Sep 26, 2021

Watts Q3 2021 Earnings Report

Reported record results driven by double digit growth in all regions.

Key Takeaways

Watts Water Technologies reported a record third quarter with sales of $455 million, up 18% and 17% on an organic basis. GAAP EPS was $1.37 and adjusted EPS was $1.39, representing increases of 41% and 32%, respectively. The company is increasing its full year 2021 sales outlook and maintaining its previous expectations for adjusted operating margin expansion.

Sales of $455 million increased 18% on a reported basis and 17% on an organic basis, driven by double digit growth in all regions.

GAAP operating margin of 14.2%, up 170 bps.

Adjusted operating margin of 14.4%, up 60 bps.

GAAP and adjusted EPS of $1.37 and $1.39, representing increases of 41% and 32%, respectively.

Total Revenue
$455M
Previous year: $384M
+18.5%
EPS
$1.39
Previous year: $1.05
+32.4%
Total Organic Sales Growth
17%
Previous year: -5%
-440.0%
Americas Organic Sales Growth
17%
Previous year: -3.7%
-559.5%
Europe Organic Sales Growth
14%
Previous year: -5.7%
-345.6%
Gross Profit
$194M
Previous year: $159M
+22.4%
Cash and Equivalents
$239M
Previous year: $188M
+26.8%
Free Cash Flow
$55.1M
Previous year: $70.1M
-21.4%
Total Assets
$1.86B
Previous year: $1.71B
+9.0%

Watts

Watts

Watts Revenue by Geographic Location

Forward Guidance

The company has increased its full year 2021 organic sales growth outlook to be 14% to 17% and are maintaining our previous expectations for adjusted operating margin expansion.

Revenue & Expenses

Visualization of income flow from segment revenue to net income