From Nasdaq: 2025-05-08 10:03:00

Watts Water Technologies, Inc. (WTS) reported first-quarter 2025 adjusted EPS of $2.37, surpassing estimates by 11.8%. Net sales declined 2% to $558 million, with organic sales down 2%. Shares rose 2% in pre-market trading. The company’s Americas segment saw flat net sales, while Europe and APMEA experienced declines and growth, respectively.

Organic sales decline was primarily due to fewer shipping days, resulting in an estimated 3% fall. Market weakness, inventory destocking in Europe, and unfavorable foreign exchange rates also impacted sales. Operating margin expanded in the Americas but declined in Europe and APMEA. Cash from operating activities and free cash flow increased in Q1 2025.

Watts Water repurchased shares worth $3.9 million in the quarter, with $141 million remaining under the buyback program. As of March 31, 2025, the company had $336.8 million in cash and $197.2 million in long-term debt. Guidance for 2025 includes updated sales expectations and adjusted EBITDA and operating margin targets.

Other companies in the industry, like Badger Meter, Inc. (BMI), reported strong earnings, while Infosys (INFY) and Microsoft (MSFT) had mixed results. BMI’s net sales grew 13%, INFY’s earnings beat estimates, and MSFT saw a 17.7% increase in EPS. Shares of these companies have shown varying trends in the past six months. Watts Water currently holds a Zacks Rank #3 (Hold).



Read more at Nasdaq: Watts Water’s Q1 Earnings & Revenues Top Estimates, Stock Up