Water is one of the most valuable resources on the planet, yet managing it efficiently remains a growing challenge. As climate change intensifies and global populations grow, demand for clean water is surging while supply remains constrained. In fact, according to Treehugger, freshwater demand is projected to surpass supply by 40% by 2030.
This looming crisis is driving rapid innovation in water technology, with companies developing advanced solutions for purification, treatment, and distribution. Amid this backdrop, companies like Valmont Industries, Inc. (VMI), Lindsay Corporation (LNN), and Consolidated Water Co. Ltd. (CWCO) are capitalizing on this shift, developing technologies that improve water conservation, efficiency, and accessibility.
From IoT-enabled monitoring systems that detect leaks in real time to cutting-edge desalination methods that turn seawater into drinking water, innovation is shaping the future of water management.
With the global water and wastewater treatment market projected to grow from $65.15 billion in 2025 to $87.18 billion by 2030 at a CAGR of 6%, demand for sustainable water solutions is only accelerating. Factors like depleting freshwater supplies, increasing industrial water consumption, and stricter environmental regulations are pushing the industry toward smarter, more efficient solutions.
With that in mind, let’s examine the fundamental aspects of the above-mentioned water tech stocks in detail:
Valmont Industries, Inc. (VMI)
VMI is a global manufacturer of infrastructure products such as steel and composite structures, poles, towers, and coatings, as well as agricultural solutions such as irrigation equipment and advanced technology. Its diverse clientele includes municipalities, contractors, utility companies, farmers, and the manufacturing sector.
On January 15, 2025, the company paid its shareholders a quarterly dividend of $0.60 per share. It pays an annual dividend of $2.40, which translates to a dividend yield of 0.73% at the prevailing price levels. Its four-year average dividend yield is 0.84%. Moreover, its dividend payouts have increased at a CAGR of 6.3% over the past three years.
On January 13, Valley Irrigation, a Valmont Company, announced plans to merge its four irrigation management platforms – AgSense®, Valley 365®, PrecisionKing, and PivoTrac® into a single app, AgSense 365.
Matt Ondrejko, Senior Vice President of Product Excellence & Commercialization at Valley Irrigation, stated that this move is expected to deliver significant cost savings, improve scalability, and solidify Valley’s position as a global precision irrigation market leader.
In terms of the trailing-12-month EBIT margin, VMI’s 12.42% is 21.2% higher than the 10.25% industry average. Similarly, its 9.82% trailing-12-month levered FCF margin is 42.7% higher than the 6.88% industry average. Also, its trailing-12-month ROCE of 19.66% compares to the industry average of 13.44%.
During the fiscal third quarter that ended September 28, 2024, VMI’s net sales amounted to $1.02 billion. It reported an operating income of $125.74 million compared to a year-ago loss of $24.19 million. In addition, the company’s attributable net earnings came in at $83.07 million or $4.11 per share versus a loss of $49.03 million or $2.34 per share, respectively, in the previous year.
Street expects VMI’s EPS for the fiscal fourth quarter (ended December 31, 2024) to increase 14% year-over-year to $3.63, while its revenue for the same period is expected to come in at $1.01 billion. Moreover, it topped the EPS estimates in each of the trailing four quarters, which is promising.
Over the past nine months, the stock has gained 57.7%, closing the last trading session at $327.73.
VMI’s POWR Ratings reflect its robust outlook. The stock has an overall rating of A, equating to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
VMI has a B grade in Growth, Momentum, Stability, and Quality. It is ranked first out of 32 stocks in the Industrial – Metals industry.
Beyond what we have stated above, we have also given VMI grades for Value and Sentiment. You can get all the VMI ratings here.
Lindsay Corporation (LNN)
LNN provides water management and road infrastructure products and services worldwide. The company operates through two segments: Irrigation and Infrastructure.
On January 10, 2025, LNN announced a quarterly dividend of $0.36 per share, payable to its shareholders on February 28, 2025. It pays an annual dividend of $1.44, which translates to a dividend yield of 1.06% at the prevailing price levels. Its four-year average dividend yield is 0.99%. Moreover, its dividend payouts have increased at a CAGR of 2.7% over the past three years.
On January 06, the company acquired a 49.9% minority stake in Austria-based Pessl Instruments, a global provider of advanced AgTech solutions. This investment helps advance LNN’s efforts to drive significant investment and innovation in AgTech and address the growing global demands for food, fuel, and fiber. It also strengthens the company’s position as a leader in irrigation management and scheduling solutions.
In terms of the trailing-12-month LNN’s EBITDA and levered FCF margins of 15.90% and 7.82% are 11.5% and 13.6% higher than their respective industry averages of 14.26% and 6.88%. Likewise, its 11.18% trailing-12-month net income margin compares favorably to the industry average of 6.48%.
LNN’s operating revenues increased 3.1% year-over-year to $166.28 million in the fiscal first quarter that ended on November 30, 2024. Its gross profit grew marginally from the year-ago value to $49.97 million, while its earnings before income taxes stood at $22.03 million, up 4.9% year-over-year.
In addition, the company’s net earnings amounted to $17.16 million and $1.57 per share, indicating an increase of 14.3% and 15.4%, respectively, from the prior-year quarter.
The consensus EPS estimate of $1.89 for the fiscal 2025 second quarter (ending February 28) represents a 15.4% growth year-over-year. The consensus revenue estimate of $174.50 million for the current quarter indicates a 15.2% increase from the same period last year. The company has an excellent earnings surprise history, surpassing the consensus EPS estimates in each of the trailing four quarters.
The stock has gained 16.1% over the past nine months and 14% year-to-date to close the last trading session at $136.84.
It’s no surprise that LNN has an overall rating of B, equating to a Buy in our POWR Ratings system.
It also has a B grade for Momentum and is ranked #16 out of 36 stocks in the A-rated Industrial – Manufacturing industry. To access LNN’s Growth, Value, Stability, Sentiment, and Quality ratings, click here.
Consolidated Water Co. Ltd. (CWCO)
Headquartered in the Cayman Islands, CWCO develops and operates water supply, treatment plants, and water distribution systems in the Cayman Islands, the Bahamas, and the United States. The company operates through four segments: Retail, Bulk, Services, and Manufacturing.
Last year, in November, the company announced a quarterly dividend of $0.11 per share for the first quarter of 2025. The cash dividend is payable to its shareholders on January 31, 2025.
CWCO pays an annual dividend of $0.44, which translates to a dividend yield of 1.68% at the prevailing price levels. Its four-year average dividend yield is 2.10%. Moreover, its dividend payouts have grown at CAGRs of 6.4% and 3.8% over the past three and five years, respectively.
CWCO’s trailing-12-month net income margin of 23.06% is 83.4% higher than the industry average of 12.58%. Similarly, its 13.59% trailing-12-month ROCE exceeds the 9.52% industry average by 42.8%.
For the third quarter, which ended September 30, 2024, CWCO reported total revenue of $33.39 million, with increases of 5% and 3% in its Retail and Bulk segments, respectively. Its income from operations was $4.88 million, while its attributable net income amounted to $4.45 million and $0.28 per share.
Analysts forecast CWCO’s EPS for the fiscal year 2025 (ending December 31) to increase by 8.1% year-over-year to $ 1.34. Meanwhile, its revenue for the same period is expected to come in at $150.95 million, registering an 8.7% growth from the prior year.
Shares of CWCO have gained 5.2% over the past three months to close the last trading session at $26.37.
CWCO’s stance is apparent in its POWR Ratings. It has an A grade for Quality. Within the Water industry, it is ranked first out of 13 stocks.
Click here to see CWCO’s ratings for Growth, Value, Momentum, Stability, and Sentiment.
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VMI shares were trading at $328.89 per share on Wednesday afternoon, up $1.16 (+0.35%). Year-to-date, VMI has gained 7.25%, versus a 2.75% rise in the benchmark S&P 500 index during the same period.
About the Author: Shweta Kumari
Shweta's profound interest in financial research and quantitative analysis led her to pursue a career as an investment analyst. She uses her knowledge to help retail investors make educated investment decisions.
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