3 min read December 2022 — In an interview with Invest:, Ron Keating, President & Chief Executive Officer of Evoqua Water Technologies, discussed water-related challenges in the region and the opportunities that exist in the waste-to-energy field. Additionally, Keating shared the regulations the company is keeping an eye on and the opportunities he sees in that regard.
What have been some of the key highlights and milestones for Evoqua over the last 12 months?
Despite the challenges the market faced with COVID-19, inflationary pressures, and supply-chain issues, the fiscal year 2022 was a record year for Evoqua. We have entered our fiscal year 2023 with a record backlog and a book-to-bill ratio above 1.1% for the fiscal year 2022. We are very pleased with the outlook ahead.
We closed key acquisitions in the fiscal year 2022. We rebalanced our portfolio and focused on noncyclical end markets. Life sciences is now our largest end market, providing plenty of opportunity for growth. We continue to expand our Innovation & Sustainability Hub, located here in Pittsburgh and are investing in technologies to help solve complex water issues, such as emerging contaminants. I’m very proud of the talent we have in the organization, working hard to successfully serve our customers. This past fall, we also reached our fifth anniversary as a public company.
What are the most pressing water-related challenges the Pittsburgh region is facing?
For the region as a whole, the water-related challenges are much more tied to the infrastructure than the treatment systems. The infrastructure involves the transmission system for getting fresh, clean, consistent water to the citizens and the constituents in and around the City of Pittsburgh, but that is not our area of focus. We provide industrial, municipal, and recreational customers with water and wastewater treatment solutions. An area challenging our industrial and municipal customers is emerging contaminants. We are constantly monitoring what is happening in the regulatory environment around selenium, PFAS, microplastics, and pharmaceuticals in the water and how to treat them. As a single-source solutions provider for contaminant removal, Evoqua is well-positioned with the expertise and proven solutions to help combat these water challenges, creating meaningful growth opportunities in the future.
Many of our customers are also focused on minimizing their water footprint and the impact they have on the environment. We provide them with tools and technologies to help them achieve this; particularly recycle and reuse solutions. In addition, our customers need to have ultra-pure water to produce their products and services. We take that difficulty out of their hands by providing water that meets the specifications they need so they can be most efficient in doing their work.
What are some ways Evoqua is implementing initiatives for waste-to-energy creation?
We continue to see tremendous growth opportunities in waste-to-energy creation for our customers to utilize in their operations. We are taking food, animal, and agriculture waste through an anaerobic digestion technology that turns it into renewable natural gas. We recently invested in installing a large-scale anaerobic digester at our Innovation & Sustainability Hub, where we can bring in customers’ waste and take it through the process to validate what they will achieve from that application. It is an exciting investment, enabling our customers to optimize the use of otherwise wasted resources.
How is Evoqua being innovative and applying technology?
We are a technology and innovation-focused company. Our company has more than 1,700 patents and pending patents in place. Our products and technologies are delivered around the globe to other integrators, designers, and OEMs to provide reliable, clean, and safe water resources.
When we think about driving digital connectivity, recycling and reuse, emerging contaminants, and other water challenges, we are continually looking to find ways to do things better. Our digitally connected solutions allow us to be on-site 24/7 with the customer, providing the quantity and quality of water they need. They know that we are monitoring their water consumption and learning how to optimize their applications and reduce waste. This has created a lot of value and efficiencies for our customers.
Is there anything on the legislative or regulatory side that might impact the water industry?
We are keeping an eye on the PFAS regulation that is coming, as well as the numerous bills addressing emerging contaminants. There will be approximately $10 billion worth of investment in this regard. At the end of 2023, the EPA has to set the maximum contaminant limits around how much PFAS can be in drinking water. As a result, we will see states, water districts, and cities address this challenge. Evoqua has the solutions they will need to make water clean for consumption.
We are also watching the Chips Act, which we believe will be great for us as onshoring and nearshoring of component supply and microelectronics is tremendous for the market. The latter is one of the primary end markets we serve, related to wastewater treatment and minimizing their impact, as well as ensuring they have ultra-clean water to produce their products. The Chips Act will drive many opportunities for the region and the country.
What is your outlook for Evoqua for the next couple of years?
We are excited about the growth opportunities ahead and plan to double our impact in the market over the next few years. We plan to continue to invest in our team and are focused on their development, providing them with great opportunities to grow their career at Evoqua. We will continue to be an innovative, technology-focused company that delivers best-in-class operational execution to our customers. If you are not doing business with Evoqua, you are not optimizing your productivity. Our vertical market penetration is strong, and we will continue to build upon that. We have never felt better about our position and what we can deliver. We are committed to our purpose of: Transforming Water. Enriching Life.® and are proud to be the solution to many of our customers’ growing water challenges.
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