Watts Water Technologies Inc

Latest Results (14.05.2026):

Watts Water Technologies Inc.'s third quarter of 2025 results: net sales of $611.7 million (reported as $612M), up 13% reported and 9% organically versus Q3 2024; operating income $111.4M with an operating margin of 18.2% (up 110 bps) and adjusted operating margin of 18.5% (up 140 bps); diluted EPS $2.45 (up 19%) and adjusted diluted EPS $2.50 (up 23%). The company raised its full‑year 2025 sales and margin outlook and completed the acquisition of Haws Corporation on November 4, 2025.

Top-line drivers

Sales of $611.7M (+13% reported, +9% organic vs Q3 2024) were driven by favorable price realization, volume and pull‑forward demand in the Americas. Incremental acquisition sales in the quarter were ~$11M and favorable foreign exchange added ~$6M (≈+1%).

Profitability

Operating margin improved to 18.2% (up 110 bps) and adjusted operating margin to 18.5% (up 140 bps) versus Q3 2024, reflecting price realization, volume leverage in the Americas, productivity and cost actions that offset tariff, inflation and European volume headwinds.

Earnings per share

Diluted EPS was $2.45 (up 19%) and adjusted diluted EPS was $2.50 (up 23%). Special-item adjustments in the quarter were minimal (adjustment of $0.05 per share reported).

Regional performance

Americas: $464.1M (+16% reported, +13% organic) with segment margin up ~180 bps. Europe: $111.6M (+4% reported, -2% organic) hurt by lower volumes but margin benefits from price and restructuring. APMEA: $36.0M (-1% reported, flat organic) with improved margin from productivity and mix.

Cash flow and capital allocation

Nine‑month operating cash flow was $247.3M and free cash flow $216.0M. Cash and equivalents were $457.7M at Sept. 28, 2025; net debt was negative $260.2M (net cash). The company repurchased ~15,000 shares for $3.9M in Q3 and ~$51,000 shares for $11.8M YTD, with ~$133M remaining on the repurchase authorization. Dividends declared were $0.52 per share in Q3.

Acquisition and outlook

Watts closed the acquisition of Haws Corporation on November 4, 2025, adding emergency safety and hydration product capabilities. The company raised its full‑year 2025 guidance to reported sales growth of 7–8% (organic 4–5%), operating margin 18.1–18.2% (adjusted operating margin 19.1–19.2%).

Management commentary and risks

Management highlighted strong Americas execution, supply‑chain actions and targeted pricing that mitigated tariff cost pressure. The release reiterates standard forward‑looking risk factors (tariffs, integration risks, market conditions, FX, supply chain disruptions) that could affect results.