Mar 26, 2023

Watts Q1 2023 Earnings Report

Reported record results driven by organic sales growth in all regions and record operating earnings.

Key Takeaways

Watts Water Technologies reported a record first quarter in 2023, with sales of $472 million, a 2% increase. Organic sales increased by 4%. The company reported EPS of $1.93, up 20%, and adjusted EPS of $1.92, up 18%.

Sales of $472 million increased 2%; organic sales increased 4%.

Operating margin of 18.0%, up 260 bps; adjusted operating margin of 17.9%, up 220 bps.

EPS of $1.93, up 20%; adjusted EPS of $1.92, up 18%.

Operating cash flow of $33 million and free cash flow of $28 million.

Total Revenue
$472M
Previous year: $463M
+1.8%
EPS
$1.92
Previous year: $1.63
+17.8%
Total Organic Sales Growth
3.9%
Previous year: 14%
-72.1%
Americas Organic Sales Growth
3.4%
Previous year: 14.3%
-76.2%
Europe Organic Sales Growth
4.1%
Previous year: 13.5%
-69.6%
Gross Profit
$218M
Previous year: $199M
+9.8%
Cash and Equivalents
$312M
Previous year: $227M
+37.5%
Free Cash Flow
$28M
Previous year: -$7.6M
-468.4%
Total Assets
$1.99B
Previous year: $1.9B
+4.6%

Watts

Watts

Watts Revenue by Geographic Location

Forward Guidance

The company is increasing its full year 2023 adjusted operating margin outlook to a range of 15.7% to 16.3% and maintaining its full year 2023 organic sales growth outlook of negative 5% to positive 2%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income