Watts Water Technologies Inc

Latest Results (25.12.2024):

Q3 2024 Revenue Performance

Watts Water Technologies Inc. reported a revenue of $544 million for the third quarter of 2024, marking an 8% increase compared to the previous year. This growth was driven by acquisitions and favorable price/mix, although organic sales were down by 4% due to volume declines and inflationary pressures.

Operating Margin Insights

The adjusted operating margin for Watts Water Technologies Inc. in Q3 2024 was 17.1%, a decrease of 90 basis points from the previous year. This decline was primarily attributed to acquisition dilution and volume deleverage, despite efforts in cost optimization and productivity improvements.

Regional Sales Highlights

In Q3 2024, Watts Water Technologies Inc. experienced varied regional performance. The Americas saw a 3% decline in organic sales, while APMEA (Asia-Pacific, Middle East, and Africa) achieved an 8% organic growth. Europe faced a challenging environment with a 12% drop in organic sales, impacted by OEM destocking and reduced energy incentives.

Free Cash Flow and Balance Sheet

Watts Water Technologies Inc. reported strong free cash flow year-to-date, contributing to a robust balance sheet. The company maintained a solid net debt to capital ratio, reflecting its financial stability and capacity for strategic investments and acquisitions.

Full Year 2024 Outlook

Watts Water Technologies Inc. raised the midpoint of its full-year operating and EBITDA margin outlook for 2024. Despite challenges in the European market and geopolitical uncertainties, the company remains optimistic about its long-term growth prospects, supported by its Smart & Connected initiative and ongoing cost structure optimization.