WTS
Watts Water Technologies, Inc.279.25
-2.01-0.72%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Data centers, M&A details emerge
Q&A drilled into data centers and M&A, largely reaffirming prepared outlook with added color. Management slotted data center growth at high double-digits, Americas over half the mix, stainless steel lifting margins; they're top-three in cooling valves via reputation and supply chain scale. Portfolio rationalization clarifies as channel deemphasis in core Americas retail/OEM, freeing resources for data centers. M&A philosophy: EPS-accretive year-one ideally, leverage below 2.5x, margins to Watts levels by year-three. Europe margins stay flat on volume deleverage despite early restructuring tailwinds. Copper watched closely for mid-year pricing. Data centers drive thesis momentum.
Key Stats
Market Cap
9.31BP/E (TTM)
28.82Basic EPS (TTM)
9.69Dividend Yield
0.01%Recent Filings
10-K
FY2025 results
Watts Water Technologies capped FY2025 ended December 31, 2025 with robust results, posting net sales of $2.44B, up 8.3% reported and 5.3% organic y/y, fueled by Americas growth while Europe softened. Q4 momentum shone through five acquisitions—Superior Boiler, Haws, EasyWater, I-CON, and Saudi Cast—adding $52M in sales, alongside price gains and productivity offsetting tariffs and inflation. Operating income climbed 14.8% to $448M (18.4% margin), with gross margins expanding to 49.5% on favorable mix; free cash flow hit $356M (derived). Net debt stayed negative at -11.4%, bolstered by $406M cash, $200M revolver draw (587M available), and $45.7M capex. Buybacks totaled $16M (67k shares), dividends $67M. Supply chain disruptions from tariffs and geopolitics risk quarterly momentum.
8-K
Record Q4, acquisitions shine
Watts Water Technologies smashed Q4 records with $625M sales, up 16% reported and 8% organic, while operating margin hit 18.2%, up 170 bps. Acquisitions of Haws, Superior Boiler, and Saudi Cast in November boosted non-residential exposure; integration advances smoothly. Acquisitions delivered. Eyes 2026 sales growth of 8-12%, yet tariffs loom large.
8-K
CFO transition announced
Watts Water Technologies' CFO Ryan Lada resigned November 14, 2025, to pursue another opportunity; the board removed him the next day and swiftly appointed insider Diane McClintock as replacement. McClintock, with 15 years at the firm including SVP of FP&A, starts at $515,000 base salary plus 70% target bonus. Smooth transition ensures continuity. Departure unrelated to business or accounting issues.
8-K
Elects Stefany to board
Watts Water Technologies elected Suzanne L. Stefany to its Board of Directors on November 9, 2025, effective until the 2026 annual meeting. She joins the Governance and Sustainability and Compensation Committees, bringing expertise from PJT Partners and Wellington Management. New directors get pro-rated pay. Standard indemnification applies.
10-Q
Q3 FY2025 results
Watts Water Technologies posted Q3 sales of $611.7M, up 12.5% y/y from $543.6M, with Americas surging 16.0% y/y on pricing and volume while Europe eked out 4.0% y/y amid weakness. Gross margin expanded to 48.8% from 47.3%, operating income climbed 19.5% y/y to $111.4M, and diluted EPS hit $2.45, up from $2.06—EPS reconciles cleanly to 33.5M shares. Cash swelled to $457.7M on $247.3M YTD operating cash flow (FCF $216.0M derived), against $200M drawn on $800M revolver ($587.8M available). Acquisitions added EasyWater (June 2025, all-cash, water quality) and I-CON (Jan 2025, $70.7M net cash, $41.6M goodwill, $20.9M intangibles over 12 years). Europe restructuring weighs on margins. Tariffs crimp pricing power.
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