Core Insights - Watts Water (WTS) reported revenue of $611.7 million for the quarter ended September 2025, marking a year-over-year increase of 12.5% and exceeding the Zacks Consensus Estimate by 5.9% [1] - The earnings per share (EPS) for the same period was $2.50, up from $2.03 a year ago, representing a surprise of 9.17% over the consensus estimate of $2.29 [1] Revenue Performance - Geographic Revenue in the Americas reached $464.1 million, surpassing the average estimate of $433.03 million, with a year-over-year change of +16% [4] - Revenue from the APMEA region was reported at $36 million, slightly below the average estimate of $37.73 million, reflecting a year-over-year decline of -0.8% [4] - European revenue totaled $111.6 million, exceeding the estimated $104.6 million, with a year-over-year increase of +4% [4] Stock Performance - Over the past month, shares of Watts Water have returned -1.2%, while the Zacks S&P 500 composite has increased by +1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - Watts Water (WTS) reported quarterly earnings of $2.5 per share, exceeding the Zacks Consensus Estimate of $2.29 per share, and up from $2.03 per share a year ago, representing an earnings surprise of +9.17% [1] - The company achieved revenues of $611.7 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 5.90%, and an increase from $543.6 million year-over-year [2] - Watts Water's stock has increased by approximately 35.1% year-to-date, outperforming the S&P 500's gain of 15.1% [3] Earnings Outlook - The future performance of Watts Water's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is $2.06 on revenues of $561.06 million, and for the current fiscal year, it is $9.86 on revenues of $2.34 billion [7] Industry Context - The Instruments - Control industry, to which Watts Water belongs, is currently ranked in the top 24% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Net sales for Q3 2025 were $611.7 million, representing a 13% increase compared to Q3 2024, with organic sales growth of 9%[5] - Operating income increased to $111.4 million, up 20% year-over-year, with an operating margin of 18.2%, an increase of 110 basis points[4] - Diluted earnings per share (EPS) rose to $2.45, a 19% increase from the previous year, while adjusted diluted EPS increased by 23% to $2.50[4] - Net income for the nine months ended September 28, 2025, was $257.1 million, compared to $223.6 million for the same period in 2024, reflecting an increase of 15.0%[22] - Operating income for the nine months ended September 28, 2025, was $334.4 million, up from $301.4 million in the same period of 2024, indicating an increase of 10.9%[27] - Adjusted operating income for the nine months ended September 28, 2025, was $358.5 million, compared to $308.7 million in the same period of 2024, an increase of 16.2%[27] - Segment earnings for Q3 2025 were $130.6 million, compared to $105.6 million in Q3 2024, reflecting a significant increase in profitability[28] Sales and Revenue Growth - The company is raising its full year 2025 sales outlook to an increase of 7% to 8% and organic sales growth to 4% to 5%[12] - Sales in the Americas reached $464 million, a 16% increase on a reported basis and 13% organically, driven by favorable pricing and demand[7] - European sales were $112 million, up 4% on a reported basis but down 2% organically, impacted by lower volumes despite favorable foreign exchange movements[8] - Total segment net sales for Q3 2025 reached $642.3 million, a 12.5% increase from $568.7 million in Q3 2024[28] - Net sales from external customers for the nine months ended September 28, 2025, were $1,813.4 million, up 5.9% from $1,711.8 million in the same period of 2024[29] Cash Flow and Financial Position - Operating cash flow for the first nine months of 2025 was $247 million, resulting in free cash flow of $216 million, an increase from $204 million in the same period last year[10] - Cash and cash equivalents at the end of the period were $457.7 million, compared to $303.9 million at the end of September 29, 2024, marking a significant increase of 50.5%[22] - Free cash flow for the nine months ended September 28, 2025, was $216.0 million, compared to $204.2 million in the same period of 2024[30] - The company reported a net cash provided by operating activities of $247.3 million for the nine months ended September 28, 2025, compared to $221.6 million for the same period in 2024, an increase of 11.6%[22] - The company reported a net debt of $(260.2) million as of September 28, 2025, compared to $(189.9) million at the end of 2024, indicating a stronger cash position[33] Asset and Equity Growth - Total assets increased to $2,725.4 million as of September 28, 2025, up from $2,397.0 million at December 31, 2024, representing a growth of 13.7%[20] - Total current assets rose to $1,313.9 million as of September 28, 2025, compared to $1,083.5 million at December 31, 2024, reflecting a growth of 21.3%[20] - Total stockholders' equity increased to $1,956.8 million as of September 28, 2025, up from $1,707.9 million at December 31, 2024, representing a growth of 14.6%[20] Operational Efficiency - Full year operating margin is expected to be between 18.1% and 18.2%, reflecting an increase of 80 to 90 basis points[12] - The operating margin for the third quarter of 2025 improved to 18.2%, up from 17.1% in the third quarter of 2024[27] - The adjusted operating margin for 2025 is forecasted to be between 19.1% to 19.2%, reflecting ongoing operational efficiencies[35] Corporate Actions - The acquisition of Haws Corporation was completed on November 4, 2025, enhancing the company's product offerings in emergency safety and hydration solutions[4] - The company repurchased approximately 15,000 shares of Class A common stock for $3.9 million during Q3 2025, with $133 million remaining under the stock repurchase program[11] Foreign Exchange Impact - The company experienced a foreign exchange impact of (1.1)% on total net sales for Q3 2025, highlighting the challenges posed by currency fluctuations[29]

Core Insights - Watts Water Technologies reported strong third quarter results for 2025, exceeding expectations due to robust performance in the Americas, which offset market weaknesses in Europe [2][6][7] - The company announced the acquisition of Haws Corporation, enhancing its product offerings in emergency safety and hydration solutions [2][6] - The company is optimistic about its ability to navigate trade challenges and is increasing its full-year sales and margin outlook for 2025 [2][14] Financial Performance - Net sales for Q3 2025 reached $611.7 million, a 13% increase from $543.6 million in Q3 2024, with organic sales growth of 9% [5][6] - Operating income rose to $111.4 million, up 20% from $93.2 million in the previous year, with an operating margin of 18.2%, an increase of 110 basis points [5][8] - Adjusted diluted earnings per share increased to $2.50, a 23% rise from $2.03 in Q3 2024 [5][6] Regional Performance - In the Americas, sales were $464 million, a 16% increase on a reported basis and 13% organically, driven by favorable pricing and demand [9][10] - European sales reached $112 million, a 4% increase on a reported basis but a 2% decrease organically, impacted by lower volumes and market weakness [10] - APMEA (Asia-Pacific, Middle East, and Africa) sales were $36 million, showing a 1% decrease on a reported basis, with flat organic sales [11] Cash Flow and Capital Allocation - For the first nine months of 2025, operating cash flow was $247 million, with free cash flow of $216 million, compared to $204 million in the same period last year [12] - The company repurchased approximately 15,000 shares for $3.9 million during Q3 2025, with $133 million remaining under the stock repurchase program [13] Full Year 2025 Outlook - The company expects reported sales to increase between 7% to 8% and organic sales to grow between 4% to 5% for the full year [14] - Operating margin is projected to be between 18.1% and 18.2%, with adjusted operating margin expected between 19.1% and 19.2% [14]

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Core Points - Watts Water Technologies, Inc. declared a quarterly dividend of $0.52 per share on its Class A and Class B Common Stock, to be paid on December 15, 2025, to stockholders of record as of December 1, 2025 [1][8]. Company Overview - Watts Water Technologies, Inc. is a global manufacturer headquartered in the USA, providing a broad range of plumbing, heating, and water quality products [2]. - The company offers innovative solutions aimed at controlling the efficiency, safety, and quality of water across commercial, residential, and industrial applications [2]. Upcoming Events - Watts Water Technologies will participate in and present at the 2025 Baird Global Industrial Conference [4][6]. - The company has also announced its third quarter 2025 earnings release and earnings conference call [8]. Recognition - Watts Water Technologies was named one of "America's Greenest Companies 2026" by Newsweek [7].

Core Points - Watts Water Technologies, Inc. will participate in the 2025 Baird Global Industrial Conference on November 12, 2025, at 7:55 AM Central Time in Chicago [1] - Key executives attending include Robert J. Pagano, Jr. (CEO), Ryan S. Lada (CFO), Andre Dhawan (COO), and Diane McClintock (SVP FP&A and Investor Relations) [1] Company Overview - Watts Water Technologies, Inc. is a global manufacturer based in the USA, providing a wide range of plumbing, heating, and water quality products [2] - The company offers innovative solutions for commercial, residential, and industrial applications [2]

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Core Insights - Watts Water Technologies, Inc. has been recognized as one of "America's Greenest Companies 2026" by Newsweek [1] Group 1 - The recognition highlights the company's commitment to sustainability and environmental responsibility [1]

Core Viewpoint - Watts Water (WTS) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system is effective for individual investors as it reflects changes in earnings estimates, which are closely correlated with near-term stock price movements [2][3]. - Institutional investors often adjust their valuations based on earnings estimates, leading to significant stock price movements when they buy or sell large quantities [3]. Company Performance and Outlook - The upgrade for Watts Water suggests an improvement in its underlying business, which should encourage investors to drive the stock price higher [4]. - For the fiscal year ending December 2025, Watts Water is expected to earn $9.86 per share, with a 4.6% increase in the Zacks Consensus Estimate over the past three months [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [8][9].