Watts Water Technologies (WTS) FY2022 results: revenue $2.0 billion, up 9.4% on the year

Watts Water Technologies Inc. (WTS) reported revenue of $2.0 billion for fiscal 2022, the year ended 31 December 2022, up 9.4% on the year before. Net income was $252 million, up 51.8%, and diluted earnings per share $7.48. The figures are the company's own, from the 10-K it filed with the SEC on 21 February 2023.

Revenue

$2.0 billion

+9.4% on the year

FY2015FY2022

Operating margin

15.9%

13.2% a year earlier

FY2015FY2022

Net income

$252 million

+51.8% on the year

FY2015FY2022

Diluted EPS

$7.48

+53.3% on the year

FY2015FY2022

this yearthe year beforeHover a bar for its figure.

The year in brief

The four quarters: Q1 FY2022 · Q2 FY2022 · Q3 FY2022 · Q4 FY2022

Income statement (profit and loss)

$ million	FY2022	FY2021	FY2020	On the year
Revenue	1,980	1,809	1,509	+9.4%
Cost of revenue	1,105	1,042	883	+6.1%
Gross profit	874	767	625	+14.0%
Gross margin	44.2%	42.4%	41.5%
Research and development	59.4	45.6	42.2	+30.3%
Selling, general and administrative	549	508	434	+8.0%
Operating income	315	240	181	+31.5%
Operating margin	15.9%	13.2%	12.0%
Interest expense	7.0	6.3	13.3	+11.1%
Pre-tax income	308	234	167	+31.4%
Income tax	56.1	68.4	52.7	-18.0%
Effective tax rate	18.2%	29.2%	31.6%
Net income	252	166	114	+51.8%
Net margin	12.7%	9.2%	7.6%
Diluted EPS	$7.48	$4.88	$3.36	+53.3%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	FY2022	FY2021	FY2020	On the year
Operating cash flow	224	181	229	+23.9%
Capital expenditure	28.1	26.7	43.8	+5.2%
Free cash flow	196	154	185	+27.1%
Free cash flow margin	9.9%	8.5%	12.3%
Cash from investing	-22.9	-30.7	-54.8
Cash from financing	-122	-119	-182
Depreciation and amortisation	39.7	45.1	46.5	-12.0%
Share-based compensation	18.4	22.9	12.7	-19.7%
Buybacks	69.4	16.0	28.9	+333.8%
Dividends paid	39.5	34.3	31.4	+15.2%
Dividend per share	$1.16	$1.01	$0.92	+14.9%
Diluted shares, weighted	34m	34m	34m	-0.9%

Balance sheet

$ million	FY2022	FY2021	FY2020	On the year
Shareholders' equity	1,301	1,173	1,070	+10.9%
Debt	148	142	200	+4.0%
Operating lease liabilities	38.1	42.0	47.0	-9.3%
Finance lease liabilities	1.4	1.9	2.9	-26.3%
Other liabilities	443	497	418	-10.8%
Total liabilities and equity	1,931	1,856	1,738	+4.1%
Fixed assets	197	201	212	-1.9%
Goodwill	592	601	602	-1.4%
Intangible assets	114	129	142	-11.6%
Cash and equivalents	311	242	219	+28.4%
Receivables	234	221	198	+5.8%
Inventory	376	371	264	+1.3%
Other assets	108	92.0	102	+17.2%
Total assets	1,931	1,856	1,738	+4.1%

10-K for the year ended 31 December 2022, filed 21 February 2023: the filing.