating improvements over the last 24 months [12] - Capital expenditures (CapEx) for the quarter were $21 million, down 44% compared to Q1 2024 [12] Business Line Data and Key Metrics Changes - Produced water volumes and water solution volumes grew by 7% sequentially compared to Q4 2024 [8] - The integration of McNeil Ranch into operations is ongoing, with several inbound opportunities being evaluated for additional revenue streams [9] Market Data and Key Metrics Changes - The company expects produced water volumes for Q2 2025 to be between 1.2 million and 1.25 million barrels per day, with water solutions volumes expected to be around 1 million barrels per day [13] - Adjusted operating margin for Q2 is projected to be between $0.41 and $0.43 per barrel, slightly down from Q1 due to well maintenance expenses and lower skim oil price realizations [14] Company Strategy and Development Direction - The company is focused on managing capital investments to align with customer activity levels and has a strong position due to long-term contracts in the Northern Delaware Basin [6][7] - Strategic efforts include beneficial reuse of water, industrial water treatment, and mineral extraction, with plans for a new iodine facility expected to be operational by early 2026 [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate volatility and uncertainty, citing strong customer relationships and a robust balance sheet [16] - There is ongoing dialogue with customers regarding the potential impact of commodity prices on their operations, but no immediate changes to the outlook have been observed [11] Other Important Information - The company successfully refinanced its senior notes, upsizing the offering to $500 million, and ended the quarter with net debt of $480 million and a liquidity of $372 million [15] - A quarterly dividend of $0.14 per share was declared, to be paid on June 18 to shareholders of record on June 5 [15] Q&A Session Summary Question: Expectations for water cuts and volumes if producers move to maintenance mode - Management indicated that they can flex capital expenditures down by 25% to 30% if customer volumes decrease, and water cuts will remain the same, impacting only volume [20][21][22] Question: Update on M&A activity - Management noted that while there is some discomfort in the market due to volatility, the bid-ask spread remains wide, and they are well-positioned to take advantage of opportunities [23][24][25] Question: Volume growth cadence and one-time impacts - Management confirmed that Q1 volumes were strong due to better-than-expected well performance and increased interruptible volumes, but future growth will depend on customer activity [28][29][30] Question: Capital allocation in a downside environment - The company remains committed to maintaining balance sheet strength and plans to continue dividend growth while having the flexibility to reduce capital expenditures if necessary [32][34] Question: Commercialization of McNeil Ranch - Management reported that McNeil Ranch is exceeding expectations with multiple inbound opportunities for monetization, including solar and battery projects [37][38][39] Question: Competitive landscape and impact of new pipelines - Management believes that their long-term contracts and large acreage dedication provide a competitive advantage, despite new pipeline announcements from competitors [50][51][52] Question: Update on beneficial reuse and industrial water treatment - Management confirmed ongoing progress in reducing costs for desalination and expanding applications for treated water, including potential data center uses [52][53][54] Question: Cost recovery for desalination - Management indicated that operational costs could potentially be below $1 per barrel, depending on the scale of operations [83] Question: Future M&A preferences - The company remains focused on core acquisitions but is also exploring smaller bolt-on opportunities, emphasizing discipline in evaluating potential targets [76][77][78]

Xylem (XYL) reported $2.07 billion in revenue for the quarter ended March 2025, representing a year-over-year increase of 1.8%. EPS of $1.03 for the same period compares to $0.90 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $2.04 billion, representing a surprise of +1.26%. The company delivered an EPS surprise of +8.42%, with the consensus EPS estimate being $0.95.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they c ...