North America Environmental Services: Water Tech 3Q26 earnings preview

Barclays' North America Environmental Services note previews 3Q26 results for the Water Tech group. Execution remains the defining theme for 3Q26, with investors expected to focus on progress against 2H growth commitments, particularly for companies that have guided to a meaningful acceleration exiting a subdued first half. Barclays forecasts ~3% organic growth in 3Q26 on average (from ~flat in 2Q26) for VLTO/XYL/BMI, accelerating to ~8% in 4Q26. Across coverage, focus areas include the pace of municipal spending (XYL/BMI/MWA), the sustainability of data center-related demand (WTS), and the outlook for non-residential construction (WTS/ZWS);