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…
Earnings analysis · 10-Q
WTS earnings analysis
Filed May 7, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $3.04
- Segment
- Americas
- Segment
- Europe
- Segment
- APMEA
What stood out
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Revenue Surges to Record High
Q1 2026 revenue reached $677 million, up 21.4% from $558 million in Q1 2025.
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Strong EPS Performance
The company reported EPS of $3.04, beating estimates by 13.01%.
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Significant Operating Margin Improvement
Operating income increased 51.7% to $133 million, reflecting improved pricing and efficiency.
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Organic Growth Across Segments
Organic sales grew 11.9%, driven primarily by a 15.5% increase in the Americas.
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Cash and Cash Equivalents Stable
Cash and cash equivalents stood at $374.7 million as of March 29, 2026.
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Healthy Debt Metrics
Net debt to capitalization ratio improved to (9.2%) from (11.4%) at the end of 2025.
What to watch
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Inflationary Pressures Persist
Heightened inflation in materials and labor could strain margins and profitability.
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Geopolitical Uncertainties
Ongoing Middle East conflict could present risks to supply chain and operations.
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Dependence on Regulatory Compliance
Changes in plumbing and building codes may impact future sales and market accessibility.
Management's outlook
Maintaining full year 2026 outlook with sales growth of 8%-12% reported and 2%-6% organic.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.