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Watts Water (WTS)
NYSE:WTS
Earnings Data
Report Date
May 05, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
2.68Last Year’s EPS
2.37Same Quarter Last Year
Moderate Buy
Based on 11 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
Overall the call was positive: management reported record revenue, margins, EPS, and free cash flow, outlined a clear M&A and product strategy (including a growing data center initiative), and provided constructive 2026 guidance (reported sales +8%–12%). Key negatives are regional softness in Europe, planned product rationalization that reduces near-term organic growth by ~2 points, and acquisition-related margin dilution (~50 bps) and integration costs. Management emphasized disciplined capital allocation, margin recovery via One Watts initiatives, and ongoing investment in higher-growth areas.Company Guidance
Record Financial Results
Company achieved record Q4 and full-year 2025 results: Q4 reported sales +16% (organic +8%); full-year sales $2.4B (+8% reported, +5% organic). Adjusted operating margin reached 19% in Q4 (up 220 bps) and 19.6% for the full year (up 190 bps). Adjusted EPS: Q4 $2.62 (+28% YoY); FY $10.58 (+19% YoY).
Strong Profitability and EBITDA
Q4 adjusted EBITDA $134M (+28%) with margin 21.4% (up 210 bps). Full-year adjusted EBITDA $534M (+18%) with margin 21.9% (up 180 bps), reflecting price, productivity gains and One Watts improvements.
Record Free Cash Flow and Conversion
Generated record free cash flow of $356M in 2025 (+7% YoY). Management reported free cash flow conversion at roughly 100–105% for 2025 and expects conversion at or above ~90% of net income in 2026 despite planned investments.
Active and Accretive M&A Program
Completed multiple acquisitions (including Superior Boiler ~$60M annual sales and Saudi Cast ~$20M). Over the past three years: eight deals deploying ~$660M cash and adding ~$450M annualized revenue. Management expects acquisitions to add ~$130M+ incremental revenue and to be accretive to adjusted EPS in 2026 (after accounting for interest and purchase accounting).
Guidance for 2026 Shows Growth
Full-year 2026 guidance: reported sales +8% to +12%, organic +2% to +6% (excluding product rationalization organic would be ~2 points higher). Adjusted EBITDA margin guidance 21.5%–22.1%; adjusted operating margin guidance 19.1%–19.7%.
Data Center Initiative Momentum
Data center sales represented just over 3% of company sales in 2025 and are growing at a double-digit rate (management noted 'higher end' of double digits). Addressable data center market estimated to exceed $1B, with higher-margin stainless liquid-cooling opportunities accelerating growth.
Capital Allocation Discipline
Returned $83M to shareholders in 2025 via dividends and buybacks; annual dividend payout increased ~20%. Strong balance sheet and disciplined leverage targets (management comfortable up to ~2–2.5x when appropriate) support continued strategic M&A and investments.
Portfolio & Productivity Gains
One Watts performance system and 80/20 portfolio reviews contributed to margin expansion (company noted 320 bps improvement in adjusted operating margin over three years) and ongoing productivity/automation investments expected to drive further margin recovery post-integration.
WTS Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
WTS Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 11, 2026 | $314.75 | $336.18 | +6.81% |
Nov 05, 2025 | $281.71 | $263.05 | -6.62% |
Aug 06, 2025 | $262.75 | $259.71 | -1.16% |
May 07, 2025 | $210.34 | $233.62 | +11.07% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Watts Water (WTS) report earnings?
Watts Water (WTS) is schdueled to report earning on May 05, 2026, After Close (Confirmed).
What is Watts Water (WTS) earnings time?
Watts Water (WTS) earnings time is at May 05, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is WTS EPS forecast?
WTS EPS forecast for the fiscal quarter 2026 (Q1) is 2.68.