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Watts Water Technologies Q3 sales, adj EPS beat estimates

By Reuters News


Overview

  • Water technology products maker's Q3 sales rose 19%, beating analyst expectations

  • Adjusted diluted EPS for Q3 climbed 36%, beating analyst expectations

  • Company raised full-year 2026 sales and margin outlook


Outlook

  • Company raises 2026 sales growth outlook to 17%-18% reported, 11%-12% organic

  • Watts expects 2026 operating margin of 21.6%-21.7%, adjusted margin of 20.3%-20.4%


Result Drivers

  • DATA CENTER DEMAND - Co said higher sales volumes were primarily driven by growth in data center applications and favorable price realization

  • ACQUISITIONS - Acquisitions in the Americas and APMEA contributed to reported sales growth, along with a minor benefit from foreign exchange

  • PRICE REALIZATION AND PRODUCTIVITY - Adjusted operating margin rose due to favorable pricing, higher sales volume leverage, and productivity gains, partly offset by inflation and acquisition dilution


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Beat

$728 mln

$692.53 mln (8 Analysts)

Q3 Adjusted EPS

Beat

$3.40

$3.14 (8 Analysts)

Q3 EPS

$4.34

Q3 Net Income

$145.40 mln

Q3 Adjusted Operating Margin

20.90%

Q3 Operating Margin

26.20%


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 7 "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 $408.72, about 13.4% above its November 3 closing price of $360.33

  • The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 27 three months ago


Reuters Recommended Reads

  • Nov 3 - Everus Construction Q3 revenue beats on data center demand

  • Nov 3 - Mayville Engineering Q3 revenue beats on Datacenter & Critical Power demand

  • Nov 4 - Trump's midterm drubbing demonstrates the power of data-centre opponents


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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