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Watts Water
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Updated Nov 5, 2026
Watts Water Q3 2026: Record sales and margins driven by data center surge; guides higher on 11-12% organic growth.
Watts Water delivered record Q3 results with 12% organic sales growth and 240 basis points of margin expansion to 20.9%, driven by strong data center demand, favorable pricing, and volume leverage that more than offset persistent commodity and tariff inflation. The company raised full-year guidance to 11-12% organic growth and 70-80 basis points of margin expansion, reflecting confidence in data center durability and European momentum, while bracing for continued weakness in residential new construction and non-institutional commercial markets heading into 2027. Portfolio transformation through 80/20 rationalization is shifting the business mix away from residential (declining from 40% of 2022 sales to ~25% in 2026) and toward higher-margin nonresidential and data center end-markets (rising from 60% to 75%).
Tone: bullishRevenue
$2.4B
WTS 10-K · FY 2025
Employees
5,700
Revenue FY2024
$2.3B
Founded
1874
Profile
WTS 10-K Item 1 · Feb 23, 2026Watts Water Technologies is a global manufacturer of water technology products and solutions designed to promote safety, energy efficiency, and water conservation for commercial and residential buildings. The company operates across three geographic segments — Americas, Europe, and APMEA — and distributes through wholesale, OEM, specialty, and DIY channels. Its product portfolio spans flow control and protection, HVAC and gas, drainage and water re-use, and water quality.
Read filing description ↓ Collapse description ↑
Watts Regulator Co. was founded by Joseph E. Watts in 1874 in Lawrence, Massachusetts. Watts Regulator Co. started as a small machine shop supplying parts to the New England textile mills of the 19th century. Since then, Watts has grown into a global manufacturer and become one of the world's leading providers of water technologies and solutions that are designed to promote safety, energy efficiency, and water conservation for commercial and residential buildings. Watts Water Technologies, Inc. was incorporated in Delaware in 1985 and is the parent company of Watts Regulator Co. Our strategy is to be the preferred supplier of differentiated products and solutions that manage and conserve the flow of fluids and energy into, through and out of buildings in the commercial and residential markets of the Americas, Europe, and Asia-Pacific, Middle East and Africa ('APMEA'), our three geographic segments. Within this framework, we focus upon three themes: safety and regulation, energy efficiency and water conservation. This strategy provides us with a platform to increase our earnings through sales growth, both organic and inorganic, and the systematic reduction of manufacturing costs and operational expenses. We are advancing our digital strategy through continued investment in internal digital capabilities and selective acquisitions. These investments include scalable system architecture, enhanced digital tools, customer-facing platforms and the development of new smart and connected products. Our strategy is focused on three core dimensions: connect, control, and conserve. In 2024, we launched Nexa, an intelligent water management solution for buildings that integrate sensing technologies, smart and connected equipment, and software. In 2025, we expanded the range of our equipment portfolio that is integrated into Nexa, strengthening its unique value proposition of combining industry leading equipment solutions, with a cloud-based SaaS platform to provide actionable visibility into building water systems.
Primary products
- Residential and commercial flow control and protection
- Heating, ventilation and air conditioning (HVAC) and gas
- Drainage and water re-use
- Water quality
- Nexa intelligent water management solution
- Leak Defense leak detection and water shutoff systems
Business segments
End markets
Geographies
Named customers
In 2025, 2024 and 2023, no customer accounted for more than 10% of our total net sales. Our top ten customers accounted for $570.3 million, or 23.4%, of our total net sales in 2025; $512.0 million, or 22.7%, of our total net sales in 2024; and $440.4 million, or 21.4%, of our total net sales in 2023.
“The domestic and international markets for energy efficient products, water conservation devices, and products that address the safety and regulation for the flow of fluids, are intensely competitive and require us to compete against some companies possessing greater financial, marketing and other resources than ours.” Competitive position, as stated in the filing
Revenue commentary · FY 2025
Net sales for 2025 increased 8.3%, or $186.3 million, on a reported basis and 5.3%, or $119.1 million, on an organic basis, compared to 2024, driven by incremental price across all segments and higher volumes in Americas and APMEA, partially offset by lower volumes in Europe.
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