Earnings Releases·Nov 4, 2026, 4:42 PM ET

Watts Water Technologies — Third Quarter 2026 Earnings Summary

Net sales rose 19% reported (12% organic) to $728.0 million, while diluted EPS surged 77% to $4.34 and operating margin expanded 800 basis points to 26.2%.
Full-year 2026 guidance was raised to 17–18% reported sales growth and 11–12% organic growth, with expected operating margins of 21.6–21.7%.
Americas, Europe, and APMEA segments all posted margin expansion driven by data center demand and price realization, with APMEA sales jumping 54% reported.
Net debt to capitalization improved to -17.6% from -11.4%, and long-term debt decreased to $98.2 million, while $117 million remains available for share repurchases.
Outlook incorporates estimated tariff impacts and excludes tariff refunds, which contributed $39 million to reported operating income but were excluded from adjusted margins.