Zacks Industry Outlook Highlights Tetra Tech, Donaldson, Atmus Filtration and Fuel Tech

Chicago, IL - August 21, 2025 - Today, Zacks Equity Research discusses Tetra Tech, Inc. TTEK, Donaldson Company, Inc. DCI, Atmus Filtration Technologies Inc. ATMU and Fuel Tech, Inc. FTEK. Industry: Pollution Control Link: https://www.zacks.com/commentary/2740301/4-pollution-control-stocks-to-watch-on-robust-industry-trends The Zacks Pollution Control industry has been benefiting from the solid demand for air pollution control products due to rising greenhouse gas emissions and health-related risks associated with them. Stringent regulations and emission standards enacted by countries globally should continue to drive demand for industry participants. However, the growing adoption of renewable sources of energy with a rising preference for alternative fuels has marred the outlook of the industry. Tetra Tech, Inc., Donaldson Company, Inc., Atmus Filtration Technologies Inc. and Fuel Tech, Inc. are likely to capitalize on these opportunities. About the Industry The Zacks Pollution Control industry comprises companies engaged in providing innovative filtration systems, replacement parts, solutions for managing medical wastes, energy recovery devices and other products. These products are primarily used in the commercial, automotive repair, industrial, home healthcare, retail, construction, pharmaceutical and hospitality end markets. A few industry participants offer solutions to deal with industrial waste and commercial chemical products and technologies to tackle air pollution. One of the companies also delivers services related to infrastructure, water, resource management, energy, etc., to government and commercial clients. These companies are enhancing investments in developing innovative technologies, improving customer and employee experience and enhancing supply-chain modernization programs. Major Trends Shaping the Future of the Pollution Control Industry Strong Demand for Air Pollution Control: Rapid urbanization and the consequent rise in greenhouse gas emissions from the industrial sector have been driving demand for air quality control systems. Increasing public awareness of the health related risks associated with air pollution is fueling market growth. Also, the expansion of infrastructure-related projects in developing countries is boosting the demand for pollution abatement equipment and technologies. Stringent Government Regulations: Strict emission standards and related laws implemented by countries across the globe to tackle the depletion of the ozone layer and the ecosystem should continue augmenting the demand for pollution-control equipment. Europe has some of the strictest pollution control laws in place. Solid demand for medical, pharmaceutical and hazardous waste management services is boosting the prospects of some industry participants. Also, increased usage of Artificial Intelligence (AI) and the Internet of Things (IoT) in industrial processes has been enabling several industrial companies to monitor and identify the source of air pollution in real-time, thus driving demand for pollution abatement technologies. Emergence of Alternative Sources of Energy: The growing preference for renewable energy sources for power generation to reduce dependency on coal in the United States and other developed countries across the world is restraining the demand for industrial emission-abatement products and technologies. Several factors, including supportive government policies related to renewable energy, higher renewable investments, a reduction in the overall costs of generating renewable electricity and the rapid adoption of electric vehicles (EVs), have made the prospects of the industry players gloomy. Zacks Industry Rank Indicates Solid Prospects The Zacks Industrial Productsindustry, housed within the broader Zacks Industrial Products sector, currently carries a Zacks Industry Rank #27. This rank places it in the top 11% of 246 Zacks industries. The group's Zacks Industry Rank, basically the average of the Zacks Rank of all the member stocks, indicates bullish near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one. Given the upbeat near-term prospects of the industry, we will present a few stocks that you may want to consider for your portfolio. But it is worth looking at the industry's shareholder returns and current valuation first. Industry Underperforms Sector & S&P 500 Over the past year, the Zacks Pollution Control industry has underperformed the broader Industrial Products sector and the Zacks S&P 500 composite index. Over this period, the industry has declined 7.3% against the broader sector and the S&P 500 Index's increase of 9.6% and 15.5%, respectively. Industry's Current Valuation Based on the forward P/E (F12M), a commonly used multiple for valuing pollution control stocks, the industry is currently trading at 20.20X compared with the S&P 500's 22.85X. It is above the sector's P/E (F12M) ratio of 19.81X. In the past five years, the industry has traded as high as 29.71X, as low as 17.52X and at the median of 22.57X. 4 Pollution Control Stocks to Keep a Tab On Atmus Filtration: Headquartered in Nashville, TN, the company is a designer and producer of filtration and media solutions. Its leading position in the industrial filtration market, effective pricing actions and sound capital allocation strategy are expected to support its growth. Its global footprint, comprehensive offering of premium products and technology leadership should also bode well. ATMU currently carries a Zacks Rank #2 (Buy). Atmus Filtration's earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 11.8%. Shares of the company gained 32.3% in the past year. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Donaldson: Headquartered in Bloomington, MN, Donaldson is engaged in the manufacturing and selling of filtration systems and replacement parts across the world. Solid momentum in the aftermarket business, driven by positive market trends and the impact of expanded market share, is aiding the company's Mobile Solutions segment. Strength in the commercial aerospace and defense markets is boosting the Industrial Solutions segment's performance. Donaldson's earnings beat the Zacks Consensus Estimate in three of the preceding four quarters while missing the mark in one, the average surprise being 2.5%. The Zacks Rank #2 stock has gained 1% in the past year. Fuel Tech: Based in Warrenville, IL, FTEK develops technology for air pollution control and provides process optimization, water treatment and advanced engineering services. The seasonal weather transition from spring to summer is aiding its FUEL CHEM segment. The Zacks Rank #2 company's business development activities, with an increased focus on global emission protocols across a variety of fuel sources, should also drive its growth. The Zacks Consensus Estimate for this company's 2025 revenues is pegged at $28.9 million, indicating an increase of 14.9% from the year-ago quarter's figure. The stock has surged 163.9% in the past year. Tetra Tech: Headquartered in Pasadena, CA, the company is a leading provider of consulting, engineering, program management and technical services. It serves clients by providing cost-effective and innovative solutions for dealing with the fundamental needs for water, environmental and alternative energy services. Tetra Tech is benefiting from its focus on providing high-end consulting, design and engineering services. The U.S. government's priorities on infrastructure development and its focus on climate change, water and environment are likely to benefit TTEK in the quarters ahead. This Zacks Rank #3 (Hold) company's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 7.1%. Though shares of the company declined 23.5% in the past year, they have gained 20.1% in the past six months. Why Haven't You Looked at Zacks' Top Stocks? Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@zacks.com https://www.zacks.com Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release. Free Report: 3 Software Stocks Poised to Skyrocket Software stocks are poised to catapult higher in the coming months (and years) thanks to several factors, especially the explosive growth of AI. Zacks' urgent report reveals 3 top software stocks to own right now. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tetra Tech, Inc. (TTEK) : Free Stock Analysis Report Donaldson Company, Inc. (DCI) : Free Stock Analysis Report Fuel Tech, Inc. (FTEK) : Free Stock Analysis Report Atmus Filtration Technologies Inc. (ATMU) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Zacks Industry Outlook Highlights Tetra Tech, Donaldson, Atmus Filtration and Fuel Tech

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