Financial Data and Key Metrics Changes - In 2025, the company generated $1.4 billion in consolidated revenue, with a record adjusted EBITDA of $260 million, despite a challenging macro environment [17][25] - The company improved consolidated margins and achieved a gross profit margin of 54% in Q4 2025 [18][22] - Adjusted EBITDA for Q4 2025 was $64.2 million, exceeding guidance [25] Business Line Data and Key Metrics Changes - The Water Infrastructure segment saw revenue growth of over 800% over five years, becoming the largest segment by profitability [8] - The Chemical Technology segment achieved 19% year-over-year revenue growth and 45% growth in gross profit before depreciation and amortization [13][24] - The Water Services segment maintained market-leading positions and achieved 7% revenue growth in Q4 2025 [20][23] Market Data and Key Metrics Changes - The company anticipates a steady commodity price environment in 2026, with oil prices expected to remain between $55-$65 [17] - The company expects 20%-25% year-over-year growth in the Water Infrastructure segment for 2026 [9][21] Company Strategy and Development Direction - The company is focusing on expanding its water infrastructure in the Northern Delaware Basin, which is characterized by productive geology and low breakevens [9][10] - Strategic investments are being made in long-term diversification efforts, including beneficial reuse and mineral extraction [7][12] - The company aims to grow its water infrastructure to account for over 60% of consolidated gross profit in the next 24 months [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory for 2026, supported by ongoing infrastructure projects and market demand [16][30] - The company is well-positioned to generate healthy and durable free cash flows over the long term, with a focus on capital allocation for growth and shareholder returns [30] Other Important Information - The company is exploring additional opportunities in lithium extraction and other high-margin revenue streams [44][45] - The Peak Rentals business is under strategic evaluation to maximize value for shareholders while supporting core water infrastructure growth [15][50] Q&A Session Summary Question: Expansion opportunities in Northern Delaware - Management noted a mix of smaller opportunities and some larger projects in the Northern Delaware, with a focus on leveraging the existing system for attractive returns [32][34] Question: Future growth for infrastructure business - Management indicated ongoing expansion in Lea and Eddy County, with potential for growth into other basins [37] Question: Lithium extraction partnerships - Management confirmed ongoing evaluations for additional high-margin opportunities, including iodine and strontium extraction [44][45] Question: Update on Peak Rentals business - Management is strategically engaging around Peak Rentals to ensure positive outcomes for both Peak and Select [46][50] Question: Beneficial reuse pilots - Management highlighted successful pilots in collaboration with operators and universities, focusing on treated produced water for agricultural applications [53][56]

Core Viewpoint - Xylem Inc. (XYL) shares experienced a significant decline of up to 10% following the company's 2026 revenue guidance, which did not meet Wall Street expectations [3]. Company Summary - Xylem forecasts its 2026 revenue to be approximately $9.1 billion to $9.2 billion, indicating a shortfall compared to market expectations [3].

Financial Data and Key Metrics Changes - Consolidated net sales increased by 4.6% to $318.2 million, driven primarily by higher pricing across most product lines, partially offset by slightly lower volumes [12][9] - Gross profit rose by 16.3% to $119.8 million, with gross margin expanding by 380 basis points to 37.6% [12][14] - Adjusted EBITDA reached a first-quarter record of $72.1 million, an increase of 13.5% compared to the prior year [14] - Adjusted net income per diluted share increased by 16% year-over-year to $0.29, setting another first-quarter record [14] Business Line Data and Key Metrics Changes - Water Flow Solutions (WFS) net sales decreased by 0.9% to $173 million, while adjusted operating income increased by 28% to $49.4 million [15] - Water Management Solutions (WMS) net sales increased by 12% to $145.2 million, but adjusted operating income decreased by 11.2% to $24.5 million due to increased tariffs and inflationary pressures [17] Market Data and Key Metrics Changes - The company anticipates healthy municipal repair and replacement activity and strong growth in project-related work using specialty valves, which will offset slower new residential construction activity [10][20] - A high single-digit decrease in the residential construction market is expected, while municipal repair and replacement growth is projected in the low to mid-single-digit range [55][57] Company Strategy and Development Direction - The company is focused on improving operational execution and strengthening relationships with stakeholders, aiming for sustained margin expansion and long-term value creation [11][22] - Strategic capital expenditures are expected to increase capacity and drive efficiencies, particularly in domestic capabilities related to iron foundries [46][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance and the resilience of end markets, despite challenges from tariffs and inflation [10][60] - The company raised its fiscal 2026 guidance for consolidated net sales and adjusted EBITDA, reflecting strong first-quarter results and expectations for end market demand [20][21] Other Important Information - The company generated $44 million of free cash flow and returned approximately $16 million to shareholders through dividends and share repurchases [9] - The balance sheet remains strong, with no debt maturities until June 2029 and ample liquidity to support strategic priorities [19] Q&A Session Summary Question: Can you quantify how much you guys have raised prices so far this year? - The majority of the increased growth in guidance is predominantly price-related, with annual price increases recently announced [26] Question: Can you break down the impacts from manufacturing efficiencies and pricing on margins? - The closure of the legacy brass foundry provided significant benefits, impacting margins positively [27] Question: Can you size for us the inflation pressures? - The company expects to be price positive for the full year, with approximately a 3% impact from tariffs factored into guidance [36][37] Question: What is the expectation for residential construction activity? - A high single-digit range of slowdown in residential construction is anticipated, but there is potential for increased activity if rates lower [38] Question: Can you provide more color on Mueller's transformation and growth prospects? - The company has improved commercial and operational investments, with further capital expenditures planned to drive capacity and efficiencies [43][44] Question: What are the priorities for capital deployment? - The company is focused on evaluating acquisition opportunities, particularly in drinking water and wastewater sectors [46] Question: Can you run through your exposures in repair and replace contributions? - The company expects resilient end markets, with growth in municipal repair and replacement offsetting declines in residential construction [55][57]

Core Thesis - Badger Meter, Inc. (BMI) is positioned as a leading provider of smart water infrastructure solutions, with a strong focus on recurring software and service revenue, which is growing faster than hardware sales [2][3] Company Overview - BMI serves over 50,000 local utilities in the U.S., providing a comprehensive portfolio of hardware, connectivity, and software under the BlueEdge platform, including advanced metering infrastructure (AMI) systems [2] - Approximately 88% of BMI's revenue is derived from its Utility Water segment, with a historical revenue growth of roughly 9% and earnings growth of 17% over the past decade [3] Competitive Advantages - The company benefits from integrated hardware-software systems, technical precision, long product lifecycles, and high switching costs, although it faces robust competition and limited pricing power [4] - Profitability is supported by efficient production, low capital intensity, and disciplined R&D, resulting in a free cash flow yield that funds dividends and growth initiatives [4] Financial Position - BMI maintains a net cash position with minimal debt, providing flexibility for future development [5] - The company has a 33-year record of dividend growth and predictable long-term demand driven by regulatory requirements and infrastructure renewal [5] Market Performance - As of January 30th, BMI's share price was $146.58, with trailing and forward P/E ratios of 30.15 and 27.78 respectively [1] - The stock price has depreciated by approximately 33.13% since previous coverage, attributed to broader market adjustments and high valuation [7]

Core Insights - NWPX Infrastructure has announced a series of strategic leadership promotions aimed at enhancing operational excellence and growth within the company [1][6] Leadership Promotions - Michael Wray has been promoted to Executive Vice President, overseeing the Water Transmission Systems and Precast segments, having previously served as Senior Vice President/General Manager of Precast [2] - Eric Stokes has been elevated to Senior Vice President and WTS Group President, responsible for commercial and operational aspects of the WTS segment and the Permalok steel casing pipe plant [3] - Jesus Tanguis has been promoted to Senior Vice President/General Manager of Precast, overseeing operations at NWPX Geneva and NWPX Park [4] - Justin Fraughton has been appointed Vice President and General Manager of NWPX Geneva, managing commercial and operational oversight for three Utah facilities [5] Company Overview - NWPX Infrastructure, founded in 1966, is a leading manufacturer of water-related infrastructure products, including engineered water transmission systems and precast concrete products [6] - The company operates 13 manufacturing facilities across North America and is strategically positioned to meet growing water and wastewater infrastructure needs [6]

Group 1 - WaterBridge Infrastructure LLC (NYSE:WBI) experienced a significant share price increase of 18.76% from January 7 to January 14, 2026, making it one of the top-performing energy stocks for that week [1] - The company is recognized as the largest pure-play integrated water infrastructure provider in the U.S., offering essential services such as supply, recycling, and disposal to oil and gas producers across key shale basins [2] - Analyst Justin Jenkins from Raymond James upgraded WaterBridge Infrastructure from 'Outperform' to 'Strong Buy' on January 5, maintaining a price target of $30, indicating a positive outlook for the midstream supplier sector as it enters 2026 [3] Group 2 - The company's stock received additional support after CEO Jason Thomas Long purchased 5,000 Class A shares valued at $99,200 on January 5, alongside other insider investments, reflecting strong leadership confidence in the company's future [4]

Core Insights - Murphy, Middleton, Hinkle & Parker, Inc. (MMHP) established a new position in Invesco Water Resources ETF (NASDAQ:PHO), purchasing 9,484 shares valued at approximately $6.47 million [2][5] - This new position represents 3.13% of MMHP's total reportable assets under management (AUM) as of December 31, 2025 [3][5] - As of January 12, 2026, PHO shares were priced at $73.00, reflecting a 13.2% increase over the past twelve months, although underperforming the S&P 500 by 6 percentage points [3] Fund Overview - The Invesco Water Resources ETF has an AUM of $2.09 billion and a dividend yield of 0.59% [4] - The fund's 1-year total return stands at 13.7% [4] - MMHP's total reportable U.S. equity assets were $209 million across 39 positions after the filing [3] Investment Strategy - The Invesco Water Resources ETF targets companies involved in water infrastructure, purification, and conservation solutions, utilizing a rules-based index methodology [7] - The ETF aims to track an index of companies developing products and technologies for water conservation and purification across various applications [8] - The fund maintains a diversified portfolio with at least 90% of assets invested in index constituents focused on water resources [8]

Group 1 - WaterBridge Infrastructure (NYSE:WBI) has been upgraded to Strong Buy from Outperform by Raymond James analyst Justin Jenkins, maintaining a price target of $30 as the firm adjusts ratings in the midstream supplier group ahead of 2026 [1][3] - The company's revenue for Q3 2025 reached $205.5 million, reflecting an 8% sequential increase, driven by a 7% rise in produced water handling volumes averaging 2.5 million barrels per day [2] - WaterBridge reported a net loss of $18.7 million for the quarter, with growth largely supported by the commencement of the BPX Kraken project, which includes a 10-year minimum volume commitment from BPX Energy and an initial handling capacity of 400,000 bpd, scalable to 600,000 bpd [2][3] Group 2 - WaterBridge announced its final investment decision for the first phase of the Speedway Pipeline project, which will connect the northern Delaware Basin to out-of-basin pore space, expected to be operational by mid-2026 [3] - WaterBridge Infrastructure specializes in providing water management solutions through integrated pipeline and water handling networks in the US [4]

Core Insights - NWPX Infrastructure has announced the first commercial use of its patent-pending Permalok Radial Bending Joint (RBJ) technology in a significant water pipeline project, enhancing trenchless installation capabilities [1][5] Technology Overview - The RBJ technology allows for the installation of steel casing pipe along curved paths in microtunneling applications, improving maneuverability in congested areas and adapting to site-specific conditions [2] - Benefits of the RBJ include a smaller jobsite footprint, fewer shafts required, and more precise tunneling execution over longer distances [2] Project Details - NWPX is supplying 5,764 linear feet of Permalok steel casing pipe for the South Hillsborough Pipeline project, which will enable the delivery of an additional 65 million gallons of water per day [3] - The project is managed by Tampa Bay Water and involves 18 underground crossings, with Garney as the construction manager and Huxted Trenchless as the microtunneling contractor [3] Impact on Construction - The RBJ's curved segments allow for the installation of microtunneling shafts within designated bore path alignments, eliminating the need for additional shafts that would be necessary for straight segment installations [4] - This innovation is expected to reduce overall project costs significantly [5] Company Background - NWPX Infrastructure, founded in 1966, is a leading manufacturer of water-related infrastructure products and the largest producer of engineered water transmission systems in North America [6] - The company operates 13 manufacturing facilities across North America and is committed to quality and innovation in meeting growing water and wastewater infrastructure needs [6]

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]