Watts Water Technologies Financials
This page shows Watts Water Technologies (WTS) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 17 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Financial Health Signals
Based on FY2024 annual data. Scores normalized against common benchmarks. How we calculate these scores
Watts Water Technologies has an operating margin of 17.3%, meaning the company retains $17 of operating profit per $100 of revenue. This strong profitability earns a score of 87/100, reflecting efficient cost management and pricing power. This is up from 17.1% the prior year.
Watts Water Technologies's revenue grew 9.5% year-over-year to $2.3B, a solid pace of expansion. This earns a growth score of 56/100.
Watts Water Technologies carries a low D/E ratio of 0.12, meaning only $0.12 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 100/100, indicating a strong balance sheet with room for future borrowing.
With a current ratio of 2.59, Watts Water Technologies holds $2.59 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 84/100.
Watts Water Technologies converts 14.5% of revenue into free cash flow ($325.8M). This strong cash generation earns a score of 72/100.
Watts Water Technologies earns a strong 17.1% return on equity (ROE), meaning it generates $17 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 68/100. This is down from 17.3% the prior year.
Watts Water Technologies scores 12.04, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($11.0B) relative to total liabilities ($689.1M). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Watts Water Technologies passes 7 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), 1 of 2 leverage/liquidity signals pass, both operating efficiency signals pass.
For every $1 of reported earnings, Watts Water Technologies generates $1.24 in operating cash flow ($361.1M OCF vs $291.2M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Watts Water Technologies earns $26.6 in operating income for every $1 of interest expense ($390.4M vs $14.7M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Watts Water Technologies generated $2.3B in revenue in fiscal year 2024. This represents an increase of 9.5% from the prior year.
Watts Water Technologies's EBITDA was $444.8M in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 12.8% from the prior year.
Watts Water Technologies generated $325.8M in free cash flow in fiscal year 2024, representing cash available after capex. This represents an increase of 15.9% from the prior year.
Watts Water Technologies reported $291.2M in net income in fiscal year 2024. This represents an increase of 11.1% from the prior year.
Watts Water Technologies earned $8.69 per diluted share (EPS) in fiscal year 2024. This represents an increase of 11.1% from the prior year.
Watts Water Technologies held $386.9M in cash against $197.0M in long-term debt as of fiscal year 2024.
Watts Water Technologies paid $1.65 per share in dividends in fiscal year 2024. This represents an increase of 19.6% from the prior year.
Watts Water Technologies's gross margin was 47.1% in fiscal year 2024, indicating the percentage of revenue retained after direct costs. This is up 0.4 percentage points from the prior year.
Watts Water Technologies's operating margin was 17.3% in fiscal year 2024, reflecting core business profitability. This is up 0.3 percentage points from the prior year.
Watts Water Technologies's net profit margin was 12.9% in fiscal year 2024, showing the share of revenue converted to profit. This is up 0.2 percentage points from the prior year.
Watts Water Technologies's ROE was 17.1% in fiscal year 2024, measuring profit generated per dollar of shareholder equity. This is down 0.3 percentage points from the prior year.
Watts Water Technologies invested $70.4M in research and development in fiscal year 2024. This represents an increase of 4.9% from the prior year.
Watts Water Technologies spent $17.0M on share buybacks in fiscal year 2024, returning capital to shareholders by reducing shares outstanding. This represents an increase of 6.3% from the prior year.
Watts Water Technologies invested $35.3M in capex in fiscal year 2024, funding long-term assets and infrastructure. This represents an increase of 18.9% from the prior year.
WTS Income Statement
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $611.7M-5.0% | $643.7M+15.4% | $558.0M+3.3% | $540.4M-9.5% | $597.3M+4.6% | $570.9M+4.3% | $547.5M+8.6% | $504.3M |
| Cost of Revenue | $313.3M-1.4% | $317.8M+11.3% | $285.5M-0.8% | $287.8M-7.9% | $312.5M+3.0% | $303.4M+3.9% | $291.9M+8.2% | $269.9M |
| Gross Profit | $298.4M-8.4% | $325.9M+19.6% | $272.5M+7.9% | $252.6M-11.3% | $284.8M+6.5% | $267.5M+4.7% | $255.6M+9.0% | $234.4M |
| R&D Expenses | $18.8M+8.0% | $17.4M+3.6% | $16.8M+2.4% | $16.4M-8.4% | $17.9M-3.2% | $18.5M-6.6% | $19.8M+30.3% | $15.2M |
| SG&A Expenses | $185.1M-1.1% | $187.2M+11.8% | $167.5M+3.0% | $162.7M-6.0% | $173.1M+2.1% | $169.6M-2.0% | $173.1M+17.8% | $146.9M |
| Operating Income | $111.4M-17.7% | $135.3M+54.3% | $87.7M-1.5% | $89.0M-20.2% | $111.5M+15.3% | $96.7M+22.9% | $78.7M-9.6% | $87.1M |
| Interest Expense | $2.7M0.0% | $2.7M0.0% | $2.7M-3.6% | $2.8M-31.7% | $4.1M-2.4% | $4.2M+10.5% | $3.8M+216.7% | $1.2M |
| Income Tax | $28.8M-14.8% | $33.8M+162.0% | $12.9M-40.0% | $21.5M-21.8% | $27.5M+21.7% | $22.6M+4.6% | $21.6M-3.1% | $22.3M |
| Net Income | $82.2M-18.5% | $100.9M+36.4% | $74.0M+9.6% | $67.5M-17.7% | $82.0M+12.9% | $72.6M+30.3% | $55.7M-15.3% | $65.8M |
| EPS (Diluted) | $2.45-18.6% | $3.01+36.2% | $2.21+9.4% | $2.02-17.2% | $2.44+12.4% | $2.17+29.9% | $1.67-14.8% | $1.96 |
WTS Balance Sheet
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $2.7B+3.0% | $2.6B+5.8% | $2.5B+4.3% | $2.4B+0.6% | $2.4B+2.2% | $2.3B+1.0% | $2.3B0.0% | $2.3B |
| Current Assets | $1.3B+8.2% | $1.2B+9.6% | $1.1B+2.2% | $1.1B+2.1% | $1.1B+5.0% | $1.0B-4.8% | $1.1B+1.9% | $1.0B |
| Cash & Equivalents | $457.7M+23.9% | $369.3M+9.6% | $336.8M-12.9% | $386.9M+38.5% | $279.4M+17.8% | $237.1M-32.3% | $350.1M-3.5% | $362.7M |
| Inventory | $458.7M+2.3% | $448.5M+7.0% | $419.1M+6.9% | $392.1M-8.0% | $426.4M+0.7% | $423.6M+6.1% | $399.3M+3.3% | $386.4M |
| Accounts Receivable | $323.9M-4.0% | $337.5M+12.1% | $301.1M+18.9% | $253.2M-18.5% | $310.6M+1.6% | $305.7M+17.7% | $259.8M+0.9% | $257.6M |
| Goodwill | $781.3M-0.1% | $781.9M+2.8% | $760.5M+6.4% | $715.0M-0.6% | $719.6M-0.6% | $724.3M+4.5% | $693.0M+17.3% | $590.9M |
| Total Liabilities | $768.6M+2.1% | $752.5M+3.3% | $728.5M+5.7% | $689.1M-9.9% | $765.1M-2.0% | $780.6M-1.9% | $796.1M-7.1% | $857.4M |
| Current Liabilities | $463.9M-1.0% | $468.4M+4.2% | $449.5M+7.6% | $417.9M-1.6% | $424.6M+4.2% | $407.3M+0.4% | $405.8M+6.7% | $380.3M |
| Long-Term Debt | $197.5M+0.1% | $197.3M+0.1% | $197.2M+0.1% | $197.0M-23.9% | $258.7M-8.7% | $283.5M-5.0% | $298.3M+203.8% | $98.2M |
| Total Equity | $2.0B+3.4% | $1.9B+6.8% | $1.8B+3.8% | $1.7B+5.5% | $1.6B+4.3% | $1.6B+2.5% | $1.5B+4.2% | $1.5B |
| Retained Earnings | $1.4B+4.6% | $1.3B+6.4% | $1.2B+3.8% | $1.2B+9.1% | $1.1B+6.2% | $1.0B+4.5% | $979.1M+4.2% | $939.8M |
WTS Cash Flow Statement
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $122.4M+75.6% | $69.7M+26.3% | $55.2M-60.4% | $139.5M+63.5% | $85.3M+87.1% | $45.6M-58.5% | $109.9M+9.5% | $100.4M |
| Capital Expenditures | $11.5M+12.7% | $10.2M+6.3% | $9.6M-20.0% | $12.0M+76.5% | $6.8M-32.7% | $10.1M-5.6% | $10.7M+44.6% | $7.4M |
| Free Cash Flow | $110.9M+86.4% | $59.5M+30.5% | $45.6M-64.2% | $127.5M+62.4% | $78.5M+121.1% | $35.5M-64.2% | $99.2M+6.7% | $93.0M |
| Investing Cash Flow | -$11.5M+55.1% | -$25.6M+68.0% | -$79.9M-565.8% | -$12.0M-621.7% | $2.3M+102.1% | -$109.8M+64.8% | -$312.0M-3900.0% | -$7.8M |
| Financing Cash Flow | -$22.2M+0.9% | -$22.4M+25.1% | -$29.9M+12.8% | -$34.3M+22.6% | -$44.3M+0.7% | -$44.6M-124.4% | $182.8M+1181.7% | -$16.9M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | $3.9M-2.5% | $4.0M+2.6% | $3.9M-2.5% | $4.0M-2.4% | $4.1M+2.5% | $4.0M-7.0% | $4.3M+7.5% | $4.0M |
WTS Financial Ratios
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 48.8%-1.8pp | 50.6%+1.8pp | 48.8%+2.1pp | 46.7%-0.9pp | 47.7%+0.8pp | 46.9%+0.2pp | 46.7%+0.2pp | 46.5% |
| Operating Margin | 18.2%-2.8pp | 21.0%+5.3pp | 15.7%-0.8pp | 16.5%-2.2pp | 18.7%+1.7pp | 16.9%+2.6pp | 14.4%-2.9pp | 17.3% |
| Net Margin | 13.4%-2.2pp | 15.7%+2.4pp | 13.3%+0.8pp | 12.5%-1.2pp | 13.7%+1.0pp | 12.7%+2.6pp | 10.2%-2.9pp | 13.1% |
| Return on Equity | 4.2%-1.1pp | 5.3%+1.2pp | 4.2%+0.2pp | 4.0%-1.1pp | 5.1%+0.4pp | 4.7%+1.0pp | 3.7%-0.9pp | 4.5% |
| Return on Assets | 3.0%-0.8pp | 3.8%+0.9pp | 3.0%+0.1pp | 2.8%-0.6pp | 3.4%+0.3pp | 3.1%+0.7pp | 2.4%-0.4pp | 2.9% |
| Current Ratio | 2.83+0.2 | 2.59+0.1 | 2.46-0.1 | 2.59+0.1 | 2.50+0.0 | 2.48-0.1 | 2.61-0.1 | 2.74 |
| Debt-to-Equity | 0.100.0 | 0.100.0 | 0.110.0 | 0.12-0.0 | 0.16-0.0 | 0.18-0.0 | 0.20+0.1 | 0.07 |
| FCF Margin | 18.1%+8.9pp | 9.2%+1.1pp | 8.2%-15.4pp | 23.6%+10.5pp | 13.1%+6.9pp | 6.2%-11.9pp | 18.1%-0.3pp | 18.4% |
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Frequently Asked Questions
What is Watts Water Technologies's annual revenue?
Watts Water Technologies (WTS) reported $2.3B in total revenue for fiscal year 2024. This represents a 9.5% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Watts Water Technologies's revenue growing?
Watts Water Technologies (WTS) revenue grew by 9.5% year-over-year, from $2.1B to $2.3B in fiscal year 2024.
Is Watts Water Technologies profitable?
Yes, Watts Water Technologies (WTS) reported a net income of $291.2M in fiscal year 2024, with a net profit margin of 12.9%.
What is Watts Water Technologies's earnings per share (EPS)?
Watts Water Technologies (WTS) reported diluted earnings per share of $8.69 for fiscal year 2024. This represents a 11.1% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.
What is Watts Water Technologies's EBITDA?
Watts Water Technologies (WTS) had EBITDA of $444.8M in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Watts Water Technologies have?
As of fiscal year 2024, Watts Water Technologies (WTS) had $386.9M in cash and equivalents against $197.0M in long-term debt.
What is Watts Water Technologies's gross margin?
Watts Water Technologies (WTS) had a gross margin of 47.1% in fiscal year 2024, indicating the percentage of revenue retained after direct costs of goods sold.
What is Watts Water Technologies's operating margin?
Watts Water Technologies (WTS) had an operating margin of 17.3% in fiscal year 2024, reflecting the profitability of core business operations before interest and taxes.
What is Watts Water Technologies's net profit margin?
Watts Water Technologies (WTS) had a net profit margin of 12.9% in fiscal year 2024, representing the share of revenue converted into profit after all expenses.
Does Watts Water Technologies pay dividends?
Yes, Watts Water Technologies (WTS) paid $1.65 per share in dividends during fiscal year 2024.
What is Watts Water Technologies's return on equity (ROE)?
Watts Water Technologies (WTS) has a return on equity of 17.1% for fiscal year 2024, measuring how efficiently the company generates profit from shareholder equity.
What is Watts Water Technologies's free cash flow?
Watts Water Technologies (WTS) generated $325.8M in free cash flow during fiscal year 2024. This represents a 15.9% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Watts Water Technologies's operating cash flow?
Watts Water Technologies (WTS) generated $361.1M in operating cash flow during fiscal year 2024, representing cash generated from core business activities.
What are Watts Water Technologies's total assets?
Watts Water Technologies (WTS) had $2.4B in total assets as of fiscal year 2024, including both current and long-term assets.
What are Watts Water Technologies's capital expenditures?
Watts Water Technologies (WTS) invested $35.3M in capital expenditures during fiscal year 2024, funding long-term assets and infrastructure.
How much does Watts Water Technologies spend on research and development?
Watts Water Technologies (WTS) invested $70.4M in research and development during fiscal year 2024.
Does Watts Water Technologies buy back shares?
Yes, Watts Water Technologies (WTS) spent $17.0M on share buybacks during fiscal year 2024, returning capital to shareholders by reducing shares outstanding.
What is Watts Water Technologies's current ratio?
Watts Water Technologies (WTS) had a current ratio of 2.59 as of fiscal year 2024, which is generally considered healthy.
What is Watts Water Technologies's debt-to-equity ratio?
Watts Water Technologies (WTS) had a debt-to-equity ratio of 0.12 as of fiscal year 2024, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Watts Water Technologies's return on assets (ROA)?
Watts Water Technologies (WTS) had a return on assets of 12.2% for fiscal year 2024, measuring how efficiently the company uses its assets to generate profit.
What is Watts Water Technologies's Altman Z-Score?
Watts Water Technologies (WTS) has an Altman Z-Score of 12.04, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Watts Water Technologies's Piotroski F-Score?
Watts Water Technologies (WTS) has a Piotroski F-Score of 7 out of 9, indicating strong financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Watts Water Technologies's earnings high quality?
Watts Water Technologies (WTS) has an earnings quality ratio of 1.24x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Watts Water Technologies cover its interest payments?
Watts Water Technologies (WTS) has an interest coverage ratio of 26.6x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Watts Water Technologies?
Watts Water Technologies (WTS) scores 78 out of 100 on our Financial Profile, indicating strong overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.