Key Highlights

  • Energy Recovery (NASDAQ:ERII) sales fell 65% to USD 11.2 million, with megaproject Revenue sliding 95% to USD 0.9 million and a net loss of USD 6.3 million resulting.
  • Watts Water Technologies (NYSE:WTS) GAAP diluted EPS jumped 77% to USD 4.34, on USD 728.0 million of net sales that included USD 39 million of Tariff refunds.
  • American States Water (NYSE:AWR) saw diluted EPS hold steady at USD 1.06 despite revenue up roughly 5.4% by calculation to USD 192.5 million and Net Income reaching USD 42.3 million.
  • Mueller Water Products (NYSE:MWA) posted fiscal 2026 EPS of USD 1.41 and committed to shift metering to ZENNER USA, a move linked to a 100 to 140 basis point Margin lift.

Energy Recovery (NASDAQ:ERII): Megaproject Timing Explains the Revenue Collapse

Energy Recovery (NASDAQ:ERII) submitted its Quarterly Report on November 4, 2026. The firm designs pressure exchanger equipment that reclaims energy from industrial fluid streams, chiefly in seawater desalination, and is adapting it for wastewater work. Revenue sank 65% to USD 11.2 million from USD 32.0 million, with megaproject revenue shrinking to USD 0.9 million from USD 18.4 million. Those megaproject payments depend on large contracts that get delivered up to 36 months after signing, which makes quarter-over-quarter figures lumpy. Gross margin fell to 37.5% from 64.2%, and the Business shifted to a net loss of USD 6.3 million, or USD 0.12 a share, after net income of USD 3.9 million a year earlier. Operating costs dropped 17.2% to USD 14.0 million, which was insufficient to absorb the revenue decline. Cash of USD 42.5 million plus USD 43.1 million of marketable Debt instruments amounts to about USD 85.6 million by calculation. The company exited its CO2 retail grocery operation and recorded restructuring and Impairment charges. Original equipment manufacturer sales declined 31% to USD 6.2 million, while aftermarket sales fell 13% to USD 4.0 million. The filing warns that year-over-year comparisons may not reflect the full-year trajectory, and nine-month revenue was 52% lower.

Watts Water Technologies (NYSE:WTS): Tariff Refunds Widen the Gap Between GAAP and Adjusted EPS

Watts Water Technologies (NYSE:WTS) set a third-quarter record, announced November 4, 2026. Net sales reached USD 728.0 million, up 19% as reported and 12% organically, a gain management ascribed to heavier volume, chiefly from data centers, along with better pricing. GAAP diluted EPS rose 77% to USD 4.34 from USD 2.45, while adjusted EPS, a non-GAAP figure, improved 36% to USD 3.40. The difference traces to USD 39 million of tariff refunds booked as a special item, which pushed GAAP Operating Margin to 26.2% yet sit outside the adjusted operating margin of 20.9%. The release says special items reduced EPS by USD 0.94 this quarter, a direction at odds with GAAP EPS sitting above adjusted EPS, so the sign is flagged here. Full-year guidance was raised to reported sales growth of 17% to 18% and organic growth of 11% to 12%, assuming the Middle East conflict's effect does not change. Cash was USD 444.8 million, with net debt of negative USD 346.6 million. Elevated interest rates and uncertainty continue to hold back new construction, while receivables and inventory lifted working capital, partly to prepare for Data Center demand. The company bought roughly 11,000 shares for USD 3.9 million during the quarter.

American States Water (NYSE:AWR): Higher Net Income but Flat EPS at USD 1.06

American States Water (NYSE:AWR) filed for the period ended September 30, 2026, on November 4, 2026. Operating Revenue was USD 192.5 million versus USD 182.7 million, split among water at USD 139.9 million, electric at USD 14.9 million and contracted services at USD 37.7 million. Operating Income advanced to USD 67.3 million from USD 61.7 million, and net income grew about 2.7% by calculation to USD 42.3 million. Diluted EPS was unchanged at USD 1.06 because the weighted diluted share count increased to 39.8 million from 38.7 million, and the filing notes shares sold via an at-the-market program. Income tax expense of USD 14.8 million implied an effective rate near 25.9% by calculation, up from about 23.9% a year earlier. Nine-month figures look better, with diluted EPS moving from USD 2.63 to USD 2.92 and net income at USD 115.5 million. Long-term debt was USD 717.7 million, and bank notes payable totaled USD 115.0 million. Dividends paid amounted to USD 0.5455 a share, roughly 8.2% higher by calculation. Regulated Earnings hinge on rate rulings and cost recovery, and no guidance table appears in the filing.

Mueller Water Products (NYSE:MWA): Metering Exit and Fiscal 2027 Outlook

Mueller Water Products (NYSE:MWA) revealed on November 4, 2026, an agreement to hand its metering operation, housed in the Mueller Systems subsidiary, over to ZENNER USA after a board assessment of strategic fit. Metering generated roughly USD 40 million of sales in fiscal 2026. The company anticipates an annualized adjusted EBITDA margin improvement of 100 to 140 basis points, primarily beginning in the second quarter of fiscal 2027, while about USD 26 million of one-time costs arrive, mostly in the first quarter. For the fiscal year ended September 30, 2026, diluted EPS was USD 1.41 versus USD 1.22, and adjusted EPS climbed 19.8% to USD 1.57. Net sales rose 3.2% to USD 1,475.0 million, though fourth-quarter sales dipped 1.1% to USD 376.5 million amid softer volume. Adjusted EBITDA increased 14.1% to USD 372.2 million, equal to a 25.2% margin, and free Cash Flow totaled USD 207.3 million. For fiscal 2027, net sales are guided to USD 1,440 million to USD 1,470 million excluding metering, with adjusted EBITDA of USD 378 million to USD 388 million. Tariffs, inflation, weaker new home construction and execution of the transition are the risks cited.

Where Things Stand

Mostly timing. Megaproject deliveries, which accounted for 58% of revenue a year ago, nearly disappeared this quarter. Energy Recovery (NASDAQ:ERII) still holds about USD 85.6 million (calculated) of cash and marketable debt, yet fixed costs weigh on a thin revenue quarter. The other three filings tell different stories, each with its own caveat. Watts Water Technologies (NYSE:WTS) expanded organically, but tariff refunds inflated its GAAP EPS. American States Water (NYSE:AWR) grew sales without lifting EPS, owing to added shares and a higher tax rate. Mueller Water Products (NYSE:MWA) is surrendering one business to widen margins. None of the releases reported a price reaction, so the market view cannot be read from them.