📈 Price History

Ratio Health

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By Category

📊 Sector Averages

About

Watts Water Technologies, Inc., together with its subsidiaries, supplies products and solutions that manage and conserve the flow of fluids and energy into, through, and out of buildings in the commercial, industrial, and residential markets. The company offers residential and commercial flow control and protection products, including backflow preventers, water pressure regulators, temperature and pressure relief valves, thermostatic mixing valves, leak detection and protection products, commercial washroom solutions, hydration solutions, and emergency safety products and equipment for plumbing and hot water applications. It also provides heating, ventilation, and air conditioning and gas products comprising commercial, institutional, and industrial boilers; water heaters and heating solutions; hydronic and electric heating systems for under-floor radiant applications; custom heat and hot water solutions; hydronic pump groups for boiler manufacturers and alternative energy control packages; and flexible stainless-steel connectors for natural and liquid propane gas in commercial food service and residential applications. In addition, the company offers drainage and water re-use products, such as drainage products, engineered rainwater harvesting solutions for commercial, industrial, marine, and residential applications; connected roof drain systems; and water quality products, including point-of-use and point-of-entry, closed loop, cooling tower, and other water applications for commercial, marine, and residential applications. It sells its products to plumbing, heating, and mechanical wholesale distributors and dealers; original equipment manufacturers; specialty product distributors; and do-it-yourself and retail chains, as well as wholesalers and private label accounts in the Americas, Europe, Asia-Pacific, Middle East, and Africa. Watts Water Technologies, Inc. was founded in 1874 and is headquartered in North Andover, Massachusetts.

Key Ratios Snapshot

📈 Growth Pattern

⚡ Latest Quarter —

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📊 Quick Scorecard

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⭐ Superinvestors Holding WTS

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Manager	Shares	Value	% of Fund	Period
Jim Simons Renaissance Technologies LLC	135.1K	$39.2M	0.06%	Mar 2026
Steve Cohen Point72 Asset Management	19.5K	$5.7M	0.01%	Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

🔍 Concall Decoded

🎙 Management Tone Tracker Mixed ↓ Deteriorating 4 quarters analysed

Q2 2025

Confident Specific

Management used specific numbers like 'record sales of $644 million', 'adjusted EPS up 26%', and quantified pull-forward demand at $20 million and tariff costs at $40 million. They raised full-year guidance for sales and margins, citing strong execution and pricing actions.

Q3 2025

Confident Specific

Management repeatedly used phrases like 'exceeded expectations', 'record third quarter sales, operating income, and earnings per share', and 'raising full-year sales and margin outlook' with precise figures (e.g., 9% organic growth, 18.5% adjusted operating margin). Specific numbers for pull-forward ($11M), tariff costs ($40M), and Haws revenue ($60M) reinforce a data-driven positive tone.

Q4 2025

Confident Specific

Management used phrases like 'outstanding year', 'record sales, operating margin, and earnings per share', and provided precise figures (e.g., 'organic sales rose 8%', 'adjusted operating margin climbed 220 basis points to 19%') throughout the call, projecting confidence with detailed quantitative support.

Q1 2026 latest

Mixed

Management expressed strong confidence in Q1 results using language like 'better-than-expected', 'record sales', and 'solid start', but also repeatedly used cautious terms such as 'prudent', 'uncertain macroeconomic and geopolitical environment', and 'maintaining full year outlook' due to Middle East conflict and tariff risks.

Guidance Reliability Pending · <3Q data

Investor Lens

The investment thesis appears stronger near-term due to a Q1 beat, record margins, and surging data center demand, which more than offset softer residential end markets. However, the maintenance of full-year guidance despite the Q1 outperformance introduces caution. Management explicitly cited Middle East conflict and tariff uncertainty as reasons for not raising, implying that second-half earnings could be at risk if those headwinds persist. The data center opportunity seems real and material, but lack of quantified revenue or margin accretion leaves some ambiguity. Key items to monitor next quarter are the duration of the Middle East conflict, further tariff developments, and whether organic growth in Q2 holds at the guided 4-8%, especially given the tough comparison and $20M pull-forward from prior year. The free cash flow decline in Q1 warrants attention; improvement in working capital will be critical to meet the 90% conversion target.

AI-generated concall tone analysis · Updated 2026-06-08 · Not investment advice

🎙 Management Tone Mixed ↓ Deteriorating 4 quarters Full tone analysis in Intelligence →

📊 MIXED Watts Water Technologies: Record Q1 sales $677M, adj. operating margin 20.1%, EPS $3.04, organic growth 12%.

Revenue & Profitability

First quarter 2026 reported sales were $677 million, up 21% (12% organic). Adjusted operating income was $136 million (28% increase), and adjusted EBITDA was $151 million (27% increase). Adjusted earnings per share were $3.04, a 28% year-over-year increase. Free cash flow was $7 million, down from $46 million a year ago due to higher working capital investment.

Outlook

Management reaffirmed full-year 2026 guidance, expecting consolidated organic sales growth of +2% to +6% and reported growth of +8% to +12%. For Q2, organic sales growth is expected at +4% to +8%. The outlook reflects uncertainty from the Middle East conflict, global GDP revisions, elevated interest rates, and a fluid tariff environment. The company assumes the Middle East conflict is short-term and current tariff structure remains for the rest of 2026.

Growth Drivers

Key growth drivers include data center cooling applications (sales doubled in Q1; over $1 billion addressable market) and digital solutions like Nexa. The Americas region posted strong organic growth of 16%, supported by acquisitions. Institutional end markets (schools, hospitals) are holding up. Five acquisitions completed in 2025 are enhancing technology and geographic reach. The company is growing high double digits in data centers for the full year.

Balance Sheet & CapEx

Not discussed in this earnings call.

Margins

Adjusted operating margin in Q1 was 20.1%, up 110 basis points year-over-year, driven by favorable pricing, volume leverage, and productivity, which more than offset tariffs, inflation, and 80 basis points of acquisition dilution. Segment margins: Americas 24.2% (+80 bps), APMEA 18.7% (+120 bps), Europe 13.7% (-20 bps). Q2 operating margin is expected between 20% and 20.6%, with acquisition dilution of approximately 70 basis points and a 120 basis point headwind from the prior year's non-recurring benefits.

Key Risks

Risks flagged include the Middle East conflict (direct sales exposure about 2% of global sales; Q2 headwind of $8 million in sales and $5-6 million on margins), fluid tariff environment (IEEPA tariffs eliminated but replaced with Section 122 and Section 232 changes, potential Section 301 tariffs), global GDP forecast downgrades, elevated interest rates, and softer residential markets. The company also faces potential fuel/energy cost increases.

Generated by AI · Q1 2026 results · Not investment advice

✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter

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📞 Earnings Call Transcripts (5)

Q2 2026 Q2 2026 2026-08-06

Record Q2 results featured 19% sales growth and 18% EPS growth, driven by surging data center demand and strong pricing. Full-year sales and margin outlooks were raised, with data center sales now expected to reach mid to high single digits of total revenue. Robust cash flow and a strong balance sheet support ongoing investment and M&A.

Q1 2026 Q1 2026 2026-05-07

Record Q1 results driven by strong price, volume, and data center growth, with all-time highs in sales, margins, and EPS. Full-year outlook reaffirmed despite macro and geopolitical uncertainty, with a 21% dividend increase and continued focus on innovation and M&A.

Q4 2025 Q4 2025 2026-02-12

Record 2025 results with double-digit sales and margin growth, driven by strong Americas performance, strategic acquisitions, and rapid expansion in data centers. 2026 guidance anticipates continued growth, margin expansion, and robust cash flow, despite headwinds from product rationalization and market uncertainties.

Q3 2025 Q3 2025 2025-11-06

Q3 delivered record sales, operating income, and EPS, driven by strong Americas growth and successful acquisitions. Full-year sales and margin outlooks were raised, with robust data center demand and a resilient balance sheet offsetting tariff and market uncertainties.

Q2 2025 Q2 2025 2025-08-07

Record Q2 sales, operating income, and EPS were driven by strong Americas growth, price realization, and successful integration of acquisitions. Full-year sales and margin outlooks were raised, but tariff and European market uncertainties persist.

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