$WTS · WATTS WATER TECHNOLOGIES INC
Watts Water Technologies reported record Q3 FY2026 results (quarter ended September 27, 2026) via an 8-K Item 2.02 earnings release. Net sales rose 19% to $728.0M (12% organic), operating income jumped 71% to $190.8M, and diluted EPS rose 77% to $4.34 (adjusted EPS $3.40, up 36%). The company raised its full-year 2026 sales and margin outlook.
- Net sales $728.0M, up 19% reported and 12% organic, driven by data center growth and price realization.
- Operating margin 26.2%, up 800 bps; adjusted operating margin 20.9%, up 240 bps.
- Diluted EPS $4.34 (up 77%); adjusted diluted EPS $3.40 (up 36%).
- Operating margin expansion included $39M of tariff refunds classified as a special item.
- FY26 sales growth guided to 17-18% reported, 11-12% organic; adjusted operating margin 20.3-20.4%.
Extended-hours last trade $358.00, up +1.33% vs the $353.30 regular close, signaling a modestly positive after-hours reaction to the beat and raised guidance.
A double-digit organic growth quarter with a full-year guidance raise, powered by data center demand, signals durable momentum for a $11.8B industrial.
Data center demand is a key growth driver across Americas and APMEA, with APMEA sales up 54% reported and 30% organic.
Higher interest rates and market uncertainty continue to weigh on new construction markets; tariff refunds ($39M) are excluded from adjusted results and may not recur.