olivLaw · US equity research
Watts Water Technologies, Inc. WTS
Miscellaneous Fabricated Metal Products · SIC 3490 · Vertical: Miscellaneous Fabricated Metal Products (SIC 3490)
Watts Water Technologies makes equipment that controls, protects and conserves water and energy in commercial and residential buildings, with a history dating back over 150 years. Net sales reached 2438.5 million USD in fiscal 2025, and in the first half of 2026 the company reports strong organic growth supported by demand from data centers.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Watts Water Technologies, Inc. (WTS) stock was 353.30 USD (−1.95% on the day), with P/E 30.9 on diluted EPS of 11.45 USD over the last 12 months, dividend yield 0.62%, beta 0.92, 52-week range 263.55–392.23 USD. Latest reported quarter (Q2 2026): revenue of 763.2 m USD (+18.6% YoY), net income of 118.3 m USD (+17.2% YoY), diluted EPS 3.53 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 48.1
- neutral
- Bollinger (20, 2)
- 343.51 – 366.49
- in the lower half of the band · %B 0.43 · band width 6.5%
- SMA 50 / 200
- 356.50 / 331.97
- mixed trend
- MACD (12, 26, 9)
- -0.65 / -0.53
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −2.6% | −1.1% | −1.5 pp | — |
| 3 months | −2.9% | −0.5% | −2.4 pp | — |
| 6 months | +21.0% | +4.4% | +16.6 pp | — |
| Year to date | +28.0% | +12.3% | +15.7 pp | — |
| 1 year | +28.6% | +13.5% | +15.1 pp | +5.6% |
| 3 years | +85.5% | +76.4% | +9.1 pp | +76.9% |
| 5 years | +70.8% | +63.7% | +7.2 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 28 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 543.6 m | 540.4 m | 558.0 m | 643.7 m | 611.7 m | 625.1 m | 677.3 m | 763.2 m |
| Cost of revenue | 286.5 m | 287.8 m | 285.5 m | 317.8 m | 313.3 m | 315.8 m | 351.2 m | 389.1 m |
| Gross profit | 257.1 m | 252.6 m | 272.5 m | 325.9 m | 298.4 m | 309.3 m | 326.1 m | 374.1 m |
| Research & development | 17.6 m | 16.4 m | 16.8 m | 17.4 m | 18.8 m | 20.6 m | 19.2 m | 20.9 m |
| SG&A | 159.0 m | 162.8 m | 167.5 m | 187.2 m | 185.1 m | 194.5 m | 192.9 m | 214.5 m |
| Operating income | 93.2 m | 89.0 m | 87.7 m | 135.3 m | 111.4 m | 113.7 m | 133.0 m | 154.0 m |
| Depreciation & amortisation | 14.0 m | 13.6 m | 13.7 m | 14.5 m | 14.2 m | 14.8 m | 15.4 m | 15.8 m |
| Interest expense | 3.6 m | 2.8 m | 2.7 m | 2.7 m | 2.7 m | 2.7 m | 2.6 m | 2.2 m |
| Pre-tax income | 92.3 m | 89.0 m | 86.9 m | 134.7 m | 111.0 m | 113.2 m | 131.4 m | 153.7 m |
| Income tax | 23.2 m | 21.4 m | 12.9 m | 33.8 m | 28.8 m | 29.5 m | 31.8 m | 35.4 m |
| Net income | 69.1 m | 67.6 m | 74.0 m | 100.9 m | 82.2 m | 83.7 m | 99.6 m | 118.3 m |
| Diluted EPS | 2.06 | 2.02 ≈ | 2.21 | 3.01 | 2.45 | 2.50 ≈ | 2.97 | 3.53 |
| Operating cash flow | 90.7 m ≈ | 139.5 m | 55.2 m | 69.7 m ≈ | 122.4 m ≈ | 154.7 m | 17.9 m | 102.9 m ≈ |
| Capex | 6.4 m ≈ | 12.0 m | 9.6 m | 10.2 m ≈ | 11.5 m ≈ | 14.4 m | 11.3 m | 11.3 m ≈ |
| Dividends paid | 14.4 m ≈ | 14.4 m | 14.4 m | 17.6 m ≈ | 17.4 m ≈ | 17.5 m | 17.5 m | 21.3 m ≈ |
| Share repurchases | 4.9 m ≈ | 4.0 m | 3.9 m | 4.0 m ≈ | 3.9 m ≈ | 4.2 m | 3.8 m | 4.1 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 79 percentile of its own 39-quarter history (min 17.3, median 26.0, max 39.7; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.6 bn | 1.6 bn | 1.5 bn | 1.8 bn | 2.0 bn | 2.1 bn | 2.3 bn | 2.4 bn |
| Revenue YoY | +7.4% | +2.3% | −5.7% | +19.9% | +9.4% | +3.9% | +9.5% | +8.3% |
| Net income | 128.0 m | 131.5 m | 114.3 m | 165.7 m | 251.5 m | 262.1 m | 291.2 m | 340.8 m |
| Net income YoY | +75.1% | +2.7% | −13.1% | +45.0% | +51.8% | +4.2% | +11.1% | +17.0% |
| Diluted EPS | 3.73 | 3.85 | 3.36 | 4.88 | 7.48 | 7.82 | 8.69 | 10.17 |
| Diluted EPS YoY | +75.9% | +3.2% | −12.7% | +45.2% | +53.3% | +4.5% | +11.1% | +17.0% |
| net % | 8.2% | 8.2% | 7.6% | 9.2% | 12.7% | 12.7% | 12.9% | 14.0% |
| Free cash flow | 133.5 m | 164.8 m | 185.0 m | 154.1 m | 195.9 m | 281.1 m | 325.8 m | 356.3 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 405.5 m USD
- Financial debt
- 197.7 m USD
- Net debt
- -207.8 m USD
- Equity
- 2.0 bn USD
- Total assets
- 2.9 bn USD
- Debt / equity
- 0.10x
- Current ratio
- 2.51x
- ROE
- 18.2%
- ROA
- 12.9%
- FCF margin
- 14.6%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 1.5 bn | 1.8 bn | 2.0 bn | 2.1 bn | 2.3 bn | 2.4 bn | SEC (XBRL)· 23 Feb 2026verified |
| Cost of revenue | 883.2 m | 1.0 bn | 1.1 bn | 1.1 bn | 1.2 bn | 1.2 bn | SEC (XBRL)· 23 Feb 2026verified |
| Gross profit | 625.4 m | 767.1 m | 874.3 m | 960.9 m | 1.1 bn | 1.2 bn | SEC (XBRL)· 23 Feb 2026verified |
| Research & development | 42.2 m | 45.6 m | 59.4 m | 67.1 m | 70.4 m | 73.5 m | SEC (XBRL)· 23 Feb 2026verified |
| SG&A | 434.4 m | 508.2 m | 548.7 m | 604.5 m | 664.4 m | 734.2 m | SEC (XBRL)· 23 Feb 2026verified |
| Operating income | 181.1 m | 239.6 m | 315.0 m | 350.9 m | 390.4 m | 448.1 m | SEC (XBRL)· 23 Feb 2026verified |
| Depreciation & amortisation | 46.5 m | 45.1 m | 39.7 m | 43.3 m | 54.4 m | 56.8 m | SEC (XBRL)· 23 Feb 2026verified |
| EBITDA | 227.6 m ≈ | 284.7 m ≈ | 354.7 m ≈ | 394.2 m ≈ | 444.8 m ≈ | 504.9 m ≈ | SEC (XBRL)· 23 Feb 2026derived |
| Interest expense | 13.3 m | 6.3 m | 7.0 m | 8.2 m | 14.7 m | 10.8 m | SEC (XBRL)· 23 Feb 2026verified |
| Pre-tax income | 167.0 m | 234.1 m | 307.6 m | 349.5 m | 386.0 m | 445.8 m | SEC (XBRL)· 23 Feb 2026verified |
| Income tax | 52.7 m | 68.4 m | 56.1 m | 87.4 m | 94.8 m | 105.0 m | SEC (XBRL)· 23 Feb 2026verified |
| Net income | 114.3 m | 165.7 m | 251.5 m | 262.1 m | 291.2 m | 340.8 m | SEC (XBRL)· 23 Feb 2026verified |
| Diluted EPS | 3.36 | 4.88 | 7.48 | 7.82 | 8.69 | 10.17 | SEC (XBRL)· 23 Feb 2026verified |
| Weighted average diluted shares | 34.0 m | 33.9 m | 33.6 m | 33.5 m | 33.5 m | 33.5 m | SEC (XBRL)· 23 Feb 2026verified |
| Dividend per share | 0.92 | 1.01 | 1.16 | 1.38 | 1.65 | 1.99 | SEC (XBRL)· 23 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 218.9 m | 242.0 m | 310.8 m | 350.1 m | 386.9 m | 405.5 m | SEC (XBRL)· 23 Feb 2026verified |
| Receivables | 197.6 m | 220.9 m | 233.8 m | 259.8 m | 253.2 m | 294.0 m | SEC (XBRL)· 23 Feb 2026verified |
| Inventories | 263.6 m | 370.7 m | 375.6 m | 399.3 m | 392.1 m | 524.3 m | SEC (XBRL)· 23 Feb 2026verified |
| Current assets | 709.5 m | 861.5 m | 950.6 m | 1.1 bn | 1.1 bn | 1.3 bn | SEC (XBRL)· 23 Feb 2026verified |
| Property, plant & equipment, net | 212.3 m | 200.7 m | 196.8 m | 248.2 m | 254.8 m | 297.1 m | SEC (XBRL)· 23 Feb 2026verified |
| Goodwill | 602.4 m | 600.7 m | 592.4 m | 693.0 m | 715.0 m | 859.0 m | SEC (XBRL)· 23 Feb 2026verified |
| Intangibles (excl. goodwill) | 141.8 m | 128.6 m | 113.7 m | 216.1 m | 235.0 m | 294.6 m | SEC (XBRL)· 23 Feb 2026verified |
| Total assets | 1.7 bn | 1.9 bn | 1.9 bn | 2.3 bn | 2.4 bn | 2.9 bn | SEC (XBRL)· 23 Feb 2026verified |
| Accounts payable | 110.1 m | 143.4 m | 134.3 m | 131.8 m | 148.0 m | 182.2 m | SEC (XBRL)· 23 Feb 2026verified |
| Long-term debt | 198.2 m | 141.9 m | 147.6 m | 298.3 m | 197.0 m | 197.7 m | SEC (XBRL)· 23 Feb 2026verified |
| Current liabilities | 312.8 m | 408.5 m | 378.7 m | 405.8 m | 417.9 m | 512.4 m | SEC (XBRL)· 23 Feb 2026verified |
| Equity | 1.1 bn † | 1.2 bn † | 1.3 bn † | 1.5 bn † | 1.7 bn † | 2.0 bn † | SEC (XBRL)· 23 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 228.8 m | 180.8 m | 224.0 m | 310.8 m | 361.1 m | 402.0 m | SEC (XBRL)· 23 Feb 2026verified |
| Capex | 43.8 m | 26.7 m | 28.1 m | 29.7 m | 35.3 m | 45.7 m | SEC (XBRL)· 23 Feb 2026verified |
| Free cash flow | 185.0 m ≈ | 154.1 m ≈ | 195.9 m ≈ | 281.1 m ≈ | 325.8 m ≈ | 356.3 m ≈ | SEC (XBRL)· 23 Feb 2026derived |
| Investing cash flow | -54.8 m | -30.7 m | -22.9 m | -343.1 m | -124.7 m | -302.8 m | SEC (XBRL)· 23 Feb 2026verified |
| Financing cash flow | -181.9 m | -118.6 m | -121.7 m | 69.0 m | -190.5 m | -96.9 m | SEC (XBRL)· 23 Feb 2026verified |
| Dividends paid | 31.4 m | 34.3 m | 39.5 m | 46.5 m | 55.5 m | 66.9 m | SEC (XBRL)· 23 Feb 2026verified |
| Share repurchases | 28.9 m | 16.0 m | 69.4 m | 16.0 m | 17.0 m | 16.0 m | SEC (XBRL)· 23 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
Score: 81 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: unavailable
Key indicators
Coverage and freshness
Score by group
- Valuation60
- Returns100
- Quality81
- Balance sheet100
- Growth66
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 346.05 – 375.83 USD.
Methods computed but outside the aggregate range: Dividend discount (DDM) (a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate).
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · input data missing
- Peers: EV/EBITDAunavailable · input data missing
- Peers: P/E346.05 – 375.83 (Mid 361.56)4 companies used · median multiple 31.6x · quartiles 30.2x – 32.8xCR, CXT, HLIO, PH
- Dividend discount (DDM)outside the aggregate26.15 – 35.17 (Mid 30.00)a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 81/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 21.0% | 83 (vs peers) | 14% |
| Net margin · Quality | 14.3% | 71 (vs peers) | 8% |
| FCF conversion · Quality | 91.0% | 87 (on a fixed band) | 8% |
| Revenue CAGR 3Y · Growth | 7.2% | 60 (on a fixed band) | 11% |
| EPS CAGR 3Y · Growth | 10.8% | 72 (on a fixed band) | 11% |
| Net debt / EBITDA · Balance sheet | -0.4x | 100 (on a fixed band) | 14% |
| Interest coverage · Balance sheet | 50.2x | 100 (on a fixed band) | 8% |
| Current ratio · Balance sheet | 2.7x | 100 (on a fixed band) | 6% |
| P/E (TTM) · Valuation | 30.9x | 60 (vs peers) | 14% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | unavailable | unavailable | — |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | 21.1% | 100 (on a fixed band) | 6% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet100/100 · 3/3 factors with a value
- Growth66/100 · 2/2 factors with a value
- Quality81/100 · 3/3 factors with a value
- Returns· partial100/100 · 1/2 factors with a value
- Valuation· partial60/100 · 1/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
WATTS WATER TECHNOLOGIES INC (WTS). Latest full fiscal year: 2025; data up to 2026-06-28.
Figures computed from the financial statements: revenue 2.4 bn USD in 2025; YoY growth 8.3%; net margin 14.3%; ROE 18.8%; net debt/EBITDA -0.4x.
The estimated value range is 346.05–375.83 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 361.56 USD, the price of 353.30 USD leaves a potential of 2.3% (value / price − 1) and a margin of safety of 2.3% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 81/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: returns, valuation. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- ROIC: 21.0%
- Net margin: 14.3%
- FCF conversion: 91.0%
- EPS CAGR 3Y: 10.8%
- Net debt / EBITDA: -0.4x
- Interest coverage: 50.2x
- Current ratio: 2.7x
- Payout ratio (FCF): 21.1%
What contradicts it
No signal among the computed factors. That is not an absence of risk: factors without data were not assessed, and business risks (margins, inventory, demand) are in the source-based analysis.
Not assessed (insufficient data or a ratio without meaning): EV/EBITDA, FCF yield, Shareholder yield (distributions).
Versus the vertical median
Miscellaneous Fabricated Metal Products (SIC 3490) · same industry (4-digit SIC) · compared with 7 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| PHParker-Hannifin Corporation | 114.7 bn | 32.0 | 25.1% | 17.0% | +8.3% | +6% / +110% |
| CRCrane Company | 11.9 bn | 35.4 | 16.2% | 12.4% | +8.2% | +13% / +95% |
| MWAMueller Water Products, Inc. | 3.8 bn | 17.0 | 21.7% | 15.0% | +8.7% | −1% / +81% |
| CXTCrane Nxt, Co. | 3.5 bn | 27.3 | 10.5% | 7.1% | +11.4% | +9% / +20% |
| HLIOHelios Technologies, Inc. | 2.2 bn | 31.2 | 7.7% | 8.0% | unavailable | +24% / +74% |
| ZKINZk International Group Co., Ltd. | 10.6 m | — | -15.1% | -5.6% | −34.2% | −25% / +77% |
| HIHOHighway Holdings Limited | 3.9 m | — | -27.3% | -31.7% | −35.2% | −26% / −58% |
| WTSWatts Water Technologies Inc | — | 30.9 | 18.8% | 14.3% | +8.3% | +29% / +85% |
1- and 3-year price returns: for WTS from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Scenarios are not available. input data missing
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 8-K (04 Nov 2026 · results).
In brief
Watts Water Technologies makes equipment that controls, protects and conserves water and energy in commercial and residential buildings, with a history dating back over 150 years. Net sales reached 2438.5 million USD in fiscal 2025 1, and in the first half of 2026 the company reports strong organic growth supported by demand from data centers 3.
SWOT
Strengths
Weaknesses
Opportunities
Risks
- Construction cyclicalitymedium
Lower new construction and renovation activity, influenced by interest rates and consumer confidence, could reduce sales 1.
- Tariffs and tradehigh
Tariffs and trade measures could raise costs and affect margins, and political uncertainty remains high 12.
- Raw material pricesmedium
Volatility in copper and stainless steel could reduce margins if costs cannot be passed on to customers 1.
- Supply chainmedium
Disruptions in Asia or conflict zones could affect the availability of components and deliveries 13.
- Artificial intelligence and technologylow
Security, data and regulatory risks of new technologies could affect digital products 1.
Investment thesis
What would need to be true (bull case)
- If data center demand continues, organic growth could remain strong and support the raised 2026 outlook 3.
- Recent acquisitions and connected products can broaden the portfolio and bring steadier revenue 1.
- Production close to customers and vertical integration could protect margins in difficult conditions 12.
What to watch
- Delivery against the raised 2026 sales and margin outlook2026
- Tariff developments after the Supreme Court decision and any refundsnext 10-K
- Recovery of free cash flow in the second half of the yearQ4 2026
- Pace of the ERP rollout across plants and distribution sites2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 8-K (04 Nov 2026 · results).
The business
The company was founded in 1874 as a small machine shop supplying New England textile mills and has grown into a global water technology provider headquartered in the United States 1. Its strategy centers on three themes: safety and regulation, energy efficiency and water conservation, and products are increasingly connected to smart systems such as the Nexa platform 1. Sales go mainly to plumbing and heating wholesalers, original equipment manufacturers and do-it-yourself chains 1.
The company has completed 17 acquisitions since 2016, eight of them in the last three years, expanding its addressable market 1. In November and December 2025 it acquired Superior Boiler, Haws and Saudi Cast 1. Manufacturing is vertically integrated, with plants in the United States, China, Bulgaria and Tunisia and a contract facility in Mexico 1.
Most products are approved under standards built into plumbing codes in the Americas, Europe and parts of APMEA, which makes code compliance a competitive advantage 1. The company is investing in an SAP ERP system and digital products, which could support efficiency over the long term 1.
Segments
Americas
The Americas segment generated 1847.4 million USD in fiscal 2025, roughly three quarters of sales, and includes the recent Haws and Superior Boiler acquisitions 1. In the second quarter of 2026 sales in this region grew strongly, tied to demand from data centers 3.
Market context
The core market is building installations, where activity depends on new construction and renovation, influenced by interest rates and consumer confidence 1. The largest category is residential and commercial flow control and protection, at 61% of 2025 sales 1.
The data center and light industrial markets are increasingly important, and the company says it sees significant opportunities there 3. Growing demand for clean water and enforcement of building codes remain long-term growth factors 1.
Trends
- Data center demandtailwind
Higher volumes linked to data centers supported second quarter 2026 sales, especially in the Americas and China 3. If this demand holds, it could support growth in the second half of the year.
- Tariffsheadwind
Tariffs on imports into the United States have raised product costs and could reduce margins, and the Supreme Court decision invalidating some IEEPA tariffs added further uncertainty 1. The net effect depends on the company's ability to offset them through pricing and production 2.
- Raw material costsheadwind
Copper and stainless steel prices have been volatile and inflationary pressures affect production costs 1. If costs rise without price offsets, margins could decline 1.
- Digitalization and smart productsmixed
Connected products such as the Nexa platform and leak alerts could differentiate the company and open recurring revenue 1. Investment in artificial intelligence also brings security and regulatory risks 1.
- Weak European economymixed
The European economy remains weak and regional sales declined in fiscal 2025, though they returned to growth in the second quarter of 2026 13. A durable recovery could support regional results.
Competitive position
The company faces intense competition in all product areas, and some rivals have cost structures in other currencies, which can make dollar-priced products less competitive 1. To keep its position, it must keep investing in manufacturing, products and distribution 1.
Differentiation rests on code compliance, smart products and integrated solutions rather than components alone 1. Customers judge suppliers on quality, price, technical expertise and on-time delivery 1.
- Valve and building equipment makers
The sources mention competitors with cost structures in foreign currencies but do not name them, so no ticker is given.
- Foreign manufacturers
Producers in other countries have costs and prices in currencies other than the dollar, which can give them a price advantage.
- Code compliance and certification providers
Competition around certification and product standards can influence demand for compliant products.
- Digital product players
Rivals that use artificial intelligence more effectively could lower costs or launch differentiated offerings.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
- Blindsight (Watts Novel)Hacker News · 04 Oct 2026 · EN
- Jon Watts va regiza următorul film din franciza 'Star Wars'Agerpres · 28 Sept 2026 · RO
- From Watts to L.A. wildfires: The rise of California's troubled FAIR PlanYahoo Finance — News · 20 Sept 2026 · EN
- Naomi Watts premiată pentru întreaga carieră la Festivalul de Film de la San SebastianAgerpres · 19 Sept 2026 · RO
- Naomi Watts primește premiul pentru întreaga carieră la Festivalul de Film de la San Sebastian: „Mi s-a spus că totul se oprește la 40 de ani. Acum mă apropii de 60”G4Media · 19 Sept 2026 · RO
- Watts Water (WTS) Hits Record Sales While Margins Quietly SlipYahoo Finance — News · 07 Sept 2026 · EN
- Water Behind the Watts: The Hidden Risk of Powering Data CentersHacker News · 25 Aug 2026 · EN
- Starfish by Peter Watts (1999)Hacker News · 09 Jun 2026 · EN
The latest news item in our archive is from 04 Oct 2026; the newest SEC filing is from 04 Nov 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Current report04 Nov 2026Results of operations · Financial statements and exhibits
- Current report01 Oct 2026Departure or appointment of officers · Financial statements and exhibits
- Quarterly report06 Aug 2026
- Current report05 Aug 2026Results of operations · Financial statements and exhibits
- Current report20 May 2026Shareholder vote
- Quarterly report07 May 2026
- Current report06 May 2026Results of operations · Financial statements and exhibits
- Proxy statement01 Apr 2026
- Annual report23 Feb 2026
- Current report11 Feb 2026Results of operations · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Watts Water Technologies, Inc. · 23 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-28 · SEC / Watts Water Technologies, Inc. · 06 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Watts Water Technologies, Inc. · 05 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.