8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 6, 2018

EVOQUA WATER TECHNOLOGIES CORP.

(Exact name of registrant as specified in its charter)

Delaware	001-38272	46-4132761
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification Number)

210 Sixth Avenue Pittsburgh, Pennsylvania	15222
(Address of principal executive offices)	(Zip code)

Registrant’s telephone number, including area code: (724) 772-0044

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4c))

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Item 2.02. Results of Operations and Financial Condition.

On February 6, 2018, Evoqua Water Technologies Corp. (the “Company”) issued a press release announcing the financial results of the Company for the first quarter ended December 31, 2017. A copy of the press release is being furnished as Exhibit 99.1 attached hereto and is incorporated by reference herein.

In accordance with General Instruction B.2 of Form 8-K, the information in this Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 attached hereto, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 7.01. Regulation FD Disclosure.

The slide presentation furnished as Exhibit 99.2 hereto, and incorporated herein by reference, will be presented to certain of the Company’s investors on February 6, 2018 and may be used by the Company in various other presentations to investors.

In accordance with General Instruction B.2 of Form 8-K, the information in this Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.2 attached hereto, shall not be deemed “filed” for the purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits:

Exhibit No.	Description
99.1	Press Release “Evoqua Water Technologies Reports First Quarter 2018 Results,” dated February 6, 2018.
99.2	Evoqua Water Technologies Corp. presentation to investors.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: February 6, 2018		EVOQUA WATER TECHNOLOGIES CORP.
	By:	/s/ Benedict J. Stas
		Benedict J. Stas
		Chief Financial Officer

EX-99.1

Evoqua Water Technologies Reports First Quarter 2018 Results

• Consolidated revenues of $297.1 million, a 6.1% increase year-over year

• Net loss of $3.0 million, an improvement of 77.2% year-over-year

• Adjusted EBITDA of $40.0 million, up $2.7 million or 7.4% year-over-year

Pittsburgh, PA - February 6, 2018 -- Evoqua Water Technologies Corp. (NYSE:AQUA) today reported results for its first quarter of fiscal 2018.

Evoqua reported revenues for the first quarter of fiscal 2018 of $297.1 million, an increase of $17.2 million or 6.1% as compared to the first quarter of the prior year. Revenue growth was driven by an increase in organic service revenues in the Industrial segment associated with account penetration in the power, hydrocarbon processing and chemical processing markets and from recently acquired businesses. Net loss for the quarter was $3.0 million, an improvement of $10.2 million or 77.2% year-over-year. Adjusted EBITDA was $40.0 million in the first quarter of fiscal 2018, an increase of $2.7 million or 7.4% year-over-year. The improvement in Adjusted EBITDA was driven by an increase in revenues and related gross margin as well as a decrease in operating expenses year-over-year.

“For the first quarter, Evoqua generated record sales and Adjusted EBITDA led by strong growth in the Industrial segment, complemented by the realization of continued operational efficiency benefits,” said Ron Keating, Evoqua CEO. “Fiscal 2018 is off to a strong start. We continue to be well positioned to capture organic and inorganic growth opportunities across our business segments.”

First Quarter Segment Results

The Company has three reportable segments - Industrial, Municipal and Products.

Industrial

The Industrial segment combines equipment and services to improve operational reliability and environmental compliance for heavy and light industry, commercial and institutional markets. Their customers span industries including hydrocarbon processing, chemical processing, power, food and beverage, life sciences, health services and microelectronics.

Revenues in the Industrial segment increased $19.5 million, or 13.4%, to $165.2 million in the first quarter of fiscal 2018 as compared to $145.7 million in the same period in the prior year. Growth was driven by an increase in service revenue of $7.1 million primarily in the power, hydrocarbon processing and chemical processing markets as well as $2.3 million from further capital expansion, primarily in the power market and remediation projects. In addition, an increase of $10.1 million of revenue year-over-year was attributable to the acquisitions of ETS, ADI and Noble Water Technologies, which occurred during the fiscal year ended September 30, 2017.

Operating profit in the Industrial segment increased $6.9 million, or 29.9%, to $30.0 million in the first quarter of fiscal 2018 from $23.1 million in the same period of the prior year. The increase in operating profit was driven by the revenues from acquisitions noted above, which contributed $3.0 million, as well an increase of $2.5 million from organic revenue growth and $1.4 million of benefits resulting from lower employment costs driven by restructuring and cost improvement initiatives implemented in the current and prior fiscal year. EBITDA in the Industrial segment increased $8.1 million, or 25.4%, to $40.1 million in the three months ended December 31, 2017 from $32.0 million in the three months ended December 31, 2016.

Municipal

The Municipal segment helps engineers and municipalities meet new demands for plant performance through market-leading equipment, solutions and services backed by trusted brands and over 100 years of applications experience. The segment’s customers include waste water and drinking water collection and distribution systems and utility operators. The segment’s services include odor and corrosion control services.

Municipal revenues decreased slightly by $0.7 million, or (1.2)%, to $61.9 million for the first quarter of fiscal 2018 as compared to $62.6 million for the comparable period in the prior year. Service and project revenues

increased 4.3% and 1.6%, respectively, while the expected timing of aftermarket product revenues drove a decline of 16.1% as compared to the prior year period.

Operating profit in the Municipal segment decreased $1.7 million, or (26.1)%, to $4.8 million for the first quarter of fiscal 2018 from $6.5 million for the same period in the prior year. The decrease in operating profit was primarily due to product mix and planned timing of certain recurring expenses, which accounted for approximately $3.6 million of the decline. These decreases were offset by lower employment and legal expenses of $1.3 million and $0.7 million of benefits as a result of restructuring and cost improvement initiatives implemented in the prior fiscal year. EBITDA in the Municipal segment decreased $2.0 million, or 23.0%, to $6.6 million in the three months ended December 31, 2017 from $8.6 million in the three months ended December 31, 2016.

Products

The Products segment has distinct business operating units, each built on well-known brands and technologies that are sold globally through multiple sales and aftermarket channels. Additionally, the Products segment also offers industrial, municipal and recreational users improved operational reliability and environmental compliance. The segment’s customers include original equipment manufacturers, regional and global distributors, engineering, procurement and contracting customers, and end users in the industrial, municipal and commercial industries.

Products revenues decreased $1.5 million, or (2.2)%, to $70.0 million in the first quarter of fiscal 2018 from $71.5 million in the comparable period of the prior year. The expected decline in revenues was primarily due to the timing of larger projects completed in the first quarter of the prior year in the Aquatics product line, offset by an increase in revenues related to the Electrocatalytic ballast water and Separation Technologies product lines, and continued strong growth in the China market.

Operating profit in the Products segment decreased $3.7 million, or (32.3)%, to $7.7 million for the first quarter of fiscal 2018 as compared to $11.4 million in the prior year period. The decline in operating profit was attributable to product mix and the timing of larger projects completed in the first quarter of the prior year in the Aquatics product line. EBITDA in the Products segment decreased $4.2 million, or 28.3%, to $10.7 million in the three months ended December 31, 2017 from $14.9 million in the three months ended December 31, 2016.

Summary and Outlook

“All three of our segments continue to deliver as planned, and we are particularly pleased by the strong growth delivered by the Industrial segment,” said Keating. “Secular trends in our key vertical markets continue to be positive and support profitable growth. For 2018, we reaffirm our expected revenues to be in the range of $1.33 billion and $1.36 billion and Adjusted EBITDA to be in the range of $235 million and $255 million.”

About Evoqua Water Technologies

Evoqua Water Technologies is a leading provider of mission critical water treatment solutions, offering services, systems and technologies to support its customers’ full water lifecycle needs. Evoqua Water Technologies has worked to protect water, the environment and its employees for more than 100 years, earning a reputation for quality, safety and reliability around the world. Headquartered in Pittsburgh, Pennsylvania, Evoqua operates 160 locations in eight countries and, with over 200,000 installations and 87 service branches, holds leading positions in the North American industrial, commercial and municipal water treatment markets, serving more than 38,000 customers worldwide.

EVOQUA WATER TECHNOLOGIES CORP.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(in thousands, except per share amounts)

	Three months ended December 31, 2016			Three months ended December 31, 2017
Revenue from product sales and services		$279,872			$297,051
Cost of product sales and services	(196,813)			(208,672)
Gross Profit	83,059			88,379
General and administrative expense	(49,186)			(39,064)
Sales and marketing expense	(35,093)			(34,241)
Research and development expense	(5,005)			(4,653)
Other operating income (expense)	683			(593)
Interest expense	(14,753)			(17,243)
Loss before income taxes	(20,295)			(7,415)
Income tax benefit	7,095			4,410
Net loss	(13,200)			(3,005)
Net income attributable to non‑controlling interest	399			708
Net loss attributable to Evoqua Water Technologies Corp.	$	(13,599	)	$	(3,713	)
Basic (loss) earnings per common share		($0.13	)		($0.03	)
Diluted (loss) earnings per common share		($0.13	)		($0.03	)

EVOQUA WATER TECHNOLOGIES CORP.

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)

			(Unaudited)
	September 30, 2017		December 31, 2017
ASSETS
Current assets		$512,240		$520,436
Cash and cash equivalents	59,254		80,250
Receivables, net	245,248		226,719
Inventories, net	120,047		128,306
Cost and earnings in excess of billings on uncompleted contracts	66,814		65,038
Prepaid and other current assets	20,046		19,287
Income tax receivable	831		836
Property, plant, and equipment, net	280,043		281,507
Goodwill	321,913		320,927
Intangible assets, net	333,746		329,568
Deferred income taxes	2,968		2,968
Other non‑current assets	22,399		23,503
Total assets		$1,473,309		$1,478,909
LIABILITIES AND EQUITY
Current liabilities		$291,899		$263,746
Accounts payable	114,932		114,489
Current portion of debt	11,325		11,033
Billings in excess of costs incurred	27,124		36,511
Product warranties	11,164		9,807
Accrued expenses and other liabilities	121,923		88,793
Income tax payable	5,431		3,113
Non‑current liabilities	964,835		862,441
Long‑term debt	878,524		777,900
Product warranties	6,110		6,497
Other non‑current liabilities	67,673		68,884
Deferred income taxes	12,528		9,160
Total liabilities	1,256,734		1,126,187
Commitments and Contingent Liabilities (Note 17)
Shareholders’ equity
Common stock, par value $0.01: authorized 1,000,000 shares; issued 105,359 shares, outstanding 104,949 shares at September 30, 2017; issued 113,692 shares, outstanding 113,264 shares at December 31, 2017.	1,054		1,137
Treasury stock: 410 shares at September 30, 2017 and 428 shares at December 31, 2017	(2,607)		(2,837)
Additional paid‑in capital	388,986		529,120
Retained deficit	(170,006)		(173,719)
Accumulated other comprehensive loss, net of tax	(5,989)		(6,324)
Total Evoqua Water Technologies Corp. equity	211,438		347,377
Non‑controlling interest	5,137		5,345
Total shareholders’ equity	216,575		352,722
Total liabilities and shareholders’ equity		$1,473,309		$1,478,909

EVOQUA WATER TECHNOLOGIES CORP.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(in thousands)

	Three months ended December 31, 2016			Three months ended December 31, 2017
Operating activities
Net loss	$	(13,200	)	$	(3,005	)
Reconciliation of net loss to cash flows from operating activities:
Depreciation and amortization	18,647			19,883
Amortization of deferred financing costs (includes $2,075 and $2,944 write off of deferred financing fees)	3,573			3,842
Deferred income taxes	(7,064		)	(3,088		)
Share based compensation	466			2,612
Gain on sale of property, plant and equipment	(464		)	182
Foreign currency losses on intracompany loans	7,485			(1,583		)
Changes in assets and liabilities
Accounts receivable	(11,988		)	18,864
Inventories	(6,623		)	(8,259		)
Cost and earnings in excess of billings on uncompleted contracts	5,680			1,905
Prepaids and other current assets	(1,344		)	938
Accounts payable	(14,765		)	(513		)
Accrued expenses and other liabilities	(10,677		)	(32,810		)
Billings in excess of costs incurred	1,467			9,313
Income taxes	(1,831		)	(2,341		)
Other non‑current assets and liabilities	1,809			(359		)
Net cash (used in) provided by operating activities	(28,829		)	5,581
Investing activities
Purchase of property, plant and equipment	(13,603)			(15,257)
Proceeds from sale of property, plant and equipment	746			387
Acquisitions, net of cash received of $0	(10,730)			0
Net cash used in investing activities	(23,587)			(14,870)
Financing activities
Issuance of debt	150,000			—
Capitalized deferred issuance costs related to refinancing	(3,928		)	(1,792		)
Borrowings under credit facility	15,000			6,000
Repayment of debt	(111,358)			(108,663)
Repayment of capital lease obligation	(2,113)			(2,283)
Shares of common stock issued in initial public offering, net of offering costs	4,052			137,605
Stock repurchases	(120)			(230)
Distribution to non‑controlling interest	(750)			(500)
Net cash provided by financing activities	50,783			30,137
Effect of exchange rate changes on cash	2,852			148
Change in cash and cash equivalents	1,219			20,996
Cash and cash equivalents
Beginning of period	50,362			59,254
End of period		$51,581			$80,250

Adjusted EBITDA

We make use of the non-GAAP financial measure “Adjusted EBITDA” in evaluating our past performance and future prospects. Adjusted EBITDA is defined as net income (loss) before interest expense, income tax expense (benefit) and depreciation and amortization, adjusted for the impact of certain other items, including restructuring and related business transformation costs, purchase accounting adjustment costs, non cash stock based compensation, sponsor fees, transaction costs and other gains, losses and expenses.

Adjusted EBITDA is one of the primary metrics used by management to evaluate the financial performance of our business. We present Adjusted EBITDA, which is not a recognized financial measure under GAAP, because we believe it is frequently used by analysts, investors and other interested parties to evaluate companies in our industry. Further, we believe it is helpful in highlighting trends in our operating results, because it excludes, among other things, certain results of decisions that are outside the control of management, while other measures can differ significantly depending on long term strategic decisions regarding capital structure, the tax jurisdictions in which we operate and capital investments. Management uses Adjusted EBITDA to supplement GAAP measures of performance as follows:

• to assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance;

• in our management incentive compensation which is based in part on components of Adjusted EBITDA;

• in certain calculations under our senior secured credit facilities, which use components of Adjusted EBITDA.

• to evaluate the effectiveness of our business strategies;

• to make budgeting decisions; and

• to compare our performance against that of other peer companies using similar measures.

In addition to the above, our chief operating decision maker uses EBITDA of each reportable segment to evaluate the operating performance of such segments. EBITDA of the reportable segments does not include certain unallocated charges that are presented within Corporate activities. These unallocated charges include certain restructuring and other business transformation charges that have been incurred to align and reposition the Company to the current reporting structure, acquisition related costs (including transaction costs, integration costs and recognition of backlog intangible assets recorded in purchase accounting) and stock-based compensation charges.

You are encouraged to evaluate each adjustment and the reasons we consider it appropriate for supplemental analysis. In addition, in evaluating Adjusted EBITDA, you should be aware that in the future, we may incur expenses similar to the adjustments in the presentation of Adjusted EBITDA. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non recurring items. In addition, Adjusted EBITDA may not be comparable to similarly titled measures used by other companies in our industry or across different industries.

The following is a reconciliation of our net income (loss) to Adjusted EBITDA (unaudited, amounts in thousands):

	Three months ended December 31, 2016			Three months ended December 31, 2017
Net loss	$	(13,200	)	$	(3,005	)
Interest expense	14,753			17,243
Income tax benefit	(7,095		)	(4,410		)
Depreciation and amortization	18,647			19,883
EBITDA	13,105			29,711
Restructuring and related business transformation costs (a)	13,158			8,115
Purchase accounting adjustment costs (b)	219			—
Stock-based compensation (c)	466			2,612
Sponsor fees (d)	1,000			333
Transaction costs (e)	1,359			514
Other gains, losses and expenses (f)	7,932			(1,304		)
Adjusted EBITDA	$	37,239		$	39,981

_______________________

(a) Represents:

(i) costs and expenses in connection with various restructuring initiatives since our acquisition, through our wholly-owned entities, EWT Holdings II Corp. and EWT Holdings III Corp., of all of the outstanding shares of Siemens Water Technologies, a group of legal entity businesses formerly owned by Siemens Aktiengesellschaft, on January 15, 2014 (the “AEA Acquisition”), including severance costs, relocation costs, recruiting expenses, write‑offs of inventory and fixed assets and third‑party consultant costs to assist with these initiatives (includes (A) $10.2 million for the three months ended December 31, 2016 and $0.4 million in the three months ended December 31, 2017 (all of which is reflected as a component of Restructuring charges in “Note 11-Restructuring and Related Charges” to our unaudited condensed consolidated financial statements to be included in our Quarterly Report on Form 10-Q for the three months ended December 31, 2017) related to our voluntary separation plan pursuant to which approximately 220 employees accepted separation packages, and (B) $1.1 million for the three months ended December 31, 2016, reflected as a components of Cost of product sales and services ($0.8 million) and General and administrative expense ($0.3 million), and $3.5 million for the three months ended December 31, 2017, reflected as components of Cost of product sales and services ($1.3 million), Research and development expense ($0.3 million), Sales and marketing expense ($0.3 million) and General and administrative expense ($1.6 million) (all of which is reflected as a component of Restructuring charges in “Note 11-Restructuring and Related Charges” to our unaudited condensed consolidated financial statements to be included in our Quarterly Report on Form 10-Q for the three months ended December 31, 2017) related to various other initiatives implemented to restructure and reorganize our business with the appropriate management team and cost structure);

(ii) legal settlement costs and intellectual property related fees associated with legacy matters prior to the AEA Acquisition, including fees and settlement costs related to product warranty litigation on MEMCOR products and certain discontinued products ($0.5 million for the three months ended December 31, 2016, reflected as components of Cost of product sales and services ($0.1 million) and General and administrative expense ($0.4 million), and $0.1 million in the three months ended December 31, 2017, primarily reflected as a component of Cost of product sales and services);

(iii) expenses associated with our information technology and functional infrastructure transformation following the AEA Acquisition, including activities to optimize information technology systems and functional infrastructure processes ($1.4 million for the three months ended December 31, 2016, primarily reflected as components of Cost of product sales and services ($0.5 million), Sales and marketing expense ($0.3 million) and General and administrative expense ($0.6 million), and $1.3 million in the three months ended December 31, 2017, primarily reflected as components of Cost of product sales and services ($0.9 million), Sales and marketing expense ($0.1 million) and General and administrative expense ($0.3 million); and

(iv) costs incurred by us in connection with the IPO, including consultant costs and public company compliance costs ($2.9 million in the three months ended December 31, 2017, all reflected as a component of General and administrative expense).

(b) Represents adjustments for the effect of the purchase accounting step-up in the value of inventory to fair value recognized in cost of goods sold as a result of the acquisition of Magneto.

(c) Represents non‑cash stock‑based compensation expenses related to option awards. See “Note 14-Stock Compensation” to our unaudited condensed consolidated financial statements to be included in our Quarterly Report on Form 10-Q for the three months ended December 31, 2017 for further detail.

(d) Represents management fees paid to AEA pursuant to the management agreement. Pursuant to the management agreement, AEA provided advisory and consulting services to us in connection with the AEA Acquisition, including investment banking, due diligence, financial advisory and valuation services. AEA also provided ongoing advisory and consulting services to us pursuant to the management agreement. In connection with the IPO, the management agreement was terminated. See “Note 16-Related-Party Transactions” to our unaudited condensed consolidated financial statements to be included in our Quarterly Report on Form 10-Q for the three months ended December 31, 2017 for further detail.

(e) Represents expenses associated with acquisition and divestiture‑related activities and post‑acquisition integration costs and accounting, tax, consulting, legal and other fees and expenses associated with acquisition transactions ($1.4 million in the three months ended December 31, 2016 and $0.5 million in the three months ended December 31, 2017).

(f) Represents:

(i) impact of foreign exchange gains and losses ($7.6 million loss in the three months ended December 31, 2016 and $1.5 million gain in the three months ended December 31, 2017);

(ii) foreign exchange impact related to headquarter allocations ($0.2 million gain in the three months ended December 31, 2016); and

(iv) expenses related to maintaining non-operational business locations ($0.1 million in the three months ended December 31, 2016 and $0.2 million in the three months ended December 31, 2017).

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All of these forward-looking statements are based on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements, or could affect our share price. Some of the factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements include among other things, general global economic and business conditions; our ability to compete successfully in our markets; our ability to continue to develop or acquire new products, services and solutions and adapt our business to meet the demands of our customers, comply with changes to government regulations and achieve

market acceptance with acceptable margins; our ability to implement our growth strategy, including acquisitions and our ability to identify suitable acquisition targets; our ability to operate or integrate any acquired businesses, assets or product lines profitably or otherwise successfully implement our growth strategy; delays in enactment or repeals of environmental laws and regulations; the potential for us to become subject to claims relating to handling, storage, release or disposal of hazardous materials; risks associated with product defects and unanticipated or improper use of our products; the potential for us to incur liabilities to customers as a result of warranty claims of failure to meet performance guarantees; our ability to meet our customers’ safety standards or the potential for adverse publicity affecting our reputation as a result of incidents such as workplace accidents, mechanical failures, spills, uncontrolled discharges, damage to customer or third-party property or the transmission of contaminants or diseases; litigation, regulatory or enforcement actions and reputational risk as a result of the nature of our business or our participation in large-scale projects; seasonality of sales and weather conditions; risks related to government customers, including potential challenges to our government contracts or our eligibility to serve government customers; the potential for our contracts with federal, state and local governments to be terminated or adversely modified prior to completion; risks related to foreign, federal, state and local environmental, health and safety laws and regulations and the costs associated therewith; risks associated with international sales and operations, including our operations in China; our ability to adequately protect our intellectual property from third-party infringement; our increasing dependence on the continuous and reliable operation of our information technology systems; risks related to our substantial indebtedness; our need for a significant amount of cash, which depends on many factors beyond our control; AEA’s influence over us; and other factors to be described in the “Risk Factors” section in our Annual Report on Form 10-K for the fiscal year ended September 30, 2017, as filed with the SEC December 4, 2017, and in other periodic reports we file with the SEC. Additionally, any forward looking statements made in this press release speak only as of the date of this release. We undertake no obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements made herein, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of this release.

EX-99.2

©2017 Evoqua Water Technologies TRANSFORMING WATER. ENRICHING LIFE.TM First Quarter 2018 Earnings February 6, 2018

Page 2 This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All of these forward-looking statements are based on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements, or could affect our share price. Some of the factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements include among other things, general global economic and business conditions; our ability to compete successfully in our markets; our ability to continue to develop or acquire new products, services and solutions and adapt our business to meet the demands of our customers, comply with changes to government regulations and achieve market acceptance with acceptable margins; our ability to implement our growth strategy, including acquisitions and our ability to identify suitable acquisition targets; our ability to operate or integrate any acquired businesses, assets or product lines profitably or otherwise successfully implement our growth strategy; delays in enactment or repeals of environmental laws and regulations; the potential for us to become subject to claims relating to handling, storage, release or disposal of hazardous materials; risks associated with product defects and unanticipated or improper use of our products; the potential for us to incur liabilities to customers as a result of warranty claims of failure to meet performance guarantees; our ability to meet our customers’ safety standards or the potential for adverse publicity affecting our reputation as a result of incidents such as workplace accidents, mechanical failures, spills, uncontrolled discharges, damage to customer or third-party property or the transmission of contaminants or diseases; litigation, regulatory or enforcement actions and reputational risk as a result of the nature of our business or our participation in large-scale projects; seasonality of sales and weather conditions; risks related to government customers, including potential challenges to our government contracts or our eligibility to serve government customers; the potential for our contracts with federal, state and local governments to be terminated or adversely modified prior to completion; risks related to foreign, federal, state and local environmental, health and safety laws and regulations and the costs associated therewith; risks associated with international sales and operations, including our operations in China; our ability to adequately protect our intellectual property from third-party infringement; our increasing dependence on the continuous and reliable operation of our information technology systems; risks related to our substantial indebtedness; our need for a significant amount of cash, which depends on many factors beyond our control; AEA’s influence over us; and other factors to be described in the “Risk Factors” section in our Annual Report on Form 10-K for the fiscal year ended September 30, 2017. All statements other than statements of historical fact included in the presentation are forward-looking statements including, but not limited to, expected financial outlook for fiscal 2018. Any forward-looking statement that we make in this presentation speaks only as of February 6, 2018. We undertake no obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements made herein, whether as a result of new information, future events or otherwise. Use of Non-GAAP Financial Measures - This presentation contains “non-GAAP financial measures,” which are adjusted financial measures that are not calculated and presented in accordance with generally accepted accounting principles in the United States, or “GAAP.” These non-GAAP adjusted financial measures are provided as additional information for investors. We believe these non-GAAP adjusted financial measures, such as Adjusted EBITDA and free cash flow, are helpful to management and investors in highlighting trends in our operating results, because they exclude, among other things, certain results of decisions that are outside the control of management, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate and capital investments. The presentation of this additional information is not meant to be considered in isolation or as a substitute for GAAP measures of net income (loss), or net cash provided by (used in) operating activities prepared in accordance with GAAP. For reconciliations of the non-GAAP adjusted financial measures used in this presentation to the nearest respective GAAP measures, see the Appendix to this presentation. Forward-Looking Statement Safe Harbor

Page 3 Leading provider of mission critical water treatment solutions Services TechnologiesSystems #1* market position in North America 100+ years legacy of quality and innovation 38,000 blue chip customers Transforming water. Enriching life.TM $1.26 billion LTM(2) 12/31/2017 revenues $210 million LTM(2) 12/31/2017 Adjusted EBITDA(1) Key metrics Core offerings *Source: Amane Advisors, data as of 2016. (1) For the definition of Adjusted EBITDA and a reconciliation to net income (loss), its most directly comparable financial measure presented in accordance with GAAP, see the Appendix hereto. (2) Last twelve months calculated as the sum of FY 2017 and Q1'18 Adjusted EBITDA, less Q1'17 Adjusted EBITDA.

Page 4 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018E $117 $120 $160 $208 $235 $255 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018E $1,097 $1,061 $1,137 $1,247 $1,330 $1,360 Summary of historical financials Revenue Adjusted EBITDA(1) % growth % margin % growth ($ in millions, FYE September 30) ($ in millions, FYE September 30) (1) For the definition of Adjusted EBITDA and a reconciliation to net income (loss), its most directly comparable financial measure presented in accordance with GAAP, see the Appendix hereto. (2) Represents CAGR from FY 2014 to FY 2018 using the midpoint of the FY 2018 outlook range. (3) Represents Successor Period 2014 (January 16, 2014 through September 30, 2014) and Predecessor Period 2014 (October 1, 2013 through January 15, 2014) combined. 5% CAGR(2) 2018 Outlook (2) 7-9%9.7%7.2%(3.3%) 17-19%16.6%14.1%11.3%10.7% 13-23%29.7%33.5%2.3% 2018 Outlook 20% CAGR(2) (3) (3)

Page 5 Light industry 35% Heavy industry 27% Other 8% Municipal 30% Evoqua provides high-value added service and technology to an attractive customer base …across a diverse, growing set of end markets Service & support Chemicals Technology & innovation North America Water treatment Water transportation Meters / pumps / valves Design & construction EPC We serve $10 billion of an $85 billion market(1)… Addressed market sectors Unaddressed markets sectors $600 billion global water market(1) $85 billion global addressable market(1) $10 billion* served market We hold top market positions across our key end markets Pharma / health science Power generation Light manufacturing Microelectronics Wastewater Commercial aquatics Food & beverage Drinking water Hydrocarbon / chemical processing *Source: Amane Advisors, data as of 2016. (1) Estimated as of 2016; (2) Other includes commercial aquatics, maritime and other / miscellaneous. Maritime (2)

Page 6 We serve our customers through three operating segments Representativ e customer s(1 ) Industrial ▪ Full life cycle service and solutions for process and utility water ▪ Water as a service ▪ Filtration / Disinfection ▪ Anode technology ▪ Electrodeionization ▪ Analyzers and controllers ($ in millions) 15% 23% ▪ Full range of products for waste water and drinking water applications ▪ Broad services for odor and corrosion control 24% Municipal Products LTM(3) 12/31/2017 EBITDA margin(2) Services and solution s LT M (3) 12/31/201 7 revenu e $325 $643 (1) Trademarks shown are those of their respective owners. (2) EBITDA margin is defined as EBITDA as a percentage of revenue. For the definition of EBITDA and a reconciliation to operating profit, its most directly comparable financial measure presented in accordance with GAAP, see the Appendix hereto. (3) Last twelve months calculated as the sum of FY 2017 and Q1'18 EBITDA , less Q1'17 EBITDA, excludes central functions costs. $663 $278 $324

Page 7 Service 63% Aftermarket / other recurring 15% Service-related capital 7% Capital Equipment 15% Industrial segment overview Overview Water is the lifeblood of industrial customers ▪ Industrial processes consume significant volumes of water: – Smart phone 240 gallons – 60W light bulb 3,000 gallons (annually) – Car 39,000 gallons ▪ Two primary industrial water uses: – Process water – Vital to meet safety and production quality standards – Lowers maintenance costs – extends equipment life – Wastewater treatment and reuse solutions – Removes contaminants before water enters an industrial system – Recycle used water for reuse – closed loop ▪ Evoqua’s Industrial Segment: – Technology agnostic solutions – Sells full water lifecycle – Water One Assurance IoT usage based technology – Capital systems – Recurring aftermarket service and spares – Emergency service Key highlights FY17 revenue 2017 revenues Key Verticals(1) Position Pharma and Health #1 HPI / CPI #1 Power #2 Microelectronics #1 Food and Beverage #3 Industrial Market #1 ▪ 25,000+ customers and 200,000+ industrial installations ▪ 90%+ of customers within 2 hours of a service branch ▪ Largest national service deionization network – 4X larger than closest competitor ▪ Largest North America mobile assets (1) Source: Amane Advisors, data as of 2016. xx%52% 85% Recurring Revenue

Page 8 Smart water digital technology launch The challenge The solution Result Water One Assurance® Responsive to problems Guaranteed water uptime Reactive service schedules Preplanned service schedules Inefficient routing Maximized route density Per-event revenue model Per gallon revenue model Historical model Water One Assurance model Improved service networkefficiency ü Smart Water value proposition to new and existing customers • Awarded a competitively bid "multi-year" SDI "price per gallon" service contract with a Gulf Coast-based hospital system • Customer frustrated with high cost of tank exchange during busy periods • Water One Assurance solution enabled customer to use their system at full capacity • Water One Assurance was a competitive differentiator Snehal Desai - Chief Growth Officer Joined Evoqua January 16, 2018 Snehal's responsibilities include smart water launch among other duties

Page 9 ▪ 4x as many local service branches as the next competitor ▪ Within 2 hours of 90% of our 25,000+ industrial customers ▪ Preventative maintenance, on- demand services, operating services and Water One® services Evoqua has a differentiated business model that is well- positioned for long-term growth Unmatched service and support network Business model delivers growing and highly recurring revenue Sticky revenue with high retention Highly visible revenue base Attractive margins ▪ 25,000+ service contracts with 99% retention rates ▪ Aftermarket portfolio supports full product life-cycle ▪ Large installed base drives service / aftermarket Stable, recurring flow of business Highly visible revenue base 78% of sales are recurring or in backlog each year Book to bill 22% Highly repeatable 23% Recurring 55% 46% of total sales are service

Page 10 M&A - Supplementing long-term organic growth ▪ Develop and commercialize new technologies ▪ Established strategy to fill gaps through M&A – Products / technology, market verticals, geographic / regional Opportunistic approach to R&D and M&A Deep M&A pipeline Completed acquisitions since April 2016 Continued profitable growth through R&D and M&A ü High purity water equipment and systems ü Service deionization and resin regeneration ü Reverse Osmosis Leading Provider: Industries Served: ü Pharmaceutical and laboratory ü Medical ü Commercial and industrial ü Agriculture Pure Water Solutions Acquired January 31, 2018 Markets: Colorado and New Mexico

Page 11 Q1'17 Q1'18 $279.9 $297.1 Q1'17 Q1'18 $37.2 $40.0 First quarter 2018 performance highlights Revenue 13.3% 13.5% % margin(3) ($ in millions) Adjusted EBITDA(1) Highlights First Quarter 2018 • Revenue growth of 6.1% • 4.8% from tuck-in acquisitions • 1.3% pro forma growth(2) • Driven by 4.2% growth in Industrial segment • Prior year included large projects (timing) in Municipal and Products Segments • Adjusted EBITDA growth of 7.4% • Adjusted EBITDA margin of 13.5% • Accretive impact of acquisitions • Lower costs from cost improvement initiatives • Partly offset by large project related product mix and aftermarket timing impacts ($ in millions) (1) For the definition of Adjusted EBITDA and a reconciliation to net income (loss), its most directly comparable financial measure presented in accordance with GAAP, see the Appendix hereto. (2) For the definition of pro forma growth and a reconciliation to revenue, its most directly comparable financial measure presented in accordance with GAAP, see the Appendix hereto. (3) Adjusted EBITDA margin % is defined as Adjusted EBITDA as a percentage of revenue. +7.4% growth +6.1% growth

Page 12 Q1'17 Industrial Municipal Products Q1'18 $279.9 $19.5 $(0.7) $(1.6) $297.1 First quarter 2018 results Q1 '17 Q1 '18 Year-Over-Year Revenue $279.9 $297.1 6.1% Gross Profit $83.1 $88.4 6.4% Operating Profit $(5.5) $9.8 N/M Net Income $(13.2) $(3.0) 77.2% Adjusted Net Income(1) $1.8 $8.4 357.0% Adjusted EBITDA(2) $37.2 $40.0 7.4% Adjusted EBITDA margin(3) 13.3% 13.5% 20 bps ($ in millions) First quarter 2018 revenue ($ in millions) +6.1% growth(2.2)% change (1.2)% change (1) For the definition of Adjusted Net Income and a reconciliation to net income (loss), its most directly comparable financial measure presented in accordance with GAAP, see the Appendix hereto. (2) For the definition of Adjusted EBITDA and a reconciliation to net income (loss), its most directly comparable financial measure presented in accordance with GAAP, see the Appendix hereto. (3) Adjusted EBITDA margin is defined as Adjusted EBITDA as a percentage of revenue. +13.4% growth

Page 13 Q1'17 Q1'18 $145.7 $165.2 Industrial segment Revenue 22.0% 24.3% % margin(3) ($ in millions) Highlights First Quarter 2018 • Revenue up 13.4% • 4.2% pro forma growth(2) • Driven by power and HPI/CPI end markets and industrial wastewater recycle/reuse applications • EBITDA(1) up 25.4% • EBITDA margin improved 230 bps(3) • Volume growth leverage • Cost improvement initiatives ($ in millions) +6.5% growth (1) For the definition of EBITDA and a reconciliation to operating profit, its most directly comparable financial measure presented in accordance with GAAP, see the Appendix hereto. (2) For the definition of pro forma growth and a reconciliation to revenue, its most directly comparable financial measure presented in accordance with GAAP, see the Appendix hereto. (3) EBITDA % margin is defined as EBITDA as a percentage of revenue. • Awarded several capital contracts for a Flue Gas Desulfurization (FGD) system for several large strategic utilities • Expected to lead to future aftermarket, service and capital opportunities • Deliveries and installations expected in late FY2018 and early FY2019 xx% EBITDA(1) FY17 revenue Q1'17 Q1'18 $32.0 $40.113.4%growth 25.4% growth 52%

Page 14 Q1'17 Q1'18 $62.6 $61.9 Municipal segment Revenue Highlights First Quarter 2018 • Slight revenue decline • Service and capital increased 4.3% and 1.6%, respectively • Aftermarket decline of (16.1)% - primarily due to year-over-year project timing • EBITDA declined (23.0)%(1) • Product mix • Timing of planned expenses +6.5% growth +15.3% growth (1) For the definition of EBITDA and a reconciliation to operating profit, its most directly comparable financial measure presented in accordance with GAAP, see the Appendix hereto. (2) EBITDA % margin is defined as EBITDA as a percentage of revenue. ($ in millions) xx% EBITDA(1) FY17 revenue 13.7% 10.6% % margin(2) +6.5% growth Q1'17 Q1'18 $8.6 $6.6 (1.2)% change (23.0)% change 22% • Awarded a biological and activated carbon odor control system • Project is part of a large water reclamation plant that provides a significant amount of drinking water to a major city • Earlier in the fiscal year, Evoqua awarded Membrane Bio Reactors that are known for their effective treatment, lower energy requirements and reduced footprint ($ in millions)

Page 15 Q1'17 Q1'18 $71.5 $70.0 Products segment Revenue Highlights First Quarter 2018 • Revenue declined (2.2)% • Driven by timing of larger projects in Aquatics • Partly offset by strong year over year growth in the China market, Electrocatalytic (ballast water) and Separation Technologies products • EBITDA declined (28.3)%(1) • Decline attributable to product mix and timing of larger projects completed in the prior year • Partly offset by strong year over year growth in the China market, Electrocatalytic and Separation Technologies products +6.5% growth +15.3% growth (1) For the definition of EBITDA and a reconciliation to operating profit, its most directly comparable financial measure presented in accordance with GAAP, see the Appendix hereto. (2) EBITDA % margin is defined as EBITDA as a percentage of revenue. ($ in millions) xx% EBITDA(1) FY17 revenue 20.9% 15.3% % margin(2) +6.5% growth Q1'17 Q1'18 $14.9 $10.7 (2.2)% change (28.3)% change 26% • Awarded two capital orders for Vortisand cross flow filters to provide high purity water for a server farm cooling system for a Fortune 50 technology company • Vortisand patented technology provides superior filtration versus traditional multi media filters along with lower operating costs ($ in millions)

Page 16 Q1'17 Q1'18 $(23.0) $(2.4) Cash generation Free Cash Flow(1) ($ in millions) Highlights Leverage ▪ Free cash flow improvement driven by favorable working capital management ▪ Working capital investments largely in place ▪ Stable amounts of maintenance capex ▪ Leverage reduced through EBITDA growth and debt paydown from IPO proceeds ~$100 million (Total net debt(2) to Adjusted EBITDA(3)) Note: See appendix for non-GAAP reconciliations (1) For the definition of Free Cash Flow and a reconciliation to operating cash flow, its most directly comparable financial measure presented in accordance with GAAP, see the Appendix hereto (2) Total net debt is total debt minus cash and cash equivalents. (3) Adjusted EBITDA (with contributions from acquisitions) inclusive of completed acquisitions. Q4'17 1Q'18 4.0x 3.4x

Page 17 Key cash flow drivers Capital expenditures 4.9% 5.1% Capex as % sales ($ in millions) Highlights Net working capital(1) ▪ Targeted growth capex directly tied to high ROI projects ▪ Increasing pace of investments made to improve operational efficiencies and update technology and equipment Highlights ▪ Working capital from operations(2) improved $21M from Q4 ▪ Working capital stabilizing in the mid teens as a percentage of sales ▪ Additional investments include capital and municipal projects ▪ Programs in place to drive cash conversion 13.5% 14.7% 15.6% NWC as % sales ($ in millions) (1) Net working capital calculated as current assets less current liabilities, excluding cash, debt, deferred taxes and the short-term portion of capital leases included in other current liabilities. (2) Working capital from operations calculated as accounts receivable, inventory, cost in excess of billings less accounts payable and billings in excess of costs. Q1'17 Q1'18 $13.6 $15.3 Q1'17 Q4'17 Q1'18 $157.5 $183.5 $197.8

Page 18 2018 Full year outlook Full Year Revenue $1.33 to $1.36 billion Adjusted EBITDA(1) $235 to $255 million Notes: Excludes unannounced acquisitions (1) For the definition of Adjusted EBITDA and a reconciliation to net income (loss), its most directly comparable financial measure presented in accordance with GAAP, see the Appendix hereto.

Page 19 Key investment highlights Number one market position in North America(1) Positioned to capitalize on favorable industry growth dynamics Iconic brands and differentiated technologies Unparalleled service network Large installed base Significant operatingleverage Experienced management team Proven organic and inorganic growth platform (1) Source: Amane Advisors, data as of 2016.

Page 20 Appendix

Page 21 Management reviews key performance indicators including revenue, margins, segment operating income and margins, orders growth, working capital and backlog, among others. In addition, we consider certain non-GAAP measures to be useful to management and investors evaluating our operating performance for the periods presented, and to provide a tool for evaluating our ongoing operations, liquidity, management of assets and future prospects. This information can assist investors in assessing our financial performance and measures our ability to generate capital for deployment among competing strategic alternatives and initiatives, including but not limited to: dividends, acquisitions, share repurchases and debt repayment. These adjusted metrics are consistent with how management views our business and are used to make financial, operating, budgeting, planning and strategic decisions. These metrics, however, are not measures of financial performance under GAAP and should not be considered a substitute for revenue, operating income, net income, earnings per share (basic and diluted) or net cash from operating activities as determined in accordance with GAAP. We consider the following non-GAAP measures, which may not be comparable to similarly titled measures reported by other companies, to be key performance indicators: "Pro forma growth" defined as revenue growth including the results of acquisitions for the periods prior to the respective acquisition dates. “EBITDA” defined as earnings before interest, taxes, depreciation and amortization expense. “Adjusted EBITDA” reflects the adjustment to EBITDA to exclude certain other items, including restructuring and related business transformation costs, purchase accounting adjustment costs, non-cash stock based compensation, sponsor fees, transaction costs and other gains, losses and expenses. “Free Cash Flow” defined as net cash from operating activities, as reported in the Statement of Cash Flow, less capital expenditures as well as adjustments for other significant items that impact current results which management believes are not related to our ongoing operations and performance. Our definition of free cash flow does not consider certain non-discretionary cash payments, such as debt. “Adjusted net income” defined as net income adjusted to exclude certain other items, including restructuring and related business transformation costs, purchase accounting adjustment costs, non-cash stock based compensation, sponsor fees, transaction costs and other gains, losses and expenses. Excluding revenue, Evoqua provides guidance only on a non-GAAP basis due to the inherent difficulty in forecasting certain amounts that would be included in GAAP earnings, such as discrete tax items, without unreasonable effort. Non-GAAP measures

Page 22 Adjusted EBITDA reconciliation A B C D E F Primarily comprised of severance, relocation, recruiting and other costs associated with the voluntary separation program and other various restructuring and efficiency initiatives. Reverses the impact from step-up to fair market value for inventory acquired with the purchase of Magneto. Represents non-cash stock-based compensation related to option awards. Elimination of management fees paid to AEA during its ownership. AEA’s management agreement terminated at the IPO closing. Removal of expenses associated with recent platform and tuck-in acquisitions and divestitures and post-acquisition integration costs. Add back of gains and losses associated with foreign exchange and recent asset sales along with expenses related to maintaining non- operational business locations. (1) Represents Successor Period 2014 (January 16, 2014 through September 30, 2014) and Predecessor Period 2014 (October 1, 2013 through January 15, 2014) combined. ($ in millions) 3M ended FYE 9/30 FY 2014(1) FY 2015 FY 2016 FY 2017 12/31/2016 12/30/2017 Net Income $ (100.1) $ (86.1) $ 13.0 $ 6.4 $ (13.2) $ (3.0) Income tax provision / (benefit) (49.6) 47.9 (18.4) 7.4 (7.1) (4.4) Interest expense 24.0 34.1 42.5 55.4 14.8 17.2 Depreciation and amortization 154.9 58.1 69.3 77.9 18.6 19.9 EBITDA $ 29.2 $ 54.0 $ 106.4 $ 147.1 $ 13.1 $ 29.7 Restructuring and related business transaction costs 41.0 32.8 43.1 51.3 13.2 8.1 Purchase accounting adjustment costs 18.3 — 1.3 0.2 0.2 — Stock-based compensation 0.3 1.6 2.0 2.3 0.5 2.6 Sponsor fees 4.4 5.0 3.8 4.2 1.0 0.3 Transaction costs 10.1 — 5.4 7.3 1.4 0.5 Other gains, losses and expenses 13.8 26.4 (1.9) (4.8) 7.9 (1.3) Adjusted EBITDA $ 117.2 $ 119.9 $ 160.1 $ 207.7 $ 37.2 $ 40.0 A B C D E F

Page 23 Segment EBITDA reconciliation Note: Segment EBITDA is one of the primary metrics used by management to evaluate the financial performance of our business. Segment EBITDA is defined as operating profit before interest, taxes, depreciation and amortization. ($ in millions) Industrial Municipal Products Three months ended December 31, 2016 Operating Profit $ 23.1 $ 6.5 $ 11.4 D&A 8.9 2.1 3.5 Segment EBITDA $ 32.0 $ 8.6 $ 14.9 Three months ended December 31, 2017 Operating Profit $ 30.0 $ 4.8 $ 7.7 D&A 10.1 1.8 3.0 Segment EBITDA $ 40.1 $ 6.6 $ 10.7

Page 24 Free cash flow / Adjusted net income (1) Refer to adjustments on the Adjusted EBITDA reconciliation; also includes an adjustment of $2.1 million for incremental interest costs for Q1 2018. Tax rate used is 37.7% for Q1 2017 and 26.0% for Q1 2018. (2) Refer to adjustments on the Adjusted EBITDA reconciliation; also includes an adjustment of $5.1 million for the write-off of deferred financing fees and incremental interest costs for Q1 2018. Tax rate used is 37.7% for Q1 2017 and 26.0% for Q1 2018. ($ in millions) Q1 2017 Q1 2018 Operating Cash Flow $ (28.8) $ 5.6 (+) Adjustments, excluding stock-based compensation, net of tax(1) 14.7 7.2 (-) Capital Expenditures (13.6) (15.3) (+) Financing related to BOO capital expenditures 4.7 — (-) Purchases of intangibles (e.g., software licenses) — — Free Cash Flow $ (23.0) $ (2.4) Operating Income $ (5.5) $ 9.8 Interest expense (14.8) (17.2) Income tax (expense) benefit 7.1 4.4 Net Income $ (13.2) $ (3.0) EPS $ (0.13) $ (0.03) Adjustments, net of tax(2) 15.0 11.4 Adjusted Net Income $ 1.8 $ 8.4 Adjusted EPS $ 0.01 $ 0.07

Page 25 Capital structure overview ($ in millions) 9/30/2017 12/31/2017 Cash and cash equivalents $ 59.3 $ 80.3 Revolving Credit Facility — — First Lien Term Facility 896.6 794.6 Build-own-operate financing facilities 10.2 9.5 Capital leases 30.8 31.1 Unamortized discount and lenders fees (16.9) (15.2) Total debt 920.7 820.1 Total net debt 861.4 739.9 Leverage Table calculation: Total net debt / Adjusted EBITDA 4.1x 3.6x Total net debt / Adjusted EBITDA (with contributions from acquisitions) 4.0x 3.4x

Page 26 Pro forma growth Revenue Q1'17 Q1'18 As Reported Pro Forma Growth ($ in millions) As Reported Acquisitions Pro Forma As Reported Acquisitions Pro Forma Variance Change % Variance Change % Evoqua Water Technologies $ 279.9 $ 13.4 $ 293.3 $ 297.1 $ — $ 297.1 $ 17.2 6.1 % $ 3.7 1.3 % Industrial $ 145.7 $ 12.8 $ 158.5 $ 165.2 $ — $ 165.2 $ 19.5 13.4 % $ 6.7 4.2 % Municipal $ 62.6 $ — $ 62.6 $ 61.9 $ — $ 61.9 $ (0.7) (1.1)% $ (0.7) (1.1)% Products $ 71.5 $ 0.6 $ 72.1 $ 70.0 $ — $ 70.0 $ (1.6) (2.2)% $ (2.2) (3.0)%

Page 27 LTM Revenue and EBITDA ($ in millions) Revenue FYE 9/30/2017 Q1'17 Q1'18 LTM 12/31/2017 Evoqua Water Technologies $ 1,247.4 $ (279.9) $ 297.1 $ 1,264.6 Industrial $ 643.4 $ 145.7 $ (145.7) $ 165.2 $ 662.9 Municipal $ 278.6 $ 62.6 $ (62.6) $ 61.9 $ 277.9 Products $ 325.4 $ 71.5 $ (71.5) $ 70.0 $ 323.8 Adjusted EBITDA FYE 9/30/2017 Q1'17 Q1'18 LTM 12/31/2017 LTM EBITDA Margin % Evoqua Water Technologies $ 207.7 $ 37.2 $ (37.2) $ 40.0 $ 210.4 16.6% EBITDA FYE 9/30/2017 Q1'17 Q1'18 LTM 12/31/2017 LTM EBITDA Margin % Industrial $ 149.4 $ 32.0 $ (32.0) $ 40.1 $ 157.6 23.8% Municipal $ 44.8 $ 8.6 $ (8.6) $ 6.6 $ 42.8 15.4% Products $ 77.4 $ 14.9 $ (14.9) $ 10.7 $ 73.2 22.6%

©2017 Evoqua Water Technologies TRANSFORMING WATER. ENRICHING LIFE.TM