Overview

• Water technologies firm's Q4 sales rose 16%, beating analyst expectations

• Adjusted EPS for Q4 beat analyst expectations, rising 28%

• Company completed acquisitions of Haws, Superior Boiler, and Saudi Cast

Outlook

• Watts Water expects 2026 sales growth of 8% to 12% on a reported basis

• Company projects 2026 operating margin between 18.8% and 19.4%

• Watts Water forecasts 2026 adjusted operating margin of 19.1% to 19.7%

Result Drivers

• ACQUISITIONS - Strategic acquisitions of Haws, Superior Boiler, and Saudi Cast expanded product portfolio and geographic presence, contributing to sales growth

• PRICING AND PRODUCTIVITY - Favorable pricing and productivity improvements offset inflation and increased acquisition-related charges, boosting operating margins

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy."

• Wall Street's median 12-month price target for Watts Water Technologies Inc is $300.00, about 4.8% below its February 10 closing price of $315.02

• The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 26 three months ago

Press Release: ID:nBwc6JvXa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)