Jun 25, 2023

Watts Q2 2023 Earnings Report

Reported record results exceeding expectations, driven by the continued operational excellence.

Key Takeaways

Watts Water Technologies reported a 1% increase in sales to $533 million, with organic sales flat. EPS increased by 9% to $2.26, and adjusted EPS increased by 11% to $2.34. The company is increasing its full-year 2023 outlook.

Sales of $533 million increased 1%; organic sales were flat

Reported operating margin of 18.8%, up 60 bps; adjusted operating margin of 19.5%, up 100 bps

Reported EPS of $2.26, up 9%; adjusted EPS of $2.34, up 11%

Delivered strong year-to-date operating cash flow of $101 million and free cash flow of $89 million

Total Revenue
$533M
Previous year: $527M
+1.2%
EPS
$2.34
Previous year: $2.11
+10.9%
Americas Organic Sales Growth
-2.1%
Previous year: 22%
-109.5%
Europe Organic Sales Growth
4.7%
Previous year: 5.4%
-13.0%
APMEA Organic Sales Growth
6%
Previous year: 3%
+100.0%
Gross Profit
$253M
Previous year: $239M
+5.7%
Cash and Equivalents
$292M
Previous year: $230M
+26.9%
Free Cash Flow
$88.9M
Previous year: $32.6M
+172.7%
Total Assets
$2B
Previous year: $1.93B
+3.6%

Watts

Watts

Watts Revenue by Geographic Location

Forward Guidance

The company is increasing its full-year 2023 outlook. Organic revenue growth is now expected to range from negative 2% to positive 2%, raising the midpoint by 2%. Adjusted operating margin is now expected to range from 16.7% to 17.3%, raising the midpoint by 100 basis points.

Revenue & Expenses

Visualization of income flow from segment revenue to net income