Track market-moving stories before they get noisy

Posted by Defense World Staff on Jul 24th, 2026

California Public Employees Retirement System lifted its holdings in shares of Watts Water Technologies, Inc. (NYSE:WTS – Free Report) by 12.5% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 60,311 shares of the technology company’s stock after acquiring an additional 6,718 shares during the period. California Public Employees Retirement System owned 0.18% of Watts Water Technologies worth $17,508,000 at the end of the most recent reporting period.

Other institutional investors have also modified their holdings of the company. Future Fund LLC raised its position in Watts Water Technologies by 26.1% in the 1st quarter. Future Fund LLC now owns 9,438 shares of the technology company’s stock valued at $2,740,000 after purchasing an additional 1,953 shares during the last quarter. Assetmark Inc. boosted its stake in Watts Water Technologies by 211.3% during the 1st quarter. Assetmark Inc. now owns 165 shares of the technology company’s stock worth $48,000 after purchasing an additional 112 shares during the period. Illinois Municipal Retirement Fund grew its position in Watts Water Technologies by 12.0% during the 1st quarter. Illinois Municipal Retirement Fund now owns 13,134 shares of the technology company’s stock worth $3,813,000 after purchasing an additional 1,404 shares during the last quarter. Livforsakringsbolaget Skandia Omsesidigt grew its position in Watts Water Technologies by 20,071.4% during the 1st quarter. Livforsakringsbolaget Skandia Omsesidigt now owns 141,200 shares of the technology company’s stock worth $40,989,000 after purchasing an additional 140,500 shares during the last quarter. Finally, Nwam LLC acquired a new position in Watts Water Technologies in the first quarter valued at $206,000. 95.02% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes A number of equities research analysts have recently commented on the stock. Royal Bank Of Canada upped their target price on shares of Watts Water Technologies from $323.00 to $350.00 and gave the company a “sector perform” rating in a report on Thursday, July 16th. Barclays raised Watts Water Technologies from an “equal weight” rating to an “overweight” rating and raised their price target for the stock from $317.00 to $414.00 in a report on Tuesday, June 30th. TD Cowen boosted their price target on Watts Water Technologies from $275.00 to $320.00 and gave the company a “hold” rating in a research report on Thursday, July 2nd. Weiss Ratings downgraded Watts Water Technologies from a “buy (b+)” rating to a “buy (b)” rating in a research note on Monday, May 11th. Finally, Robert W. Baird set a $330.00 price objective on Watts Water Technologies in a research report on Friday, May 8th. Five investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $345.30.

Check Out Our Latest Stock Report on Watts Water Technologies

Watts Water Technologies Stock Performance Shares of WTS opened at $342.90 on Friday. The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.62 and a current ratio of 2.72. The stock has a market capitalization of $11.45 billion, a P/E ratio of 31.37, a P/E/G ratio of 2.95 and a beta of 1.14. The company’s fifty day moving average is $334.96 and its two-hundred day moving average is $314.35. Watts Water Technologies, Inc. has a 1 year low of $249.06 and a 1 year high of $394.54.

Watts Water Technologies (NYSE:WTS – Get Free Report) last released its earnings results on Wednesday, May 6th. The technology company reported $3.04 EPS for the quarter, topping the consensus estimate of $2.72 by $0.32. The company had revenue of $677.30 million during the quarter, compared to analysts’ expectations of $638.13 million. Watts Water Technologies had a net margin of 14.32% and a return on equity of 18.92%. The business’s revenue was up 21.4% on a year-over-year basis. During the same quarter last year, the business earned $2.37 EPS. On average, sell-side analysts predict that Watts Water Technologies, Inc. will post 12.23 earnings per share for the current year.

Watts Water Technologies Announces Dividend The company also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Investors of record on Monday, June 1st were given a $0.63 dividend. The ex-dividend date was Monday, June 1st. This represents a $2.52 dividend on an annualized basis and a yield of 0.7%. Watts Water Technologies’s dividend payout ratio (DPR) is presently 23.06%.

Insider Transactions at Watts Water Technologies In other news, Director Michael J. Dubose sold 398 shares of the stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $309.63, for a total transaction of $123,232.74. Following the completion of the transaction, the director directly owned 1,814 shares of the company’s stock, valued at approximately $561,668.82. This represents a 17.99% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider Elie Melhem sold 2,257 shares of the stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $301.00, for a total value of $679,357.00. Following the transaction, the insider directly owned 8,963 shares of the company’s stock, valued at approximately $2,697,863. This trade represents a 20.12% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.00% of the stock is owned by company insiders.

Watts Water Technologies Profile (Free Report)

Watts Water Technologies, Inc is a global manufacturer and distributor of flow control products and solutions designed to ensure the safe, efficient delivery and use of water. Founded in 1874 and headquartered in North Andover, Massachusetts, the company has built a reputation for engineering innovation in residential, commercial and industrial plumbing, heating, cooling and water treatment systems. Watts operates through a comprehensive portfolio of brands and product lines that address application-specific requirements in water safety, pressure regulation, flow control and filtration.

The company’s product offerings span backflow preventers, pressure reducing valves, relief valves and steam traps, as well as hydronic balancing and temperature control devices for heating systems.

Read More Five stocks we like better than Watts Water Technologies Premium Retail’s Stress Test Is Separating Winners From Losers D-Wave Quantum or a Quantum ETF: Which Is the Better Bet? GE Vernova Just Sent a Mixed AI Signal to Investors Alphabet Crushed Earnings, But One Number Spooked the Market Want to see what other hedge funds are holding WTS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Watts Water Technologies, Inc. (NYSE:WTS – Free Report).

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Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Watts Water (WTS - Free Report) , which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Watts Water currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for WTS that show why this maker of valves for plumbing, heating and water needs shows promise as a solid momentum pick.

A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.

For WTS, shares are up 4.47% over the past week while the Zacks Manufacturing - General Industrial industry is flat over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 16.97% compares favorably with the industry's 1.31% performance as well.

While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Shares of Watts Water have increased 21.16% over the past quarter, and have gained 44.37% in the last year. In comparison, the S&P 500 has only moved 13.88% and 21.37%, respectively.

Investors should also take note of WTS's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now WTS is averaging 584,700 shares for the last 20 days..

Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with WTS.

Over the past two months, 4 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost WTS's consensus estimate, increasing from $11.57 to $12.03 in the past 60 days. Looking at the next fiscal year, 3 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom LineTaking into account all of these elements, it should come as no surprise that WTS is a #2 (Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Watts Water on your short list.

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NORTH ANDOVER, Mass.--(BUSINESS WIRE)--Watts Water Technologies, Inc. (NYSE: WTS) – through its subsidiaries, one of the world’s leading manufacturers and providers of plumbing, heating and water quality products and solutions – today announced the release of its 2025 Sustainability report, which highlights the Company’s dedication to environmental, social and governance practices and continued commitment to creating high-performance solutions that promote sustainability and efficiency.

“Since setting our first-generation environmental goals in 2018, we have significantly reduced our water use, emissions and hazardous waste while continuing to grow as a company. That progress gives us confidence as we pursue our next generation of goals and continue challenging ourselves to make an even greater impact in the years ahead,” said Robert J. Pagano, Jr., CEO, President and Chairperson of the Board. “Reflecting on more than a decade of sustainability work, it is rewarding to see how far we have come and the measurable progress our teams have made across the business.”

Key accomplishments highlighted in the report include:

Advanced Watts’ second generation of environmental goals, adopted in 2024, by recommitting to 3% annual intensity reductions and targeting a reduction of 10,000 metric tons of CO2 equivalent (MTCO2e) in primary emissions by 2034 Reduced water intensity by 64% and absolute water consumption by 44% between 2018 and 2025, resulting in a reduction of nearly 100 million liters of water Reduced GHG intensity by 63% and absolute GHG emissions by 43% between 2018 and 2025, resulting in a reduction of nearly 15,000 MTCO2e in Scope 1 & 2 market-based emissions Reduced hazardous waste intensity by 57% and absolute hazardous waste generation by 34% between 2018 and 2025, resulting in a reduction of nearly 700,000 kilograms of hazardous waste In 2025, we completed Life Cycle Assessments (LCAs) for all products in our BLÜCHER facility and began LCA modeling at five additional manufacturing facilities, building on LCAs already completed for all products produced in our largest facility in Franklin, NH By the end of 2025, we had published 28 Environmental Product Declarations (EPDs) covering 39 product types and are on track to exceed our goal of publishing 50 EPDs by 2026 In 2025, AERCO, PVI, and the LYNC brands of boilers, water heaters, and heat pumps helped customers avoid more than 115,000 MT of CO2, almost three times the Watts Scope 1 and Scope 2 emissions for 2025 Employees volunteered more than 10,000 hours as part of the Watts Cares community giving program, more than doubling the number of hours volunteered in 2024 – the program’s inaugural year Provided clean water access to vulnerable communities through the company’s ongoing partnership with Planet Water Foundation, which in 2025 benefited nearly 89,000 people in six different countries Recognized in 2025 for sustainability and workplace achievements including Newsweek World’s Greenest Companies and America’s Most Responsible Companies, TIME America’s Top Green Tech Companies and America’s Best Companies, USA Today America’s Climate Leaders, Barron’s 100 Most Sustainable Companies, Great Place to Work Greater China, Best Workplaces for Women in Greater China and Top Places to Work Massachusetts To download Watts’ 2025 Sustainability Report or learn more about the Company’s sustainability programs, visit http://www.watts.com/our-story/sustainability.

More News From Watts Water Technologies, Inc

Back to Newsroom

Watts Water (WTS) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help the stock continue moving higher in the near term.

NORTH ANDOVER, Mass.--(BUSINESS WIRE)--Watts Water Technologies Named to USA Today America's Climate Leaders List for Fourth Consecutive Year.

Wall Street expects a year-over-year increase in earnings on higher revenues when Watts Water (WTS - Free Report) reports results for the quarter ended March 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on May 6, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis maker of valves for plumbing, heating and water needs is expected to post quarterly earnings of $2.72 per share in its upcoming report, which represents a year-over-year change of +14.8%.

Revenues are expected to be $632.09 million, up 13.3% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.99% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Watts Water?For Watts Water, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.50%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that Watts Water will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Watts Water would post earnings of $2.36 per share when it actually produced earnings of $2.62, delivering a surprise of +11.02%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Watts Water doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

NORTH ANDOVER, Mass.--(BUSINESS WIRE)--Watts Water Technologies, Inc. (NYSE: WTS) – through its subsidiaries, one of the world’s leading manufacturers and providers of plumbing, heating and water quality products and solutions – today announced results for the first quarter of 2026.

Chief Executive Officer Robert J. Pagano Jr. said, “We delivered a strong start to 2026, with organic growth across all regions and record first quarter net sales, operating income, operating margin and EPS. This is a direct result of the strong execution by the Watts team, and I would like to thank our employees who have remained diligent and focused on delivering quality and value to our customers.”

Mr. Pagano continued, “We are actively managing through geopolitical and trade-related uncertainties while advancing our strategic priorities. We continue to invest in higher-growth opportunities, including data centers and digital solutions, and are driving productivity through automation to support efficiency and margin performance through the One Watts Performance System. While we are pleased with our strong performance to start the year, the macro environment remains dynamic. As a result, we are maintaining our full year 2026 outlook. Our proven operating model and execution track record position us well, and supported by a strong balance sheet and solid cash flow generation, we remain focused on disciplined capital allocation and delivering sustainable long-term value.”

A summary of first quarter financial results is as follows:

First Quarter Ended

March 29,

March 30,

(In millions, except per share information)

2026

2025

% Change

Net sales

$

677.3

$

558.0

21

%

Organic sales growth % (1)

12

%

Operating income

$

133.0

$

87.7

52

%

Operating margin %

19.6

%

15.7

%

390

bps

Adjusted operating income (1)

$

135.9

$

106.1

28

%

Adjusted operating margin % (1)

20.1

%

19.0

%

110

bps

Diluted earnings per share

$

2.97

$

2.21

34

%

Special items (1)

0.07

0.16

Adjusted diluted earnings per share (1)

$

3.04

$

2.37

28

%

First Quarter Financial Highlights
First quarter 2026 performance compared to first quarter 2025

Sales of $677 million increased 21% on a reported basis and 12% on an organic basis. Organic sales increased primarily due to favorable price and incremental volume driven by data center growth. Incremental acquisition sales within the Americas and APMEA were $37 million and contributed 7% to reported growth. Favorable foreign exchange increased reported sales by $16 million, or 3%.

Operating margin increased 390 basis points on a reported basis and 110 basis points on an adjusted basis. Operating and adjusted operating margin increased primarily due to favorable price, productivity and volume leverage which more than offset inflation, investments, tariffs and acquisition dilution. Operating margin was favorably impacted by a decrease in restructuring charges, partially offset by higher acquisition-related charges.

Regional Performance

Americas
Sales of $515 million increased 23% on a reported basis and 16% on an organic basis, primarily due to favorable price and incremental volume driven by data center growth. Acquisitions contributed $31 million of incremental sales, or 7%, to reported growth.

Segment margin increased 80 basis points as benefits from price realization, productivity, and volume leverage more than offset inflation, tariffs and acquisition dilution.

Europe
Sales of $121 million increased 12% on a reported basis and 1% on an organic basis. Reported sales growth benefitted from favorable foreign exchange, which increased reported sales by 11%. Organic sales increased primarily from favorable price, which offset a slight decline in volume.

Segment margin decreased 20 basis points as benefits from price realization, productivity, and restructuring actions were more than offset by inflation and volume deleverage.

APMEA
Sales of $41 million increased 29% on a reported basis and 3% on an organic basis, as growth in China, Australia and New Zealand offset a decline in the Middle East. Acquisition sales contributed $6 million, or 19%, and favorable foreign exchange contributed 7% to reported sales growth.

Segment margin increased 120 basis points as trade sales volume leverage, productivity and acquisition accretion more than offset inflation and affiliate volume deleverage.

Cash Flow and Capital Allocation

For the first quarter of 2026, operating cash flow was $18 million and net capital expenditures were $11 million, resulting in free cash flow of $7 million. In the comparable period last year, operating cash flow was $55 million and net capital expenditures were $9 million, resulting in free cash flow of $46 million. Free cash flow declined due to increased capital investments and elevated working capital levels which more than offset higher net income. Working capital increases were due to higher accounts receivable attributable to higher net sales, higher inventory due to incremental tariffs and strategic inventory investments to support expected end-market demand, and higher annual customer rebates due to higher net sales and timing of payments. Sequential increases in free cash flow are expected throughout 2026 as we monetize working capital with the seasonality of the business.

On May 4, 2026, the Company announced a 21% increase in quarterly dividend payments, increasing the quarterly payments from $0.52 per share to $0.63 per share beginning in June 2026.

The Company repurchased approximately 13,000 shares of Class A common stock at a cost of $3.8 million during the first quarter of 2026. Approximately $125 million remains available under the stock repurchase program authorized in 2023. There is no expiration date for this program.

Full Year 2026 Outlook

The Company is maintaining its previous full year outlook. Sales growth is expected to range from up 8% to up 12% on a reported basis and up 2% to up 6% on an organic basis. Full year operating margin is expected to be between 18.8% and 19.4%, or up 40 basis points to up 100 basis points, and adjusted operating margin is expected to be between 19.1% and 19.7%, or down 50 basis points to up 10 basis points. The full year outlook assumes the Middle East conflict is short term and incorporates estimated tariff impacts and actions as of May 6, 2026 but does not include potential tariff refunds.

Further 2026 planning assumptions are included in the first quarter earnings materials posted in the Investor Relations section of our website at www.watts.com.

For a reconciliation of GAAP to non-GAAP items and a statement regarding the usefulness of these measures to investors and management in evaluating our operating performance, please see the tables attached to this press release.

Watts Water Technologies, Inc. will hold a live webcast of its conference call to discuss first quarter 2026 results on Thursday, May 7, 2026 at 9:00 a.m. EST. This press release and the live webcast can be accessed by visiting the Investor Relations section of the Company's website at www.watts.com. Following the webcast, the call recording will be available at the same address until May 6, 2027.

Watts Water Technologies, Inc., through its subsidiaries, is a world leader in the manufacturing of innovative products to control the efficiency, safety, and quality of water within residential, commercial, and institutional applications. Watts’ expertise in a wide variety of water technologies enables us to be a comprehensive supplier to the water industry.

This press release includes “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995, including statements relating to expected full year 2026 financial results, including sales and organic sales growth, operating margin and adjusted operating margin, future dividends, improvements in operating and free cash flow throughout 2026, our strategy, investments, the impact of tariffs and any potential tariff refunds due to invalidation of tariffs imposed under the International Emergency Economic Powers Act, the benefits from and integration of recent acquisitions, our ability to manage uncertainty and current market conditions, including the fluid trade environment, our portfolio offerings, long-term growth and shareholder value creation and return of capital to stockholders. These forward-looking statements reflect our current views about future events. You should not rely on forward-looking statements because our actual results may differ materially from those predicted as a result of a number of potential risks and uncertainties. These potential risks and uncertainties include, but are not limited to: the imposition of or changes to tariff rates and related impacts to our business and the broader market; the effectiveness, timing and expected savings associated with our cost-cutting actions, restructuring and initiatives; integration of acquired businesses in a timely and cost-effective manner, retention of supplier and customer relationships and key employees, and the ability to achieve synergies and cost savings in the amounts and within the time frames currently anticipated; current economic and financial conditions, which can affect the housing and construction markets where our products are sold, manufactured and marketed; shortages in and pricing of raw materials and supplies; our ability to compete effectively; changes in variable interest rates on our borrowings; inflation; failure to expand our markets through acquisitions; failure to successfully develop and introduce new product offerings or enhancements to existing products; failure to manufacture products that meet required performance and safety standards; foreign exchange rate fluctuations; cyclicality of industries where we market our products, such as plumbing and heating wholesalers and home improvement retailers; environmental compliance costs; product liability risks and costs; changes in the status of current litigation; the impacts and duration of the Middle East conflict, the war in Ukraine and other global crises; supply chain and logistical disruptions or labor shortages and workforce disruptions that could negatively affect our supply chain, manufacturing, distribution, or other business processes; and other risks and uncertainties discussed under the heading “Item 1A. Risk Factors” and in Note 17 of the Notes to the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (“SEC”).We undertake no duty to update the information contained in this press release, except as required by law.

WATTS WATER TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in millions, except per share information)

(Unaudited)

First Quarter Ended

March 29,

March 30,

2026

2025

Net sales

$

677.3

$

558.0

Cost of goods sold

351.2

285.5

GROSS PROFIT

326.1

272.5

Selling, general and administrative expenses

192.9

167.5

Restructuring

0.2

17.3

OPERATING INCOME

133.0

87.7

Other (income) expense:

Interest income

(1.7

)

(2.3

)

Interest expense

2.6

2.7

Other expense, net

0.7

0.4

Total other expense

1.6

0.8

INCOME BEFORE INCOME TAXES

131.4

86.9

Provision for income taxes

31.8

12.9

NET INCOME

$

99.6

$

74.0

BASIC EPS

NET INCOME PER SHARE

$

2.97

$

2.21

Weighted average number of shares

33.5

33.5

DILUTED EPS

NET INCOME PER SHARE

$

2.97

$

2.21

Weighted average number of shares

33.5

33.5

Dividends declared per share

$

0.52

$

0.43

WATTS WATER TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Amounts in millions, except share information)

(Unaudited)

March 29,

December 31,

2026

2025

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

374.7

$

405.5

Trade accounts receivable, less reserve allowances of $15.1 million at March 29, 2026 and
$12.5 million at December 31, 2025

374.4

294.0

Inventories, net:

Raw materials

208.5

190.8

Work in process

28.1

28.5

Finished goods

306.5

305.0

Total Inventories

543.1

524.3

Prepaid expenses and other current assets

55.9

62.3

Total Current Assets

1,348.1

1,286.1

PROPERTY, PLANT AND EQUIPMENT:

Property, plant and equipment, at cost

781.1

777.1

Accumulated depreciation

(484.7

)

(480.0

)

Property, plant and equipment, net

296.4

297.1

OTHER ASSETS:

Goodwill

859.6

859.0

Intangible assets, net

286.8

294.6

Deferred income taxes

19.4

17.9

Other, net

129.5

126.5

TOTAL ASSETS

$

2,939.8

$

2,881.2

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

Accounts payable

$

188.9

$

182.2

Accrued expenses and other liabilities

234.2

234.7

Accrued compensation and benefits

72.9

95.5

Total Current Liabilities

496.0

512.4

LONG-TERM DEBT

197.8

197.7

DEFERRED INCOME TAXES

42.5

36.5

OTHER NONCURRENT LIABILITIES

107.2

106.9

STOCKHOLDERS’ EQUITY:

Preferred Stock, $0.10 par value; 5,000,000 shares authorized; no shares issued or outstanding

—

—

Class A common stock, $0.10 par value; 120,000,000 shares authorized; 1 vote per share; issued and outstanding, 27,478,641 shares at March 29, 2026 and 27,426,533 shares at December 31, 2025

2.7

2.7

Class B common stock, $0.10 par value; 25,000,000 shares authorized; 10 votes per share; issued and outstanding, 5,916,290 shares at March 29, 2026 and December 31, 2025

0.6

0.6

Additional paid-in capital

728.6

720.6

Retained earnings

1,496.8

1,431.3

Accumulated other comprehensive loss

(132.4

)

(127.5

)

Total Stockholders’ Equity

2,096.3

2,027.7

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

2,939.8

$

2,881.2

WATTS WATER TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in millions)

(Unaudited)

First Quarter Ended

March 29,

March 30,

2026

2025

OPERATING ACTIVITIES

Net income

$

99.6

$

74.0

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation

9.4

8.8

Amortization of intangibles

6.0

4.9

Amortization of cloud computing arrangements

0.6

—

Loss on disposal of long-lived assets

—

0.1

Stock-based compensation

5.2

2.9

Deferred income tax

4.8

(2.4

)

Changes in operating assets and liabilities, net of effects from business acquisitions:

Accounts receivable

(82.0

)

(41.3

)

Inventories

(19.8

)

(18.4

)

Prepaid expenses and other assets

(3.0

)

(5.9

)

Accounts payable, accrued expenses and other liabilities

(2.9

)

32.5

Net cash provided by operating activities

17.9

55.2

INVESTING ACTIVITIES

Additions to property, plant and equipment

(11.3

)

(9.6

)

Business acquisitions, net of cash acquired

(1.9

)

(70.3

)

Net cash used in investing activities

(13.2

)

(79.9

)

FINANCING ACTIVITIES

Payments for withholding taxes on vested awards

(12.8

)

(10.9

)

Payments for finance leases and other

(0.7

)

(0.7

)

Payments to repurchase common stock

(3.8

)

(3.9

)

Dividends

(17.5

)

(14.4

)

Net cash used in financing activities

(34.8

)

(29.9

)

Effect of exchange rate changes on cash and cash equivalents

(0.7

)

4.5

DECREASE IN CASH AND CASH EQUIVALENTS

(30.8

)

(50.1

)

Cash and cash equivalents at beginning of year

405.5

386.9

CASH AND CASH EQUIVALENTS AT END OF PERIOD

$

374.7

$

336.8

Segment Earnings and Non-GAAP Financial Measures

In this press release, segment earnings is our GAAP performance measure used by our chief operating decision-maker (“CODM”) to assess and evaluate segment results. Segment earnings exclude the impact of non-recurring and unusual items, such as restructuring costs and acquisition-related costs. The CODM uses segment earnings for insight into underlying trends comparing past financial performance with current performance by reporting segment on a consistent basis. Segment margin is defined as segment earnings divided by segment revenue.

We refer to non-GAAP financial measures (including adjusted operating income, adjusted operating margin, adjusted net income, adjusted diluted earnings per share, organic sales, organic sales growth, free cash flow, cash conversion rate of free cash flow to net income and net debt to capitalization ratio) and provide a reconciliation of those non-GAAP financial measures to the corresponding financial measures contained in our consolidated financial statements prepared in accordance with GAAP. We believe these financial measures enhance the overall understanding of our historical financial performance and give insight into our future prospects. Adjusted operating income, adjusted operating margin, adjusted net income and adjusted diluted earnings per share eliminate certain expenses incurred and benefits recognized in the periods presented that relate primarily to our global restructuring programs, acquisition-related costs and the related income tax impacts on these items and tax adjustment items (with respect to adjusted net income and adjusted diluted earnings per share only). Management then utilizes these adjusted financial measures to assess the run rate of the Company’s operations against those of comparable periods. Organic sales and organic sales growth are non-GAAP measures of net sales and net sales growth excluding the impacts of foreign exchange, acquisitions and divestitures from period-over-period comparisons. Management believes reporting organic sales and organic sales growth provides useful information to investors, potential investors and others, and allows for a more complete understanding of underlying sales trends by providing sales and sales growth on a consistent basis. Free cash flow, cash conversion rate of free cash flow to net income, and the net debt to capitalization ratio, which are adjusted to exclude certain cash inflows and outlays, and include only certain balance sheet accounts from the comparable GAAP measures, are an indication of our performance in cash flow generation and also provide an indication of the Company's balance sheet leverage relative to other industrial manufacturing companies. These non-GAAP financial measures are among the primary indicators management uses as a basis for evaluating our cash flow generation and our capitalization structure. In addition, free cash flow is used as a criterion to measure and pay certain compensation-based incentives. For these reasons, management believes these non-GAAP financial measures can be useful to investors, potential investors and others. The Company’s non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial measures prepared in accordance with GAAP.

TABLE 1

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

EXCLUDING THE EFFECT OF ADJUSTMENTS FOR SPECIAL ITEMS

(Amounts in millions, except per share information)

(Unaudited)

CONSOLIDATED RESULTS

First Quarter Ended

March 29,

March 30,

2026

2025

Net sales

$

677.3

$

558.0

Operating income

$

133.0

$

87.7

Operating margin %

19.6

%

15.7

%

Adjustments for special items:

Restructuring

$

0.2

$

17.3

Acquisition-related costs

2.7

1.1

Total adjustments for special items

$

2.9

$

18.4

Adjusted operating income

$

135.9

$

106.1

Adjusted operating margin %

20.1

%

19.0

%

Net income

$

99.6

$

74.0

Adjustments for special items - tax effected:

Restructuring

$

0.1

$

13.0

Acquisition-related costs

2.1

0.8

Tax adjustment items

—

(8.3

)

Total adjustments for special items - tax effected

$

2.2

$

5.5

Adjusted net income

$

101.8

$

79.5

Diluted earnings per share

$

2.97

$

2.21

Restructuring

0.01

0.39

Acquisition-related costs

0.06

0.02

Tax adjustment items

—

(0.25

)

Adjusted diluted earnings per share

$

3.04

$

2.37

TABLE 2

SEGMENT INFORMATION - RECONCILIATION OF SEGMENT EARNINGS TO CONSOLIDATED OPERATING INCOME - GAAP

(Amounts in millions)

(Unaudited)

First Quarter Ended

March 29, 2026

March 30, 2025

Americas

Europe

APMEA

Total

Americas

Europe

APMEA

Total

Total segment net sales

$

517.8

127.6

67.8

$

713.2

$

420.3

116.6

56.4

$

593.3

Elimination of intersegment sales

(2.7

)

(6.2

)

(27.0

)

(35.9

)

(2.2

)

(8.2

)

(24.9

)

(35.3

)

Net sales from external customers

$

515.1

121.4

40.8

$

677.3

$

418.1

108.4

31.5

$

558.0

Segment earnings

$

124.5

16.7

7.5

$

148.7

$

97.8

15.1

5.5

$

118.4

Segment margin %

24.2

%

13.7

%

18.7

%

22.0

%

23.4

%

13.9

%

17.5

%

21.2

%

Corporate operating loss

$

(12.8

)

$

(12.3

)

Adjustments for segment special items:

$

(1.7

)

(0.2

)

(1.0

)

$

(2.9

)

$

(1.1

)

(17.2

)

(0.1

)

$

(18.4

)

Operating income

$

133.0

$

87.7

Operating margin %

19.6

%

15.7

%

TABLE 3

SEGMENT INFORMATION - RECONCILIATION OF NET SALES TO NON-GAAP ORGANIC SALES

(Amounts in millions)

(Unaudited)

First Quarter Ended

Americas

Europe

APMEA

Total

Net sales March 29, 2026

$

515.1

$

121.4

$

40.8

$

677.3

Net sales March 30, 2025

$

418.1

$

108.4

$

31.5

$

558.0

Dollar change

$

97.0

$

13.0

$

9.3

$

119.3

Net sales % increase

23.2

%

12.0

%

29.5

%

21.4

%

Foreign exchange impact

(0.3

)

%

(11.5

)

%

(7.4

)

%

(2.9

)

%

Acquisition impact

(7.4

)

%

—

%

(18.7

)

%

(6.6

)

%

Organic sales % increase

15.5

%

0.5

%

3.4

%

11.9

%

TABLE 4

RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW

(Amounts in millions)

(Unaudited)

First Quarter Ended

March 29,

March 30,

2026

2025

Net cash provided by operating activities

$

17.9

$

55.2

Less: additions to property, plant, and equipment

(11.3

)

(9.6

)

Free cash flow

$

6.6

$

45.6

Net income

$

99.6

$

74.0

Cash conversion rate of free cash flow to net income

6.6

%

61.6

%

TABLE 5

RECONCILIATION OF LONG-TERM DEBT (INCLUDING CURRENT PORTION) TO NET DEBT AND NET DEBT TO CAPITALIZATION RATIO

(Amounts in millions)

(Unaudited)

March 29,

December 31,

2026

2025

Current portion of long-term debt

$

—

$

—

Plus: long-term debt, net of current portion

197.8

197.7

Less: cash and cash equivalents

(374.7

)

(405.5

)

Net debt

$

(176.9

)

$

(207.8

)

Net debt

$

(176.9

)

$

(207.8

)

Total stockholders’ equity

2,096.3

2,027.7

Capitalization

$

1,919.4

$

1,819.9

Net debt to capitalization ratio

(9.2

)

%

(11.4

)

%

TABLE 6

2026 FULL YEAR OUTLOOK – RECONCILIATION OF NET SALES GROWTH TO ORGANIC SALES GROWTH AND OPERATING MARGIN TO ADJUSTED OPERATING MARGIN

(Unaudited)

Total Watts

Full Year

2026 Outlook

Approximately

Net Sales

Net sales growth

8% to 12%

Forecasted impact of acquisition / FX

(6)%

Organic sales growth

2% to 6%

Operating Margin

Operating margin

18.8% to 19.4%

Forecasted restructuring / other costs

0.3%

Adjusted operating margin

19.1% to 19.7%

Watts Water (WTS - Free Report) came out with quarterly earnings of $3.04 per share, beating the Zacks Consensus Estimate of $2.72 per share. This compares to earnings of $2.37 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +11.65%. A quarter ago, it was expected that this maker of valves for plumbing, heating and water needs would post earnings of $2.36 per share when it actually produced earnings of $2.62, delivering a surprise of +11.02%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Watts Water, which belongs to the Zacks Manufacturing - General Industrial industry, posted revenues of $677.3 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 7.15%. This compares to year-ago revenues of $558 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Watts Water shares have added about 5.7% since the beginning of the year versus the S&P 500's gain of 6%.

What's Next for Watts Water?While Watts Water has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Watts Water was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.29 on $709.21 million in revenues for the coming quarter and $11.57 on $2.69 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - General Industrial is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Nordson (NDSN - Free Report) , is yet to report results for the quarter ended April 2026. The results are expected to be released on May 20.

This maker of adhesives and industrial coatings is expected to post quarterly earnings of $2.79 per share in its upcoming report, which represents a year-over-year change of +15.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Nordson's revenues are expected to be $731 million, up 7% from the year-ago quarter.

Key Takeaways WTS Q1 adjusted EPS jumped to $3.04 as sales rose 21% year over year to a record $677.3M.Watts Water saw strong organic growth across regions, led by pricing and data center demand.WTS maintained 2026 sales and margin outlook despite macroeconomic and trade uncertainties. Watts Water Technologies, Inc. (WTS - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of $3.04 compared with $2.37 in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 11.8%.

The company’s quarterly net sales increased 21% year over year to $677.3 million. The top line beat the Zacks Consensus Estimate by 7.2%. Organic sales were up 12% year over year due to favorable prices and higher volumes supported by strong growth in the data center market.

Management highlighted that the company delivered a strong start to 2026, supported by organic growth across all regions and record first-quarter net sales, operating income, operating margin and EPS, reflecting disciplined execution and continued focus on delivering value to customers. The company also emphasized that it is actively navigating geopolitical and trade-related uncertainties while continuing to invest in higher-growth opportunities such as data centers and digital solutions.

In addition, management noted that productivity and automation initiatives under the One Watts Performance System are helping drive efficiency and margin performance. Despite the solid start to the year, the company maintained its full-year 2026 outlook given the dynamic macroeconomic environment.

Supported by a strong balance sheet and healthy cash flow generation, management remains focused on disciplined capital allocation and creating sustainable long-term shareholder value.

Shares of the company have gained 39% in the past year compared with the Zacks Manufacturing - General Industrial industry’s growth of 23%.

Image Source: Zacks Investment Research

WTS’ Segment ResultsAmericas: Net sales increased 23% year over year to $515 million on a reported basis and rose 16% organically, primarily driven by favorable pricing and incremental volumes supported by strong data center demand. Acquisitions contributed $31 million in incremental sales, accounting for 7% of reported growth. Segment margin expanded 80 basis points (bps) as benefits from price realization, productivity improvements and volume leverage more than offset the impacts of inflation, tariffs and acquisition-related dilution.

Europe: Net sales increased 12% year over year to $121 million on a reported basis and grew 1% organically. Reported sales growth benefited from favorable foreign exchange, which contributed 11% to reported results. Organic sales growth was primarily driven by favorable pricing, which offset a modest decline in volumes. Segment margin contracted 20 bps as gains from price realization, productivity initiatives and restructuring actions were more than offset by inflationary pressures and volume deleverage.

APMEA: Net sales increased 29% year over year to $41 million on a reported basis and rose 3% organically, driven by growth in China, Australia and New Zealand, partially offset by weakness in the Middle East. Acquisitions contributed $6 million, or 19%, to reported sales growth, while favorable foreign exchange added 7%. Segment margin expanded 120 bps, supported by trade sales volume leverage, productivity gains and acquisition accretion, which more than offset inflation and affiliate volume deleverage.

WTS’ Other DetailsGross profit increased 19.7% year over year to $326.1 million. Selling, general and administrative expenses rose 15.2% to $192.9 million. Operating income was $133 million, up 51.7% year over year. Adjusted operating income was $135.9 million, up 28.1% year over year.

Operating margin expanded 390 bps to 19.6%. The adjusted operating margin was 20.1%, up 110 bps year over year. Margin performance was driven by favorable pricing, productivity improvements and volume leverage, which more than offset the impacts of inflation, investments, tariffs and acquisition-related dilution. Operating margin also benefited from lower restructuring charges, partially offset by higher acquisition-related expenses.

WTS’ Cash Flow & LiquidityFor the first quarter ended March 29, 2026, Watts Water generated $17.9 million of cash from operating activities compared with $55.2 million in the prior-year period.

For the first quarter, free cash flow was $6.6 million compared with $45.6 million a year ago.

Free cash flow declined primarily due to higher capital expenditures and elevated working capital levels, which more than offset the benefit of increased net income. The rise in working capital was driven by higher accounts receivable linked to stronger net sales, increased inventory levels resulting from incremental tariffs and strategic inventory investments to support anticipated end-market demand, as well as higher annual customer rebates tied to sales growth and payment timing. Management expects free cash flow to improve sequentially through 2026 as working capital is gradually monetized in line with normal business seasonality.

On May 4, 2026, the company announced a 21% increase in its quarterly dividend, raising the payout from 52 cents per share to 63 cents, effective June 2026.

During the first quarter of 2026, the company also repurchased nearly 13,000 shares for approximately $3.8 million. As of quarter-end, about $125 million remained available under the share repurchase program authorized in 2023, which has no expiration date.

As of March 29, 2026, the company had $374.7 million in cash and cash equivalents with $197.8 million of long-term debt compared with the respective figures of $405.5 million and $197.7 million as of Dec 31, 2025.

WTS’ GuidanceFor 2026, the company maintained its prior outlook and continues to expect reported sales growth in the range of 8% to 12%, with organic sales growth projected between 2% and 6%.

The company expects adjusted EBITDA margin to be between 21.5% and 22.1%, representing a change of down 40 bps to up 20 bps year over year.

The company anticipates operating margin to be between 18.8% and 19.4%, reflecting an expansion of 40-100 bps, while adjusted operating margin is forecast at 19.1% to 19.7%, implying a decline of 50 bps to an increase of 10 bps.

For the second quarter of 2026, the company expects reported sales growth of 10% to 14% and organic sales growth of 4% to 8%. Adjusted EBITDA margin is projected between 22.3% and 22.9%, while adjusted operating margin is expected in the range of 20% to 20.6%.

WTS’ Zacks RankWatts Water currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Performance of Peers in the Same SpaceFlex Ltd. (FLEX - Free Report) reported fourth-quarter fiscal 2026 adjusted EPS of 93 cents, which surpassed the Zacks Consensus Estimate by 8.1%. The bottom line compared favorably with 73 cents posted in the prior-year quarter.

Revenues increased 17% year over year to $7.5 billion. It beat the consensus mark by 8.1%. The growth was primarily driven by strong momentum across all three segments, with Cloud and Power Infrastructure emerging as the standout performer.

Fortive Corporation (FTV - Free Report) reported first-quarter 2026 adjusted EPS of 70 cents from continuing operations, which surpassed the Zacks Consensus Estimate of 64 cents. The bottom line increased 25.4% year over year.

Revenues increased 7.7% year over year to $1069.4 million. The top line beat the Zacks Consensus Estimate by 3.8%. Core revenues jumped 5.3%.

Sensata Technologies Holding plc (ST - Free Report) reported first-quarter 2026 adjusted EPS of 86 cents, up from 78 cents a year ago. The bottom line beat the Zacks Consensus Estimate by 2.4%.

Revenues for the quarter reached $934.8 million, up 2.6% from a year ago. The figure came near to the upper end of management’s expectations ($917-$937 million) and beat the consensus estimate by 0.7%. Strength Aerospace, Defense and Commercial Equipment segments drove the top-line performance.

Have you evaluated the performance of Watts Water's (WTS - Free Report) international operations for the quarter ending March 2026? Given the extensive global presence of this maker of valves for plumbing, heating and water needs, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.

The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.

Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.

Our review of WTS' last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.

The company's total revenue for the quarter amounted to $677.3 million, marking an increase of 21.4% from the year-ago quarter. We will next turn our attention to dissecting WTS' international revenue to get a clearer picture of how significant its operations are outside its main base.

A Closer Look at WTS' Revenue Streams AbroadEurope accounted for 17.9% of the company's total revenue during the quarter, translating to $121.4 million. Revenues from this region represented a surprise of +4.25%, with Wall Street analysts collectively expecting $116.45 million. When compared to the preceding quarter and the same quarter in the previous year, Europe contributed $119.7 million (19.2%) and $108.4 million (19.4%) to the total revenue, respectively.

Of the total revenue, $40.8 million came from APMEA during the last fiscal quarter, accounting for 6%. This represented a surprise of +5.16% as analysts had expected the region to contribute $38.8 million to the total revenue. In comparison, the region contributed $38.8 million, or 6.2%, and $31.5 million, or 5.7%, to total revenue in the previous and year-ago quarters, respectively.

Anticipated Revenues in Overseas MarketsThe current fiscal quarter's total revenue for Watts Water, as projected by Wall Street analysts, is expected to reach $709.21 million, reflecting an increase of 10.2% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Europe is anticipated to contribute 16.2% or $114.75 million, and APMEA 5.9% or $41.55 million.

For the entire year, the company's total revenue is forecasted to be $2.69 billion, which is an improvement of 10.3% from the previous year. The revenue contributions from different regions are expected as follows: Europe will contribute 17.4% ($467.7 million), and APMEA 6.2% ($167.33 million) to the total revenue.

Wrapping UpWatts Water's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.

With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.

Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.

Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.

Currently, Watts Water holds a Zacks Rank #3 (Hold), signifying its potential to match the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Watts Water's Recent Stock Market PerformanceOver the past month, the stock has lost 1.9% versus the Zacks S&P 500 composite's 9.1% increase. The Zacks Industrial Products sector, of which Watts Water is a part, has risen 2.6% over the same period. The company's shares have declined 9.6% over the past three months compared to the S&P 500's 7.1% increase. Over the same period, the sector has declined 1.1%

Caris Life Sciences Publishes Study on the Caris Lookback Program Demonstrating the Ongoing Clinical Value of Comprehensive Testing with Caris

NORTH ANDOVER, Mass.--(BUSINESS WIRE)--Watts Water Technologies, Inc. (NYSE: WTS) – through its subsidiaries, one of the world's leading manufacturers and providers of plumbing, heating and water quality products and solutions – was named one of Newsweek's World's Greenest Companies 2026. This marks the second consecutive year that Watts has received this recognition of the company's continued dedication to advancing environmental sustainability across its operations, products and solutions. To.