Watts Water Technologies
WTS · NYSEMiscellaneous Fabricated Metal Products · Fiscal year ends Dec 31
Watts Water Technologies reported revenue of $2.4B in the fiscal year ended Dec 2025, up 8.3% from the year before. Operating income was $448M, an operating margin of 18.4%, and net income was $341M. Operating cash flow of $402M less capital expenditure of $46M left free cash flow of $356M. It held more cash than debt (net cash $208M).
Last 5 fiscal years
Revenue and net income
Income statement
| Fiscal year | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Revenue | $1.8B | $2B | $2.1B | $2.3B | $2.4B |
| Cost of revenue | $1B | $1.1B | $1.1B | $1.2B | $1.2B |
| Gross profit | $767M | $874M | $961M | $1.1B | $1.2B |
| Research & development | $46M | $59M | $67M | $70M | $74M |
| Selling, general & admin | $508M | $549M | $605M | $664M | $734M |
| Operating income | $240M | $315M | $351M | $390M | $448M |
| Interest expense | $6M | $7M | $8M | $15M | $11M |
| Pre-tax income | $234M | $308M | $350M | $386M | $446M |
| Income tax | $68M | $56M | $87M | $95M | $105M |
| Net income | $166M | $252M | $262M | $291M | $341M |
| Diluted EPS | 4.88 | 7.48 | 7.82 | 8.69 | 10.17 |
| Diluted shares | 34M | 34M | 34M | 34M | 34M |
Balance sheet
| Fiscal year | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Cash & equivalents | $242M | $311M | $350M | $387M | $406M |
| Receivables | $221M | $234M | $260M | $253M | $294M |
| Inventory | $371M | $376M | $399M | $392M | $524M |
| Current assets | $862M | $951M | $1.1B | $1.1B | $1.3B |
| Net PP&E | $201M | $197M | $248M | $255M | $297M |
| Goodwill | $601M | $592M | $693M | $715M | $859M |
| Total assets | $1.9B | $1.9B | $2.3B | $2.4B | $2.9B |
| Payables | $143M | $134M | $132M | $148M | $182M |
| Deferred revenue | – | – | – | $11M | $27M |
| Current liabilities | $409M | $379M | $406M | $418M | $512M |
| Long-term debt | $142M | $148M | $298M | $197M | $198M |
| Shareholders' equity | $1.2B | $1.3B | $1.5B | $1.7B | $2B |
Cash flow
| Fiscal year | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Operating cash flow | $181M | $224M | $311M | $361M | $402M |
| Capital expenditure | $27M | $28M | $30M | $35M | $46M |
| Free cash flow | $154M | $196M | $281M | $326M | $356M |
| Depreciation & amortisation | $45M | $40M | $43M | $54M | $57M |
| Stock-based compensation | $23M | $18M | $20M | $20M | $21M |
| Acquisitions | $9M | – | $313M | $96M | $257M |
| Share buybacks | $16M | $69M | $16M | $17M | $16M |
| Dividend per share | 1.01 | 1.16 | 1.38 | 1.65 | 1.99 |
Key ratios
| Fiscal year | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Revenue growth (YoY) | – | 9.4% | 3.9% | 9.5% | 8.3% |
| Operating income growth (YoY) | – | 31.5% | 11.4% | 11.3% | 14.8% |
| EPS growth (YoY) | – | 53.3% | 4.5% | 11.1% | 17.0% |
| Gross margin | 42.4% | 44.2% | 46.7% | 47.2% | 49.5% |
| Operating margin | 13.2% | 15.9% | 17.1% | 17.3% | 18.4% |
| Net margin | 9.2% | 12.7% | 12.7% | 12.9% | 14.0% |
| Return on equityBlank when equity is negative | 14.1% | 19.3% | 17.3% | 17.1% | 16.8% |
| ROCEEBIT ÷ (assets − current liabilities) | 16.6% | 20.3% | 18.4% | 19.7% | 18.9% |
| Free cash flow margin | 8.5% | 9.9% | 13.7% | 14.5% | 14.6% |
| Cash conversion (CFO ÷ net income) | 1.09x | 0.89x | 1.19x | 1.24x | 1.18x |
| Receivable days | 45 | 43 | 46 | 41 | 44 |
| Inventory days | 130 | 124 | 133 | 120 | 155 |
| Payable days | 50 | 44 | 44 | 45 | 54 |
| Interest cover | 38.0x | 45.0x | 42.8x | 26.6x | 41.5x |
| Debt ÷ equity | 0.12x | 0.11x | 0.20x | 0.12x | 0.10x |
| Net debtDebt − cash & equivalents; excludes investments; negative = net cash | −$100M | −$163M | −$52M | −$190M | −$208M |
| Current ratio | 2.11x | 2.51x | 2.61x | 2.59x | 2.51x |
Recent filings
More in Miscellaneous Fabricated Metal Products
Standardised figures from the company's XBRL filings with the SEC (10-K, 10-Q). Line items follow US GAAP tags, so a company's own statement layout may differ and some lines show “–” where the company does not report that item. Ratios are calculated from these figures. For education only; not investment advice or a recommendation.