Watts Water Q2 Sales Surge 19% to $763M, Crushing Estimates
WTS sits 49% above its 52-week low of $251.17.
Summary
Watts Water Technologies reported Q2 2026 sales of $763.2M, up 19% YoY and well above the $725.75M consensus, with adjusted EPS of $3.53. Organic growth was 12%, led by data center demand and pricing.
Key Events · Earnings and Guidance · WTS
-
Q2 Sales Beat
Net sales of $763.2M, up 18.6% YoY, exceeding the $725.75M consensus. Organic growth was 12.2%, driven by price and data center volume.
-
Earnings Growth
Adjusted EPS of $3.53 vs. $3.01 YoY. Net income rose 17% to $118.3M. Operating income increased 14% to $154.0M.
-
Margin Compression
Gross margin declined to 49.0% from 50.6%, reflecting dilution from acquisitions and the absence of a prior-year tariff benefit.
-
Debt Reduction
Long-term debt reduced by $90M to $108.0M. Cash and equivalents stand at $347.9M.
Analysis · WTS · Manufacturing
A standout quarter for Watts Water underscores the strength of industrial demand. Sales jumped 19% to $763.2 million, handily beating the $725.75 million consensus, with organic growth of 12% fueled by robust price realization and data center volume. Operating income climbed 14% to $154 million, and adjusted EPS reached $3.53, up from $3.01 a year ago. Gross margin, however, slipped to 49% from 50.6%, pressured by acquisition dilution and the absence of a prior-year tariff benefit. The balance sheet also improved as the company paid down $90 million in debt. This beat reinforces the industrial growth narrative and demonstrates effective navigation of inflation and tariffs.
How filings like this one have moved
In the 30 days to Oct 16, 2026, 36.6% of the 972 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.57%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, WTS was trading at $373.50 on NYSE in the Manufacturing sector, with a market capitalization of approximately $12.1B. The 52-week trading range was $251.17 to $394.54. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.