Snapshot
Watts Water Technologies Inc reported $677M of revenue in Q1 2026, up 21.4% year over year, with diluted EPS of $2.97 and an operating margin of 19.6%.
- Revenue
- $677M
- YoY growth
- +21.4%
- Diluted EPS
- $2.97
- Operating margin
- 19.6%
$677M
Revenue
+21.4%
YoY growth
$2.97
Diluted EPS
19.6%
Operating margin
01 Key takeaways
What management said
- •We began 2026 with better-than-expected results, including record sales, operating income, operating margin, and earnings per share.
- •Organic sales rose 12% in the quarter as we benefited from price and incremental volume.
- •Adjusted operating margin of 20.1% increased 110 basis points due to better than expected price, volume, and productivity, which more than offset tariff costs, inflation, and acquisition dilution of 80 basis points.
- •Our balance sheet remains strong and provides ample capacity to support our disciplined capital allocation strategy.
- •As a result of our solid start to 2026 and expected cash flows for the remainder of the year, we announced a 21% increase to our dividend beginning in June.
- •To support this growth and meet our customers' needs, we're investing in our team and accelerating innovation across our product portfolio.
- •Together, these strategic initiatives are driving growth and helping to offset softer end markets.
- •In 2025, we completed five acquisitions, enhancing our technology capabilities and expanding our product range, geographic reach, and exposure to high-growth non-residential end markets.
- •Our strong first quarter performance and outlook for the second quarter give us a solid start towards achieving our outlook for the full year.
- •In light of these factors, we believe it's prudent to maintain our full year outlook, and we'll revisit in our next earnings call.
- •With that, let me turn the call over to Diane, who will address our first quarter results and our second quarter and full year outlook.
- •Sales reached $677 million, reflecting a 21% increase on a reported basis and a 12% increase organically.
SourcesCompany financials · earnings call
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