Did Watts Water Technologies beat or miss consensus estimates last quarter?

What is Watts Water Technologies's latest dividend and current dividend yield?

What guidance did Watts Water Technologies's management provide for the next earnings period?

What factors drove the changes in Watts Water Technologies's revenue and profit?

What were the key takeaways from Watts Water Technologies’s earnings call?

What is the market's earnings forecast for Watts Water Technologies next quarter?

What were the key takeaways from Watts Water Technologies's earnings call?

What is Watts Water Technologies's gross profit margin?

- **Record 2025 Performance**: 5% organic sales growth, 19.6% operating margin, $356M free cash flow.
- **Strategic Acquisitions**: $860M M&A pipeline since 2023, 2025 deals adding $450M annualized revenue.
- **Data Center Growth**: 3% of revenue, double-digit growth with $1B+ addressable market.
- **2026 Outlook**: 2-6% organic growth, 21.5-22.1% EBITDA margin, $130M incremental M&A sales.
- **Free Cash Flow**: >$350M with 90%+ conversion, $83M annual shareholder returns.

**【CEO 2025 Performance Summary】**
- Achieved record 2025 results: organic sales +5%, adjusted operating margin 19.6%, free cash flow $356M (7% growth). 
- Completed 2 strategic acquisitions: Superior Boiler ($60M annual sales) and Saudi Cast ($20M annual sales), expected to be accretive to EPS in 2026.
- Launched 80/20 product rationalization, exiting $10M-$15M low-margin European sales and $25M-$30M Americas retail/OEM business.
- Data center solutions now 3% of revenue, growing double digits annually with $1B+ addressable market.

**【CFO 2025 Financial Results】**
- Q4 2025: 
  - Revenue $625M (+16% reported, +8% organic)
  - Adjusted EBITDA $134M (21.4% margin)
  - Adjusted EPS $2.62 (+28% YoY)
- Full Year 2025: 
  - Sales $2.4B (+8% reported, +5% organic)
  - Adjusted EBITDA $534M (18% growth)
  - Free cash flow conversion 105%

**【CEO 2026 Outlook】**
- Organic sales growth 2-6% (excluding 80/20, +2pts higher)
- Americas: +3-7% driven by data centers and price
- Europe: -4% to flat due to volume headwinds
- Data center sales to grow high single digits
- Adjusted EBITDA margin 21.5-22.1%
- Free cash flow >$350M with 90%+ conversion

**【CFO 2026 Guidance】**
- Q1 2026: 
  - Reported sales +12-16%
  - EBITDA margin 21.1-21.7%
- Full Year: 
  - Acquisitions to add $130M incremental sales
  - 50bps margin dilution from M&A
  - $83M returned to shareholders via dividends/buybacks

**【Q&A Highlights】**
- **M&A Strategy**: Target 1-2 deals/year, aiming for EPS accretion in Year 1. 2025 M&A pipeline deployed $660M for $450M annualized revenue.
- **Data Center Growth**: Stainless steel solutions driving margin expansion, hyperscale engagement accelerating.
- **Copper Impact**: Q1 price hikes to offset 2025 tariffs, potential mid-year increases if copper prices remain elevated.
- **Europe Margins**: 2026 flat due to volume deleverage, but 320bps margin expansion since 2023 through restructuring.

Watts Water Technologies, Inc. (WTS) Q4 2025 Earnings Call Transcript

- **Record Q3 Sales**: $612M (+13% reported, +9% organic), driven by 6% price growth and $11M pull-forward demand.
- **Margin Expansion**: Adjusted EBITDA margin 20.9% (up 140bps YoY), operating margin 18.5% (up 140bps YoY).
- **Haws Acquisition**: $60M business to be modestly dilutive in first year, with long-term margin upside via safety product synergies.
- **Data Center Growth**: North America sales surpassing Asia-Pacific, with high double-digit growth.
- **Tariff Management**: $40M annual tariff impact neutralized through pricing and supply chain optimization.

**【CEO Summary Section】**
- Organic sales grew 9% YoY, driven by price increases (+6%), volume (+3%), and $11M pull-forward demand in the Americas. Europe organic sales declined 2% due to market weakness.
- Acquisitions (I-CON, EasyWater, Haws) contributed $22M in incremental sales, with Haws expected to be modestly dilutive to margins in the first year.
- Adjusted operating margin expanded to 18.5% (up 140bps YoY) due to price, volume leverage, and productivity gains.
- Free cash flow year-to-date: $216M, with >100% conversion of net income expected for the full year.
- Tariffs remain a $40M annual headwind, but cost management has mitigated impact so far.

**【CFO Financial Commentary】**
- Q3 sales: $612M (13% reported growth, 9% organic), setting a new quarterly record.
- Adjusted EBITDA: $128M (21% YoY growth), margin 20.9% (up 140bps YoY).
- Adjusted EPS: $2.50 (23% YoY growth), driven by operational improvements and tax benefits.
- Americas segment margin: 23.7% (up 180bps YoY); Europe margin: 12.2% (up 160bps YoY).
- Full year outlook updated: Organic sales growth 4-5% (vs. prior 1-3%), adjusted EBITDA margin expansion 140-150bps.

**【Q&A Key Highlights】**
- **Tariffs & Pricing**: $11M of Q3 sales were pull-forward demand ahead of price increases. Q4 pricing will be slightly higher than Q3 to offset tariffs. Long-term pricing will depend on copper and tariff trends.
- **Haws Acquisition**: $60M business with 20% hydration market share; complementary to Bradley safety products. Synergies expected to drive margin expansion over time.
- **End Markets**: Multifamily housing growth is slow but nearing a bottom; data center sales in North America are growing faster than Asia-Pacific.
- **Europe Recovery**: Margins improved 160bps YoY, with restructuring complete. Management expects gradual recovery but remains cautious on new construction growth.
- **Government Shutdown Risk**: Potential impact on residential repair/replacement business (60% of revenue), though no immediate effects noted.


Watts Water Technologies, Inc. (WTS) Q3 2025 Earnings Call Transcript

- **Record Q2 Results**: $644M sales (+8% reported, +6% organic), 21.6% operating margin, $3.09 EPS. Americas growth offset Europe weakness.
- **Margin Expansion**: 280 bps YoY improvement driven by price/cost, volume leverage, and cost control.
- **Strategic Moves**: $40M tariff headwind, $5M EasyWater contribution, Nexa platform gaining traction in luxury multifamily.
- **Updated Guidance**: Full-year organic sales flat to +3%, EBITDA margin +60-120 bps, free cash flow ≥100% of net income.
- **Key Risks**: Tariff uncertainty, Europe construction weakness, residential demand softness.
- **Long-Term Growth**: Nexa platform, data center expansion, and 80/20 margin improvement initiatives.

**【CEO Summary Section】**
- **Record Q2 Performance**: Achieved $644 million in sales, up 8% reported and 6% organic. Americas organic sales grew 10%, driven by price, volume, and pull-forward demand. Europe declined 8% organically due to ongoing market weakness.
- **Margin Expansion**: Adjusted operating margin reached 21.6%, up 280 basis points year-over-year, driven by favorable price/cost dynamics, volume leverage, and cost containment.
- **Strategic Acquisitions**: Acquired EasyWater, contributing $5 million in annualized sales and neutral EPS impact. Integration of prior acquisitions (I-CON, Bradley, Josam) is ahead of synergy targets.
- **Tariff Impact**: Direct tariff costs estimated at $40 million for 2025, with ongoing pricing and supply chain strategies to mitigate impact.
- **Nexa Growth**: Momentum building in luxury multifamily, hotels, and commercial real estate, with quick payback cycles for customers.
- **Updated Outlook**: Full-year organic sales growth revised to flat to +3%, adjusted EBITDA margin up 60-120 basis points, and free cash flow conversion ≥100% of net income.

**【CFO Financial Commentary】**
- **Q2 Financials**: GAAP net income $139 million, adjusted EPS $3.09 (+26% YoY). Free cash flow year-to-date $105 million, with expectations for sequential improvement.
- **Segment Margins**: Americas margin 27.2% (+290 bps), Europe 11.7% (+170 bps), APMEA 18.9% (flat). Price/cost favorability contributed $6 million to EBITDA.
- **Third Quarter Guidance**: Organic sales growth 2-5%, EBITDA margin 19.7-20.3% (down 400 bps sequentially due to tariff roll-in and seasonality).
- **Tariff Strategy**: Implemented 5-15% price increases, with full impact expected in H2. 80/20 actions to exit low-margin products ($2 million in Q3).

**【Q&A Key Highlights】**
- **Pull-Forward Demand**: $20 million of sales pulled forward pre-price increase, expected to reverse in Q3.
- **Pricing Dynamics**: Q2 price realization 3%, targeting mid-single digits in H2. Tariff-related price increases staggered between March and June.
- **Gross Margin Run Rate**: 48% considered normalized, with 100 bps from one-time price/cost favorability in Q2.
- **European Market**: Heat pump destocking nearing completion, but construction weakness persists. Q3 Europe sales expected to decline high single digits.
- **Nexa Expansion**: Sales cycle 1-2 years, but successful pilots driving interest. Migration of legacy smart products to Nexa platform complete by end-2025.
- **Data Center Growth**: Segment growing high double digits, offsetting residential softness.


Watts Water (WTS)-7 Aug 25-2025 Q2 Earnings call transcript

- **Q1 Record Performance**: Adjusted operating income up 2%, margin 19%, EPS $2.37. Americas/Asia-Pacific growth offset Europe weakness.
- **Tariff Resilience**: 21% dividend hike signals confidence. U.S. manufacturing and price increases mitigating 145% China tariffs.
- **2025 Outlook**: Maintain sales/margin targets despite U.S. housing risk. Europe recovery hinges on heat pump demand.
- **Cash Flow Strength**: Free cash flow $46M vs. $37M YoY; full-year conversion >100% of net income.


**【CEO Overview】**
- **Q1 Highlights**: Record adjusted operating income ($106M), margin (19%), and EPS ($2.37). Organic sales declined 2% due to fewer shipping days and European weakness, offset by $5M from I-CON acquisition. Adjusted EBITDA margin improved 80bps to 21.4%.
- **Tariff Mitigation**: U.S. manufacturing and global sourcing actions to offset 145% China tariffs. 21% dividend increase announced for June.
- **2025 Outlook**: Maintain organic sales (-3% to +2%) and margin targets. Risks include U.S. residential construction weakness, Europe destocking, and heat pump demand.

**【CFO Financial Details】**
- **Q1 Results**: Sales $558M (-2% YoY). Americas/Asia-Pacific up 1%/13%, Europe down 12%. Adjusted EBITDA $119M (+1%), driven by price, productivity, and mix. Free cash flow $46M vs. $37M YoY.
- **Margins**: Americas margin +130bps to 23.4%. Europe margin -180bps to 13.9%. Full-year free cash flow conversion >100% of net income.
- **Q2 Guidance**: Organic sales flat to +3%. EBITDA margin 21.6%-22.2%. Watch for 80/20 product exits ($2M) and tariff pass-through.

**【Q&A Key Themes】**
- **Share Gain Potential**: U.S. manufacturing advantage vs. China-sourced competitors. Price increases (+$7M in Q2) offsetting tariffs.
- **Europe Risks**: Heat pump destocking, new construction weakness. 2025 EBITDA margin accretion from I-CON expected.
- **Capacity Utilization**: North America facilities not fully utilized; shifting production from China without new CapEx.
- **Tariff Volatility**: Monitoring China tariff changes; price increases may be reversible if tariffs ease.


Watts Water (WTS)-8 May 25-2025 Q1 Earnings call transcript

- **Record 2024 Financials**: $2.25B sales, $8.86 EPS, $332M free cash flow. 2025 sales expected flat to -3%.
- **Strategic Moves**: $22M restructuring costs for $3M annual savings. I-CON acquisition to boost digital solutions.
- **Digital Growth**: Nexa platform adoption accelerating; all products to be integrated by end-2025.
- **Margin Resilience**: 16.8% operating margin maintained despite Europe 15% sales decline.
- **Q1 2025 Challenges**: -3% to -7% sales growth due to European destocking and shipping days.

**【CEO Summary Section】**
- **Record 2024 Performance**: Achieved $2.25 billion in sales, $8.86 in adjusted EPS, and $332 million in free cash flow. 2025 outlook includes organic sales decline of 1-3% due to European weakness and multifamily construction slowdowns.
- **Strategic Acquisitions & Restructuring**: Completed I-CON Systems acquisition to expand digital solutions and announced France manufacturing exit to simplify operations. 2025 restructuring costs of $22 million will yield $3 million annual savings by 2026.
- **Digital Growth Initiatives**: Launched Nexa intelligent water management system, with early adoption in hospitality and multifamily sectors. Plans to integrate all products into Nexa platform by end-2025.
- **Margin Management**: Despite 15% Europe sales decline, maintained 16.8% adjusted operating margin through productivity savings ($40 million+ annually) and lean initiatives.

**【CFO Financial Commentary】**
- **Q4 2024 Results**: $540 million sales (-1% reported, -5% organic). Adjusted EPS of $2.05 (+4%) driven by price, productivity, and Bradley/Josam contributions. Europe segment margin dropped 480bps to 10.2% due to heat pump destocking.
- **2025 Outlook**: Sales range -3% to +2% (midpoint -0.5%). Adjusted EBITDA margin target 20.4-21.0% (+30-90bps). Free cash flow conversion >100% of net income. Q1 2025 sales expected -3% to -7% due to shipping day reductions and European weakness.
- **Balance Sheet Strength**: Negative 0.4x net leverage ratio. Returned $73 million to shareholders in 2024 (20% dividend increase).

Actual											0.95	0.74	1.05	1.15	1.24	1.48	1.39	1.42	1.63	2.11	1.79	1.6	1.92	2.34	2.04	1.97	2.33	2.46	2.03	2.05	2.37	3.09	2.5	2.62
Forecast											0.8671	0.41	0.8771	1.0129	1.0067	1.2814	1.2871	1.3329	1.3714	1.6257	1.5511	1.5277	1.6365	2.0343	1.8275	1.7829	2.1032	2.33	1.9851	1.91	2.1182	2.6487	2.2638	2.3399
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+9.56%	+80.49%	+19.71%	+13.54%	+23.17%	+15.50%	+7.99%	+6.53%	+18.86%	+29.79%	+15.40%	+4.73%	+17.32%	+15.03%	+11.63%	+10.49%	+10.78%	+5.58%	+2.26%	+7.33%	+11.89%	+16.66%	+10.43%	+11.97%

WTS

WTS fundamentals

WTS Q4 2025 Earnings

Earnings Call

You can ask Aime

WTS

WTS fundamentals

WTS Q4 2025 Earnings

Earnings Call

WTS Earnings Call Summary for Q4/20259:00 AM on Feb 12, 2026

WTS Earnings Call Summary for Q3/20259:00 AM on Nov 6, 2025

WTS Earnings Call Summary for Q2/20259:00 AM on Aug 7, 2025

WTS Earnings Call Summary for Q1/20259:00 AM on May 8, 2025

WTS Earnings Call Summary for Q4/20249:00 AM on Feb 11, 2025

You can ask Aime