Let’s dig into the relative performance of Zurn Elkay (NYSE: ZWS) and its peers as we unravel the now-completed Q1 HVAC and water systems earnings season.

Many HVAC and water systems companies sell essential, non-discretionary infrastructure for buildings. Since the useful lives of these water heaters and vents are fairly standard, these companies have a portion of predictable replacement revenue. In the last decade, trends in energy efficiency and clean water are driving innovation that is leading to incremental demand. On the other hand, new installations for these companies are at the whim of residential and commercial construction volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates.

The 9 HVAC and water systems stocks we track reported a very strong Q1. As a group, revenues beat analysts’ consensus estimates by 6.9%.

Luckily, HVAC and water systems stocks have performed well with share prices up 11.5% on average since the latest earnings results.

Zurn Elkay (NYSE: ZWS)

Claiming to have saved more than 30 billion gallons of water, Zurn Elkay (NYSE: ZWS) provides water management solutions to various industries.

Zurn Elkay reported revenues of $433 million, up 11.4% year on year. This print exceeded analysts’ expectations by 3.2%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ EBITDA and EPS estimates.

Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 1.2% since reporting and currently trades at $47.35.

Is now the time to buy Zurn Elkay? Access our full analysis of the earnings results here, it’s free.

Best Q1: AAON (NASDAQ: AAON)

Backed by two million square feet of lab testing space, AAON (NASDAQ: AAON) makes heating, ventilation, and air conditioning equipment for different types of buildings.

AAON reported revenues of $496.9 million, up 54.3% year on year, outperforming analysts’ expectations by 29.5%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.

AAON scored the biggest analyst estimate beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 17.3% since reporting. It currently trades at $115.30.

Is now the time to buy AAON? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: A. O. Smith (NYSE: AOS)

Credited with the invention of the glass-lined water heater, A.O. Smith (NYSE: AOS) manufactures water heating and treatment products for various industries.

A. O. Smith reported revenues of $945.6 million, down 1.9% year on year, falling short of analysts’ expectations by 3.5%. It was a softer quarter as it posted full-year EPS guidance missing analysts’ expectations and a significant miss of analysts’ EPS estimates.

A. O. Smith delivered the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update in the group. As expected, the stock is down 5.1% since the results and currently trades at $60.44.

Read our full analysis of A. O. Smith’s results here.

Advanced Drainage (NYSE: WMS)

Originally started as a farm water drainage company, Advanced Drainage Systems (NYSE: WMS) provides clean water management solutions to communities across America.

Advanced Drainage reported revenues of $676.8 million, up 9.9% year on year. This number beat analysts’ expectations by 3.8%. Overall, it was a strong quarter as it also produced a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.

Advanced Drainage delivered the highest full-year guidance raise among its peers. The stock is up 10% since reporting and currently trades at $150.49.

Read our full, actionable report on Advanced Drainage here, it’s free.

Northwest Pipe (NASDAQ: NWPX)

Playing a large role in the Integrated Pipeline (IPL) project in Texas to deliver ~350 million gallons of water per day, Northwest Pipe (NASDAQ: NWPX) is a manufacturer of pipeline systems for water infrastructure.

Northwest Pipe reported revenues of $138.3 million, up 19.1% year on year. This result surpassed analysts’ expectations by 10.5%. Overall, it was an incredible quarter as it also recorded a beat of analysts’ EPS estimates.

The stock is up 55.7% since reporting and currently trades at $133.90.

Read our full, actionable report on Northwest Pipe here, it’s free.

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