Watts Water Technologies, Inc. has reported record fourth quarter and full-year 2025 results, demonstrating significant growth in several key financial metrics compared to the same periods in 2024.
In the fourth quarter of 2025, the company achieved sales of $625 million, marking a 16% increase compared to the same period in 2024. Organic sales also grew by 8%. Additionally, operating margin increased to 18.2%, up 170 basis points, and adjusted operating margin rose to 19.0%, up 220 basis points.
For the full year 2025, sales reached $2.44 billion, an 8% increase from 2024, with organic sales growing by 5%. The operating margin increased to 18.4%, up 110 basis points, and the adjusted operating margin rose to 19.6%, up 190 basis points.
Diluted earnings per share (EPS) for the fourth quarter of 2025 were $2.50, up 24% from the same period in 2024, and adjusted diluted EPS was $2.62, up 28%. For the full year 2025, diluted EPS was $10.17, up 17%, and adjusted diluted EPS was $10.58, up 19%.
The company's operating cash flow for the full year 2025 reached $402 million, representing an 11% increase, and free cash flow amounted to $356 million, a 7% increase from 2024.
In terms of regional performance, sales in the Americas increased by 17% in the fourth quarter of 2025, with segment margin growing by 150 basis points. In Europe, sales increased by 10%, and segment margin increased by 490 basis points. In APMEA, sales increased by 15%, while segment margin decreased by 20 basis points.
Looking ahead to the full year 2026, the company anticipates sales growth ranging from 8% to 12% on a reported basis and 2% to 6% on an organic basis. The full-year operating margin is expected to be between 18.8% and 19.4%, or up 40 basis points to 100 basis points, and adjusted operating margin is expected to be between 19.1% and 19.7%, or down 50 basis points to up 10 basis points.
Watts Water Technologies, Inc. has also announced the completion of strategic acquisitions, including Haws Corporation, Superior Boiler, and Saudi Cast, which are expected to expand its product portfolio, channel access, and geographic presence.
The company's strong financial performance, along with its strategic growth initiatives and disciplined capital deployment, underscores its position for profitable, long-term growth. The market has reacted to these announcements by moving the company's shares 0.17% to a price of $297.29. Check out the company's full 8-K submission here.
