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Dec 31, 2025
Watts Q4 2025 Earnings Report
Watts Water Technologies reported record fourth quarter and full year 2025 results, with significant increases in sales, operating margin, and diluted EPS.
Key Takeaways
Watts Water Technologies achieved record performance in Q4 2025, with sales reaching $625.1 million, a 16% increase on a reported basis and 8% organically. Operating margin improved to 18.2%, and diluted EPS rose to $2.50, up 24%. The company also completed three strategic acquisitions during the quarter.
Sales increased by 16% on a reported basis and 8% organically, reaching $625.1 million.
Operating margin improved by 170 basis points to 18.2%, with adjusted operating margin up 220 basis points to 19.0%.
Diluted EPS grew by 24% to $2.50, and adjusted diluted EPS increased by 28% to $2.62.
The company completed three strategic acquisitions: Haws Corporation, Superior Boiler, and Industrial Company for Castings and Sanitary Fittings ("Saudi Cast").
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For the full year 2026, Watts Water Technologies anticipates sales growth between 8% and 12% on a reported basis, and 2% to 6% on an organic basis. Operating margin is expected to be between 18.8% and 19.4%.
Positive Outlook
- Anticipated full year 2026 sales growth of 8% to 12% on a reported basis.
- Expected organic sales growth of 2% to 6% for the full year 2026.
- Full year operating margin projected to be between 18.8% and 19.4%.
- Adjusted operating margin expected to be between 19.1% and 19.7%.
- Confidence in strategic growth initiatives and execution capabilities.
Challenges Ahead
- Ongoing geopolitical uncertainty.
- Mixed global markets.
- Potential impact of forecasted restructuring/other costs on operating margin (0.3%).
- Adjusted operating margin could be down 50 basis points.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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