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Waterco Lifts Profit on Margin Gains Despite Flat Revenue and ANZ Weakness

Story Highlights
  • Waterco’s half-year revenue dipped slightly, but margin improvements lifted EBIT and NPAT solidly.
  • Insourcing to Malaysia and Davey integration strengthened profits despite ANZ weakness and global headwinds.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Waterco Lifts Profit on Margin Gains Despite Flat Revenue and ANZ Weakness

Meet Samuel – Your Personal Investing Prophet

Waterco Limited ( (AU:WAT) ) has provided an update.

Waterco Limited reported half-year 2025 revenue of $133.2 million, down 1.1% from the prior corresponding period, as softer trading in Europe, reduced capital spending in parts of Asia and a transition of plastics manufacturing to Malaysia temporarily constrained product availability in Australia and New Zealand. Despite lower sales, improved margins from Malaysian insourcing and efficiencies from integrating the Davey operations lifted EBIT by 15.9% to $11.3 million and NPAT by 13.4% to $6.7 million, with divisional results showing weaker EBIT in Australia and New Zealand but sharp profit gains in North America, Europe and Asia, underscoring the resilience and evolving geographic balance of the group’s earnings.

The company’s focus on consolidating manufacturing in Malaysia has reduced reliance on external suppliers and bolstered operational control, which helped offset short-term revenue pressures in key markets. This strategic shift, coupled with integration synergies from acquired operations, positions Waterco to compete more effectively in an environment of heightened European competition and uneven capital investment in Asia, though the dip in ANZ divisional EBIT highlights ongoing challenges in its traditional core market.

The most recent analyst rating on (AU:WAT) stock is a Hold with a A$6.00 price target. To see the full list of analyst forecasts on Waterco Limited stock, see the AU:WAT Stock Forecast page.

More about Waterco Limited

Waterco Limited is a manufacturer and supplier in the water treatment and swimming pool equipment industry, operating across Australia, New Zealand, North America, Europe and Asia. The company focuses on pool and spa products, filtration and water treatment systems, with an increasing emphasis on insourcing manufacturing to Malaysia to improve cost efficiency and supply control.

Average Trading Volume: 1,588

Technical Sentiment Signal: Buy

Current Market Cap: A$181.8M

See more data about WAT stock on TipRanks’ Stock Analysis page.

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