WATTS WATER TECHNOLOGIES INC SEC 10-Q Report

Watts Water Technologies Inc., a leading provider of residential and commercial flow control, HVAC and gas products, drainage and water re-use products, and water quality solutions, has released its Form 10-Q report for the second quarter of 2025. The report highlights significant financial growth and robust operational performance across all geographic segments.

Financial Highlights

• Net Sales: $643.7 million, reflecting an increase from $597.3 million in the same quarter of the previous year, driven by growth across all geographic segments.
• Gross Profit: $325.9 million, up from $284.8 million, indicating improved cost management and pricing strategies.
• Operating Income: $135.3 million, compared to $111.5 million, showcasing enhanced operational efficiency and cost control measures.
• Net Income: $100.9 million, an increase from $82.0 million, highlighting strong bottom-line performance.
• Net Income Per Share: $3.01, up from $2.44, reflecting the company's ability to deliver higher earnings per share through effective financial management.

Business Highlights

• Revenue Segments: The company operates in three geographic segments: Americas, Europe, and APMEA. Each segment sells similar products, including residential and commercial flow control, HVAC and gas products, drainage and water re-use products, and water quality products. The Americas segment reported net sales of $498.5 million, Europe $111.0 million, and APMEA $34.2 million for the second quarter of 2025.
• Geographical Performance: The Americas segment showed strong performance with net sales of $498.5 million, driven by robust demand across product categories. Europe and APMEA segments also contributed with sales of $111.0 million and $34.2 million, respectively, indicating stable market conditions.
• Sales Units: The company reported significant sales in the wholesale distribution channel, with $330.0 million in the Americas, $76.7 million in Europe, and $23.8 million in APMEA for the second quarter of 2025. OEM and specialty channels also showed strong performance, contributing to the overall sales growth.
• New Product Launches: The acquisition of EasyWater, a provider of water quality solutions, aligns with the company's focus on expanding its portfolio of high-value water quality solutions, indicating potential new product offerings in this category.
• New Production Initiatives: The company is undergoing a restructuring program in France, which includes the shutdown of a manufacturing facility in Hautvillers and the relocation of production activities to other facilities in Europe. This is expected to streamline operations and reduce costs.
• Future Outlook: The company anticipates annual pre-tax savings of approximately $3.0 million from the restructuring program in France, with full realization expected by the end of 2026. The company continues to focus on growth, innovation, and expanding its product offerings, particularly in the water quality segment.

SEC Filing: WATTS WATER TECHNOLOGIES INC [ WTS ] - 10-Q - Aug. 07, 2025