Dec 31, 2022

Watts Q4 2022 Earnings Report

Watts Water Technologies reported record results for Q4 and full year 2022.

Key Takeaways

Watts Water Technologies reported a 6% increase in Q4 sales to $502 million, with an 11% organic growth. GAAP EPS increased by 74% to $2.05, and adjusted EPS increased by 13% to $1.60. The company's performance was driven by double-digit organic growth in the Americas and benefits from price realization and productivity.

Q4 sales increased by 6% on a reported basis and 11% organically.

GAAP operating margin increased by 20 bps, and adjusted operating margin increased by 90 bps.

GAAP EPS increased by 74%, and adjusted EPS increased by 13%.

The company expects softer market conditions as 2023 progresses and is adjusting its cost structure accordingly.

Total Revenue
$502M
Previous year: $474M
+5.9%
EPS
$1.6
Previous year: $1.42
+12.7%
Total organic sales
10.5%
Previous year: 18%
-41.7%
Americas organic sales
10.7%
Previous year: 19%
-43.7%
Europe organic sales
9.2%
Previous year: 15%
-38.7%
Gross Profit
$219M
Previous year: $199M
+9.7%
Cash and Equivalents
$311M
Previous year: $242M
+28.4%
Free Cash Flow
$130M
Previous year: $38.8M
+234.5%
Total Assets
$1.93B
Previous year: $1.86B
+4.1%

Watts

Watts

Watts Revenue by Segment

Watts Revenue by Geographic Location

Forward Guidance

Watts Water Technologies is monitoring the weakening global economic indicators and expects to see softer market conditions as 2023 progresses. The company has incorporated these expectations into its outlook and is taking actions as needed to adjust its cost structure. The balance sheet and cash flow remain strong.

Revenue & Expenses

Visualization of income flow from segment revenue to net income