Watts Q2 2021 Earnings Report
Key Takeaways
Watts Water Technologies reported a record second quarter in 2021, with sales of $467 million, up 38% compared to Q2 2020. GAAP EPS was $1.11, up 88%, and adjusted EPS was $1.48, up 100%. The company is raising its adjusted full year 2021 outlook due to accelerating demand.
Sales of $467 million, up 38% reported and 32% organically.
GAAP operating margin of 11.3%, up 210 bps; adjusted operating margin of 14.9%, up 380 bps.
GAAP EPS of $1.11, up 88%; adjusted EPS of $1.48, up 100%.
Increased adjusted full year 2021 outlook.
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Watts Revenue by Segment
Watts Revenue by Geographic Location
Forward Guidance
The company is updating its adjusted full year 2021 outlook. We now expect consolidated organic revenue growth of 10% to 14% and consolidated adjusted operating margin expansion of 100 to 150 basis points, compared to last year.
Positive Outlook
- Consolidated organic revenue growth of 10% to 14%
- Consolidated adjusted operating margin expansion of 100 to 150 basis points
Challenges Ahead
- Monitoring nonresidential new construction activity
- Supply chain issues
- Inflation
- Vaccine implementations
- Impact of the virus variants
Revenue & Expenses
Visualization of income flow from segment revenue to net income