Quarterly ResultMay 6, 2026, 04:47 PM
Watts Water Reports Record Q1 Net Sales $677M, EPS $2.97; Raises Dividend 21%
AI Summary
Watts Water Technologies reported record first quarter 2026 results, with net sales increasing 21% to $677 million and diluted EPS rising 34% to $2.97. The company also announced a 21% increase in its quarterly dividend to $0.63 per share. Despite a decline in free cash flow due to increased capital investments and working capital, Watts Water Technologies is maintaining its full year 2026 outlook, citing strong execution and organic growth across all regions.
Key Highlights
- Net sales reached $677 million, up 21% on a reported basis and 12% organically compared to Q1 2025.
- Diluted EPS was $2.97, a 34% increase, and adjusted diluted EPS was $3.04, up 28%.
- Operating margin increased 390 basis points to 19.6%, with adjusted operating margin up 110 bps to 20.1%.
- Quarterly dividend payments increased by 21% to $0.63 per share, effective June 2026.
- Americas sales grew 23% reported and 16% organically to $515 million, driven by data center growth.
- The company is maintaining its full year 2026 outlook for sales growth and operating margin.
- Free cash flow for Q1 2026 was $7 million, down from $46 million in Q1 2025 due to increased investments and working capital.