Watts Water Technologies Exceeds Q2 2025 Expectations with $3.01 EPS and $644 Million Revenue

Watts Water Technologies Inc reported Q2 2025 results with $644 million in revenue, an 8% increase on a reported basis and a 6% rise organically. The company exceeded analyst estimates with $3.01 EPS and $2.59 in earnings per share. The Americas region achieved an 11% increase in sales, while Europe and the APMEA region experienced declines. The acquisition of Freije Treatment Systems (EasyWater) is expected to enhance its water quality portfolio.

Watts Water Technologies Inc. (NYSE: WTS) has released its Q2 2025 earnings report, showcasing robust financial performance and an improved outlook for the remainder of the year. The company reported $644 million in revenue, an 8% increase on a reported basis and a 6% rise organically, surpassing analyst estimates [1].

The company's earnings per share (EPS) reached $3.01, exceeding the estimated $2.59, reflecting a 23% increase from the previous year. The adjusted operating margin improved to 21.6%, up 280 basis points from the prior year period [2].

The Americas region led growth with an 11% increase in sales, driven by price, volume, and acquisitions. However, Europe and the APMEA region experienced declines, with the company attributing these challenges to market weakness and project timing issues [3].

Watts Water Technologies has also made strategic acquisitions to enhance its water quality portfolio. The acquisition of Freije Treatment Systems (EasyWater) is expected to contribute to this growth [3].

The company's strong performance has led to an improved full-year 2025 outlook. Watts Water Technologies now expects sales growth of 2% to 5% on a reported basis, organic sales growth of flat to +3%, and an adjusted EBITDA margin of 20.7% to 21.3% [1].

The stock's performance near its 52-week high reflects investor confidence in the company's strategy and execution. However, key challenges ahead include navigating tariff impacts, addressing regional weaknesses, and maintaining margin expansion in a potentially softening economic environment.

References:
[1] https://www.investing.com/news/company-news/watts-water-technologies-q2-2025-slides-record-results-prompt-raised-outlook-93CH-4174839
[2] https://www.tradingview.com/news/reuters.com,2025-08-06:newsml_PLXD83F43:0-brief-watts-water-technologies-q2-eps-usd-3-01/
[3] https://www.gurufocus.com/news/3042275/watts-water-technologies-inc-surpasses-q2-2025-expectations-with-301-eps-and-644-million-revenue