WTS earnings analysis
What we found in WTS's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Watts Water Technologies reported a strong Q1 2026, achieving revenue of $677 million, surpassing estimates of $635.5 million, and an EPS of $3.04, exceeding the expected $2.69. Operating income increased by 51.7% to $133 million driven by significant organic growth, particularly in the Americas, which showed a 17.4% revenue increase, alongside improved operating margins.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Surges to Record High
- Q1 2026 revenue reached $677 million, up 21.4% from $558 million in Q1 2025.
- Strong EPS Performance
- The company reported EPS of $3.04, beating estimates by 13.01%.
- Significant Operating Margin Improvement
- Operating income increased 51.7% to $133 million, reflecting improved pricing and efficiency.
- Organic Growth Across Segments
- Organic sales grew 11.9%, driven primarily by a 15.5% increase in the Americas.
- Cash and Cash Equivalents Stable
- Cash and cash equivalents stood at $374.7 million as of March 29, 2026.
- Healthy Debt Metrics
- Net debt to capitalization ratio improved to (9.2%) from (11.4%) at the end of 2025.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Inflationary Pressures Persist
- Heightened inflation in materials and labor could strain margins and profitability.
- Geopolitical Uncertainties
- Ongoing Middle East conflict could present risks to supply chain and operations.
- Dependence on Regulatory Compliance
- Changes in plumbing and building codes may impact future sales and market accessibility.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $3.04
- Gross margin
- 48.1%
- Operating margin
- 19.6%
- Segment
- Americas
- Segment
- Europe
- Segment
- APMEA
What they said about what is next.
Maintaining full year 2026 outlook with sales growth of 8%-12% reported and 2%-6% organic.
The filing reads better than the one before it.
What came before.
- 10-K · February 23, 2026
- Watts Water reported a strong 2025 with total revenue of approximately $2,439.0 million, expanding gross margin to ~49.5% and delivering operating margin of ~18.4%. The company generated roughly $357.0 million of free…
- 10-Q · November 6, 2025
- Watts Water reported a strong Q3: net sales of $611.7M (up $68.1M vs Q3 2024), gross profit of $298.4M, operating income of $111.4M and diluted EPS of $2.45. Operating cash flow remains healthy at $247.3M for the nine…
- 10-Q · May 8, 2025
- Watts Water reported Q1 2025 net sales of $558.0 million and net income of $74.0 million (diluted EPS $2.21). Gross profit increased to $272.5 million while operating income declined to $87.7 million primarily due to a…
- 10-K · February 18, 2025
- Watts Water emphasizes a strategy of differentiated, smart and connected water-management solutions (Connect, Control, Conserve) and continued inorganic growth via acquisitions. In 2024 smart and connected enabled…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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