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Sep 28
Watts Q3 2025 Earnings Report
Watts delivered strong results in Q3 2025 with revenue and earnings exceeding expectations, driven by robust performance in the Americas segment.
Key Takeaways
Watts Water Technologies posted solid third-quarter results with significant revenue growth and margin expansion, especially in the Americas, while European markets remained soft.
Revenue reached $611.7 million, driven by pricing, volume, and acquisition impact in the Americas.
Diluted EPS rose to $2.45, with adjusted EPS at $2.50.
Net income grew to $82.2 million, up from $69.1 million last year.
Free cash flow for the quarter totaled $216 million, aided by higher income and tax benefits.
Watts
Watts
Watts Revenue by Segment
Watts Revenue by Geographic Location
Revenue by Segment
Americas Revenue
CapyFin.comEurope Revenue
CapyFin.comAPMEA Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEurope Revenue
CapyFin.comAPMEA Revenue
CapyFin.com Forward Guidance
Watts raised its full-year 2025 outlook, expecting 7% to 8% reported sales growth and improved margins, incorporating benefits from pricing, productivity, and recent acquisition impacts.
Positive Outlook
- Full-year reported sales growth raised to 7%-8%
- Organic sales forecast increased to 4%-5%
- Operating margin expected to rise to 18.1%-18.2%
- Adjusted operating margin outlook raised to 19.1%-19.2%
- Inclusion of Haws acquisition expected to expand capabilities
Challenges Ahead
- Tariff-related costs continue to impact margins
- Volume deleverage remains a concern in Europe
- Higher inventory costs due to tariffs
- Free cash flow affected by increased capital expenditures
- Working capital impacted by timing of receivables collection
Revenue & Expenses
Visualization of income flow from segment revenue to net income