Dec 31, 2020

Watts Q4 2020 Earnings Report

Watts reported better than expected sales in Americas and Europe, driven by aggressive cost actions.

Key Takeaways

Watts Water Technologies reported a 1% increase in sales to $403 million, with a 2% decline in organic sales. GAAP EPS was $0.86, down 8%, while adjusted EPS was $1.15, up 15%. The company's performance was driven by better than anticipated sales in the Americas and Europe, along with continued cost action savings.

Reported sales increased 1% to $403 million; organic sales declined 2%.

GAAP and adjusted operating margin of 13.5% and 13.6%, respectively; up 170 bps on GAAP basis, up 110 bps on adjusted basis.

GAAP EPS of $0.86, down 8% vs. last year; adjusted EPS of $1.15, up 15%.

Full year 2020 operating cash flow of $229 million and full year free cash flow of $187 million, an 18% and 14% increase, respectively, over the prior year.

Total Revenue
$403M
Previous year: $400M
+0.8%
EPS
$1.15
Previous year: $1
+15.0%
Total organic sales
-2%
Previous year: 3.8%
-152.6%
Americas organic sales
-2%
Previous year: 3.6%
-155.6%
Europe organic sales
-2%
Previous year: 1.7%
-217.6%
Gross Profit
$169M
Previous year: $170M
-0.5%
Cash and Equivalents
$219M
Previous year: $220M
-0.4%
Free Cash Flow
$91.4M
Previous year: $165M
-44.6%
Total Assets
$1.74B
Previous year: $1.72B
+0.9%

Watts

Watts

Watts Revenue by Segment

Watts Revenue by Geographic Location

Forward Guidance

COVID-19 will continue to affect our business in 2021, but I am confident that our experienced team will again proactively manage the business to meet and exceed the expectations of our customers.

Revenue & Expenses

Visualization of income flow from segment revenue to net income