$WTS · WATTS WATER TECHNOLOGIES INC
Watts Water Technologies filed its Q3 FY2026 10-Q. Net sales rose 19.0% YoY to $728.0M, gross profit jumped to $401.0M from $298.4M, and net income climbed 77% to $145.4M ($4.34 diluted EPS vs $2.45). Nine-month net income reached $363.3M on $2,168.4M sales. The company declared a $0.63 quarterly dividend payable December 15, 2026.
- Q3 net sales +19.0% YoY to $728.0M; organic growth 12.2%
- Gross margin expanded to 55.1% from 48.8% a year ago
- Operating income nearly doubled to $190.8M from $111.4M
- Nine-month operating cash flow rose to $278.9M from $247.3M
- Long-term debt halved to $98.2M from $197.7M at year-end
Shares rose 1.35% to $358.06 in the regular session, a modestly positive reaction to the strong margin and earnings expansion.
A 77% profit surge and 55% gross margin show Watts converting acquisition and organic growth into sharply higher profitability.
Acquisitions contributed 6.8% of consolidated sales growth, with Americas wholesale and specialty channels driving organic gains.
Foreign currency translation was a $9.9M headwind over nine months; APMEA organic growth of 29.7% remains concentrated.