Watts Water Technologies Financials
Watts Water Technologies (WTS) reported $2.7B in revenue over the twelve months to Jun 28, 2026, up 17.1% from the prior twelve months. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 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).
Rising margins and low reinvestment needs are turning Watts’ growth into cash while preserving a net-cash balance sheet.
From FY2023 to FY2025, free cash flow rose from$281.1M to$356.3M even though capex moved only from$29.7M to$45.7M ; paired with gross margin expanding from46.7% to49.5% , the company appears to be scaling through better economics rather than heavier asset spending. In FY2025, operating cash flow of$402.0M exceeded net income of$340.8M , so reported profit was backed by cash instead of being trapped in the business.
Operating margin kept widening even as SG&A climbed to
FY2025 asset growth looks purchase-led rather than plant-led: goodwill increased to
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Watts Water Technologies's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Watts Water Technologies has an operating margin of 18.4%, meaning the company retains $18 of operating profit per $100 of revenue. This strong profitability earns a score of 86/100, reflecting efficient cost management and pricing power. This is up from 17.3% the prior year.
Watts Water Technologies's revenue grew 8.3% year-over-year to $2.4B, a solid pace of expansion. This earns a growth score of 63/100.
Watts Water Technologies carries a low D/E ratio of 0.10, meaning only $0.10 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 94/100, indicating a strong balance sheet with room for future borrowing.
With a current ratio of 2.51, Watts Water Technologies holds $2.51 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 69/100.
Watts Water Technologies converts 14.6% of revenue into free cash flow ($356.3M). This strong cash generation earns a score of 78/100.
Watts Water Technologies earns a strong 16.8% 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 91/100. This is down from 17.1% the prior year.
Watts Water Technologies scores 11.12, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($12.4B) relative to total liabilities ($853.5M). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Watts Water Technologies passes 5 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 3 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Watts Water Technologies generates $1.18 in operating cash flow ($402.0M OCF vs $340.8M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Watts Water Technologies earns $41.49 in operating income for every $1 of interest expense ($448.1M vs $10.8M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
Watts Water Technologies generated $2.4B in revenue in fiscal year 2025. This represents an increase of 8.3% from the prior year.
Watts Water Technologies's EBITDA was $504.9M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 13.5% from the prior year.
Watts Water Technologies reported $340.8M in net income in fiscal year 2025. This represents an increase of 17.0% from the prior year.
Watts Water Technologies earned $10.17 per diluted share (EPS) in fiscal year 2025. This represents an increase of 17.0% from the prior year.
Cash & Balance Sheet
Watts Water Technologies generated $356.3M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 9.4% from the prior year.
Watts Water Technologies held $405.5M in cash against $197.7M in long-term debt as of fiscal year 2025.
Watts Water Technologies paid $1.99 per share in dividends in fiscal year 2025. This represents an increase of 20.6% from the prior year.
Margins & Returns
Watts Water Technologies's gross margin was 49.5% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 2.3 percentage points from the prior year.
Watts Water Technologies's operating margin was 18.4% in fiscal year 2025, reflecting core business profitability. This is up 1.0 percentage points from the prior year.
Watts Water Technologies's net profit margin was 14.0% in fiscal year 2025, showing the share of revenue converted to profit. This is up 1.1 percentage points from the prior year.
Watts Water Technologies's ROE was 16.8% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 0.2 percentage points from the prior year.
Capital Allocation
Watts Water Technologies invested $73.5M in research and development in fiscal year 2025. This represents an increase of 4.4% from the prior year.
Watts Water Technologies spent $16.0M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 5.9% from the prior year.
Watts Water Technologies invested $45.7M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 29.5% from the prior year.
WTS Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $763.2M+12.7% | $677.3M+8.4% | $625.1M+2.2% | $611.7M-5.0% | $643.7M+15.4% | $558.0M+3.3% | $540.4M-0.6% | $543.6M |
| Cost of Revenue | $389.1M+10.8% | $351.2M+11.2% | $315.9M+0.8% | $313.3M-1.4% | $317.8M+11.3% | $285.5M-0.8% | $287.8M+0.5% | $286.5M |
| Gross Profit | $374.1M+14.7% | $326.1M+5.5% | $309.2M+3.6% | $298.4M-8.4% | $325.9M+19.6% | $272.5M+7.9% | $252.6M-1.8% | $257.1M |
| R&D Expenses | $20.9M+8.9% | $19.2M-6.3% | $20.5M+9.0% | $18.8M+8.0% | $17.4M+3.6% | $16.8M+2.4% | $16.4M-6.8% | $17.6M |
| SG&A Expenses | $214.5M+11.2% | $192.9M-0.8% | $194.4M+5.0% | $185.1M-1.1% | $187.2M+11.8% | $167.5M+3.0% | $162.7M+2.3% | $159.0M |
| Operating Income | $154.0M+15.8% | $133.0M+17.0% | $113.7M+2.1% | $111.4M-17.7% | $135.3M+54.3% | $87.7M-1.5% | $89.0M-4.5% | $93.2M |
| Interest Expense | $2.2M-15.4% | $2.6M-3.7% | $2.7M0.0% | $2.7M0.0% | $2.7M0.0% | $2.7M-3.6% | $2.8M-22.2% | $3.6M |
| Income Tax | $35.4M+11.3% | $31.8M+7.8% | $29.5M+2.4% | $28.8M-14.8% | $33.8M+162.0% | $12.9M-40.0% | $21.5M-7.3% | $23.2M |
| Net Income | $118.3M+18.8% | $99.6M+19.0% | $83.7M+1.8% | $82.2M-18.5% | $100.9M+36.4% | $74.0M+9.6% | $67.5M-2.3% | $69.1M |
| EPS (Diluted) | $3.53+18.9% | $2.97+18.8% | $2.50+2.0% | $2.45-18.6% | $3.01+36.2% | $2.21+9.4% | $2.02-1.9% | $2.06 |
WTS Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $3.0B+0.4% | $2.9B+2.0% | $2.9B+5.7% | $2.7B+3.0% | $2.6B+5.8% | $2.5B+4.3% | $2.4B-0.1% | $2.4B |
| Current Assets | $1.4B+1.3% | $1.3B+4.8% | $1.3B-2.1% | $1.3B+8.2% | $1.2B+9.6% | $1.1B+2.2% | $1.1B+1.7% | $1.1B |
| Cash & Equivalents | $347.9M-7.2% | $374.7M-7.6% | $405.5M-11.4% | $457.7M+23.9% | $369.3M+9.6% | $336.8M-12.9% | $386.9M+27.3% | $303.9M |
| Inventory | $546.5M+0.6% | $543.1M+3.6% | $524.3M+14.3% | $458.7M+2.3% | $448.5M+7.0% | $419.1M+6.9% | $392.1M-6.7% | $420.4M |
| Accounts Receivable | $404.4M+8.0% | $374.4M+27.3% | $294.0M-9.2% | $323.9M-4.0% | $337.5M+12.1% | $301.1M+18.9% | $253.2M-13.2% | $291.6M |
| Goodwill | $858.4M-0.1% | $859.6M+0.1% | $859.0M+9.9% | $781.3M-0.1% | $781.9M+2.8% | $760.5M+6.4% | $715.0M-1.4% | $725.5M |
| Total Liabilities | $762.1M-9.7% | $843.5M-1.2% | $853.5M+11.0% | $768.6M+2.1% | $752.5M+3.3% | $728.5M+5.7% | $689.1M-2.9% | $710.0M |
| Current Liabilities | $513.3M+3.5% | $496.0M-3.2% | $512.4M+10.5% | $463.9M-1.0% | $468.4M+4.2% | $449.5M+7.6% | $417.9M+0.1% | $417.5M |
| Long-Term Debt | $108.0M-45.4% | $197.8M+0.1% | $197.7M+0.1% | $197.5M+0.1% | $197.3M+0.1% | $197.2M+0.1% | $197.0M-7.0% | $211.8M |
| Total Equity | $2.2B+4.4% | $2.1B+3.4% | $2.0B+3.6% | $2.0B+3.4% | $1.9B+6.8% | $1.8B+3.8% | $1.7B+1.1% | $1.7B |
| Retained Earnings | $1.6B+6.2% | $1.5B+4.6% | $1.4B+4.5% | $1.4B+4.6% | $1.3B+6.4% | $1.2B+3.8% | $1.2B+4.3% | $1.1B |
WTS Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $102.9M+474.9% | $17.9M-88.4% | $154.7M+26.4% | $122.4M+75.6% | $69.7M+26.3% | $55.2M-60.4% | $139.5M+53.8% | $90.7M |
| Capital Expenditures | $11.3M0.0% | $11.3M-21.5% | $14.4M+25.2% | $11.5M+12.7% | $10.2M+6.3% | $9.6M-20.0% | $12.0M+87.5% | $6.4M |
| Free Cash Flow | $91.6M+1287.9% | $6.6M-95.3% | $140.3M+26.5% | $110.9M+86.4% | $59.5M+30.5% | $45.6M-64.2% | $127.5M+51.2% | $84.3M |
| Investing Cash Flow | -$11.1M+15.9% | -$13.2M+92.9% | -$185.8M-1515.7% | -$11.5M+55.1% | -$25.6M+68.0% | -$79.9M-565.8% | -$12.0M-130.8% | -$5.2M |
| Financing Cash Flow | -$116.4M-234.5% | -$34.8M-55.4% | -$22.4M-0.9% | -$22.2M+0.9% | -$22.4M+25.1% | -$29.9M+12.8% | -$34.3M+49.0% | -$67.3M |
| Share Buybacks | $4.1M+7.9% | $3.8M-9.5% | $4.2M+7.7% | $3.9M-2.5% | $4.0M+2.6% | $3.9M-2.5% | $4.0M-18.4% | $4.9M |
Not reported in any period shown, so not listed: Dividends Paid.
WTS Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 49.0%+0.9pp | 48.1%-1.3pp | 49.5%+0.7pp | 48.8%-1.8pp | 50.6%+1.8pp | 48.8%+2.1pp | 46.7%-0.6pp | 47.3% |
| Operating Margin | 20.2%+0.5pp | 19.6%+1.4pp | 18.2%0.0pp | 18.2%-2.8pp | 21.0%+5.3pp | 15.7%-0.8pp | 16.5%-0.7pp | 17.1% |
| Net Margin | 15.5%+0.8pp | 14.7%+1.3pp | 13.4%-0.1pp | 13.4%-2.2pp | 15.7%+2.4pp | 13.3%+0.8pp | 12.5%-0.2pp | 12.7% |
| Return on Equity | 5.4%+0.6pp | 4.8%+0.6pp | 4.1%-0.1pp | 4.2%-1.1pp | 5.3%+1.2pp | 4.2%+0.2pp | 4.0%-0.1pp | 4.1% |
| Return on Assets | 4.0%+0.6pp | 3.4%+0.5pp | 2.9%-0.1pp | 3.0%-0.8pp | 3.8%+0.9pp | 3.0%+0.1pp | 2.8%-0.1pp | 2.9% |
| Current Ratio | 2.66-0.1x | 2.72+0.2x | 2.51-0.3x | 2.83+0.2x | 2.59+0.1x | 2.46-0.1x | 2.590.0x | 2.55 |
| Debt-to-Equity | 0.050.0x | 0.090.0x | 0.100.0x | 0.100.0x | 0.100.0x | 0.110.0x | 0.120.0x | 0.13 |
| FCF Margin | 12.0%+11.0pp | 1.0%-21.5pp | 22.4%+4.3pp | 18.1%+8.9pp | 9.2%+1.1pp | 8.2%-15.4pp | 23.6%+8.1pp | 15.5% |
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Where Watts Water Technologies Ranks
Frequently Asked Questions
What is Watts Water Technologies's annual revenue?
Watts Water Technologies (WTS) reported $2.4B in total revenue for fiscal year 2025. This represents a 8.3% 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 8.3% year-over-year, from $2.3B to $2.4B in fiscal year 2025.
Is Watts Water Technologies profitable?
Yes, Watts Water Technologies (WTS) reported a net income of $340.8M in fiscal year 2025, with a net profit margin of 14.0%.
What is Watts Water Technologies's EBITDA?
Watts Water Technologies (WTS) had EBITDA of $504.9M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Watts Water Technologies have?
As of fiscal year 2025, Watts Water Technologies (WTS) had $405.5M in cash and equivalents against $197.7M in long-term debt.
What is Watts Water Technologies's gross margin?
Watts Water Technologies (WTS) had a gross margin of 49.5% in fiscal year 2025, 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 18.4% in fiscal year 2025, 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 14.0% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
Does Watts Water Technologies pay dividends?
Yes, Watts Water Technologies (WTS) paid $1.99 per share in dividends during fiscal year 2025.
What is Watts Water Technologies's return on equity (ROE)?
Watts Water Technologies (WTS) has a return on equity of 16.8% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Watts Water Technologies's free cash flow?
Watts Water Technologies (WTS) generated $356.3M in free cash flow during fiscal year 2025. This represents a 9.4% 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 $402.0M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Watts Water Technologies's total assets?
Watts Water Technologies (WTS) had $2.9B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Watts Water Technologies's capital expenditures?
Watts Water Technologies (WTS) invested $45.7M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Watts Water Technologies spend on research and development?
Watts Water Technologies (WTS) invested $73.5M in research and development during fiscal year 2025.
What is Watts Water Technologies's current ratio?
Watts Water Technologies (WTS) had a current ratio of 2.51 as of fiscal year 2025, 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 0.10 as of fiscal year 2025, 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 11.8% for fiscal year 2025, 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 11.12, 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 5 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. 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 to 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 1.18x, 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 41.49x, 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 80 out of 100 on our Financial Health Score, indicating strong standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.