Snapshot
Watts Water Technologies Inc reported $644M of revenue in Q2 2025, up 7.8% year over year, with diluted EPS of $3.01 and an operating margin of 21.0%.
- Revenue
- $644M
- YoY growth
- +7.8%
- Diluted EPS
- $3.01
- Operating margin
- 21.0%
$644M
Revenue
+7.8%
YoY growth
$3.01
Diluted EPS
21.0%
Operating margin
01 Key takeaways
What management said
- •During today's call, Bob will provide an overview of the second quarter, an operational update, and an update on our outlook for 2025.
- •Shashank will discuss the details of our second quarter performance and provide our outlook for the third quarter and for the full year.
- •Before beginning our second quarter overview, I'd like to take a moment to express my gratitude to Shashank Patel as this will be his last earnings call with Watts.
- •On that note, I'm excited to welcome our new CFO, Ryan Lada, to his first earnings call with Watts.
- •I look forward to working with the investment community and contributing to Watts' continued growth and long-term value creation.
- •Our second quarter results were better than expected, with record sales, operating income, and earnings per share.
- •Organic sales increased 6% in the quarter, with favorable price, volume, and pull-forward demand more than offsetting continued weakness in Europe.
- •Adjusted operating margin of 21.6% exceeded expectations due to favorable price-cost dynamics, volume leverage, productivity, and cost containment.
- •Our balance sheet remains strong and provides ample capacity to support flexibility in our capital allocation strategy.
- •We have a proven track record of successfully navigating through inflationary periods and are confident in our ability to maintain a favorable price-cost outcome.
- •We expect EasyWater to contribute approximately $5 million in sales and be neutral to adjusted EPS in 2025 after factoring in normal purchase accounting adjustments.
- •We've had numerous successful installations, including a luxury multifamily condominium, hotels, and in a commercial real estate portfolio where Nexa provided remote monitoring, issue identification, and replacement component revenue.
SourcesCompany financials · earnings call
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