Watts Water Technologies (WTS) FY2025 results: revenue $2.4 billion, up 8.3% on the year
Watts Water Technologies Inc. (WTS) reported revenue of $2.4 billion for fiscal 2025, the year ended 31 December 2025, up 8.3% on the year before. Net income was $341 million, up 17.0%, and diluted earnings per share $10.17. The figures are the company's own, from the 10-K it filed with the SEC on 23 February 2026.
this yearthe year beforeHover a bar for its figure.
The year in brief
What management said about the year
Guidance figures: 6 new.
- Record fourth quarter and full year sales: Fourth quarter sales were $625.1 million, up 16% reported and 8% organic. Full year sales were $2,438.5 million, up 8% reported and 5% organic.
- Americas sales and margin grew: Americas sales were $467 million, up 17% reported and 10% organic, mainly from favorable price and an extra shipping day. Segment margin rose 150 basis points.
- Europe sales rose on currency: Europe sales were $120 million, up 10% reported, with favorable currency adding 9 points. Organic sales rose 1%.
- Three deals closed in November: Haws closed November 4, as announced with the third quarter results. Superior Boiler closed November 14 and Saudi Cast November 29.
- Free cash flow rose to $356 million: Full year operating cash flow was $402 million, up 11%, and free cash flow was $356 million, up 7%. Lower tax payments under the One Big Beautiful Bill Act supported the increase.
From this 10-K
Watts Water Technologies makes products and solutions that manage the flow of water and energy into, through and out of commercial and residential buildings, with a focus on safety and regulation, energy efficiency and water conservation. It reports three geographic segments: the Americas, Europe, and Asia-Pacific, Middle East and Africa (APMEA). The filing states that the majority of its sales are for products approved under standards built into state and municipal plumbing, heating, building and fire protection codes.
The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025
Income statement (profit and loss)
| $ million | FY2025 | FY2024 | FY2023 | On the year | Last 8 years |
|---|---|---|---|---|---|
| Revenue | 2,438 | 2,252 | 2,056 | +8.3% | |
| Cost of revenue | 1,232 | 1,190 | 1,095 | +3.6% | |
| Gross profit | 1,206 | 1,062 | 961 | +13.6% | |
| Gross margin | 49.5% | 47.2% | 46.7% | ||
| Research and development | 73.5 | 70.4 | 67.1 | +4.4% | |
| Selling, general and administrative | 734 | 664 | 604 | +10.5% | |
| Operating income | 448 | 390 | 351 | +14.8% | |
| Operating margin | 18.4% | 17.3% | 17.1% | ||
| Interest expense | 10.8 | 14.7 | 8.2 | -26.5% | |
| Pre-tax income | 446 | 386 | 350 | +15.5% | |
| Income tax | 105 | 94.8 | 87.4 | +10.8% | |
| Effective tax rate | 23.6% | 24.6% | 25.0% | ||
| Net income | 341 | 291 | 262 | +17.0% | |
| Net margin | 14.0% | 12.9% | 12.7% | ||
| Diluted EPS | $10.17 | $8.69 | $7.82 | +17.0% |
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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 | FY2025 | FY2024 | FY2023 | On the year | Last 8 years |
|---|---|---|---|---|---|
| Operating cash flow | 402 | 361 | 311 | +11.3% | |
| Capital expenditure | 45.7 | 35.3 | 29.7 | +29.5% | |
| Free cash flow | 356 | 326 | 281 | +9.4% | |
| Free cash flow margin | 14.6% | 14.5% | 13.7% | ||
| Cash from investing | -303 | -125 | -343 | ||
| Cash from financing | -96.9 | -190 | 69.0 | ||
| Depreciation and amortisation | 56.8 | 54.4 | 43.3 | +4.4% | |
| Share-based compensation | 21.2 | 19.5 | 20.2 | +8.7% | |
| Buybacks | 16.0 | 17.0 | 16.0 | -5.9% | |
| Dividends paid | 66.9 | 55.5 | 46.5 | +20.5% | |
| Dividend per share | $1.99 | $1.65 | $1.38 | +20.6% | |
| Diluted shares, weighted | 34m | 34m | 34m | 0.0% |
Balance sheet
| $ million | FY2025 | FY2024 | FY2023 | On the year | Last 8 years |
|---|---|---|---|---|---|
| Shareholders' equity | 2,028 | 1,708 | 1,513 | +18.7% | |
| Debt | 198 | 197 | 298 | +0.4% | |
| Operating lease liabilities | 79.1 | 38.1 | 43.8 | +107.6% | |
| Finance lease liabilities | 1.4 | 1.8 | 1.2 | -22.2% | |
| Other liabilities | 575 | 452 | 453 | +27.2% | |
| Total liabilities and equity | 2,881 | 2,397 | 2,309 | +20.2% | |
| Fixed assets | 297 | 255 | 248 | +16.6% | |
| Goodwill | 859 | 715 | 693 | +20.1% | |
| Intangible assets | 295 | 235 | 216 | +25.4% | |
| Cash and equivalents | 406 | 387 | 350 | +4.8% | |
| Receivables | 294 | 253 | 260 | +16.1% | |
| Inventory | 524 | 392 | 399 | +33.7% | |
| Other assets | 207 | 160 | 143 | +29.2% | |
| Total assets | 2,881 | 2,397 | 2,309 | +20.2% |
10-K for the year ended 31 December 2025, filed 23 February 2026: the filing.