Quarterly ResultAug 5, 2026, 04:39 PM
Watts Water Reports Record Q2 Sales $763M, EPS $3.53; Raises FY26 Outlook
AI Summary
Watts Water Technologies reported record second-quarter 2026 results, with net sales climbing 19% to $763 million and diluted EPS increasing 17% to $3.53. The company achieved double-digit organic growth across all regions, notably driven by strong demand in data center markets. Following this strong performance, Watts Water Technologies has raised its full-year 2026 sales and margin outlook, anticipating continued profitable growth.
Key Highlights
- Net sales reached $763 million, up 19% reported and 12% organically year-over-year.
- Diluted EPS was $3.53, an increase of 17%; adjusted diluted EPS rose 18% to $3.66.
- Operating margin was 20.2% (down 80 bps); adjusted operating margin was 21.0% (down 60 bps).
- Americas sales increased 17% reported and 12% organically, driven by data center growth.
- Europe sales grew 12% reported and 9% organically, with segment margin up 160 bps.
- APMEA sales surged 57% reported and 31% organically, primarily due to China data center growth.
- Operating cash flow for the first six months was $121 million, with free cash flow of $98 million.
- Full-year 2026 sales outlook increased to 14%-17% reported and 8%-11% organic growth.
Price Impact
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