| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 677.30 | 21.4% |
| Total Income | 677.30 | 21.4% |
| Expenditure | 544.30 | 15.7% |
| PBT | 131.40 | 51.2% |
| Net Profit | 99.60 | 34.6% |
| OPM | 19.64% | 3.92pp |
| NPM | 14.71% | 1.44pp |
| EPS | 2.97 | 34.4% |
Watts Water Technologies Reports Record Q1 2026 Results
07 May 2026 · 7 May, 2:17 am
Summary
Watts Water Technologies reported a strong start to 2026, achieving record first quarter net sales of $677 million, which represents a 21% increase on a reported basis and 12% organically. The operating margin improved significantly, rising 390 bps to 19.6%. Diluted earnings per share also saw substantial growth, increasing by 34% to $2.97. The company is maintaining its full year 2026 outlook, citing a dynamic macro environment.
Key Highlights
- 1
Watts Water Technologies reported net sales of $677 million, up 21% on a reported basis for the first quarter of 2026.
- 2
Organic sales increased by 12% in the first quarter of 2026, driven by favorable price and incremental volume from data center growth.
- 3
The company's operating margin increased by 390 bps to 19.6% in the first quarter of 2026.
- 4
Diluted EPS for the first quarter of 2026 was $2.97, up 34% compared to the first quarter of 2025.
- 5
Adjusted diluted EPS increased by 28% to $3.04 in the first quarter of 2026.
- 6
Watts Water Technologies announced a 21% increase in quarterly dividend payments to $0.63 per share.
- 7
The company is maintaining its full year 2026 outlook.
Management Comments
Robert J. Pagano Jr.
We delivered a strong start to 2026, with organic growth across all regions and record first quarter net sales, operating income, operating margin and EPS. This is a direct result of the strong execution by the Watts team, and I would like to thank our employees who have remained diligent and focused on delivering quality and value to our customers. We are actively managing through geopolitical and trade-related uncertainties while advancing our strategic priorities. We continue to invest in higher-growth opportunities, including data centers and digital solutions, and are driving productivity through automation to support efficiency and margin performance through the One Watts Performance System. While we are pleased with our strong performance to start the year, the macro environment remains dynamic. As a result, we are maintaining our full year 2026 outlook. Our proven operating model and execution track record position us well, and supported by a strong balance sheet and solid cash flow generation, we remain focused on disciplined capital allocation and delivering sustainable long-term value.
Informational and educational content only. Not investment advice.