Jun 30, 2024

Watts Q2 2024 Earnings Report

Watts Water Technologies reported record sales, operating income, and EPS, driven by growth in the Americas and APMEA regions, offsetting weakness in Europe.

Key Takeaways

Watts Water Technologies reported a 12% increase in sales to $597 million, with flat organic sales growth. EPS increased by 8% to $2.44, and adjusted EPS rose by 5% to $2.46. The company is maintaining its full-year 2024 outlook.

Reported sales increased by 12%, reaching $597 million, however organic sales were flat.

Operating margin was 18.7%, a slight decrease of 10 bps, while adjusted operating margin was 18.8%, down 70 bps.

Reported EPS increased by 8% to $2.44, with adjusted EPS up 5% to $2.46.

The company amended and extended its existing credit facility, effective July 12, 2024, and is maintaining its full-year 2024 outlook.

Total Revenue
$597M
Previous year: $533M
+12.1%
EPS
$2.46
Previous year: $2.34
+5.1%
Americas Organic Sales Growth
5%
Previous year: -2.1%
-338.1%
Europe Organic Sales Growth
-15%
Previous year: 4.7%
-419.1%
APMEA Organic Sales Growth
18%
Previous year: 6%
+200.0%
Gross Profit
$285M
Previous year: $253M
+12.7%
Cash and Equivalents
$279M
Previous year: $292M
-4.3%
Free Cash Flow
$78.5M
Previous year: $88.9M
-11.7%
Total Assets
$2.38B
Previous year: $2B
+18.9%

Watts

Watts

Watts Revenue by Geographic Location

Forward Guidance

The Company is maintaining its previous full year outlook. We expect reported sales to increase +7% to +12% and organic sales to range from -4% to +1%. Full year adjusted operating margin is expected to be between 17.1% and 17.7%, or down 70 basis points to 10 basis points.

Revenue & Expenses

Visualization of income flow from segment revenue to net income