Watts Water Technologies Inc (WTS)

Watts Releases its 2025 Sustainability ReportJune 15, 2026 1:08 PM
Business Wire Watts Water Technologies, Inc. (NYSE: WTS) – through its subsidiaries, one of the world’s leading manufacturers and providers of plumbing, heating and water quality products and solutions – today announced the release of its 2025 Sustainability report, which highlights the Company’s dedication to environmental, social and governance practices and continued commitment to creating high-performance solutions that promote sustainability and efficiency. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260615531859/en/ “Since setting our first-generation environmental goals in 2018, we have significantly reduced our water use, emissions and hazardous waste while continuing to grow as a company. That progress gives us confidence as we pursue our next generation of goals and continue challenging ourselves to make an even greater impact in the years ahead,” said Robert J. Pagano, Jr., CEO, President and Chairperson of the Board. “Reflecting on more than a decade of sustainability work, it is rewarding to see how far we have come and the measurable progress our teams have made across the business.” Key accomplishments highlighted in the report include: Advanced Watts’ second generation of environmental goals, adopted in 2024, by recommitting to 3% annual intensity reductions and targeting a reduction of 10,000 metric tons of CO2 equivalent (MTCO2e) in primary emissions by 2034 Reduced water intensity by 64% and absolute water consumption by 44% between 2018 and 2025, resulting in a reduction of nearly 100 million liters of water Reduced GHG intensity by 63% and absolute GHG emissions by 43% between 2018 and 2025, resulting in a reduction of nearly 15,000 MTCO2e in Scope 1 & 2 market-based emissions Reduced hazardous waste intensity by 57% and absolute hazardous waste generation by 34% between 2018 and 2025, resulting in a reduction of nearly 700,000 kilograms of hazardous waste In 2025, we completed Life Cycle Assessments (LCAs) for all products in our BLÜCHER facility and began LCA modeling at five additional manufacturing facilities, building on LCAs already completed for all products produced in our largest facility in Franklin, NH By the end of 2025, we had published 28 Environmental Product Declarations (EPDs) covering 39 product types and are on track to exceed our goal of publishing 50 EPDs by 2026 In 2025, AERCO, PVI, and the LYNC brands of boilers, water heaters, and heat pumps helped customers avoid more than 115,000 MT of CO2, almost three times the Watts Scope 1 and Scope 2 emissions for 2025 Employees volunteered more than 10,000 hours as part of the Watts Cares community giving program, more than doubling the number of hours volunteered in 2024 – the program’s inaugural year Provided clean water access to vulnerable communities through the company’s ongoing partnership with Planet Water Foundation, which in 2025 benefited nearly 89,000 people in six different countries Recognized in 2025 for sustainability and workplace achievements including Newsweek World’s Greenest Companies and America’s Most Responsible Companies, TIME America’s Top Green Tech Companies and America’s Best Companies, USA Today America’s Climate Leaders, Barron’s 100 Most Sustainable Companies, Great Place to Work Greater China, Best Workplaces for Women in Greater China and Top Places to Work Massachusetts To download Watts’ 2025 Sustainability Report or learn more about the Company’s sustainability programs, visit http://www.watts.com/our-story/sustainability. View source version on businesswire.com: https://www.businesswire.com/news/home/20260615531859/en/ Watts Water Technologies, Inc.
Diane McClintock
Chief Financial Officer
Telephone: 978-689-6153
Email: investorrelations@wattswater.com Original: Watts Releases its 2025 Sustainability Report

Watts Named One of Newsweek’s World’s Greenest Companies 2026June 4, 2026 6:33 PM
Business Wire Watts Water Technologies, Inc. (NYSE: WTS) – through its subsidiaries, one of the world’s leading manufacturers and providers of plumbing, heating and water quality products and solutions – was named one of Newsweek’s World’s Greenest Companies 2026. This marks the second consecutive year that Watts has received this recognition of the company’s continued dedication to advancing environmental sustainability across its operations, products and solutions. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260604268918/en/ To compile the list, Newsweek, in partnership with Plant-A Insights Group and GIST Impact, evaluated more than 8,000 publicly listed organizations using publicly available sustainability disclosures and desk research. The 2026 ranking recognizes 850 companies across 28 countries, with companies assessed on more than 25 parameters, including greenhouse gas emissions, water usage, waste generation and sustainability data disclosure and commitments. “Water is our most precious natural resource, and every day we are focused on helping customers and communities manage it more safely, efficiently and responsibly,” said Robert J. Pagano, Jr., CEO, President and Chairperson of the Board at Watts. “Being named one of Newsweek’s World’s Greenest Companies for the second consecutive year is a meaningful reflection of the progress our teams are making, from reducing the environmental impact of our own operations to developing technologies that support water conservation, energy efficiency and long-term resilience.” In the past year, Watts has been recognized by TIME, USA Today, Barron’s, Top Places to Work and Handshake, in addition to multiple Newsweek awards, all of which celebrate the company’s holistic commitment to social responsibility and advancements in the water industry. To learn more about Watts’ Environment, Social and Governance (ESG) commitments and initiatives, read the company’s Sustainability Report or visit https://www.watts.com/our-story/sustainability. About Watts
For over 150 years, Watts Water Technologies, Inc., through its family of companies, has provided one of the broadest plumbing, heating, and water quality product lines in the world. A global manufacturer headquartered in the USA, Watts Water companies and brands offer innovative solutions to control the efficiency, safety, and quality of water within commercial, residential, and industrial applications. For more information, visit www.watts.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260604268918/en/ Watts Water Technologies, Inc.
Diane McClintock
Senior Vice President FP&A and Investor Relations
Telephone: 978-689-6153
Email: investorrelations@wattswater.com Original: Watts Named One of Newsweek’s World’s Greenest Companies 2026

Watts Named to TIME’s World’s Most Impactful Companies 2026 ListMay 12, 2026 9:52 AM
Business Wire Watts Water Technologies, Inc. (NYSE: WTS) is proud to share that it has been named to TIME’s World’s Most Impactful Companies 2026 list in this new ranking’s inaugural year. Watts’ inclusion in this list is a recognition of the company’s net-positive contribution to the world, based on a scientific assessment of data on its technologies, operations, and global business practices. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260512793816/en/ The World’s Most Impactful Companies list, presented by TIME in partnership with Statista and The Upright Project, identifies companies and organizations that demonstrate a strong net-positive impact across key dimensions, including Society, Environment, Health, and Knowledge. Inclusion on the list reflects an independent, data-driven assessment of how effectively a company’s products and services contribute to global well-being across its full value chain. “Being recognized by TIME as one of the World’s Most Impactful Companies acknowledges our commitment to delivering solutions that meet the needs of our customers and create lasting benefit for the environment as well as for communities across the globe,” said Robert J. Pagano, Jr., CEO, President and Chairperson of the Board at Watts. “At Watts, we are committed to advancing water safety, efficiency, and sustainability through innovation, while operating responsibly and holding ourselves accountable to measurable progress. This recognition is a direct result of the dedication and professionalism of our team members, who consistently uphold our value-driven culture.” Watts continues to integrate sustainability at the heart of its business strategy, reducing environmental impact by lowering emissions, advancing water conservation across its operations, and delivering solutions that help customers optimize performance while conserving critical resources. To learn more about Watts’ Environment, Social and Governance (ESG) commitments and initiatives, read the company’s latest Sustainability Report or visit www.watts.com/our-story/sustainability. The ranking is based on a rigorous, science-based methodology that evaluates companies using The Upright Project’s Net Impact Model, which analyzes the positive and negative effects of a company’s activities across its full value chain. Companies included must demonstrate a positive overall net impact and meet criteria related to scale, transparency, and available data. About Watts
For more than 150 years, Watts has delivered innovative and sustainable technologies designed to safeguard the world’s most precious resource. Watts designs, manufactures, and sells an extensive line of flow control, water safety, water filtration and treatment, radiant heating, and drainage products for the commercial, residential, and institutional markets. Watts is committed to helping its customers optimize system performance and reliability while conserving critical resources. For more information, visit www.watts.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260512793816/en/ Watts Water Technologies, Inc.
Diane McClintock
Chief Financial Officer
Telephone: 978-689-6153
Email: investorrelations@wattswater.com Original: Watts Named to TIME’s World’s Most Impactful Companies 2026 List

Watts Water Technologies Reports Record First Quarter 2026 ResultsMay 6, 2026 4:30 PM
Business Wire Net sales of $677 million, up 21% on a reported basis and 12% organically Operating margin of 19.6%, up 390 bps; adjusted operating margin of 20.1%, up 110 bps Diluted EPS of $2.97, up 34%; adjusted diluted EPS of $3.04, up 28% Announced 21% increase in quarterly dividend payments to $0.63 per share Maintaining full year 2026 outlook Note changes in performance are relative to first quarter 2025 Watts Water Technologies, Inc. (NYSE: WTS) – through its subsidiaries, one of the world’s leading manufacturers and providers of plumbing, heating and water quality products and solutions – today announced results for the first quarter of 2026. Chief Executive Officer Robert J. Pagano Jr. said, “We delivered a strong start to 2026, with organic growth across all regions and record first quarter net sales, operating income, operating margin and EPS. This is a direct result of the strong execution by the Watts team, and I would like to thank our employees who have remained diligent and focused on delivering quality and value to our customers.” Mr. Pagano continued, “We are actively managing through geopolitical and trade-related uncertainties while advancing our strategic priorities. We continue to invest in higher-growth opportunities, including data centers and digital solutions, and are driving productivity through automation to support efficiency and margin performance through the One Watts Performance System. While we are pleased with our strong performance to start the year, the macro environment remains dynamic. As a result, we are maintaining our full year 2026 outlook. Our proven operating model and execution track record position us well, and supported by a strong balance sheet and solid cash flow generation, we remain focused on disciplined capital allocation and delivering sustainable long-term value.” A summary of first quarter financial results is as follows:     First Quarter Ended       March 29,   March 30,       (In millions, except per share information)   2026   2025   % Change   Net sales   $ 677.3   $ 558.0   21 % Organic sales growth % (1)               12 %                     Operating income   $ 133.0   $ 87.7   52 % Operating margin %     19.6 %   15.7 % 390 bps                     Adjusted operating income (1)   $ 135.9   $ 106.1   28 % Adjusted operating margin % (1)     20.1 %   19.0 % 110 bps                     Diluted earnings per share   $ 2.97   $ 2.21   34 % Special items (1)     0.07     0.16       Adjusted diluted earnings per share (1)   $ 3.04   $ 2.37   28 % _________________________ (1) Organic sales growth, adjusted operating income, adjusted operating margin, free cash flow, special items and adjusted diluted earnings per share represent non-GAAP financial measures. For a reconciliation of GAAP to non-GAAP items, please see the tables attached to this press release. First Quarter Financial Highlights
First quarter 2026 performance compared to first quarter 2025 Sales of $677 million increased 21% on a reported basis and 12% on an organic basis. Organic sales increased primarily due to favorable price and incremental volume driven by data center growth. Incremental acquisition sales within the Americas and APMEA were $37 million and contributed 7% to reported growth. Favorable foreign exchange increased reported sales by $16 million, or 3%. Operating margin increased 390 basis points on a reported basis and 110 basis points on an adjusted basis. Operating and adjusted operating margin increased primarily due to favorable price, productivity and volume leverage which more than offset inflation, investments, tariffs and acquisition dilution. Operating margin was favorably impacted by a decrease in restructuring charges, partially offset by higher acquisition-related charges. Regional Performance Americas
Sales of $515 million increased 23% on a reported basis and 16% on an organic basis, primarily due to favorable price and incremental volume driven by data center growth. Acquisitions contributed $31 million of incremental sales, or 7%, to reported growth. Segment margin increased 80 basis points as benefits from price realization, productivity, and volume leverage more than offset inflation, tariffs and acquisition dilution. Europe
Sales of $121 million increased 12% on a reported basis and 1% on an organic basis. Reported sales growth benefitted from favorable foreign exchange, which increased reported sales by 11%. Organic sales increased primarily from favorable price, which offset a slight decline in volume. Segment margin decreased 20 basis points as benefits from price realization, productivity, and restructuring actions were more than offset by inflation and volume deleverage. APMEA
Sales of $41 million increased 29% on a reported basis and 3% on an organic basis, as growth in China, Australia and New Zealand offset a decline in the Middle East. Acquisition sales contributed $6 million, or 19%, and favorable foreign exchange contributed 7% to reported sales growth. Segment margin increased 120 basis points as trade sales volume leverage, productivity and acquisition accretion more than offset inflation and affiliate volume deleverage. Cash Flow and Capital Allocation For the first quarter of 2026, operating cash flow was $18 million and net capital expenditures were $11 million, resulting in free cash flow of $7 million. In the comparable period last year, operating cash flow was $55 million and net capital expenditures were $9 million, resulting in free cash flow of $46 million. Free cash flow declined due to increased capital investments and elevated working capital levels which more than offset higher net income. Working capital increases were due to higher accounts receivable attributable to higher net sales, higher inventory due to incremental tariffs and strategic inventory investments to support expected end-market demand, and higher annual customer rebates due to higher net sales and timing of payments. Sequential increases in free cash flow are expected throughout 2026 as we monetize working capital with the seasonality of the business. On May 4, 2026, the Company announced a 21% increase in quarterly dividend payments, increasing the quarterly payments from $0.52 per share to $0.63 per share beginning in June 2026. The Company repurchased approximately 13,000 shares of Class A common stock at a cost of $3.8 million during the first quarter of 2026. Approximately $125 million remains available under the stock repurchase program authorized in 2023. There is no expiration date for this program. Full Year 2026 Outlook The Company is maintaining its previous full year outlook. Sales growth is expected to range from up 8% to up 12% on a reported basis and up 2% to up 6% on an organic basis. Full year operating margin is expected to be between 18.8% and 19.4%, or up 40 basis points to up 100 basis points, and adjusted operating margin is expected to be between 19.1% and 19.7%, or down 50 basis points to up 10 basis points. The full year outlook assumes the Middle East conflict is short term and incorporates estimated tariff impacts and actions as of May 6, 2026 but does not include potential tariff refunds. Further 2026 planning assumptions are included in the first quarter earnings materials posted in the Investor Relations section of our website at www.watts.com. For a reconciliation of GAAP to non-GAAP items and a statement regarding the usefulness of these measures to investors and management in evaluating our operating performance, please see the tables attached to this press release. Watts Water Technologies, Inc. will hold a live webcast of its conference call to discuss first quarter 2026 results on Thursday, May 7, 2026 at 9:00 a.m. EST. This press release and the live webcast can be accessed by visiting the Investor Relations section of the Company's website at www.watts.com. Following the webcast, the call recording will be available at the same address until May 6, 2027. Watts Water Technologies, Inc., through its subsidiaries, is a world leader in the manufacturing of innovative products to control the efficiency, safety, and quality of water within residential, commercial, and institutional applications. Watts’ expertise in a wide variety of water technologies enables us to be a comprehensive supplier to the water industry. This press release includes “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995, including statements relating to expected full year 2026 financial results, including sales and organic sales growth, operating margin and adjusted operating margin, future dividends, improvements in operating and free cash flow throughout 2026, our strategy, investments, the impact of tariffs and any potential tariff refunds due to invalidation of tariffs imposed under the International Emergency Economic Powers Act, the benefits from and integration of recent acquisitions, our ability to manage uncertainty and current market conditions, including the fluid trade environment, our portfolio offerings, long-term growth and shareholder value creation and return of capital to stockholders. These forward-looking statements reflect our current views about future events. You should not rely on forward-looking statements because our actual results may differ materially from those predicted as a result of a number of potential risks and uncertainties. These potential risks and uncertainties include, but are not limited to: the imposition of or changes to tariff rates and related impacts to our business and the broader market; the effectiveness, timing and expected savings associated with our cost-cutting actions, restructuring and initiatives; integration of acquired businesses in a timely and cost-effective manner, retention of supplier and customer relationships and key employees, and the ability to achieve synergies and cost savings in the amounts and within the time frames currently anticipated; current economic and financial conditions, which can affect the housing and construction markets where our products are sold, manufactured and marketed; shortages in and pricing of raw materials and supplies; our ability to compete effectively; changes in variable interest rates on our borrowings; inflation; failure to expand our markets through acquisitions; failure to successfully develop and introduce new product offerings or enhancements to existing products; failure to manufacture products that meet required performance and safety standards; foreign exchange rate fluctuations; cyclicality of industries where we market our products, such as plumbing and heating wholesalers and home improvement retailers; environmental compliance costs; product liability risks and costs; changes in the status of current litigation; the impacts and duration of the Middle East conflict, the war in Ukraine and other global crises; supply chain and logistical disruptions or labor shortages and workforce disruptions that could negatively affect our supply chain, manufacturing, distribution, or other business processes; and other risks and uncertainties discussed under the heading “Item 1A. Risk Factors” and in Note 17 of the Notes to the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (“SEC”).We undertake no duty to update the information contained in this press release, except as required by law. WATTS WATER TECHNOLOGIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in millions, except per share information) (Unaudited)                   First Quarter Ended     March 29,   March 30,     2026   2025 Net sales   $ 677.3     $ 558.0   Cost of goods sold     351.2       285.5   GROSS PROFIT     326.1       272.5   Selling, general and administrative expenses     192.9       167.5   Restructuring     0.2       17.3   OPERATING INCOME     133.0       87.7   Other (income) expense:             Interest income     (1.7 )     (2.3 ) Interest expense     2.6       2.7   Other expense, net     0.7       0.4   Total other expense     1.6       0.8   INCOME BEFORE INCOME TAXES     131.4       86.9   Provision for income taxes     31.8       12.9   NET INCOME   $ 99.6     $ 74.0                 BASIC EPS             NET INCOME PER SHARE   $ 2.97     $ 2.21   Weighted average number of shares     33.5       33.5   DILUTED EPS             NET INCOME PER SHARE   $ 2.97     $ 2.21   Weighted average number of shares     33.5       33.5   Dividends declared per share   $ 0.52     $ 0.43   WATTS WATER TECHNOLOGIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Amounts in millions, except share information) (Unaudited)                   March 29,   December 31,     2026   2025 ASSETS             CURRENT ASSETS:             Cash and cash equivalents   $ 374.7     $ 405.5   Trade accounts receivable, less reserve allowances of $15.1 million at March 29, 2026 and
$12.5 million at December 31, 2025     374.4       294.0   Inventories, net:             Raw materials     208.5       190.8   Work in process     28.1       28.5   Finished goods     306.5       305.0   Total Inventories     543.1       524.3   Prepaid expenses and other current assets     55.9       62.3   Total Current Assets     1,348.1       1,286.1   PROPERTY, PLANT AND EQUIPMENT:             Property, plant and equipment, at cost     781.1       777.1   Accumulated depreciation     (484.7 )     (480.0 ) Property, plant and equipment, net     296.4       297.1   OTHER ASSETS:             Goodwill     859.6       859.0   Intangible assets, net     286.8       294.6   Deferred income taxes     19.4       17.9   Other, net     129.5       126.5   TOTAL ASSETS   $ 2,939.8     $ 2,881.2                               LIABILITIES AND STOCKHOLDERS’ EQUITY             CURRENT LIABILITIES:             Accounts payable   $ 188.9     $ 182.2   Accrued expenses and other liabilities     234.2       234.7   Accrued compensation and benefits     72.9       95.5   Total Current Liabilities     496.0       512.4   LONG-TERM DEBT     197.8       197.7   DEFERRED INCOME TAXES     42.5       36.5   OTHER NONCURRENT LIABILITIES     107.2       106.9   STOCKHOLDERS’ EQUITY:             Preferred Stock, $0.10 par value; 5,000,000 shares authorized; no shares issued or outstanding     —       —   Class A common stock, $0.10 par value; 120,000,000 shares authorized; 1 vote per share; issued and outstanding, 27,478,641 shares at March 29, 2026 and 27,426,533 shares at December 31, 2025     2.7       2.7   Class B common stock, $0.10 par value; 25,000,000 shares authorized; 10 votes per share; issued and outstanding, 5,916,290 shares at March 29, 2026 and December 31, 2025     0.6       0.6   Additional paid-in capital     728.6       720.6   Retained earnings     1,496.8       1,431.3   Accumulated other comprehensive loss     (132.4 )     (127.5 ) Total Stockholders’ Equity     2,096.3       2,027.7   TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $ 2,939.8     $ 2,881.2   WATTS WATER TECHNOLOGIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in millions) (Unaudited)                   First Quarter Ended     March 29,   March 30,     2026   2025 OPERATING ACTIVITIES             Net income   $ 99.6     $ 74.0   Adjustments to reconcile net income to net cash provided by operating activities:             Depreciation     9.4       8.8   Amortization of intangibles     6.0       4.9   Amortization of cloud computing arrangements     0.6       —   Loss on disposal of long-lived assets     —       0.1   Stock-based compensation     5.2       2.9   Deferred income tax     4.8       (2.4 ) Changes in operating assets and liabilities, net of effects from business acquisitions:             Accounts receivable     (82.0 )     (41.3 ) Inventories     (19.8 )     (18.4 ) Prepaid expenses and other assets     (3.0 )     (5.9 ) Accounts payable, accrued expenses and other liabilities     (2.9 )     32.5   Net cash provided by operating activities     17.9       55.2   INVESTING ACTIVITIES             Additions to property, plant and equipment     (11.3 )     (9.6 ) Business acquisitions, net of cash acquired     (1.9 )     (70.3 ) Net cash used in investing activities     (13.2 )     (79.9 ) FINANCING ACTIVITIES             Payments for withholding taxes on vested awards     (12.8 )     (10.9 ) Payments for finance leases and other     (0.7 )     (0.7 ) Payments to repurchase common stock     (3.8 )     (3.9 ) Dividends     (17.5 )     (14.4 ) Net cash used in financing activities     (34.8 )     (29.9 ) Effect of exchange rate changes on cash and cash equivalents     (0.7 )     4.5   DECREASE IN CASH AND CASH EQUIVALENTS     (30.8 )     (50.1 ) Cash and cash equivalents at beginning of year     405.5       386.9   CASH AND CASH EQUIVALENTS AT END OF PERIOD   $ 374.7     $ 336.8   Segment Earnings and Non-GAAP Financial Measures In this press release, segment earnings is our GAAP performance measure used by our chief operating decision-maker (“CODM”) to assess and evaluate segment results. Segment earnings exclude the impact of non-recurring and unusual items, such as restructuring costs and acquisition-related costs. The CODM uses segment earnings for insight into underlying trends comparing past financial performance with current performance by reporting segment on a consistent basis. Segment margin is defined as segment earnings divided by segment revenue. We refer to non-GAAP financial measures (including adjusted operating income, adjusted operating margin, adjusted net income, adjusted diluted earnings per share, organic sales, organic sales growth, free cash flow, cash conversion rate of free cash flow to net income and net debt to capitalization ratio) and provide a reconciliation of those non-GAAP financial measures to the corresponding financial measures contained in our consolidated financial statements prepared in accordance with GAAP. We believe these financial measures enhance the overall understanding of our historical financial performance and give insight into our future prospects. Adjusted operating income, adjusted operating margin, adjusted net income and adjusted diluted earnings per share eliminate certain expenses incurred and benefits recognized in the periods presented that relate primarily to our global restructuring programs, acquisition-related costs and the related income tax impacts on these items and tax adjustment items (with respect to adjusted net income and adjusted diluted earnings per share only). Management then utilizes these adjusted financial measures to assess the run rate of the Company’s operations against those of comparable periods. Organic sales and organic sales growth are non-GAAP measures of net sales and net sales growth excluding the impacts of foreign exchange, acquisitions and divestitures from period-over-period comparisons. Management believes reporting organic sales and organic sales growth provides useful information to investors, potential investors and others, and allows for a more complete understanding of underlying sales trends by providing sales and sales growth on a consistent basis. Free cash flow, cash conversion rate of free cash flow to net income, and the net debt to capitalization ratio, which are adjusted to exclude certain cash inflows and outlays, and include only certain balance sheet accounts from the comparable GAAP measures, are an indication of our performance in cash flow generation and also provide an indication of the Company's balance sheet leverage relative to other industrial manufacturing companies. These non-GAAP financial measures are among the primary indicators management uses as a basis for evaluating our cash flow generation and our capitalization structure. In addition, free cash flow is used as a criterion to measure and pay certain compensation-based incentives. For these reasons, management believes these non-GAAP financial measures can be useful to investors, potential investors and others. The Company’s non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial measures prepared in accordance with GAAP. TABLE 1 RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES EXCLUDING THE EFFECT OF ADJUSTMENTS FOR SPECIAL ITEMS (Amounts in millions, except per share information) (Unaudited)   CONSOLIDATED RESULTS                     First Quarter Ended       March 29,   March 30,       2026   2025                   Net sales   $ 677.3   $ 558.0                     Operating income   $ 133.0   $ 87.7     Operating margin %     19.6 %   15.7   %                 Adjustments for special items:               Restructuring   $ 0.2   $ 17.3     Acquisition-related costs     2.7     1.1     Total adjustments for special items   $ 2.9   $ 18.4                     Adjusted operating income   $ 135.9   $ 106.1     Adjusted operating margin %     20.1 %   19.0   %                 Net income   $ 99.6   $ 74.0                     Adjustments for special items - tax effected:               Restructuring   $ 0.1   $ 13.0     Acquisition-related costs     2.1     0.8     Tax adjustment items     —     (8.3 )   Total adjustments for special items - tax effected   $ 2.2   $ 5.5                     Adjusted net income   $ 101.8   $ 79.5                     Diluted earnings per share   $ 2.97   $ 2.21     Restructuring     0.01     0.39     Acquisition-related costs     0.06     0.02     Tax adjustment items     —     (0.25 )   Adjusted diluted earnings per share   $ 3.04   $ 2.37     TABLE 2 SEGMENT INFORMATION - RECONCILIATION OF SEGMENT EARNINGS TO CONSOLIDATED OPERATING INCOME - GAAP (Amounts in millions) (Unaudited)                                                 First Quarter Ended       March 29, 2026   March 30, 2025       Americas   Europe   APMEA     Total   Americas   Europe   APMEA     Total                                               Total segment net sales   $ 517.8     127.6     67.8     $ 713.2     $ 420.3     116.6     56.4     $ 593.3     Elimination of intersegment sales     (2.7 )   (6.2 )   (27.0 )     (35.9 )     (2.2 )   (8.2 )   (24.9 )     (35.3 )   Net sales from external customers   $ 515.1     121.4     40.8     $ 677.3     $ 418.1     108.4     31.5     $ 558.0                                                 Segment earnings   $ 124.5     16.7     7.5     $ 148.7     $ 97.8     15.1     5.5     $ 118.4     Segment margin %     24.2   % 13.7   % 18.7   %   22.0   %   23.4   % 13.9   % 17.5   %   21.2   %                                             Corporate operating loss                 $ (12.8 )                 $ (12.3 )                                               Adjustments for segment special items:   $ (1.7 )   (0.2 )   (1.0 )   $ (2.9 )   $ (1.1 )   (17.2 )   (0.1 )   $ (18.4 )                                               Operating income                 $ 133.0                   $ 87.7     Operating margin %                   19.6   %                 15.7   % TABLE 3 SEGMENT INFORMATION - RECONCILIATION OF NET SALES TO NON-GAAP ORGANIC SALES (Amounts in millions) (Unaudited)                                 First Quarter Ended       Americas   Europe   APMEA   Total                               Net sales March 29, 2026   $ 515.1     $ 121.4     $ 40.8     $ 677.3     Net sales March 30, 2025   $ 418.1     $ 108.4     $ 31.5     $ 558.0     Dollar change   $ 97.0     $ 13.0     $ 9.3     $ 119.3     Net sales % increase     23.2   %   12.0   %   29.5   %   21.4   % Foreign exchange impact     (0.3 ) %   (11.5 ) %   (7.4 ) %   (2.9 ) % Acquisition impact     (7.4 ) %   —   %   (18.7 ) %   (6.6 ) % Organic sales % increase     15.5   %   0.5   %   3.4   %   11.9   % TABLE 4 RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW (Amounts in millions) (Unaudited)                     First Quarter Ended       March 29,   March 30,       2026   2025                   Net cash provided by operating activities   $ 17.9     $ 55.2     Less: additions to property, plant, and equipment     (11.3 )     (9.6 )   Free cash flow   $ 6.6     $ 45.6                     Net income   $ 99.6     $ 74.0                     Cash conversion rate of free cash flow to net income     6.6   %   61.6   % TABLE 5 RECONCILIATION OF LONG-TERM DEBT (INCLUDING CURRENT PORTION) TO NET DEBT AND NET DEBT TO CAPITALIZATION RATIO (Amounts in millions) (Unaudited)                     March 29,   December 31,       2026   2025                   Current portion of long-term debt   $ —     $ —     Plus: long-term debt, net of current portion     197.8       197.7     Less: cash and cash equivalents     (374.7 )     (405.5 )   Net debt   $ (176.9 )   $ (207.8 )                   Net debt   $ (176.9 )   $ (207.8 )   Total stockholders’ equity     2,096.3       2,027.7     Capitalization   $ 1,919.4     $ 1,819.9                     Net debt to capitalization ratio     (9.2 ) %   (11.4 ) % TABLE 6 2026 FULL YEAR OUTLOOK – RECONCILIATION OF NET SALES GROWTH TO ORGANIC SALES GROWTH AND OPERATING MARGIN TO ADJUSTED OPERATING MARGIN (Unaudited)           Total Watts     Full Year     2026 Outlook     Approximately Net Sales     Net sales growth   8% to 12% Forecasted impact of acquisition / FX   (6)% Organic sales growth   2% to 6%       Operating Margin     Operating margin   18.8% to 19.4% Forecasted restructuring / other costs   0.3% Adjusted operating margin   19.1% to 19.7%   View source version on businesswire.com: https://www.businesswire.com/news/home/20260506777259/en/ Diane McClintock
Chief Financial Officer
email: investorrelations@wattswater.com Original: Watts Water Technologies Reports Record First Quarter 2026 Results

Watts Water Technologies, Inc. Declares Quarterly DividendMay 4, 2026 4:25 PM
Business Wire Watts Water Technologies, Inc. (NYSE: WTS) today declared that the Corporation will pay a quarterly dividend of Sixty-three cents ($0.63) per share on each outstanding share of the Company’s Class A Common Stock and Class B Common Stock, said dividend to be paid on June 15, 2026 to stockholders of record at the close of business on June 1, 2026. Watts Water Technologies, Inc., through its family of companies, is a global manufacturer headquartered in the USA that provides one of the broadest plumbing, heating, and water quality product lines in the world. Watts Water companies and brands offer innovative plumbing, heating, and water quality solutions to control the efficiency, safety, and quality of water within commercial, residential, and industrial applications. For more information visit www.watts.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260504162282/en/ Watts Water Technologies, Inc.
Diane McClintock
Chief Financial Officer
Telephone: 978-689-6153
Email: investorrelations@wattswater.com Original: Watts Water Technologies, Inc. Declares Quarterly Dividend

Watts Water Technologies Named to USA Today America’s Climate Leaders List for Fourth Consecutive YearApril 22, 2026 10:35 AM
Business Wire
Watts Water Technologies, Inc. (NYSE: WTS) has been named to USA Today’s America’s Climate Leaders 2026 list, recognizing continued progress in reducing greenhouse gas emissions intensity and advancing its long-term sustainability goals. This is the fourth consecutive year that Watts has been named to this prestigious list.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260422856729/en/
The America’s Climate Leaders ranking, presented by USA Today in partnership with Statista, identifies U.S.-based companies that have achieved meaningful reductions in Scope 1 and Scope 2 greenhouse gas emissions relative to revenue. The 2026 list evaluates companies with more than $50 million in revenue and independently reported emissions data.


“We’ve made strong progress by setting clear, measurable goals and holding ourselves accountable to them,” said Robert J. Pagano, Jr., CEO, President and Chairperson of the Board at Watts. “After exceeding our initial emissions intensity targets, we’ve set a new goal to reduce water, GHG and hazardous waste intensities by 3% annually, in addition to reducing our absolute carbon emissions by 10,000 MT by 2034. That progress is driven by a disciplined operating approach and continued investment in more efficient, sustainable technologies across our business.”


Watts has embedded sustainability into its broader business strategy, focusing on improving energy efficiency, reducing emissions, and advancing water conservation across its operations. Between 2018 and 2023, the company achieved a 62 percent reduction in water intensity, a 60 percent reduction in market-based emissions intensity and a 35% reduction in hazardous waste intensity, significantly surpassing its original targets. Since 2014, Watts has reduced more than 80 million liters of water globally through investments in operational efficiency and conservation measures.


Watts also incorporates sustainability into its product development process. In turn, its solutions help improve the efficiency and sustainability of the facilities they serve, while supporting customers in achieving their own environmental goals.


To learn more about Watts’ Environment, Social and Governance (ESG) initiatives, read the company’s latest Sustainability Report latest available at www.watts.com/our-story/sustainability.


Watts Water Technologies, Inc., through its family of companies, is a global manufacturer headquartered in the USA that provides one of the broadest plumbing, heating, and water quality product lines in the world. Watts Water companies and brands offer innovative plumbing, heating, and water quality solutions to control the efficiency, safety, and quality of water within commercial, residential, and industrial applications. For more information visit www.watts.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260422856729/en/
Watts Water Technologies, Inc.

Diane McClintock

Chief Financial Officer

Telephone: 978-689-6153

Email: investorrelations@wattswater.com


Original: Watts Water Technologies Named to USA Today America’s Climate Leaders List for Fourth Consecutive Year

Watts Water Technologies, Inc. Announces First Quarter 2026 Earnings Release and Earnings Conference CallApril 8, 2026 4:15 PM
Business Wire
Watts Water Technologies, Inc. (NYSE: WTS) will report its financial results for the first quarter 2026 in a press release to be issued after market close on Wednesday, May 6, 2026 and has scheduled a conference call and webcast on Thursday, May 7, 2026, at 9:00 a.m. Eastern Standard Time to discuss the results and outlook.


This call can be accessed by visiting the Investor Relations section of the Company’s website at www.watts.com. Following the webcast, an archived version of the call will be available at the same address until May 6, 2027.


Watts Water Technologies, Inc., through its family of companies, is a global manufacturer headquartered in the USA that provides one of the broadest plumbing, heating, and water quality product lines in the world. Watts Water companies and brands offer innovative plumbing, heating, and water quality solutions to control the efficiency, safety, and quality of water within commercial, residential, and industrial applications. For more information visit www.watts.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260408254067/en/
Watts Water Technologies, Inc.

Diane McClintock

Chief Financial Officer

Telephone: 978-689-6153

Email: investorrelations@wattswater.com


Original: Watts Water Technologies, Inc. Announces First Quarter 2026 Earnings Release and Earnings Conference Call

Watts Named One of Newsweek America’s Most Charitable CompaniesMarch 11, 2026 1:41 PM
Business Wire
Watts Water Technologies, Inc. (NYSE: WTS) through its subsidiaries, one of the world’s leading manufacturers and providers of plumbing, heating and water quality products and solutions, was named as one of Newsweek’s 2026 Most Charitable Companies. This recognition demonstrates measurable impact of the company’s philanthropic efforts in the communities it serves.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260311597072/en/
Newsweek, in partnership with Statista, conducted a multi-layered process to score eligible companies, with the top 2,000 U.S.-headquartered public companies reviewed. The candidate pool was then assessed across three channels to produce a detailed scoring analysis: Panel Survey, Social Listening and KPI Collection and Analysis. These channels aim to measure public perception, sentiment and scale of volunteering and corporate giving, respectively. Of the 2,000, the top 300 were awarded, including Watts.


“As a leader in global water technologies and solutions, it is our responsibility to bring positive impact to our communities, build on our customer-driven innovations, and grow our global charitable initiatives in the coming years. This recognition empowers our people to continue giving back to communities around the world, and continue to know their efforts make a difference for the future,” said Robert J. Pagano Jr., CEO, President and Chairperson of the Board at Watts. “Every day, we strive to serve and protect the communities where we operate and I’m grateful to our dedicated team members who made this recognition possible by diligently upholding our value-driven culture.”


In the past year, Watts has been recognized by TIME, USA Today, Barron’s, Top Places to Work and Handshake, in addition to multiple Newsweek awards, further supporting the company’s holistic commitment to social responsibility and advances in the water industry.


To learn more about Watts’ Environment, Social and Governance (ESG) commitments and initiatives, read the company’s Sustainability Report or visit https://www.watts.com/our-story/sustainability.


Watts Water Technologies, Inc., through its family of companies, is a global manufacturer headquartered in the USA that provides one of the broadest plumbing, heating, and water quality product lines in the world. Watts Water companies and brands offer innovative plumbing, heating, and water quality solutions to control the efficiency, safety, and quality of water within commercial, residential, and industrial applications. For more information visit www.watts.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260311597072/en/
Watts Water Technologies, Inc.

Diane McClintock

Chief Financial Officer

Telephone: +1-978-689-6153

Email: investorrelations@wattswater.com


Original: Watts Named One of Newsweek America’s Most Charitable Companies

Watts Water Technologies Reports Record Fourth Quarter and Full Year 2025 ResultsFebruary 11, 2026 4:30 PM
Business Wire
Fourth Quarter 2025 Highlights



Sales of $625 million, up 16% on a reported basis and 8% organically



Operating margin of 18.2%, up 170 bps; adjusted operating margin of 19.0%, up 220 bps



Diluted EPS of $2.50, up 24%; adjusted diluted EPS of $2.62, up 28%



Acquired Haws Corporation on November 4, Superior Boiler on November 14 and Industrial Company for Castings and Sanitary Fittings (“Saudi Cast”) on November 29



Full Year 2025 Highlights



Sales of $2.44 billion, up 8% on a reported basis and 5% organically



Operating margin of 18.4%, up 110 bps; adjusted operating margin of 19.6%, up 190 bps



Diluted EPS of $10.17, up 17%; adjusted diluted EPS of $10.58, up 19%



Operating cash flow of $402 million and free cash flow of $356 million, an 11% and 7% increase, respectively



Note changes in performance are relative to fourth quarter and year ended December 31, 2024


Watts Water Technologies, Inc. (NYSE: WTS) – through its subsidiaries, one of the world’s leading manufacturers and providers of plumbing, heating and water quality products and solutions – today announced results for the fourth quarter and full year 2025.


Chief Executive Officer Robert J. Pagano Jr. said, “I would like to recognize the Watts team for their hard work and dedication, which resulted in record fourth quarter and full year 2025 performance, including record sales, operating income and earnings per share. In addition, we continued to meet our customers’ needs for innovative solutions that address their greatest water safety, water conservation and energy efficiency challenges. We also successfully executed on our goals to develop differentiated products and further enhance productivity through the One Watts Performance System.”


“We are proud of the work done to complete the acquisitions of Haws Corporation, Superior Boiler and Saudi Cast during the quarter. These strategic and complementary acquisitions expand our product portfolio, channel access and geographic presence. They also increase our exposure to specified, code-driven products in non-residential, institutional and industrial end markets. The integration of all three acquisitions is underway and progressing well.”


Mr. Pagano concluded, “We look ahead to the coming year with confidence in our strategic growth initiatives and execution capabilities while continuing to monitor ongoing geopolitical uncertainty and mixed global markets. Our business is resilient and diversified, underpinned by a strong balance sheet and robust cash flow that support disciplined capital deployment. We will continue to invest for the future, return capital to our shareholders, and execute our strategy to drive profitable, long-term growth.”


A summary of fourth quarter and full year financial results is as follows:




 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








 






 






Fourth Quarter and Full Year Earnings Summary






 








 






 






Fourth quarter ended December 31,






 






 






Year ended December 31,






 








(In millions, except per share information)






 






2025






 






2024






 






% Change






 






 






2025






 






2024






 






% Change






 








Net sales






 






$






625.1






 






$






540.4






 






16






%






 






$






2,438.5






 






$






2,252.2






 






8






%








Organic sales growth % (1)






 






 






 






 






 






 






 






8






%






 






 






 






 






 






 






 






5






%








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Operating income






 






$






113.7






 






$






89.0






 






28






%






 






$






448.1






 






$






390.4






 






15






%








Operating margin %






 






 






18.2






%






 






16.5






%






170






bps






 






 






18.4






%






 






17.3






%






110






bps








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Adjusted operating income (1)






 






$






118.7






 






$






90.9






 






31






%






 






$






477.2






 






$






399.6






 






19






%








Adjusted operating margin % (1)






 






 






19.0






%






 






16.8






%






220






bps






 






 






19.6






%






 






17.7






%






190






bps








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Diluted earnings per share






 






$






2.50






 






$






2.02






 






24






%






 






$






10.17






 






$






8.69






 






17






%








Special items (1)






 






 






0.12






 






 






0.03






 






 






 






 






 






0.41






 






 






0.17






 






 






 








Adjusted diluted earnings per share (1)






 






$






2.62






 






$






2.05






 






28






%






 






$






10.58






 






$






8.86






 






19






%








____________________________



(1)






Organic sales growth, adjusted operating income, adjusted operating margin, free cash flow, special items and adjusted diluted earnings per share represent non-GAAP financial measures. For a reconciliation of GAAP to non-GAAP items, please see the tables attached to this press release.


Fourth Quarter Financial Highlights


Fourth quarter 2025 performance relative to fourth quarter 2024


Sales of $625 million increased 16% on a reported basis and 8% on an organic basis. Organic sales increased primarily due to favorable price and an additional shipping day in the quarter. Incremental acquisition sales within the Americas and APMEA were $29 million and contributed 6% to reported growth. Favorable foreign exchange movements increased sales by $10 million, or 2%.


Operating margin increased 170 basis points on a reported basis and 220 basis points on an adjusted basis. Operating and adjusted operating margin increased primarily due to favorable price and productivity which more than offset inflation, investments and tariffs. Operating margin was unfavorably impacted by an increase in acquisition-related charges and restructuring charges.


Regional Performance


Americas


Sales of $467 million increased 17% on a reported basis and 10% on an organic basis, primarily due to favorable price and an additional shipping day. Acquisitions contributed $27 million of incremental sales, or 7%, to reported growth.


Segment margin increased 150 basis points as benefits from price realization and productivity more than offset inflation, tariffs, and acquisition dilution.


Europe


Sales of $120 million increased 10% on a reported basis and 1% on an organic basis. Sales growth was due to favorable foreign exchange movements, which increased reported sales by 9%. Organic sales increased as a result of favorable price and an additional shipping day partially offset by lower volumes due to continued market weakness.


Segment margin increased 490 basis points as price, productivity, and restructuring actions more than offset inflation.


APMEA


Sales of $39 million increased 15% on a reported basis and 9% on an organic basis, with growth across all major countries in the segment. The acquisition of Saudi Cast contributed $2 million of incremental sales, or 6%, to reported growth.


Segment margin decreased 20 basis points as inflation and affiliate volume deleverage more than offset benefits from productivity and acquisition accretion.


Cash Flow and Capital Allocation


For full year 2025, operating cash flow was $402 million and net capital expenditures were $46 million, resulting in free cash flow of $356 million. For full year 2024, operating cash flow was $361 million and net capital expenditures were $29 million, resulting in free cash flow of $332 million. Operating and free cash flow increased due to higher net income and lower tax payments as a result of the One Big Beautiful Bill Act, partially offset by higher inventory driven by strategic investment and incremental tariffs. Free cash flow was also unfavorably impacted by an increase in net capital expenditures, partly due to proceeds from the sale of properties in the prior year.


For the fourth quarter of 2025, the Company repurchased approximately 15,000 shares of Class A common stock at a cost of $4.2 million. For full year 2025, the Company repurchased approximately 67,000 shares at a cost of $16.0 million. Approximately $129 million remains available under the stock repurchase program authorized in 2023. There is no expiration date for this program.


Full Year 2026 Outlook


The Company anticipates full year 2026 sales growth to range from up 8% to up 12% on a reported basis and up 2% to up 6% on an organic basis. Full year operating margin is expected to be between 18.8% and 19.4%, or up 40 basis points to up 100 basis points, and adjusted operating margin is expected to be between 19.1% and 19.7%, or down 50 basis points to up 10 basis points.


Further 2026 planning assumptions are included in the fourth quarter earnings materials posted in the Investor Relations section of our website at www.watts.com.


For a reconciliation of GAAP to non-GAAP items and a statement regarding the usefulness of these measures to investors and management in evaluating our operating performance, please see the tables attached to this press release.


Watts Water Technologies, Inc. will hold a live webcast of its conference call to discuss fourth quarter and full year 2025 results on Thursday, February 12, 2026 at 9:00 a.m. EST. This press release and the live webcast can be accessed by visiting the Investor Relations section of the Company's website at www.watts.com. Following the webcast, the call recording will be available at the same address until February 11, 2027.


Watts Water Technologies, Inc., through its subsidiaries, is a world leader in the manufacturing of innovative products to control the efficiency, safety, and quality of water within residential, commercial, and institutional applications. Watts’ expertise in a wide variety of water technologies enables us to be a comprehensive supplier to the water industry.


This press release includes “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995, including statements relating to expected full year 2026 financial results, including sales and organic sales growth, operating margin and adjusted operating margin, our strategy, investments, the impact of tariffs, the benefits from and integration of recent acquisitions, our ability to manage uncertainty and current market conditions, including the fluid trade environment, our portfolio offerings, long-term growth and shareholder value creation and return of capital to stockholders. These forward-looking statements reflect our current views about future events. You should not rely on forward-looking statements because our actual results may differ materially from those predicted as a result of a number of potential risks and uncertainties. These potential risks and uncertainties include, but are not limited to: the imposition of or changes to tariff rates and related impacts to our business and the broader market; the effectiveness, timing and expected savings associated with our cost-cutting actions, restructuring and initiatives; integration of acquired businesses in a timely and cost-effective manner, retention of supplier and customer relationships and key employees, and the ability to achieve synergies and cost savings in the amounts and within the time frames currently anticipated; current economic and financial conditions, which can affect the housing and construction markets where our products are sold, manufactured and marketed; shortages in and pricing of raw materials and supplies; our ability to compete effectively; changes in variable interest rates on our borrowings; inflation; failure to expand our markets through acquisitions; failure to successfully develop and introduce new product offerings or enhancements to existing products; failure to manufacture products that meet required performance and safety standards; foreign exchange rate fluctuations; cyclicality of industries where we market our products, such as plumbing and heating wholesalers and home improvement retailers; environmental compliance costs; product liability risks and costs; changes in the status of current litigation; the war in Ukraine and other global crises; supply chain and logistical disruptions or labor shortages and workforce disruptions that could negatively affect our supply chain, manufacturing, distribution, or other business processes; and other risks and uncertainties discussed under the heading “Item 1A. Risk Factors” and in Note 16 of the Notes to the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (“SEC”), as will be updated by our Annual Report on Form 10-K for the year ended December 31, 2025, as well as risk factors disclosed in our other subsequent filings with the SEC. We undertake no duty to update the information contained in this press release, except as required by law.




WATTS WATER TECHNOLOGIES, INC. AND SUBSIDIARIES




CONSOLIDATED STATEMENTS OF OPERATIONS




(Amounts in millions, except per share information)




(Unaudited)








 






 






 






 






 






 






 






 






 






 






 






 






 








 






 






Fourth Quarter Ended






 






 






Year Ended








 






 






December 31,






 






December 31,






 






December 31,






 






 






December 31,








 






 






2025






 






2024






 






2025






 






 






2024








Net sales






 






$






625.1






 






 






$






540.4






 






 






$






2,438.5






 






 






$






2,252.2






 








Cost of goods sold






 






 






315.9






 






 






 






287.7






 






 






 






1,232.5






 






 






 






1,190.2






 








GROSS PROFIT






 






 






309.2






 






 






 






252.7






 






 






 






1,206.0






 






 






 






1,062.0






 








Selling, general and administrative expenses






 






 






194.4






 






 






 






162.9






 






 






 






734.2






 






 






 






664.4






 








Restructuring






 






 






1.1






 






 






 






0.8






 






 






 






23.7






 






 






 






7.2






 








OPERATING INCOME






 






 






113.7






 






 






 






89.0






 






 






 






448.1






 






 






 






390.4






 








Other (income) expense:






 






 






 






 






 






 






 






 






 






 






 






 








Interest income






 






 






(2.7






)






 






 






(2.8






)






 






 






(9.8






)






 






 






(8.9






)








Interest expense






 






 






2.7






 






 






 






2.8






 






 






 






10.8






 






 






 






14.7






 








Other expense (income), net






 






 






0.5






 






 






 






—






 






 






 






1.3






 






 






 






(1.4






)








Total other expense






 






 






0.5






 






 






 






—






 






 






 






2.3






 






 






 






4.4






 








INCOME BEFORE INCOME TAXES






 






 






113.2






 






 






 






89.0






 






 






 






445.8






 






 






 






386.0






 








Provision for income taxes






 






 






29.5






 






 






 






21.5






 






 






 






105.0






 






 






 






94.8






 








NET INCOME






 






$






83.7






 






 






$






67.5






 






 






$






340.8






 






 






$






291.2






 








 






 






 






 






 






 






 






 






 






 






 






 






 








BASIC EPS






 






 






 






 






 






 






 






 






 






 






 






 








NET INCOME PER SHARE






 






$






2.50






 






 






$






2.02






 






 






$






10.17






 






 






$






8.70






 








Weighted average number of shares






 






 






33.4






 






 






 






33.4






 






 






 






33.5






 






 






 






33.5






 








DILUTED EPS






 






 






 






 






 






 






 






 






 






 






 






 








NET INCOME PER SHARE






 






$






2.50






 






 






$






2.02






 






 






$






10.17






 






 






$






8.69






 








Weighted average number of shares






 






 






33.5






 






 






 






33.5






 






 






 






33.5






 






 






 






33.5






 








Dividends declared per share






 






$






0.52






 






 






$






0.43






 






 






$






1.99






 






 






$






1.65






 









WATTS WATER TECHNOLOGIES, INC. AND SUBSIDIARIES




CONSOLIDATED BALANCE SHEETS




(Amounts in millions, except share information)




(Unaudited)








 






 






 






 






 






 






 








 






 






December 31,






 






December 31,








 






 






2025






 






 






2024






 








ASSETS






 






 






 






 






 






 








CURRENT ASSETS:






 






 






 






 






 






 








Cash and cash equivalents






 






$






405.5






 






 






$






386.9






 








Trade accounts receivable, less reserve allowances of $12.5 million at December 31, 2025 and

$11.9 million at December 31, 2024






 






 






294.0






 






 






 






253.2






 








Inventories, net:






 






 






 






 






 






 








Raw materials






 






 






190.8






 






 






 






141.9






 








Work in process






 






 






28.5






 






 






 






16.9






 








Finished goods






 






 






305.0






 






 






 






233.3






 








Total Inventories






 






 






524.3






 






 






 






392.1






 








Prepaid expenses and other current assets






 






 






62.3






 






 






 






51.3






 








Total Current Assets






 






 






1,286.1






 






 






 






1,083.5






 








PROPERTY, PLANT AND EQUIPMENT:






 






 






 






 






 






 








Property, plant and equipment, at cost






 






 






777.1






 






 






 






691.6






 








Accumulated depreciation






 






 






(480.0






)






 






 






(436.8






)








Property, plant and equipment, net






 






 






297.1






 






 






 






254.8






 








OTHER ASSETS:






 






 






 






 






 






 








Goodwill






 






 






859.0






 






 






 






715.0






 








Intangible assets, net






 






 






294.6






 






 






 






235.0






 








Deferred income taxes






 






 






17.9






 






 






 






36.4






 








Other, net






 






 






126.5






 






 






 






72.3






 








TOTAL ASSETS






 






$






2,881.2






 






 






$






2,397.0






 








 






 






 






 






 






 






 








 






 






 






 






 






 






 








LIABILITIES AND STOCKHOLDERS’ EQUITY






 






 






 






 






 






 








CURRENT LIABILITIES:






 






 






 






 






 






 








Accounts payable






 






$






182.2






 






 






$






148.0






 








Accrued expenses and other liabilities






 






 






234.7






 






 






 






190.8






 








Accrued compensation and benefits






 






 






95.5






 






 






 






79.1






 








Total Current Liabilities






 






 






512.4






 






 






 






417.9






 








LONG-TERM DEBT






 






 






197.7






 






 






 






197.0






 








DEFERRED INCOME TAXES






 






 






36.5






 






 






 






10.9






 








OTHER NONCURRENT LIABILITIES






 






 






106.9






 






 






 






63.3






 








STOCKHOLDERS’ EQUITY:






 






 






 






 






 






 








Preferred Stock, $0.10 par value; 5,000,000 shares authorized; no shares issued or outstanding






 






 






—






 






 






 






—






 








Class A common stock, $0.10 par value; 120,000,000 shares authorized; 1 vote per share; issued and outstanding, 27,426,533 shares at December 31, 2025 and 27,366,685 shares at December 31, 2024






 






 






2.7






 






 






 






2.7






 








Class B common stock, $0.10 par value; 25,000,000 shares authorized; 10 votes per share; issued and outstanding, 5,916,290 shares at December 31, 2025 and 5,953,290 shares at December 31, 2024






 






 






0.6






 






 






 






0.6






 








Additional paid-in capital






 






 






720.6






 






 






 






696.2






 








Retained earnings






 






 






1,431.3






 






 






 






1,184.8






 








Accumulated other comprehensive loss






 






 






(127.5






)






 






 






(176.4






)








Total Stockholders’ Equity






 






 






2,027.7






 






 






 






1,707.9






 








TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY






 






$






2,881.2






 






 






$






2,397.0






 









WATTS WATER TECHNOLOGIES, INC. AND SUBSIDIARIES




CONSOLIDATED STATEMENTS OF CASH FLOWS




(Amounts in millions)




(Unaudited)








 






 






 






 






 






 






 








 






 






Year Ended








 






 






December 31,






 






December 31,








 






 






2025






 






 






2024






 








OPERATING ACTIVITIES






 






 






 






 






 






 








Net income






 






$






340.8






 






 






$






291.2






 








Adjustments to reconcile net income to net cash provided by operating activities:






 






 






 






 






 






 








Depreciation






 






 






36.2






 






 






 






34.6






 








Amortization of intangibles






 






 






20.6






 






 






 






19.8






 








Amortization of cloud computing arrangements






 






 






1.6






 






 






 






—






 








Loss on disposal, (gain) on sale of assets






 






 






0.3






 






 






 






(5.2






)








Stock-based compensation






 






 






21.2






 






 






 






19.5






 








Deferred income tax






 






 






38.5






 






 






 






(14.7






)








Changes in operating assets and liabilities, net of effects from business acquisitions:






 






 






 






 






 






 








Accounts receivable






 






 






(9.5






)






 






 






3.3






 








Inventories






 






 






(75.4






)






 






 






13.6






 








Prepaid expenses and other assets






 






 






(18.1






)






 






 






(9.0






)








Accounts payable, accrued expenses and other liabilities






 






 






45.8






 






 






 






8.0






 








Net cash provided by operating activities






 






 






402.0






 






 






 






361.1






 








INVESTING ACTIVITIES






 






 






 






 






 






 








Additions to property, plant and equipment






 






 






(45.7






)






 






 






(35.3






)








Proceeds from the sale of property, plant and equipment






 






 






—






 






 






 






5.9






 








Business acquisitions, net of cash acquired






 






 






(257.1






)






 






 






(96.3






)








Other investing activity






 






 






—






 






 






 






1.0






 








Net cash used in investing activities






 






 






(302.8






)






 






 






(124.7






)








FINANCING ACTIVITIES






 






 






 






 






 






 








Payments of long-term debt






 






 






—






 






 






 






(100.0






)








Payments for withholding taxes on vested awards






 






 






(11.4






)






 






 






(13.0






)








Payments for debt issuance costs






 






 






—






 






 






 






(2.3






)








Payments for finance leases and other






 






 






(2.6






)






 






 






(2.7






)








Payments to repurchase common stock






 






 






(16.0






)






 






 






(17.0






)








Dividends






 






 






(66.9






)






 






 






(55.5






)








Net cash used in financing activities






 






 






(96.9






)






 






 






(190.5






)








Effect of exchange rate changes on cash and cash equivalents






 






 






16.3






 






 






 






(9.1






)








INCREASE IN CASH AND CASH EQUIVALENTS






 






 






18.6






 






 






 






36.8






 








Cash and cash equivalents at beginning of year






 






 






386.9






 






 






 






350.1






 








CASH AND CASH EQUIVALENTS AT END OF YEAR






 






$






405.5






 






 






$






386.9






 







Segment Earnings and Non-GAAP Financial Measures


In this press release, segment earnings is our GAAP performance measure used by our chief operating decision-maker (“CODM”) to assess and evaluate segment results. Segment earnings exclude the impact of non-recurring and unusual items, such as restructuring costs, acquisition-related costs, gain or loss on sale of assets and pension settlements. The CODM uses segment earnings for insight into underlying trends comparing past financial performance with current performance by reporting segment on a consistent basis. Segment margin is defined as segment earnings divided by segment revenue.


We refer to non-GAAP financial measures (including adjusted operating income, adjusted operating margin, adjusted net income, adjusted diluted earnings per share, organic sales, organic sales growth, free cash flow, cash conversion rate of free cash flow to net income and net debt to capitalization ratio) and provide a reconciliation of those non-GAAP financial measures to the corresponding financial measures contained in our consolidated financial statements prepared in accordance with GAAP. We believe these financial measures enhance the overall understanding of our historical financial performance and give insight into our future prospects. Adjusted operating income, adjusted operating margin, adjusted net income and adjusted diluted earnings per share eliminate certain expenses incurred and benefits recognized in the periods presented that relate primarily to our global restructuring programs, acquisition-related costs, gain or loss on sale of assets, pension settlements, other investment gains and the related income tax impacts on these items and tax adjustment items (with respect to adjusted net income and adjusted diluted earnings per share only). Management then utilizes these adjusted financial measures to assess the run rate of the Company’s operations against those of comparable periods. Organic sales and organic sales growth are non-GAAP measures of net sales and net sales growth excluding the impacts of foreign exchange, acquisitions and divestitures from period-over-period comparisons. Management believes reporting organic sales and organic sales growth provides useful information to investors, potential investors and others, and allows for a more complete understanding of underlying sales trends by providing sales and sales growth on a consistent basis. Free cash flow, cash conversion rate of free cash flow to net income, and the net debt to capitalization ratio, which are adjusted to exclude certain cash inflows and outlays, and include only certain balance sheet accounts from the comparable GAAP measures, are an indication of our performance in cash flow generation and also provide an indication of the Company's relative balance sheet leverage to other industrial manufacturing companies. These non-GAAP financial measures are among the primary indicators management uses as a basis for evaluating our cash flow generation and our capitalization structure. In addition, free cash flow is used as a criterion to measure and pay certain compensation-based incentives. For these reasons, management believes these non-GAAP financial measures can be useful to investors, potential investors and others. The Company’s non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial measures prepared in accordance with GAAP.




TABLE 1




RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES




EXCLUDING THE EFFECT OF ADJUSTMENTS FOR SPECIAL ITEMS




(Amounts in millions, except per share information)




(Unaudited)







 



CONSOLIDATED RESULTS








 






 






 






 






 






 






 






 






 






 






 






 






 






 








 






 






Fourth Quarter Ended






 






Year Ended






 








 






 






December 31,






 






December 31,






 






December 31,






 






December 31,






 








 






 






2025






 






2024






 






 






2025






 






 






2024






 






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 








Net sales






 






$






625.1






 






$






540.4






 






 






$






2,438.5






 






 






$






2,252.2






 






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 








Operating income






 






$






113.7






 






$






89.0






 






 






$






448.1






 






 






$






390.4






 






 








Operating margin %






 






 






18.2






%






 






16.5






 






%






 






18.4






 






%






 






17.3






 






%








 






 






 






 






 






 






 






 






 






 






 






 






 






 








Adjustments for special items:






 






 






 






 






 






 






 






 






 






 






 






 






 








Restructuring






 






$






1.1






 






$






0.8






 






 






$






23.7






 






 






$






7.2






 






 








Acquisition-related costs






 






 






3.9






 






 






1.1






 






 






 






5.4






 






 






 






14.2






 






 








Gain on sale of assets






 






 






—






 






 






—






 






 






 






—






 






 






 






(4.4






)






 








Pension settlement






 






 






—






 






 






—






 






 






 






—






 






 






 






(7.8






)






 








Total adjustments for special items






 






$






5.0






 






$






1.9






 






 






$






29.1






 






 






$






9.2






 






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 








Adjusted operating income






 






$






118.7






 






$






90.9






 






 






$






477.2






 






 






$






399.6






 






 








Adjusted operating margin %






 






 






19.0






%






 






16.8






 






%






 






19.6






 






%






 






17.7






 






%








 






 






 






 






 






 






 






 






 






 






 






 






 






 








Net income






 






$






83.7






 






$






67.5






 






 






$






340.8






 






 






$






291.2






 






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 








Adjustments for special items - tax effected:






 






 






 






 






 






 






 






 






 






 






 






 






 








Restructuring






 






$






0.8






 






$






0.6






 






 






$






17.8






 






 






$






5.4






 






 








Acquisition-related costs






 






 






3.4






 






 






0.8






 






 






 






4.5






 






 






 






10.7






 






 








Gain on sale of assets






 






 






—






 






 






—






 






 






 






—






 






 






 






(3.5






)






 








Pension settlement






 






 






—






 






 






—






 






 






 






—






 






 






 






(5.8






)






 








Other investment gain






 






 






—






 






 






—






 






 






 






—






 






 






 






(1.0






)






 








Tax adjustment items






 






 






—






 






 






(0.4






)






 






 






(8.3






)






 






 






—






 






 








Total adjustments for special items - tax effected






 






$






4.2






 






$






1.0






 






 






$






14.0






 






 






$






5.8






 






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 








Adjusted net income






 






$






87.9






 






$






68.5






 






 






$






354.8






 






 






$






297.0






 






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 








Diluted earnings per share






 






$






2.50






 






$






2.02






 






 






$






10.17






 






 






$






8.69






 






 








Restructuring






 






 






0.02






 






 






0.02






 






 






 






0.53






 






 






 






0.16






 






 








Acquisition-related costs






 






 






0.10






 






 






0.02






 






 






 






0.13






 






 






 






0.32






 






 








Gain on sale of assets






 






 






—






 






 






—






 






 






 






—






 






 






 






(0.11






)






 








Pension settlement






 






 






—






 






 






—






 






 






 






—






 






 






 






(0.17






)






 








Other investment gain






 






 






—






 






 






—






 






 






 






—






 






 






 






(0.03






)






 








Tax adjustment items






 






 






—






 






 






(0.01






)






 






 






(0.25






)






 






 






—






 






 








Adjusted diluted earnings per share






 






$






2.62






 






$






2.05






 






 






$






10.58






 






 






$






8.86






 






 









TABLE 2




SEGMENT INFORMATION - RECONCILIATION OF SEGMENT EARNINGS TO CONSOLIDATED OPERATING INCOME - GAAP




(Amounts in millions)




(Unaudited)








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








 






 






Fourth Quarter Ended






 








 






 






December 31, 2025






 






December 31, 2024






 








 






 






Americas






 






Europe






 






APMEA






 






 






Total






 






Americas






 






Europe






 






APMEA






 






 






Total






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Total segment net sales






 






$






468.6






 






 






128.1






 






 






55.4






 






 






$






652.1






 






 






$






400.2






 






 






113.6






 






 






54.8






 






 






$






568.6






 






 








Elimination of intersegment sales






 






 






(2.0






)






 






(8.4






)






 






(16.6






)






 






 






(27.0






)






 






 






(2.2






)






 






(5.0






)






 






(21.0






)






 






 






(28.2






)






 








Net sales from external customers






 






$






466.6






 






 






119.7






 






 






38.8






 






 






$






625.1






 






 






$






398.0






 






 






108.6






 






 






33.8






 






 






$






540.4






 






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Segment earnings






 






$






108.7






 






 






18.0






 






 






6.7






 






 






$






133.4






 






 






$






86.9






 






 






11.0






 






 






5.9






 






 






$






103.8






 






 








Segment margin %







 






23.3






 






%






15.1






 






%






17.3






 






%






 






21.3






 






%






 






21.8






 






%






10.2






 






%






17.5






 






%






 






19.2






 






%








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Corporate operating loss - excluding special items






 






 






 






 






 






 






 






 






$






(14.7






)






 






 






 






 






 






 






 






 






$






(12.9






)






 








Corporate special items






 






 






 






 






 






 






 






 






 






(1.6






)






 






 






 






 






 






 






 






 






 






(1.1






)






 








Corporate operating loss






 






 






 






 






 






 






 






 






$






(16.3






)






 






 






 






 






 






 






 






 






$






(14.0






)






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Adjustments for segment special items:






 






$






(1.8






)






 






(1.2






)






 






(0.4






)






 






$






(3.4






)






 






$






1.2






 






 






(1.9






)






 






(0.1






)






 






$






(0.8






)






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Operating income






 






 






 






 






 






 






 






 






$






113.7






 






 






 






 






 






 






 






 






 






$






89.0






 






 








Operating margin %






 






 






 






 






 






 






 






 






 






18.2






 






%






 






 






 






 






 






 






 






 






16.5






 






%









 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








 






 






Year Ended






 








 






 






December 31, 2025






 






December 31, 2024






 








 






 






Americas






 






Europe






 






APMEA






 






 






Total






 






Americas






 






Europe






 






APMEA






 






 






Total






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Total segment net sales






 






$






1,855.8






 






 






484.3






 






 






235.3






 






 






$






2,575.4






 






 






$






1,673.8






 






 






476.3






 






 






218.7






 






 






$






2,368.8






 






 








Elimination of intersegment sales






 






 






(8.4






)






 






(33.6






)






 






(94.9






)






 






 






(136.9






)






 






 






(8.9






)






 






(23.0






)






 






(84.7






)






 






 






(116.6






)






 








Net sales from external customers






 






$






1,847.4






 






 






450.7






 






 






140.4






 






 






$






2,438.5






 






 






$






1,664.9






 






 






453.3






 






 






134.0






 






 






$






2,252.2






 






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Segment earnings






 






$






452.2






 






 






59.8






 






 






25.7






 






 






$






537.7






 






 






$






376.0






 






 






53.2






 






 






24.5






 






 






$






453.7






 






 








Segment margin %






 






 






24.5






 






%






13.3






 






%






18.3






 






%






 






22.1






 






%






 






22.6






 






%






11.7






 






%






18.3






 






%






 






20.1






 






%








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Corporate operating loss - excluding special items






 






 






 






 






 






 






 






 






$






(60.5






)






 






 






 






 






 






 






 






 






$






(54.1






)






 








Corporate special items






 






 






 






 






 






 






 






 






 






(1.6






)






 






 






 






 






 






 






 






 






 






(1.7






)






 








Corporate operating loss






 






 






 






 






 






 






 






 






$






(62.1






)






 






 






 






 






 






 






 






 






$






(55.8






)






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Adjustments for segment special items:






 






$






(3.3






)






 






(23.7






)






 






(0.5






)






 






$






(27.5






)






 






$






(3.5






)






 






(3.4






)






 






(0.6






)






 






$






(7.5






)






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Operating income






 






 






 






 






 






 






 






 






$






448.1






 






 






 






 






 






 






 






 






 






$






390.4






 






 








Operating margin %






 






 






 






 






 






 






 






 






 






18.4






 






%






 






 






 






 






 






 






 






 






17.3






 






%









TABLE 3




SEGMENT INFORMATION - RECONCILIATION OF NET SALES TO NON-GAAP ORGANIC SALES




(Amounts in millions)




(Unaudited)








 






 






 






 






 






 






 






 






 






 






 






 






 






 








 






 






Fourth Quarter Ended






 








 






 






Americas






 






Europe






 






APMEA






 






Total






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 








Net sales December 31, 2025






 






$






466.6






 






 






$






119.7






 






 






$






38.8






 






 






$






625.1






 






 








Net sales December 31, 2024






 






 






398.0






 






 






 






108.6






 






 






 






33.8






 






 






 






540.4






 






 








Dollar change






 






$






68.6






 






 






$






11.1






 






 






$






5.0






 






 






$






84.7






 






 








Net sales % increase






 






 






17.2






 






%






 






10.2






 






%






 






14.8






 






%






 






15.7






 






%








Foreign exchange impact






 






 






—






 






%






 






(8.8






)






%






 






(0.3






)






%






 






(1.9






)






%








Acquisition impact






 






 






(6.8






)






%






 






—






 






%






 






(6.0






)






%






 






(5.4






)






%








Organic sales % increase






 






 






10.4






 






%






 






1.4






 






%






 






8.5






 






%






 






8.4






 






%









 






 






 






 






 






 






 






 






 






 






 






 






 






 








 






 






Year Ended






 








 






 






Americas






 






Europe






 






APMEA






 






Total






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 








Net sales December 31, 2025






 






$






1,847.4






 






 






$






450.7






 






 






$






140.4






 






 






$






2,438.5






 






 








Net sales December 31, 2024






 






 






1,664.9






 






 






 






453.3






 






 






 






134.0






 






 






 






2,252.2






 






 








Dollar change






 






$






182.5






 






 






$






(2.6






)






 






$






6.4






 






 






$






186.3






 






 








Net sales % increase (decrease)






 






 






11.0






 






%






 






(0.6






)






%






 






4.8






 






%






 






8.3






 






%








Foreign exchange impact






 






 






—






 






%






 






(4.0






)






%






 






1.5






 






%






 






(0.7






)






%








Acquisition impact






 






 






(3.0






)






%






 






—






 






%






 






(1.5






)






%






 






(2.3






)






%








Organic sales % increase (decrease)






 






 






8.0






 






%






 






(4.6






)






%






 






4.8






 






%






 






5.3






 






%









 






 






 






 






 






 






 






 






 






 






 






 






 






 








 






 






Fourth Quarter Ended






 








 






 






Americas






 






Europe






 






APMEA






 






Total






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 








Net sales December 31, 2024






 






$






398.0






 






 






$






108.6






 






 






$






33.8






 






 






$






540.4






 






 








Net sales December 31, 2023






 






 






387.0






 






 






 






128.0






 






 






 






32.5






 






 






 






547.5






 






 








Dollar change






 






$






11.0






 






 






$






(19.4






)






 






$






1.3






 






 






$






(7.1






)






 








Net sales % increase (decrease)






 






 






2.8






 






%






 






(15.2






)






%






 






4.0






 






%






 






(1.3






)






%








Foreign exchange impact






 






 






0.2






 






%






 






(0.1






)






%






 






(0.6






)






%






 






—






 






%








Acquisition impact






 






 






(5.9






)






%






 






—






 






%






 






—






 






%






 






(4.1






)






%








Organic sales % (decrease) increase






 






 






(2.9






)






%






 






(15.3






)






%






 






3.4






 






%






 






(5.4






)






%









 






 






 






 






 






 






 






 






 






 






 






 






 






 








 






 






Year Ended






 








 






 






Americas






 






Europe






 






APMEA






 






Total






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 








Net sales December 31, 2024






 






$






1,664.9






 






 






$






453.3






 






 






$






134.0






 






 






$






2,252.2






 






 








Net sales December 31, 2023






 






 






1,428.1






 






 






 






512.1






 






 






 






116.1






 






 






 






2,056.3






 






 








Dollar change






 






$






236.8






 






 






$






(58.8






)






 






$






17.9






 






 






$






195.9






 






 








Net sales % increase (decrease)






 






 






16.6






 






%






 






(11.5






)






%






 






15.4






 






%






 






9.5






 






%








Foreign exchange impact






 






 






0.1






 






%






 






(0.3






)






%






 






0.8






 






%






 






—






 






%








Acquisition impact






 






 






(14.5






)






%






 






—






 






%






 






(7.0






)






%






 






(10.4






)






%








Organic sales % increase (decrease)






 






 






2.2






 






%






 






(11.8






)






%






 






9.2






 






%






 






(0.9






)






%









TABLE 4




RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW




(Amounts in millions)




(Unaudited)








 






 






 






 






 






 






 






 








 






 






Year Ended






 








 






 






December 31,






 






December 31,






 








 






 






2025






 






 






2024






 






 








 






 






 






 






 






 






 






 








Net cash provided by operating activities






 






$






402.0






 






 






$






361.1






 






 








Less: additions to property, plant, and equipment






 






 






(45.7






)






 






 






(35.3






)






 








Plus: proceeds from the sale of property, plant, and equipment






 






 






—






 






 






 






5.9






 






 








Free cash flow






 






$






356.3






 






 






$






331.7






 






 








 






 






 






 






 






 






 






 








Net income






 






$






340.8






 






 






$






291.2






 






 








 






 






 






 






 






 






 






 








Cash conversion rate of free cash flow to net income






 






 






104.5






 






%






 






113.9






 






%









TABLE 5




RECONCILIATION OF LONG-TERM DEBT (INCLUDING CURRENT PORTION) TO NET DEBT AND NET DEBT TO CAPITALIZATION RATIO




(Amounts in millions)




(Unaudited)








 






 






 






 






 






 






 






 








 






 






December 31,






 






December 31,






 








 






 






2025






 






 






2024






 






 








 






 






 






 






 






 






 






 








Current portion of long-term debt






 






$






—






 






 






$






—






 






 








Plus: long-term debt, net of current portion






 






 






197.7






 






 






 






197.0






 






 








Less: cash and cash equivalents






 






 






(405.5






)






 






 






(386.9






)






 








Net debt






 






$






(207.8






)






 






$






(189.9






)






 








 






 






 






 






 






 






 






 








Net debt






 






$






(207.8






)






 






$






(189.9






)






 








Total stockholders’ equity






 






 






2,027.7






 






 






 






1,707.9






 






 








Capitalization






 






$






1,819.9






 






 






$






1,518.0






 






 








 






 






 






 






 






 






 






 








Net debt to capitalization ratio






 






 






(11.4






)






%






 






(12.5






)






%









TABLE 6




2026 FULL YEAR OUTLOOK – RECONCILIATION OF NET SALES GROWTH TO ORGANIC SALES GROWTH AND OPERATING MARGIN TO ADJUSTED OPERATING MARGIN




(Unaudited)








 






 






 








 






 






Total Watts








 






 






Full Year








 






 






2026 Outlook








 






 






Approximately








Net Sales






 






 








Net sales growth






 






8% to 12%








Forecasted impact of acquisition / FX






 






(6)%








Organic sales growth






 






2% to 6%








 






 






 








Operating Margin






 






 








Operating margin






 






18.8% to 19.4%








Forecasted restructuring / other costs






 






0.3%








Adjusted operating margin






 






19.1% to 19.7%







 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260211277819/en/
Diane McClintock

Chief Financial Officer

email: investorrelations@wattswater.com


Original: Watts Water Technologies Reports Record Fourth Quarter and Full Year 2025 Results