Snapshot
Watts Water Technologies Inc reported $612M of revenue in Q3 2025, up 12.5% year over year, with diluted EPS of $2.45 and an operating margin of 18.2%.
- Revenue
- $612M
- YoY growth
- +12.5%
- Diluted EPS
- $2.45
- Operating margin
- 18.2%
$612M
Revenue
+12.5%
YoY growth
$2.45
Diluted EPS
18.2%
Operating margin
01 Key takeaways
What management said
- •During today's call, Bob will provide an overview of the third quarter, a business update and an update on our outlook for 2025.
- •Ryan will discuss the details of our third-quarter performance, and provide our outlook for the fourth quarter and for the full year.
- •Watts' multi-year track record of success would not be possible without the dedication, collaboration, and support of our team members and business partners, and I'd like to express my sincere gratitude.
- •Organic sales increased 9% in the quarter, with favorable pricing in the Americas, volume, and pull-forward demand more than offsetting a decline in Europe.
- •Adjusted operating margin of 18.5% was better than anticipated due to favorable price, volume leverage, productivity, and mix.
- •Year-to-date free cash flow continues to be solid, and we expect to generate seasonally strong free cash flow through year-end.
- •The balance sheet remains healthy, and we have ample flexibility to support our disciplined capital allocation strategy.
- •On that note, we're excited to have acquired Haws Corporation, a leading global brand providing emergency safety and hydration solutions for use in industrial, institutional, and non-residential end markets for more than 120 years.
- •Now, an update on our outlook for the remainder of the year.
- •Due to our strong third-quarter performance and our expectations for the fourth quarter, we are increasing our full-year sales and margin outlook.
- •Tariff-related price increases, foreign exchange movements, strong data center sales, and the acquisition of Haws are all favorable relative to the sales outlook we provided in August.
- •As a reminder, GDP is a proxy for our repair and replacement business, which represents approximately 60% of total revenue.
SourcesCompany financials · earnings call
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