Business Description
Watts Water Technologies, Inc. is a global manufacturer of plumbing, heating, and water quality products for residential, commercial, and industrial applications. Headquartered in North Andover, Massachusetts, the company provides solutions focused on water safety, energy efficiency, and water conservation. Its core offerings include flow control products, HVAC and gas solutions, drainage systems, and water filtration systems.
Financial Statements
In thousands, USD
| FY 2025 | FY 2024 | FY 2023 | FY 2022 | |
|---|---|---|---|---|
| Total Revenues | 2,438,500 | 2,252,200 | 2,056,300 | 1,979,500 |
| Cost of Sales | 1,232,500 | 1,190,200 | 1,095,400 | 1,105,200 |
| Gross Profit | 1,206,000 | 1,062,000 | 960,900 | 874,300 |
| Selling, General & Administrative Expenses | 734,200 | 664,400 | 604,500 | 548,700 |
| Other Operating Expenses | 23,700 | 7,200 | 5,500 | 10,600 |
| Operating Profit | 448,100 | 390,400 | 350,900 | 315,000 |
| Interest and Investment Income | 9,800 | 8,900 | 7,200 | 600 |
| Interest Expense | (10,800) | (14,700) | (8,200) | (7,000) |
| Non-Operating Income | (1,300) | 1,400 | (400) | (1,000) |
| Total Non-Operating Income | (2,300) | (4,400) | (1,400) | (7,400) |
| Income Before Provision for Income Taxes | 445,800 | 386,000 | 349,500 | 307,600 |
| Provision for Income Taxes | 105,000 | 94,800 | 87,400 | 56,100 |
| Consolidated Net Income | 340,800 | 291,200 | 262,100 | 251,500 |
| Net Income Attributable to Common Shareholders | 340,800 | 291,200 | 262,100 | 251,500 |
| Basic EPS | 10.17 | 8.70 | 7.85 | 7.51 |
| Diluted EPS | 10.17 | 8.69 | 7.82 | 7.48 |
| Basic Weighted Average Shares Outstanding | 33,500 | 33,500 | 33,400 | 33,500 |
| Diluted Weighted Average Shares Outstanding | 33,500 | 33,500 | 33,500 | 33,600 |
| Shares Outstanding | 33,343 | 33,320 | 33,311 | 33,273 |
| FY 2025 | FY 2024 | FY 2023 | FY 2022 | |
|---|---|---|---|---|
| Cash and Cash Equivalents | 405,500 | 386,900 | 350,100 | 310,800 |
| Total Cash and Cash Equivalents | 405,500 | 386,900 | 350,100 | 310,800 |
| Accounts Receivable | 294,000 | 253,200 | 259,800 | 233,800 |
| Total Trade Receivables | 294,000 | 253,200 | 259,800 | 233,800 |
| Inventories | 524,300 | 392,100 | 399,300 | 375,600 |
| Other Current Assets | 62,300 | 51,300 | 51,800 | 30,400 |
| Total Current Assets | 1,286,100 | 1,083,500 | 1,061,000 | 950,600 |
| Net Property, Plant & Equipment | 297,100 | 254,800 | 248,200 | 196,800 |
| Net Intangible Assets | 294,600 | 235,000 | 216,100 | 113,700 |
| Goodwill | 859,000 | 715,000 | 693,000 | 592,400 |
| Other Long-Term Assets | 144,400 | 108,700 | 91,100 | 77,400 |
| Total Assets | 2,881,200 | 2,397,000 | 2,309,400 | 1,930,900 |
| Accounts Payable | 182,200 | 148,000 | 131,800 | 134,300 |
| Accrued Expenses | 330,200 | 269,900 | 274,000 | 244,400 |
| Total Current Liabilities | 512,400 | 417,900 | 405,800 | 378,700 |
| Long-Term Debt | 197,700 | 197,000 | 298,300 | 147,600 |
| Other Long-Term Liabilities | 143,400 | 74,200 | 92,000 | 104,000 |
| Total Long-Term Liabilities | 341,100 | 271,200 | 390,300 | 251,600 |
| Total Liabilities | 853,500 | 689,100 | 796,100 | 630,300 |
| Common Stock | 3,300 | 3,300 | 3,300 | 3,300 |
| Additional Paid-in Capital | 720,600 | 696,200 | 674,300 | 651,900 |
| Accumulated Other Comprehensive Income | (127,500) | (176,400) | (143,400) | (149,900) |
| Retained Earnings | 1,431,300 | 1,184,800 | 979,100 | 795,300 |
| Total Common Shareholders' Equity | 2,027,700 | 1,707,900 | 1,513,300 | 1,300,600 |
| Total Shareholders' Equity | 2,027,700 | 1,707,900 | 1,513,300 | 1,300,600 |
| Total Liabilities and Shareholders' Equity | 2,881,200 | 2,397,000 | 2,309,400 | 1,930,900 |
| FY 2025 | FY 2024 | FY 2023 | FY 2022 | |
|---|---|---|---|---|
| Net Income | 340,800 | 291,200 | 262,100 | 251,500 |
| Depreciation & Amortization | 58,400 | 54,400 | 43,300 | 39,700 |
| Share-Based Compensation Expense | 21,200 | 19,500 | 20,200 | 18,400 |
| Other Adjustments | 38,800 | (19,900) | (18,600) | (29,800) |
| Changes in Trade Receivables | (9,500) | 3,300 | 6,200 | (20,000) |
| Changes in Inventories | (75,400) | 13,600 | 27,000 | (16,400) |
| Changes in Accounts Payable | 45,800 | 8,000 | (8,800) | (21,300) |
| Changes in Other Operating Activities | (18,100) | (9,000) | (20,600) | 1,900 |
| Cash from Operating Activities | 402,000 | 361,100 | 310,800 | 224,000 |
| Capital Expenditure | (45,700) | (35,300) | (29,700) | (28,100) |
| Proceeds from Sale of Property, Plant & Equipment | — | 5,900 | — | 5,200 |
| Payments for Business Acquisitions | (257,100) | (96,300) | (313,400) | — |
| Other Investing Activities | — | 1,000 | — | — |
| Cash from Investing Activities | (302,800) | (124,700) | (343,100) | (22,900) |
| Issuance of Long-Term Debt | — | — | 240,000 | 85,000 |
| Repayments of Long-Term Debt | — | (100,000) | (90,000) | (80,000) |
| Net Issuance / (Repayments) of Long-Term Debt | — | (100,000) | 150,000 | 5,000 |
| Issuance of Common Shares | — | — | 100 | 200 |
| Repurchases of Common Shares | (16,000) | (17,000) | (16,000) | (69,400) |
| Net Issuance / (Repurchases) of Common Shares | (16,000) | (17,000) | (15,900) | (69,200) |
| Common Share Dividends Paid | (66,900) | (55,500) | (46,500) | (39,500) |
| Other Financing Activities | (14,000) | (15,700) | (20,900) | (18,000) |
| Cash from Financing Activities | (96,900) | (190,500) | 69,000 | (121,700) |
| Effect of Exchange Rate Changes on Cash and Cash Equivalents | 16,300 | (9,100) | 2,600 | (10,600) |
| Increase / (Decrease) in Cash, Cash Equivalents and Restricted Cash | 18,600 | 36,800 | 39,300 | 68,800 |
Key Metrics & Ratios
| Metric | Value |
|---|---|
| Market Cap | $9.20B |
| P/E | 27.14x |
| P/S | 3.77x |
| EV/EBITDA | 17.76x |
| Return on Equity | 18.2% |
| Return on Invested Capital | 19.3% |
| Current Ratio | 2.51x |
| Dividend Yield | 0.7% |
| Free Cash Flow Margin | 14.6% |
Margins
Gross margin
49.5%
Operating margin
18.4%
Net margin
14.0%
Quarterly Trend
| Quarter | Revenue | YoY growth | Operating margin | Operating income |
|---|---|---|---|---|
| Q2 2026 | $763M | +18.6% | 20.2% | $154M |
| Q1 2026 | $677M | +21.4% | 19.6% | $133M |
| Q4 2025 | $625M | +15.7% | 18.2% | $114M |
| Q3 2025 | $612M | +12.5% | 18.2% | $111M |
| Q2 2025 | $644M | — | 21.0% | $135M |
| Q1 2025 | $558M | — | 15.7% | $88M |
| Q4 2024 | $540M | — | 16.5% | $89M |
| Q3 2024 | $544M | — | 17.1% | $93M |
More on Watts Water Technologies, Inc.
Figures compiled from public company filings.
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