Revenue growth accelerated to 21.4% in 2026Q1, supported by a resilient gross margin of 48.1% that demonstrates effective management of input cost volatility.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Jun'99 | Jun'98 | Jun'97 | Jun'96 |
|---|
| Sales/Revenue | 2.56B | 2.44B | 2.25B | 2.06B | 1.98B | 1.81B | 1.51B | 1.6B | 1.56B | 1.46B | 1.4B | 1.47B | 1.51B | 1.47B | 1.45B | 1.44B | 1.27B | 1.23B | 1.46B | 1.38B | 1.23B | 924.35M | 824.56M | 705.65M | 615.53M | 548.94M | 516.1M | 474.5M | 730M | 720.3M | 640.9M |
| Revenue Growth % | 14.22% | 8.27% | 9.53% | 3.88% | 9.41% | 19.93% | -5.74% | 2.27% | 7.43% | 4.17% | -4.72% | -3.04% | 2.73% | 1.93% | 0.63% | 12.71% | 3.97% | -16% | 5.58% | 12.31% | 33.15% | 12.1% | 16.85% | 14.64% | 12.13% | 6.36% | 8.77% | -35% | 1.35% | 12.39% | -2.55% |
| Cost of Goods Sold | 1.3B | 1.23B | 1.19B | 1.1B | 1.11B | 1.04B | 883.2M | 923M | 908.4M | 854.3M | 832.8M | 914.6M | 971.9M | 947M | 928.1M | 921.1M | 809.7M | 790.8M | 971M | 920.7M | 805.76M | 599.64M | 534M | 464.99M | 406.81M | 365.41M | 310.73M | 285.3M | 452.4M | 454.1M | 407.1M |
| COGS % of Revenue | - | 50.54% | 52.85% | 53.27% | 55.83% | 57.6% | 58.54% | 57.67% | 58.05% | 58.65% | 59.55% | 62.32% | 64.21% | 64.27% | 64.2% | 64.12% | 63.53% | 64.51% | 66.53% | 66.61% | 65.47% | 64.87% | 64.76% | 65.9% | 66.09% | 66.57% | 60.21% | 60.13% | 61.97% | 63.04% | 63.52% |
| Gross Profit | 1.26B | 1.21B | 1.06B | 960.9M | 874.3M | 767.1M | 625.4M | 677.5M | 656.5M | 602.4M | 565.6M | 553.1M | 541.8M | 526.5M | 517.5M | 515.5M | 464.9M | 435.1M | 488.4M | 461.6M | 425.02M | 324.7M | 290.56M | 240.66M | 208.72M | 183.53M | 205.38M | 189.2M | 277.6M | 266.2M | 233.8M |
| Gross Margin % | 49.25% | 49.46% | 47.15% | 46.73% | 44.17% | 42.4% | 41.46% | 42.33% | 41.95% | 41.35% | 40.45% | 37.68% | 35.79% | 35.73% | 35.8% | 35.88% | 36.47% | 35.49% | 33.47% | 33.39% | 34.53% | 35.13% | 35.24% | 34.1% | 33.91% | 33.43% | 39.79% | 39.87% | 38.03% | 36.96% | 36.48% |
| Gross Profit Growth % | - | 13.56% | 10.52% | 9.91% | 13.97% | 22.66% | -7.69% | 3.2% | 8.98% | 6.51% | 2.26% | 2.09% | 2.91% | 1.74% | 0.39% | 10.88% | 6.85% | -10.91% | 5.81% | 8.61% | 30.89% | 11.75% | 20.73% | 15.3% | 13.72% | -10.64% | 8.55% | -31.84% | 4.28% | 13.86% | -9.24% |
| Operating Expenses | 763M | 734.2M | 671.6M | 610M | 559.3M | 527.5M | 444.3M | 480.4M | 468.1M | 440.1M | 420.6M | 643.2M | 436.4M | 418.9M | 389.4M | 372.2M | 336.7M | 323.5M | 360.2M | 332.7M | 300.18M | 229.42M | 206.87M | 170.19M | 348.64M | 131.79M | 145.39M | 137.3M | 187M | 179.8M | 184.6M |
| OpEx % of Revenue | - | 30.11% | 29.82% | 29.66% | 28.25% | 29.16% | 29.45% | 30.02% | 29.91% | 30.21% | 30.08% | 43.82% | 28.83% | 28.43% | 26.94% | 25.91% | 26.42% | 26.39% | 24.68% | 24.07% | 24.39% | 24.82% | 25.09% | 24.12% | 56.64% | 24.01% | 28.17% | 28.94% | 25.62% | 24.96% | 28.8% |
| Selling, General & Admin | 759.6M | 734.2M | 594M | 604.5M | 489.3M | 462.6M | 392.2M | 436.5M | 430.2M | 403.3M | 397.6M | 464.3M | 378.7M | 390.3M | 361.8M | 379.9M | 336.7M | 323.5M | 360.2M | 332.7M | 300.18M | 229.42M | 206.87M | 170.19M | 150.55M | 131.79M | 125.32M | 119.9M | 163.8M | 159M | 163M |
| SG&A % of Revenue | - | 30.11% | 26.37% | 29.4% | 24.72% | 25.57% | 26% | 27.27% | 27.49% | 27.69% | 28.43% | 31.63% | 25.02% | 26.49% | 25.03% | 26.44% | 26.42% | 26.39% | 24.68% | 24.07% | 24.39% | 24.82% | 25.09% | 24.12% | 24.46% | 24.01% | 24.28% | 25.27% | 22.44% | 22.07% | 25.43% |
| Research & Development | 0 | 0 | 70.4M | 0 | 59.4M | 45.6M | 42.6M | 39.6M | 34.5M | 29M | 26.5M | 23.5M | 22.5M | 21.5M | 20.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | 3.13% | - | 3% | 2.52% | 2.82% | 2.47% | 2.2% | 1.99% | 1.9% | 1.6% | 1.49% | 1.46% | 1.41% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 0 | 7.2M | 5.5M | 10.6M | 19.3M | 9.5M | 4.3M | 3.4M | 7.8M | -3.5M | 155.4M | 35.2M | 0 | 0 | -7.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 198.09M | 0 | 20.07M | 17.4M | 23.2M | 20.8M | 21.6M |
| Operating Income | 496.4M | 471.8M | 390.4M | 350.9M | 315M | 239.6M | 181.1M | 197.1M | 188.4M | 162.3M | 145M | -90.1M | 105.4M | 111.5M | 123.4M | 117.1M | 114.2M | 93.9M | 122.6M | 125.7M | 130.49M | 94.56M | 83.6M | 70.04M | 57.53M | 50.28M | 59.99M | 51.9M | 90.6M | 86.4M | 49.2M |
| Operating Margin % | 19.41% | 19.35% | 17.33% | 17.06% | 15.91% | 13.24% | 12% | 12.31% | 12.04% | 11.14% | 10.37% | -6.14% | 6.96% | 7.57% | 8.54% | 8.15% | 8.96% | 7.66% | 8.4% | 9.09% | 10.6% | 10.23% | 10.14% | 9.93% | 9.35% | 9.16% | 11.62% | 10.94% | 12.41% | 12% | 7.68% |
| Operating Income Growth % | - | 20.85% | 11.26% | 11.4% | 31.47% | 32.3% | -8.12% | 4.62% | 16.08% | 11.93% | 260.93% | -185.48% | -5.47% | -9.64% | 5.38% | 2.54% | 21.62% | -23.41% | -2.47% | -3.67% | 38% | 13.1% | 19.36% | 21.75% | 14.41% | -16.18% | 15.58% | -42.72% | 4.86% | 75.61% | -41.43% |
| EBITDA | 552.7M | 528.6M | 444.8M | 394.2M | 354.7M | 284.7M | 227.6M | 243.7M | 236.9M | 214.5M | 196.2M | -37.6M | 153.5M | 160.4M | 172.8M | 168.5M | 159M | 140.7M | 167.7M | 165.1M | 165.78M | 120.67M | 111.65M | 91.32M | 79.82M | 73.96M | 80.06M | 69.3M | 113.8M | 107.2M | 70.8M |
| EBITDA Margin % | 21.61% | 21.68% | 19.75% | 19.17% | 17.92% | 15.74% | 15.09% | 15.23% | 15.14% | 14.73% | 14.03% | -2.56% | 10.14% | 10.89% | 11.95% | 11.73% | 12.47% | 11.48% | 11.49% | 11.94% | 13.47% | 13.05% | 13.54% | 12.94% | 12.97% | 13.47% | 15.51% | 14.6% | 15.59% | 14.88% | 11.05% |
| EBITDA Growth % | 26.71% | 18.84% | 12.84% | 11.14% | 24.59% | 25.09% | -6.61% | 2.87% | 10.44% | 9.33% | 621.81% | -124.5% | -4.3% | -7.18% | 2.55% | 5.97% | 13.01% | -16.1% | 1.57% | -0.41% | 37.38% | 8.08% | 22.26% | 14.41% | 7.93% | -7.62% | 15.52% | -39.1% | 6.16% | 51.41% | -34.81% |
| D&A (Non-Cash Add-back) | 56.3M | 56.8M | 54.4M | 43.3M | 39.7M | 45.1M | 46.5M | 46.6M | 48.5M | 52.2M | 51.2M | 52.5M | 48.1M | 48.9M | 49.4M | 51.4M | 44.8M | 46.8M | 45.1M | 39.4M | 35.29M | 26.12M | 28.05M | 21.28M | 22.29M | 23.68M | 20.07M | 17.4M | 23.2M | 20.8M | 21.6M |
| EBIT | 500M | 456.6M | 400.7M | 357.7M | 314.6M | 240.4M | 180.3M | 198M | 190.9M | 162.2M | 150.4M | -86.7M | 103M | 109.3M | 124.9M | 117.3M | 117.3M | 94.3M | 94.2M | 140.7M | 124.84M | 95.28M | 83.69M | 70.43M | 58.17M | 51.74M | 59.99M | 51.84M | 47M | 48.5M | 49.2M |
| Net Interest Income | -600K | -1M | -5.8M | -1M | -6.4M | -6.3M | -13.1M | -13.7M | -15.5M | -18.1M | -21.6M | -23.3M | -19.2M | 0 | 0 | -24.8M | -21.8M | -21.1M | -21.1M | -12.4M | 0 | 0 | 0 | 0 | 188.9M | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 5.8M | 9.8M | 8.9M | 7.2M | 600K | 0 | 200K | 400K | 800K | 1M | 1M | 1M | 700K | 600K | 700K | 1M | 1M | 900K | 5.1M | 14.5M | 0 | 0 | 0 | 0 | 188.9M | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 10.7M | 10.8M | 14.7M | 8.2M | 7M | 6.3M | 13.3M | 14.1M | 16.3M | 19.1M | 22.6M | 24.3M | 19.9M | 21.5M | 24.6M | 25.8M | 22.8M | 22M | 26.2M | 20.8M | 0 | 0 | 0 | 0 | 0 | 14.4M | 19.65M | 2.1M | 8.6M | 7.8M | 183.8M |
| Other Income/Expense | -6.1M | -26M | -4.4M | -1.4M | -7.4M | -5.5M | -14.1M | -13.2M | -13.8M | -19.2M | -17.2M | -20.9M | -22.3M | -23.7M | -31M | -42M | -19.7M | -19.9M | -6.3M | -11.9M | -14.38M | -8.74M | -5.93M | -11.3M | -7.31M | -10.12M | -10.78M | -6.92M | -5.7M | -6.8M | -98.6M |
| Pretax Income | 490.3M | 445.8M | 386M | 349.5M | 307.6M | 234.1M | 167M | 183.9M | 174.6M | 143.1M | 127.8M | -111M | 83.1M | 87.8M | 100.3M | 91.5M | 94.5M | 74M | 94.3M | 113.8M | 116.11M | 85.81M | 77.67M | 58.83M | 50.22M | 40.17M | 49.21M | 45M | 81.1M | 75.6M | -49.4M |
| Pretax Margin % | 19.17% | 18.28% | 17.14% | 17% | 15.54% | 12.94% | 11.07% | 11.49% | 11.16% | 9.82% | 9.14% | -7.56% | 5.49% | 5.96% | 6.94% | 6.37% | 7.41% | 6.04% | 6.46% | 8.23% | 9.43% | 9.28% | 9.42% | 8.34% | 8.16% | 7.32% | 9.54% | 9.48% | 11.11% | 10.5% | -7.71% |
| Income Tax | 123.9M | 105M | 94.8M | 87.4M | 56.1M | 68.4M | 52.7M | 52.4M | 49.8M | 70M | 43.6M | 1.9M | 32.8M | 26.9M | 29.7M | 26.8M | 31.4M | 31.3M | 29.7M | 36.2M | 39.02M | 30.79M | 23.93M | 22.36M | 17.6M | 13.61M | 18.04M | 15.5M | 27.7M | 27.1M | 4.4M |
| Effective Tax Rate % | 25.27% | 23.55% | 24.56% | 25.01% | 18.24% | 29.22% | 31.56% | 28.49% | 28.52% | 48.92% | 34.12% | -1.71% | 39.47% | 30.64% | 29.61% | 29.29% | 33.23% | 42.3% | 31.5% | 31.81% | 33.6% | 35.88% | 30.81% | 38% | 35.04% | 33.89% | 36.66% | 34.44% | 34.16% | 35.85% | -8.91% |
| Net Income | 366.4M | 340.8M | 291.2M | 262.1M | 251.5M | 165.7M | 114.3M | 131.5M | 124.8M | 73.1M | 84.2M | -112.9M | 50.3M | 58.6M | 68.4M | 66.4M | 58.8M | 19.1M | 63.9M | 77.4M | 73.74M | 54.6M | 46.82M | 33.36M | 32.62M | 26.56M | 24M | 36M | 53.4M | 51.8M | -50.3M |
| Net Margin % | 14.32% | 13.98% | 12.93% | 12.75% | 12.71% | 9.16% | 7.58% | 8.22% | 7.98% | 5.02% | 6.02% | -7.69% | 3.32% | 3.98% | 4.73% | 4.62% | 4.61% | 1.56% | 4.38% | 5.6% | 5.99% | 5.91% | 5.68% | 4.73% | 5.3% | 4.84% | 4.65% | 7.59% | 7.32% | 7.19% | -7.85% |
| Net Income Growth % | 25.18% | 17.03% | 11.1% | 4.21% | 51.78% | 44.97% | -13.08% | 5.37% | 70.73% | -13.18% | 174.58% | -324.45% | -14.16% | -14.33% | 3.01% | 12.93% | 207.85% | -70.11% | -17.44% | 4.97% | 35.05% | 16.61% | 40.34% | 2.27% | 22.84% | 10.65% | -33.33% | -32.58% | 3.09% | 202.98% | -210.07% |
| Net Income (Continuing) | 366.4M | 340.8M | 291.2M | 262.1M | 251.5M | 165.7M | 114.3M | 131.5M | 128M | 73.1M | 84.2M | -112.9M | 50.3M | 60.9M | 70.6M | 77.2M | 63.1M | 41M | 45.4M | 77.6M | 77.09M | 55.02M | 49.94M | 36.42M | 32.62M | 26.56M | 31.17M | 29.45M | 28.1M | 26.5M | -53.8M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.7M | 0 | 0 | -700K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3.4M | 5.97M | 7.83M | 7.51M | 9.29M | 10.13M | 7.31M | 6.78M | 7.7M | 8M | 11.1M | 11.1M |
| EPS (Diluted) | 10.94 | 10.17 | 8.69 | 7.82 | 7.49 | 4.89 | 3.36 | 3.85 | 3.64 | 2.12 | 2.44 | -3.23 | 1.42 | 1.65 | 1.90 | 1.78 | 1.57 | 0.47 | 1.26 | 1.99 | 2.19 | 1.66 | 1.43 | 1.04 | 1.21 | 0.99 | 0.90 | 1.34 | 1.95 | 1.89 | -1.70 |
| EPS Growth % | 25.17% | 17.03% | 11.13% | 4.41% | 53.17% | 45.54% | -12.73% | 5.77% | 71.7% | -13.11% | 175.54% | -327.46% | -13.94% | -13.16% | 6.74% | 13.38% | 234.04% | -62.7% | -36.68% | -9.13% | 31.93% | 16.08% | 37.5% | -14.05% | 22.22% | 10% | -32.84% | -31.28% | 3.17% | 211.18% | -210.39% |
| EPS (Basic) | - | 10.17 | 8.69 | 7.85 | 7.51 | 4.90 | 3.37 | 3.86 | 3.64 | 2.12 | 2.45 | -3.24 | 1.42 | 1.65 | 1.90 | 1.78 | 1.58 | 0.47 | 1.27 | 2.00 | 2.21 | 1.68 | 1.45 | 1.04 | 1.22 | 1.00 | 0.91 | 1.36 | 1.96 | 1.89 | -1.70 |
| Diluted Shares Outstanding | 33.5M | 33.5M | 33.5M | 33.5M | 33.6M | 33.9M | 34M | 34.2M | 34.3M | 34.4M | 34.5M | 34.9M | 35.4M | 35.6M | 36.1M | 37.5M | 37.4M | 37.1M | 36.8M | 39M | 33.67M | 33M | 32.72M | 27.57M | 27.06M | 26.8M | 26.67M | 26.83M | 27.33M | 27.35M | 29.53M |
| Basic Shares Outstanding | 33.5M | 33.5M | 33.5M | 33.4M | 33.5M | 33.8M | 33.9M | 34.1M | 34.3M | 34.4M | 34.4M | 34.85M | 35.3M | 35.5M | 36M | 37.3M | 37.3M | 37M | 36.6M | 38.6M | 33.3M | 32.5M | 32.28M | 27.2M | 26.72M | 26.5M | 26.39M | 26.75M | 27.17M | 27.35M | 29.53M |
| Dividend Payout Ratio | - | 19.63% | 19.06% | 17.74% | 15.71% | 20.7% | 27.47% | 23.88% | 22.68% | 35.43% | 29.1% | - | 40.76% | 30.2% | 23.39% | 24.55% | 27.89% | 84.82% | 25.35% | 20.16% | 16.88% | 19.19% | 19.37% | 20.56% | 19.89% | 24.18% | 29.61% | 26.11% | 16.67% | 15.44% | - |
Commercial office construction headwinds
According to recent financial disclosures, Watts Water Technologies achieved a 21.4% revenue growth rate in 2026Q1, marking a significant acceleration from the 7.8% growth observed in 2025Q2, likely reflecting the successful integration of the Bradley Corp acquisition into the broader commercial specification pipeline.
The recent revenue surge suggests that inorganic expansion is effectively augmenting the company's core specification-led model. Investors should monitor whether this growth trajectory remains sustainable as the company laps the initial impact of recent acquisitions in upcoming quarters.
As reported in quarterly income statements, the company's gross margin reached 48.1% in 2026Q1, demonstrating resilience and pricing power despite the inherent volatility in raw material inputs like copper and zinc that typically pressure industrial manufacturers within this specific sector.
The ability to maintain gross margins near the 50% threshold implies that Watts Water Technologies successfully leverages its regulatory moat to pass through cost inflation to wholesalers. This performance suggests that the company's value-added engineering strategy is effectively insulating its profitability from commodity price fluctuations.
Based on the provided income statement data, operating income scaled to $133.0M in 2026Q1, reflecting an operating margin of 19.6% which indicates that management is successfully controlling SG&A expenses even as the company integrates new business units and expands its market footprint.
The expansion of operating margins from 16.5% in 2024Q4 to 19.6% in 2026Q1 suggests that the company is achieving meaningful economies of scale. This trend warrants further investigation to determine if the current SG&A efficiency is a permanent structural improvement or a temporary result of delayed overhead investment.
Analysis of the reported figures shows that net income reached $99.6M in 2026Q1, with stock-based compensation remaining relatively contained, suggesting that the company's earnings growth is primarily driven by operational performance rather than aggressive accounting or excessive dilution of existing shareholders.
The consistent net margin profile, which has trended upward toward 15%, indicates high-quality earnings that are not overly reliant on non-operating items. Investors should continue to monitor the impact of future restructuring charges as the company continues its VAVE initiatives to optimize the manufacturing cost base.
Quick answers to the most common questions about buying WTS stock.
For fiscal year 2025, Watts Water Technologies, Inc. (WTS) reported total revenue of $2.44B. This represents a 280.5% increase compared to $640.9M in 1996.
Watts Water Technologies, Inc. (WTS) is profitable, generating $340.8M in net income for the fiscal year ending 2025 with a net profit margin of 14.0%.
Watts Water Technologies, Inc. (WTS) reported an operating income of $471.8M, resulting in an operating profit margin of 19.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Watts Water Technologies, Inc. (WTS) generated $1.21B in gross profit for the year, representing a gross profit margin of 49.5%. This demonstrates the company's core pricing power and production efficiency.