Stock Information
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WTSWatts Water Technologies, Inc.

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Company Info

CEO

Robert J. Pagano

Location

Massachusetts, USA

Exchange

NYSE

Website

https://watts.com

Summary

Watts Water Technologies, Inc.

Company Info

CEO

Robert J. Pagano

Location

Massachusetts, USA

Exchange

NYSE

Website

https://watts.com

Summary

Watts Water Technologies, Inc.

AI Insights for WTS
2 min read

Quick Summary

Watts Water Technologies, Inc. is a global leader specializing in the design, manufacture, and sale of products, solutions, and systems to manage and conserve the flow of fluids and energy within buildings. The company serves a range of customers including residential, commercial, and institutional clients by providing important infrastructure and safety solutions for plumbing, heating, and water quality management. Watts' customer base includes plumbing contractors, wholesalers, original equipment manufacturers, facility owners and managers, and utility companies. The company is recognized for its commitment to sustainability, water conservation, and technological innovation, making it a trusted supplier in construction and maintenance. Headquartered in North Andover, Massachusetts, Watts operates a diversified portfolio through both organic growth and strategic acquisitions, strengthening its presence in the global construction materials industry.

The Bull Case

  • Watts Water Technologies' key strengths include its strong market position as a leading global supplier of water management and conservation products, as well as its reputable brand recognized for reliability and sustainability.
  • The company benefits from a diversified product portfolio, bolstered by successful strategic acquisitions that expand its global reach and customer base.
  • Continued innovation in smart water management technologies, as evidenced by platforms like Nexa, gives Watts a competitive edge.
  • Improving margins, robust cash flow, and recognition for environmental leadership strengthen its long-term prospects.
  • Additionally, effective supply chain management and the ability to adapt to regulatory changes solidify the company's strengths.

The Bear Case

  • Despite its achievements, Watts faces certain vulnerabilities.
  • Its exposure to weak European markets has led to flat or declining organic sales in those regions, which could constrain growth.
  • Acquisitions, although strategically beneficial, sometimes deliver only modest margin improvements or create short-term integration challenges.
  • The company’s relatively high price-to-earnings and price-to-book ratios may signal overvaluation relative to peers.
  • Additionally, Watts has limited scale compared to some larger, more diversified competitors, which can restrict bargaining power and operational flexibility.

Key Risks

  • The company faces several risks that could impact its financial performance.
  • Persistent weakness in European markets poses a ongoing threat to overall revenue growth.
  • Supply chain disruptions or cost escalations, especially due to tariffs or global economic uncertainty, could erode margins.
  • Competitive pressures from both established players and new technological entrants could lead to price wars or diminished market share.

What to Watch

UpcomingIn the most recent quarter, Watts Water Technologies reported revenue of $611.7 million, reflecting a 12.5% year-over-year increase, and an adjusted EPS of $2.50, up 23% over the same period.
UpcomingThe company successfully closed the acquisition of I-CON Systems in January 2025, enhancing its portfolio in specialized drainage and plumbing solutions.
UpcomingThough organic sales showed a slight decline, significant gains were achieved through integration of other acquisitions such as Hawes Corp.
ExpectedLooking ahead to the next quarter, Watts Water Technologies is anticipated to have slightly slower growth, with sales guidance suggesting between a 3% decline and 2% growth.

Price Drivers

  • The stock price of Watts Water Technologies is influenced by several key factors.
  • These include the company's quarterly earnings results, overall revenue growth, and improvements in operating margins, all of which have positively surprised analysts recently.
  • Strategic acquisitions and their effective integration, particularly in expanding the company's product portfolio, also impact valuation and investor sentiment.
  • Macroeconomic trends such as the performance of global construction markets, supply chain health, and regulatory shifts, such as new tariffs impacting costs, can drive stock volatility.

Recent News

  • Watts Water Technologies has been prominently featured in news for its Q3 performance, which exceeded analyst expectations on both revenue and earnings.
  • The company announced the successful acquisition of Josam Company, expanding its drainage and plumbing offerings, and closed the purchase of I-CON Systems to strengthen its commercial product suite.
  • Watts was also recognized by Newsweek as one of the World's Greenest Companies, highlighting its ongoing sustainability initiatives.
  • The addition of Suzanne L.

Market Trends

  • Broader market trends influencing Watts Water Technologies include the increasing emphasis on sustainability, water conservation, and infrastructure resilience worldwide.
  • The construction materials sector is experiencing moderate growth, with particular strength seen in North America and sectors like data centers, while Europe remains soft.
  • Rising regulatory standards related to water safety, smart building technology adoption, and environmental performance are shaping product demand.
  • Tariffs, inflation, and supply chain pressures remain top-of-mind for industry participants.

AI-generated summary. Not investment advice. DYOR.

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Topics: Company overview • Products • Competitors • Strengths & Risks

Symbol's posts

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@MasonCarter10 2 weeks ago

Watts Water Shows Consistent Growth in Latest Quarter

Watts Water Shows Consistent Growth in Latest Quarter

just dropped earnings, and it’s one of those steady industrial stories that doesn’t always make the loudest headlines but quietly keeps grinding. Revenue and profit both edged up, and guidance for 2026 looks stable, not explosive, but not disappointing either. This isn’t a high-beta tech play or a meme-worthy ticker, it’s more like the kind of company you want in your bag when markets get choppy. Water infrastructure and essentials don’t go out of style because the tape gets red. If you’re trading, this one won’t give you big swings. It’s more of a slow and steady kind of runner, often under-appreciated until the market resets and rotates back into quality names with real cash flow. So what’s the vibe? Riding the stable growth story, or looking for something with more heat?

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