Watts Water Technologies (WTS)
NYSE:WTS
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Earnings Data
Report Date
Aug 12, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
3.32Last Year’s EPS
3.09Same Quarter Last Year
Based on 8 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed a strong operational quarter with record sales, margin expansion, double-digit organic growth, and accretive expansion into data centers, complemented by a 21% dividend increase and active M&A integration. Offsetting these positives are a sharp decline in first-quarter free cash flow driven by working capital and inventory builds, geopolitical and tariff uncertainty (including a modest direct impact from the Middle East conflict), softness in residential end markets, and near-term margin headwinds from prior-year comparisons and 80/20 product rationalization. Management reaffirmed full-year guidance while remaining cautious on the duration of geopolitical risks and tariffs.Company Guidance
Record Quarterly Results
Q1 sales of $677 million, up 21% reported and 12% organically; adjusted operating income of $136 million, up 28% year-over-year; adjusted EPS of $3.04, up 28% year-over-year.
Margin Expansion
Adjusted operating margin improved to 20.1%, up 110 basis points year-over-year; adjusted EBITDA margin rose to 22.3%, up 90 basis points.
Strong EBITDA and Operating Performance
Adjusted EBITDA of $151 million, up 27% year-over-year; improvements driven by favorable price realization, volume leverage, and productivity gains that more than offset inflation, tariffs, and acquisition dilution (~80 bps).
Robust Price Realization
Overall price realization was just under 8% in Q1, contributing materially to margin expansion and covering cost inflation in the quarter.
Accelerating Data Center Growth
Data center sales more than doubled in Q1; management cites a >$1 billion addressable market and targets high double-digit growth in data center sales for the year; data center business is accretive to operating margins.
Active M&A and Integration Progress
Completed five acquisitions in 2025 that enhanced technology and geographic reach; acquisitions contributed ~$31 million in Americas sales in Q1 (7 points of reported growth) and are on track to achieve or exceed targeted synergies.
Dividend Increase and Capital Flexibility
Board announced a 21% increase to the dividend beginning in June; company states a strong balance sheet and flexibility to pursue disciplined M&A and capital allocation.
Reaffirmed Full-Year Outlook
Company reaffirmed FY2026 consolidated outlook: organic sales growth of +2% to +6% and reported sales growth of +8% to +12%; Q2 guidance: reported sales +10% to +14%, organic +4% to +8%, EBITDA margin 22.3%–22.9%, operating margin 20.0%–20.6%.
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 |
|---|---|---|---|
May 06, 2026 | $291.99 | $294.14 | +0.74% |
Feb 11, 2026 | $314.25 | $335.65 | +6.81% |
Nov 05, 2025 | $281.26 | $262.64 | -6.62% |
Aug 06, 2025 | $262.33 | $259.30 | -1.16% |
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 Technologies (WTS) report earnings?
Watts Water Technologies (WTS) is schdueled to report earning on Aug 12, 2026, After Close (Confirmed).
What is Watts Water Technologies (WTS) earnings time?
Watts Water Technologies (WTS) earnings time is at Aug 12, 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 (Q2) is 3.32.