Evoqua Water Tec Stock Price, News & Analysis

Evoqua Water Technologies Corp. (NYSE: AQUA) plans to release its financial results for the second quarter on May 2, 2023. Due to a proposed transaction with Xylem Inc., the company will not conduct the usual earnings call and Q&A session. Instead, a modified earnings presentation will be available on its Investor Relations website. Investors are directed to address any queries regarding the second quarter results to the Investor Relations team, as the company will not comment on the transaction or provide forward-looking statements. Operating over 150 locations globally, Evoqua serves more than 38,000 customers, emphasizing its mission to protect water and the environment.

Evoqua Water Technologies (NYSE: AQUA) has acquired the industrial water treatment service business of Bob Johnson & Associates from Kemco Systems. This strategic acquisition enhances Evoqua's service capabilities in the Texas market, particularly in Houston and Waxahachie. The business primarily serves customers in various sectors including healthcare, education, and manufacturing, offering services such as deionization exchange and preventative maintenance. The financial terms of the deal remain undisclosed, but it is expected to strengthen Evoqua's position in the industrial water treatment sector.

EnPro Industries, Inc. (NYSE: NPO) has elected Ron Keating to its Board of Directors. Keating, the current CEO of Evoqua Water Technologies (NYSE: AQUA), brings extensive leadership experience, having led Evoqua since its inception in 2014 and navigating a successful IPO in 2017. His appointment follows the retirement of Bernard Burns, who has served on the board since 2011. Keating's election is effective upon EnPro's filing of its 2022 Form 10-K with the SEC, expected later this month. Chairman David Hauser emphasized Keating's successful track record and commitment to sustainability as key attributes that will benefit EnPro's long-term growth strategy.

Evoqua Water Technologies (NYSE: AQUA) has announced the divestiture of its carbon reactivation and slurry operations to DESOTEC, a leader in mobile filtration solutions, for approximately $100 million. The transaction, expected to close in Q3 fiscal 2023, includes reactivation facilities and the workforce in Pennsylvania and California. The strategic sale will allow Evoqua to concentrate on its core service business while maintaining a supply agreement with DESOTEC for reactivated carbon. This move aligns with Evoqua's strategy to enhance global growth and scalability.

Evoqua Water Technologies (NYSE:AQUA) reported a strong first quarter for fiscal 2023, with revenue reaching $435.8 million, a 19.0% increase year-over-year. Organic revenue growth was 9.1%, driven by higher demand across most product lines. Net income rose to $9.3 million, a 52.5% increase from the prior year, resulting in diluted EPS of $0.07. Adjusted EBITDA also increased, up 33.9% to $72.7 million. Despite increased operating expenses, including legal and wage costs, the company noted a healthy order flow and growth in backlog. Evoqua is positioned positively for future performance, guided by a robust pipeline and improved supply chain visibility.

Xylem Inc. (NYSE: XYL) has announced an agreement to acquire Evoqua (NYSE: AQUA) in an all-stock deal valued at approximately $7.5 billion. The merger aims to create a transformative platform targeting critical water challenges and enhancing Xylem's leadership in water technologies. Combined revenues are projected to exceed $7 billion, with anticipated cost synergies of $140 million within three years. The transaction is set to close by mid-2023, pending shareholder and regulatory approvals, with Xylem shareholders retaining about 75% of the combined company.