| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 763.20 | 12.7% | 18.6% |
| Total Income | 763.20 | 12.7% | 18.6% |
| Expenditure | 609.20 | 11.9% | 19.8% |
| PBT | 153.70 | 17.0% | 14.1% |
| Net Profit | 118.30 | 18.8% | 17.2% |
| OPM | 20.18% | 0.54pp | 0.84pp |
| NPM | 15.50% | 0.80pp | 0.17pp |
| EPS | 3.53 | 18.9% | 17.3% |
Watts Water Technologies Reports Record Second Quarter 2026 Results
06 Aug 2026 · 6 Aug, 2:08 am
Summary
Watts Water Technologies announced record results for the second quarter of 2026, with net sales reaching $763 million, up 19% year-over-year and 12% organically. The company reported a diluted EPS of $3.53, a 17% increase from the previous year. Management highlighted strong performance driven by diversified portfolios, disciplined execution, and growth in areas like data centers. Based on this performance, Watts Water Technologies is increasing its full-year 2026 sales and margin outlook.
Key Highlights
- 1
Watts Water Technologies reported record net sales of $763 million for the second quarter of 2026, an increase of 19% on a reported basis and 12% organically compared to the prior year.
- 2
The company achieved a reported operating margin of 20.2% and an adjusted operating margin of 21.0% for Q2 2026.
- 3
Diluted Earnings Per Share (EPS) for the second quarter of 2026 was $3.53, a 17% increase year-over-year, with adjusted diluted EPS rising 18% to $3.66.
- 4
Sales in the Americas increased 17% on a reported basis and 12% organically, driven by favorable price realization and higher volume from data center growth.
- 5
Europe segment sales grew 12% on a reported basis and 9% organically, attributed to higher volumes and favorable price realization.
- 6
APMEA segment sales saw a significant increase of 57% on a reported basis and 31% organically, primarily due to higher volume driven by data center growth in China.
- 7
The company is increasing its full year 2026 sales and margin outlook, expecting reported sales growth between 14% to 17% and organic sales growth of 8% to 11%.
Management Comments
Robert J. Pagano Jr.
We delivered another strong quarter, achieving record sales, operating income and EPS, with double-digit organic growth. These results reflect the strength of our diversified portfolio, disciplined execution, and our ability to capture long-term growth opportunities. Building on our first half performance, we are increasing our full year 2026 sales and margin outlook. While the trade and geopolitical environments remain dynamic, our teams continue to execute well and remain focused on serving our customers. Through continued investments in innovation, digital capabilities and the One Watts Performance System, we are enhancing our competitive position and expanding opportunities for profitable growth across our portfolio. This includes attractive markets such as data centers, where our differentiated capabilities continue to drive strong customer demand and where we see significant opportunity ahead. Supported by our healthy balance sheet, consistent cash generation and disciplined capital allocation, we believe we are well positioned to continue delivering value for our customers and shareholders. I would like to thank the Watts team for their commitment and dedication, which continue to drive our success.
Informational and educational content only. Not investment advice.