Watts Water Technologies Reports Q1 2025 Results

Watts Water ( (WTS) ) has released its Q1 earnings. Here is a breakdown of the information Watts Water presented to its investors.

Watts Water Technologies, Inc. is a leading global manufacturer and provider of plumbing, heating, and water quality products and solutions. The company is renowned for its strategic vertical integration and global sourcing strategy, which positions it advantageously in the industry.

In its first quarter of 2025, Watts Water Technologies reported sales of $558 million, marking a 2% decline compared to the previous year. Despite this, the company achieved record adjusted operating income, adjusted operating margin, and adjusted earnings per share (EPS), with a notable 21% increase in quarterly dividend payments.

Key financial metrics from the report include an operating margin of 15.7%, down 120 basis points, and an adjusted operating margin of 19.0%, up 80 basis points. The diluted EPS rose by 2% to $2.21, with the adjusted diluted EPS also increasing by 2% to $2.37. The company highlighted its proactive response to the dynamic trade environment through strategic pricing actions and productivity improvements.

Regionally, sales in the Americas remained flat, while Europe experienced a 12% decline due to market weakness and destocking. In contrast, the APMEA region saw a 9% increase in sales, driven by growth in China, Australia, and the Middle East. The company also reported strong cash flow generation, with a free cash flow of $45.6 million, supporting its capital allocation priorities.

Looking ahead, Watts Water Technologies maintains its full-year 2025 outlook for organic sales and adjusted operating margin, expecting to navigate ongoing macroeconomic uncertainties effectively. The company remains confident in its ability to deliver sustainable long-term value to stakeholders.