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Two AI Infrastructure Stocks Eye Breakouts After Rapid GrowthThe two companies serve different end markets. But they have emerged as AI infrastructure stocks amid growth of data centers.
Watts Water Technologies, Inc.(WTS)Earnings, Financials & Key Ratios
WTS•NYSE
$369.56
36.3× P/E·Price updated Jul 6, 2026
AboutWatts Water Technologies, Inc. designs, manufactures, and sells products, solution, and systems that manage and conserve the flow of fluids and energy into, through and out of buildings in the commercial and residential markets in the Americas, Europe, the Asia-Pacific, the Middle East, and Africa. The company offers residential and commercial flow control products, including backflow preventers, water pressure regulators, temperature and pressure relief valves, and thermostatic mixing valves. It also provides heating, ventilation, and air conditioning and gas products, such as boilers, water heaters, custom heat, and hot water solutions; hydronic and electric heating systems for under-floor radiant applications; custom heat and hot water solutions; hydronic pump groups for boiler manufacturers and alternative energy control packages; and flexible stainless steel connectors for natural and liquid propane gas in commercial food service and residential applications. In addition, the company offers drainage and water re-use products comprising drainage products and engineered rain water harvesting solutions for commercial, industrial, marine, and residential applications; and water quality products that include point-of-use and point-of-entry water filtration, conditioning, and scale prevention systems for commercial and residential applications. Further, it provides smart mixing system under the IntelliStation name. The company sells its products to plumbing, heating, and mechanical wholesale distributors and dealers, as well as original equipment manufacturers, specialty product distributors, do-it-yourself chains, and retail chains; and directly to wholesalers and private label accounts. Watts Water Technologies, Inc. was founded in 1874 and is headquartered in North Andover, Massachusetts.Show more
- Revenue$2.44B+8.3%
- EBITDA$529M+18.8%
- Net Income$341M+17.0%
- EPS (Diluted)10.17+17.0%
- Gross Margin49.46%+4.9%
- EBITDA Margin21.68%+9.8%
- Operating Margin19.35%+11.6%
- Net Margin13.98%+8.1%
- ROE18.25%+0.9%
WTS Price & Volume
Watts Water Technologies, Inc. (WTS) stock price & volume — 10-year historical chart
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Strategic Acquisitions Drive Revenue and Margin Expansion
Investment Thesis • Updated 2026Q1
VerdictPositive
Growth:Accelerating
Profitability:Strong
Financial:Fortress
Cash Flow:Mixed
Primary Risk:Commercial office construction headwinds
Key Thesis Takeaways
- Watts Water Technologies demonstrates a compelling growth trajectory fueled by the successful integration of the Bradley Corp acquisition, which helped propel revenue growth to 21.4% in 2026Q1.
- While the company maintains a fortress balance sheet with a debt-to-equity ratio of 0.09, investors should monitor the recent volatility in working capital that caused operating cash flow to represent only 18% of net income in the most recent quarter.
- The firm's ability to sustain gross margins at 48.1% suggests strong pricing power, though future performance remains sensitive to commercial construction cycles and potential integration-related cash flow fluctuations.
Verdict Logic
the company's robust operating margin of 19.6% and disciplined reduction of leverage to a 0.09 debt-to-equity ratio provide a solid foundation for long-term value creation despite recent cash flow timing issues.
WTS Growth Metrics
Watts Water Technologies, Inc. (WTS) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years5.21%
5 Years10.08%
3 Years7.2%
TTM14.22%
Profit CAGR
10 Years-
5 Years24.42%
3 Years10.66%
TTM25.18%
EPS CAGR
10 Years-
5 Years24.79%
3 Years10.73%
TTM25.17%
Return on Capital
10 Years16.42%
5 Years19.96%
3 Years20.71%
Last Year21.7%
WTS Recent Earnings
Watts Water Technologies, Inc. (WTS) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 12/12 qtrs (100%)●Beat Revenue 10/12 qtrs (83%)
Q2 2026Latest
May 6, 2026Metric
Actual
Est
EPS
$3.04+12.6%
$2.70
Rev
$677M+6.1%
$638M
Q1 2026
Feb 11, 2026Metric
Actual
Est
EPS
$2.62+11.0%
$2.36
Rev
$625M+2.5%
$610M
Q4 2025
Nov 5, 2025Metric
Actual
Est
EPS
$2.50+10.6%
$2.26
Rev
$612M+6.1%
$576M
Q3 2025
Aug 6, 2025Metric
Actual
Est
EPS
$3.09+15.3%
$2.68
Rev
$644M+14.6%
$562M
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | May 6, 2026 | $3.04vs $2.70+12.6% | $677Mvs $638M+6.1% |
| Q1 2026 | Feb 11, 2026 | $2.62vs $2.36+11.0% | $625Mvs $610M+2.5% |
| Q4 2025 | Nov 5, 2025 | $2.50vs $2.26+10.6% | $612Mvs $576M+6.1% |
| Q3 2025 | Aug 6, 2025 | $3.09vs $2.68+15.3% | $644Mvs $562M+14.6% |
Based on last 12 quarters of dataView full earnings history →
Latest WTS News
Recent stock market news and headlines for Watts Water Technologies, Inc. (WTS)
GuruFocus·Jun 15, 2026
Watts Releases its 2025 Sustainability ReportWatts Water Technologies, Inc. (NYSE: WTS) â through its subsidiaries, one of the world's leading manufacturers and providers of plumbing, heating and water
Business Wire·Jun 15, 2026
Watts Releases its 2025 Sustainability ReportNORTH ANDOVER, Mass.--(BUSINESS WIRE)--Watts Water Technologies Releases its 2025 Sustainability Report.
Peers Comparison
Key metrics vs top competitors for Watts Water Technologies, Inc. (WTS)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $369.56 | $12.34B | 36.34 | 8.27% | 13.98% | 18.25% | 0.54% | |
| $105.38 | $4.65B | 32.42 | 5.44% | 6.91% | 11.44% | — | |
| $0.81 | $8.06M | -0.91 | 13.03% | -55.45% | -79.65% | — | |
| $25.35 | $3.96B | 20.78 | 8.75% | 14.17% | 20.74% | — | |
| $9.00 | $463.91M | 21.43 | -7.07% | 15.1% | 10.89% | — | |
| $86.74 | $3.84B | 13.32 | -3.02% | 12.32% | 17.22% | — |
Compare WTS vs Peers
Watts Water Technologies, Inc. (WTS) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
WTS SEC Filings & Documents
Watts Water Technologies, Inc. (WTS) SEC filings — annual & quarterly reports (10-K, 10-Q)
8-K Announcements
6Material company update
May 6, 2026·SEC
Material company update
Feb 11, 2026·SEC
Material company update
Nov 17, 2025·SEC
10-K Annual Reports
310-Q Quarterly Reports
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WTS Frequently Asked Questions
Watts Water Technologies, Inc. (WTS) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is Watts Water Technologies, Inc.'s revenue?
Watts Water Technologies, Inc. (WTS) reported $2.56B in revenue for fiscal year 2025. This represents a 299% increase from $640.9M in 1996.
How fast is Watts Water Technologies, Inc. growing?
Watts Water Technologies, Inc. (WTS) grew revenue by 8.3% over the past year. This is steady growth.
Is WTS profitable?
Yes, Watts Water Technologies, Inc. (WTS) is profitable, generating $366.4M in net income for fiscal year 2025 (14.0% net margin).
Dividend & Returns
Does WTS pay dividends?
Yes, Watts Water Technologies, Inc. (WTS) pays a dividend with a yield of 0.54%. This makes it attractive for income-focused investors.
What is WTS's return on equity?
Watts Water Technologies, Inc. (WTS) has a return on equity (ROE) of 18.2%. This is reasonable for most industries.
What is Watts Water Technologies, Inc.'s free cash flow?
Watts Water Technologies, Inc. (WTS) generated $317.3M in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.