Sep 25, 2022

Watts Q3 2022 Earnings Report

Reported record sales, operating margin, and EPS.

Key Takeaways

Watts Water Technologies reported a record third quarter with sales of $488 million, a 7% increase, and a 12% increase on an organic basis. GAAP EPS was $1.75, up 28%, and adjusted EPS was $1.79, up 29%. The company also increased its full-year 2022 outlook.

Reported sales of $488 million increased 7%; increased 12% on an organic basis

GAAP operating margin of 16.5%, up 230 bps; adjusted operating margin of 16.8%, up 240 bps

GAAP EPS of $1.75, up 28%; adjusted EPS of $1.79, up 29%

Increased full-year 2022 outlook

Total Revenue
$488M
Previous year: $455M
+7.2%
EPS
$1.79
Previous year: $1.39
+28.8%
Total Organic Sales Growth
12%
Previous year: 17%
-29.4%
Americas Organic Sales Growth
12.8%
Previous year: 17%
-24.7%
Europe Organic Sales Growth
6.3%
Previous year: 14%
-55.0%
Gross Profit
$218M
Previous year: $194M
+12.3%
Cash and Equivalents
$220M
Previous year: $239M
-8.0%
Free Cash Flow
$34.3M
Previous year: $55.1M
-37.7%
Total Assets
$1.89B
Previous year: $1.86B
+1.2%

Watts

Watts

Watts Revenue by Geographic Location

Forward Guidance

The company now expects organic revenue growth of 11% to 12% and adjusted operating margin expansion of 190 to 210 basis points, compared to last year.

Revenue & Expenses

Visualization of income flow from segment revenue to net income