Jun 26, 2022

Watts Q2 2022 Earnings Report

Reported record results, with sales and operating margin higher than anticipated, driven by strong execution in the Americas.

Key Takeaways

Watts Water Technologies reported a record second quarter in 2022. Sales increased by 13% to $527 million, with organic sales up 16%. GAAP EPS was $2.07, up 86%, and adjusted EPS was $2.11, up 43%. Given the strong first half, the company is increasing its full-year 2022 outlook.

Reported sales of $527 million increased 13%; organic sales increased 16%

GAAP operating margin of 18.2%, up 690 bps; adjusted operating margin of 18.5%, up 360 bps

GAAP EPS of $2.07, up 86% and adjusted EPS of $2.11, up 43%

Increased adjusted full-year 2022 outlook

Total Revenue
$527M
Previous year: $467M
+12.8%
EPS
$2.11
Previous year: $1.48
+42.6%
Total Organic Sales Growth
16%
Previous year: 32%
-50.0%
Americas Organic Sales Growth
22%
Previous year: 27.9%
-21.1%
Europe Organic Sales Growth
5.4%
Previous year: 41.3%
-86.9%
Gross Profit
$239M
Previous year: $200M
+19.5%
Cash and Equivalents
$230M
Previous year: $240M
-4.2%
Free Cash Flow
$32.6M
Previous year: $31.2M
+4.5%
Total Assets
$1.93B
Previous year: $1.86B
+4.3%

Watts

Watts

Watts Revenue by Geographic Location

Forward Guidance

The company now expects organic revenue growth of 8% to 11% and adjusted operating margin expansion of 110 to 160 basis points, compared to last year.

Revenue & Expenses

Visualization of income flow from segment revenue to net income