Watts Water Q2 sales rise 8%, beat expectations

Watts Water Technologies

06/08/2025 21:44

Overview

Watts Water Q2 sales rise 8% to $644 mln, beating analyst expectations, per LSEG data

Adjusted EPS for Q2 increases 26%, beating analyst estimates

Co acquired Freije Treatment Systems, boosting water quality portfolio

Outlook

Watts Water raises full-year sales growth outlook to 2%-5%

Company expects organic sales growth to be flat to up 3%

Watts Water forecasts operating margin of 17.2%-17.8% for 2025

Company sees adjusted operating margin between 18.2% and 18.8%

Result Drivers

AMERICAS GROWTH - Sales in the Americas rose 11% due to price increases, volume leverage, and pull-forward demand

EUROPEAN WEAKNESS - European sales declined 3% due to lower volumes and market weakness, despite favorable pricing

ACQUISITIONS - Incremental acquisitions contributed $7 mln to sales growth in the Americas

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$643.70 mln
$611.70 mln (9 Analysts)
Q2 Adjusted EPS
Beat
$3.09
$2.65 (8 Analysts)
Q2 EPS
$3.01
Q2 Net Income
$100.90 mln
Q2 Adjusted Operating Margin
21.6%
Q2 Operating Margin
21.0%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the industrial machinery & equipment peer group is "buy."

Wall Street's median 12-month price target for Watts Water Technologies Inc is $240.60, about 9.6% below its August 5 closing price of $263.74

The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release: ID:nBw2JsYcFa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)