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Dec 31, 2024
Watts Q4 2024 Earnings Report
Key Takeaways
Watts Water Technologies reported Q4 2024 revenue of $540.4 million, a decrease of 1% year-over-year, with organic sales declining by 5%. Adjusted EPS was $2.05, reflecting a 4% increase. Operating margin improved to 16.5%, up 210 basis points. The company completed the acquisition of I-CON Systems, strengthening its digital offerings.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Watts Water Technologies expects full-year 2025 sales growth between -3% and 2%, with an adjusted operating margin ranging from 17.7% to 18.3%. The company remains focused on cost efficiency and strategic investments to navigate economic uncertainties.
Positive Outlook
- Strong balance sheet supports strategic investments and capital returns.
- Adjusted operating margin expected to remain stable or increase by 60 basis points.
- Acquisition of I-CON Systems expands digital and institutional market presence.
- Continued focus on new product development to drive growth.
- Productivity improvements helping offset inflationary pressures.
Challenges Ahead
- Geopolitical uncertainty poses risks to global demand.
- Declining organic sales in key regions such as Americas and Europe.
- Fewer shipping days impacted revenue in Q4 and could affect future results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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