Watts Water Technologies (WTS) Q4 FY2025 earnings: revenue $625 million, up 15.7% on the year

Watts Water Technologies Inc. (WTS) reported revenue of $625 million for Q4 FY2025, the quarter ended 31 December 2025, up 15.7% on the same quarter a year earlier. Net income was $84 million, up 24.0% on the year, and diluted earnings per share $2.50. The figures are the company's own, from the 10-K it filed with the SEC on 23 February 2026.

Revenue$625 millionup 15.7%

Net income$84 millionup 24.0%

Diluted EPS$2.50

QuarterQ4 FY2025ended 31 December 2025

The quarter, against the one before and a year earlier

Line	Q4 FY2025	Q3 FY2025	Q4 FY2024	Change on the year
Revenue	625	612	540	+15.7%
Cost of revenue	316	313	288	+9.8%
Gross profit	309	298	253	+22.4%
Gross margin	49.5%	48.8%	46.7%
Research and development	20.5	18.8	16.4	+25.0%
Selling, general and administrative	194	185	163	+19.5%
Operating income	114	111	89.0	+27.8%
Operating margin	18.2%	18.2%	16.5%
Interest expense	2.7	2.7	2.8	-3.6%
Pre-tax income	113	111	89.0	+27.2%
Income tax	29.5	28.8	21.5	+37.2%
Effective tax rate	26.1%	25.9%	24.2%
Net income	83.7	82.2	67.5	+24.0%
Net margin	13.4%	13.4%	12.5%
Diluted EPS	$2.50	$2.45	$2.02	+23.8%

$ million except per share.

Fourth quarters are the year less the first three quarters. 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 and capital returned

Line	Q4 FY2025	Q3 FY2025	Q4 FY2024	Change on the year
Operating cash flow	155	122	140	+10.9%
Capital expenditure	14.4	11.5	12.0	+20.0%
Free cash flow	140	111	128	+10.0%
Free cash flow margin	22.4%	18.1%	23.6%
Cash from investing	-186	-11.5	-12.0	n/a
Cash from financing	-22.4	-22.2	-34.3	n/a
Depreciation and amortisation	14.4	14.2	13.6	+5.9%
Share-based compensation	6.1	5.6	4.0	+52.5%
Buybacks	4.2	3.9	4.0	+5.0%
Dividend per share	n/a	$0.52	n/a	n/a
Diluted shares, weighted	34m	34m	34m	+0.0%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q4 FY2025	Q3 FY2025	Q4 FY2024	Change on the year
Shareholders' equity	2,028	1,957	1,708	+18.7%
Debt	198	198	197	+0.4%
Operating lease liabilities	79.1	n/a	38.1	+107.6%
Finance lease liabilities	1.4	n/a	1.8	-22.2%
Other liabilities	575	571	452	+27.2%
Total liabilities and equity	2,881	2,725	2,397	+20.2%
Fixed assets	297	267	255	+16.6%
Goodwill	859	781	715	+20.1%
Intangible assets	295	247	235	+25.4%
Cash and equivalents	406	458	387	+4.8%
Receivables	294	324	253	+16.1%
Inventory	524	459	392	+33.7%
Other assets	207	190	160	+29.2%
Total assets	2,881	2,725	2,397	+20.2%

Quarterly results, the last 12 quarters

	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	504	548	571	597	544	540	558	644	612	625	677	763
Cost of revenue	270	292	303	312	286	288	286	318	313	316	351	389
Gross profit	234	256	268	285	257	253	272	326	298	309	326	374
Gross margin	46%	47%	47%	48%	47%	47%	49%	51%	49%	49%	48%	49%
R&D	15.2	19.8	18.5	17.9	17.6	16.4	16.8	17.4	18.8	20.5	19.2	20.9
SG&A	147	173	170	173	159	163	168	187	185	194	193	214
Operating income	87.1	78.7	96.7	112	93.2	89.0	87.7	135	111	114	133	154
Operating margin	17%	14%	17%	19%	17%	16%	16%	21%	18%	18%	20%	20%
Interest expense	1.2	3.8	4.2	4.1	3.6	2.8	2.7	2.7	2.7	2.7	2.6	2.2
Pre-tax income	88.1	77.3	95.2	110	92.3	89.0	86.9	135	111	113	131	154
Tax rate	25%	28%	24%	25%	25%	24%	15%	25%	26%	26%	24%	23%
Net income	65.8	55.7	72.6	82.0	69.1	67.5	74.0	101	82.2	83.7	99.6	118
Net margin	13%	10%	13%	14%	13%	12%	13%	16%	13%	13%	15%	16%
Diluted EPS	$1.96	$1.67	$2.17	$2.44	$2.06	$2.02	$2.21	$3.01	$2.45	$2.50	$2.97	$3.53
Operating cash flow	100	110	45.6	85.3	90.7	140	55.2	69.7	122	155	17.9	103
Capital expenditure	7.4	10.7	10.1	6.8	6.4	12.0	9.6	10.2	11.5	14.4	11.3	11.3
Free cash flow	93.0	99.2	35.5	78.5	84.3	128	45.6	59.5	111	140	6.6	91.6
Buybacks	4.0	4.3	4.0	4.1	4.9	4.0	3.9	4.0	3.9	4.2	3.8	4.1
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS and diluted share count are from the company's results press release for that quarter, used where the release gives the same revenue and net income as the table. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. 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. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-K for the period ended 31 December 2025, filed 23 February 2026, accession 0001104659-26-018541: the filing on EDGAR. All of Watts Water Technologies Inc.'s filings: EDGAR company page.

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