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Business Wire
4 days ago
- Business
- Business Wire
Watts Water Technologies Reports Record Second Quarter 2025 Results
NORTH ANDOVER, Mass.--(BUSINESS WIRE)--Watts Water Technologies, Inc. (NYSE: WTS) – through its subsidiaries, one of the world's leading manufacturers and providers of plumbing, heating and water quality products and solutions – today announced results for the second quarter of 2025. Chief Executive Officer Robert J. Pagano Jr. said, 'We delivered another strong quarter that surpassed our expectations as we achieved record sales, operating income, operating margin and EPS. We continue to demonstrate our ability to execute through periods of uncertainty, enabled by the Watts team's unwavering focus and commitment to serving our customers. As a result of our strong first half performance and our third quarter expectations, we are increasing our full year 2025 sales and margin outlook.' Mr. Pagano concluded, 'We continue to invest for the future and position ourselves to capitalize on growth opportunities aligned to favorable secular trends. We are pleased to have acquired the assets of EasyWater, which includes innovative water conditioning and filtration solutions that complement our existing water quality portfolio. The acquisition closed in June and the integration is underway and progressing well. We are confident that our differentiated capabilities and solutions as well as our resilient business strategy will drive sustainable, long-term growth and shareholder value creation.' A summary of second quarter financial results is as follows: _________________________ (1) Organic sales growth, adjusted operating income, adjusted operating margin, free cash flow, special items and adjusted diluted earnings per share represent non-GAAP financial measures. For a reconciliation of GAAP to non-GAAP items, please see the tables attached to this press release. Expand Second Quarter Financial Highlights Second quarter 2025 performance relative to second quarter 2024 Sales of $644 million increased 8% on a reported basis and 6% on an organic basis. Organic sales increased due to price, volume and pull-forward demand in the Americas resulting from tariff-related price increases. Growth in the Americas was partly offset by continued market weakness in Europe and project timing in China. Incremental acquisition sales within the Americas were $7 million and contributed 1% to reported growth. Favorable foreign exchange movements increased sales by $5 million, or 1%. Operating margin increased 230 basis points on a reported basis and 280 basis points on an adjusted basis. Operating and adjusted operating margin increased primarily due to favorable price, volume leverage in the Americas, productivity and cost actions which more than offset volume deleverage in Europe and inflation. Operating margin on a reported basis was unfavorably impacted by an increase in restructuring charges. Regional Performance Americas Sales of $499 million increased 11% on a reported basis and 10% on an organic basis, primarily due to price, volume and pull-forward demand. The acquisitions of I-CON and EasyWater contributed $7 million of incremental sales, or 1% to reported growth. Segment margin increased 290 basis points as benefits from price realization, volume leverage, productivity and cost actions more than offset inflation and investments. Europe Sales of $111 million decreased 3% on a reported basis and 8% on an organic basis. Sales declined as a result of lower volumes due to declining heating OEM sales and continued market weakness, which more than offset favorable price realization. Favorable foreign exchange movements increased reported sales by 5%. Segment margin increased 170 basis points as price, productivity and cost actions more than offset volume deleverage and inflation. APMEA Sales of $34 million decreased 3% on a reported basis and 1% on an organic basis. Sales decreased due to project timing in China, partly offset by growth in Australia, New Zealand and the Middle East. Unfavorable foreign exchange movements decreased sales by 2%. Segment margin was flat as benefits from productivity were offset by inflation and sales mix. Cash Flow and Capital Allocation For the first six months of 2025, operating cash flow was $125 million and net capital expenditures were $20 million, resulting in free cash flow of $105 million. In the comparable period last year, operating cash flow was $131 million and net capital expenditures were $11 million, resulting in free cash flow of $120 million. Operating and free cash flow decreased due to higher working capital investment related to timing of accounts receivable collections and higher inventory costs primarily related to tariffs, partially offset by higher net income. Free cash flow was also unfavorably impacted by an increase in net capital expenditures, largely due to proceeds from the sale of properties in the prior year. Sequential improvement in operating and free cash flow is expected throughout the second half of 2025 due to normal seasonality. The Company repurchased approximately 18,000 shares of Class A common stock at a cost of $4.0 million during the second quarter of 2025. For the first six months of 2025, the Company repurchased approximately 37,000 shares at a cost of $7.9 million. Approximately $137 million remains available under the stock repurchase program authorized in 2023. There is no expiration date for this program. Full Year 2025 Outlook The Company is increasing its full year sales and organic sales growth outlook and the midpoint of its operating margin and adjusted operating margin outlook. Reported sales are expected to increase between 2% to 5% and organic sales growth to range from flat to up 3%. Full year operating margin is expected to be between 17.2% and 17.8%, or down 10 to up 50 basis points, and adjusted operating margin is expected to be between 18.2% and 18.8%, or up 50 to 110 basis points. The full year outlook incorporates estimated tariff impact and actions as of August 6, 2025. Further 2025 planning assumptions are included in the second quarter earnings materials posted in the Investor Relations section of our website at For a reconciliation of GAAP to non-GAAP items and a statement regarding the usefulness of these measures to investors and management in evaluating our operating performance, please see the tables attached to this press release. Watts Water Technologies, Inc. will hold a live webcast of its conference call to discuss second quarter 2025 results on Thursday, August 7, 2025 at 9:00 a.m. EDT. This press release and the live webcast can be accessed by visiting the Investor Relations section of the Company's website at Following the webcast, the call recording will be available at the same address until August 8, 2026. Watts Water Technologies, Inc., through its subsidiaries, is a world leader in the manufacturing of innovative products to control the efficiency, safety, and quality of water within residential, commercial, and institutional applications. Watts' expertise in a wide variety of water technologies enables us to be a comprehensive supplier to the water industry. This press release includes 'forward-looking statements' as defined in the Private Securities Litigation Reform Act of 1995, including statements relating to expected full year 2025 financial results, including sales and organic sales growth, operating margin and adjusted operating margin, future dividends, our strategy, investments, the benefits from and integration of recent acquisitions, improvements in operating and free cash flow throughout 2025, our ability to manage uncertainty and current market conditions, long-term growth and shareholder value creation and return of capital to stockholders. These forward-looking statements reflect our current views about future events. You should not rely on forward-looking statements because our actual results may differ materially from those predicted as a result of a number of potential risks and uncertainties. These potential risks and uncertainties include, but are not limited to: the imposition of or changes to tariff rates and related impacts to our business and the broader market; the effectiveness, timing and expected savings associated with our cost-cutting actions, restructuring and initiatives; integration of acquired businesses in a timely and cost-effective manner, retention of supplier and customer relationships and key employees, and the ability to achieve synergies and cost savings in the amounts and within the time frames currently anticipated; current economic and financial conditions, which can affect the housing and construction markets where our products are sold, manufactured and marketed; shortages in and pricing of raw materials and supplies; our ability to compete effectively; changes in variable interest rates on our borrowings; inflation; failure to expand our markets through acquisitions; failure to successfully develop and introduce new product offerings or enhancements to existing products; failure to manufacture products that meet required performance and safety standards; foreign exchange rate fluctuations; cyclicality of industries where we market our products, such as plumbing and heating wholesalers and home improvement retailers; environmental compliance costs; product liability risks and costs; changes in the status of current litigation; the war in Ukraine and other global crises; supply chain and logistical disruptions or labor shortages and workforce disruptions that could negatively affect our supply chain, manufacturing, distribution, or other business processes; and other risks and uncertainties discussed under the heading 'Item 1A. Risk Factors' and in Note 16 of the Notes to the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission ('SEC'), as well as risk factors disclosed in our subsequent filings with the SEC. We undertake no duty to update the information contained in this press release, except as required by law. WATTS WATER TECHNOLOGIES, INC. AND SUBSIDIARIES (Amounts in millions, except share information) (Unaudited) June 29, 2025 2024 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 369.3 $ 386.9 Trade accounts receivable, less reserve allowances of $13.5 million at June 29, 2025 and $11.9 million at December 31, 2024 337.5 253.2 Inventories, net: Raw materials 157.4 141.9 Work in process 21.0 16.9 Finished goods 270.1 233.3 Total Inventories 448.5 392.1 Prepaid expenses and other current assets 58.7 51.3 Total Current Assets 1,214.0 1,083.5 PROPERTY, PLANT AND EQUIPMENT: Property, plant and equipment, at cost 739.6 691.6 Accumulated depreciation (474.3 ) (436.8 ) Property, plant and equipment, net 265.3 254.8 OTHER ASSETS: Goodwill 781.9 715.0 Intangible assets, net 252.0 235.0 Deferred income taxes 42.9 36.4 Other, net 88.8 72.3 TOTAL ASSETS $ 2,644.9 $ 2,397.0 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 176.9 $ 148.0 Accrued expenses and other liabilities 220.0 190.8 Accrued compensation and benefits 71.5 79.1 Total Current Liabilities 468.4 417.9 LONG-TERM DEBT 197.3 197.0 DEFERRED INCOME TAXES 11.5 10.9 OTHER NONCURRENT LIABILITIES 75.3 63.3 STOCKHOLDERS' EQUITY: Preferred Stock, $0.10 par value; 5,000,000 shares authorized; no shares issued or outstanding — — Class A common stock, $0.10 par value; 120,000,000 shares authorized; 1 vote per share; issued and outstanding, 27,418,992 shares at June 29, 2025 and 27,366,685 shares at December 31, 2024 2.7 2.7 Class B common stock, $0.10 par value; 25,000,000 shares authorized; 10 votes per share; issued and outstanding, 5,946,290 shares at June 29, 2025 and 5,953,290 shares at December 31, 2024 0.6 0.6 Additional paid-in capital 708.6 696.2 Retained earnings 1,308.7 1,184.8 Accumulated other comprehensive loss (128.2 ) (176.4 ) Total Stockholders' Equity 1,892.4 1,707.9 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,644.9 $ 2,397.0 Expand WATTS WATER TECHNOLOGIES, INC. AND SUBSIDIARIES (Amounts in millions) (Unaudited) Six Months Ended June 29, June 30, 2025 2024 OPERATING ACTIVITIES Net income $ 174.9 $ 154.5 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 17.9 16.9 Amortization of intangibles and other 10.3 9.8 Loss on disposal of long-lived assets and (gain) on sale of assets 0.2 (4.1 ) Stock-based compensation 9.5 10.0 Deferred income tax (6.2 ) (5.2 ) Changes in operating assets and liabilities, net of effects from business acquisitions: Accounts receivable (69.3 ) (50.0 ) Inventories (37.0 ) (16.8 ) Prepaid expenses and other assets (16.3 ) (0.8 ) Accounts payable, accrued expenses and other liabilities 40.9 16.6 Net cash provided by operating activities 124.9 130.9 INVESTING ACTIVITIES Additions to property, plant and equipment (19.8 ) (16.9 ) Proceeds from the sale of property, plant and equipment — 5.7 Business acquisitions, net of cash acquired (85.7 ) (96.3 ) Net cash used in investing activities (105.5 ) (107.5 ) FINANCING ACTIVITIES Payments of long-term debt — (40.0 ) Payments for withholding taxes on vested awards (11.1 ) (12.8 ) Payments for finance leases and other (1.3 ) (1.3 ) Payments to repurchase common stock (7.9 ) (8.1 ) Dividends (32.0 ) (26.7 ) Net cash used in financing activities (52.3 ) (88.9 ) Effect of exchange rate changes on cash and cash equivalents 15.3 (5.2 ) DECREASE IN CASH AND CASH EQUIVALENTS (17.6 ) (70.7 ) Cash and cash equivalents at beginning of year 386.9 350.1 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 369.3 $ 279.4 Expand Segment Earnings and Non-GAAP Financial Measures In this press release, segment earnings is our GAAP performance measure used by our chief operating decision-maker ('CODM') to assess and evaluate segment results. Segment earnings exclude the impact of non-recurring and unusual items, such as restructuring costs, acquisition-related costs and gain or loss on sale of assets. The CODM uses segment earnings for insight into underlying trends comparing past financial performance with current performance by reporting segment on a consistent basis. Segment margin is defined as segment earnings divided by segment revenue. We refer to non-GAAP financial measures (including adjusted operating income, adjusted operating margin, adjusted net income, adjusted diluted earnings per share, organic sales, organic sales growth, free cash flow, cash conversion rate of free cash flow to net income and net debt to capitalization ratio) and provide a reconciliation of those non-GAAP financial measures to the corresponding financial measures contained in our consolidated financial statements prepared in accordance with GAAP. We believe these financial measures enhance the overall understanding of our historical financial performance and give insight into our future prospects. Adjusted operating income, adjusted operating margin, adjusted net income and adjusted diluted earnings per share eliminate certain expenses incurred and benefits recognized in the periods presented that relate primarily to our global restructuring programs, acquisition-related costs, gain or loss on sale of assets and the related income tax impacts on these items and tax adjustment items. Management then utilizes these adjusted financial measures to assess the run rate of the Company's operations against those of comparable periods. Organic sales and organic sales growth are non-GAAP measures of sales and sales growth excluding the impacts of foreign exchange, acquisitions and divestitures from period-over-period comparisons. Management believes reporting organic sales and organic sales growth provides useful information to investors, potential investors and others, and allows for a more complete understanding of underlying sales trends by providing sales and sales growth on a consistent basis. Free cash flow, cash conversion rate of free cash flow to net income, and the net debt to capitalization ratio, which are adjusted to exclude certain cash inflows and outlays, and include only certain balance sheet accounts from the comparable GAAP measures, are an indication of our performance in cash flow generation and also provide an indication of the Company's relative balance sheet leverage to other industrial manufacturing companies. These non-GAAP financial measures are among the primary indicators management uses as a basis for evaluating our cash flow generation and our capitalization structure. In addition, free cash flow is used as a criterion to measure and pay certain compensation-based incentives. For these reasons, management believes these non-GAAP financial measures can be useful to investors, potential investors and others. The Company's non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial measures prepared in accordance with GAAP. TABLE 3 (Amounts in millions) (Unaudited) Second Quarter Ended Americas Europe APMEA Total Net sales June 29, 2025 $ 498.5 $ 111.0 $ 34.2 $ 643.7 Net sales June 30, 2024 448.1 114.1 35.1 597.3 Dollar change $ 50.4 $ (3.1) $ (0.9) $ 46.4 Net sales % increase (decrease) 11.2 % (2.7) % (2.6) % 7.8 % Foreign exchange impact 0.1 % (4.9) % 1.5 % (0.8) % Acquisition impact (1.5) % — % — % (1.2) % Organic sales increase (decrease) 9.8 % (7.6) % (1.1) % 5.8 % Expand Six Months Ended Net sales June 29, 2025 $ 916.6 $ 219.4 $ 65.7 $ 1,201.7 Net sales June 30, 2024 866.9 237.4 63.9 1,168.2 Dollar change $ 49.7 $ (18.0) $ 1.8 $ 33.5 Net sales % increase (decrease) 5.7 % (7.6) % 2.8 % 2.9 % Foreign exchange impact 0.2 % (0.8) % 2.5 % 0.1 % Acquisition impact (1.4) % — % — % (1.0) % Organic sales increase (decrease) 4.5 % (8.4) % 5.3 % 2.0 % Expand TABLE 4 (Amounts in millions) (Unaudited) Six Months Ended June 29, June 30, 2025 2024 Net cash provided by operating activities $ 124.9 $ 130.9 Less: additions to property, plant, and equipment (19.8) (16.9) Plus: proceeds from the sale of property, plant, and equipment — 5.7 Free cash flow $ 105.1 $ 119.7 Net income $ 174.9 $ 154.5 Cash conversion rate of free cash flow to net income 60.1 % 77.5 % Expand TABLE 5 (Amounts in millions) (Unaudited) June 29, December 31, 2025 2024 Current portion of long-term debt $ — $ — Plus: long-term debt, net of current portion 197.3 197.0 Less: cash and cash equivalents (369.3) (386.9) Net debt $ (172.0) $ (189.9) Net debt $ (172.0) $ (189.9) Total stockholders' equity 1,892.4 1,707.9 Capitalization $ 1,720.4 $ 1,518.0 Net debt to capitalization ratio (10.0) % (12.5) % Expand TABLE 6 2025 FULL YEAR OUTLOOK – RECONCILIATION OF NET SALES GROWTH TO ORGANIC SALES GROWTH AND OPERATING MARGIN TO ADJUSTED OPERATING MARGIN (Unaudited) Total Watts Full Year 2025 Outlook Approximately Net Sales Net sales growth 2% to 5% Forecasted impact of acquisition / FX (2)% Organic sales growth Flat to 3% Operating Margin Operating margin 17.2% to 17.8% Forecasted restructuring / other costs 1.0% Adjusted operating margin 18.2% to 18.8% Expand
Leaders
15-07-2025
- Business
- Leaders
AMAALA Unveils Professional Sailing Team to Champion Ocean Science, Sustainability
Red Sea Global has officially launched Team AMAALA, a professional sailing team that will compete in The Ocean Race Europe 2025—one of the most prestigious and challenging sailing competitions in the world. The race will span several stages from the Baltic Sea to the Adriatic Sea, placing AMAALA at the heart of an international movement for ocean sustainability. Sailing, Sustainability The formation of Team AMAALA represents a significant step in Red Sea Global's deepening connection with the sailing world. This move also reflects the company's long-term commitment to ocean conservation and sustainable development. Leading the team is Alan Roura, a renowned Swiss sailor with a strong track record in high-performance ocean racing, particularly in the IMOCA 60 class. Vision for Conscious Tourism, Environmental Advocacy John Pagano, CEO of Red Sea Global, emphasized the broader mission behind the initiative: 'We are building integrated destinations guided by science and inspired by nature, aiming to enhance the well-being of humans, society, and nature together. We also believe that conscious tourism can be a driving force for positive change and a means to empower destinations to thrive and sustain.' He added that Team AMAALA's presence in The Ocean Race Europe offers a powerful platform to advocate for global solidarity in protecting marine environments. 'If there is a time when the world needs a collective will to protect our oceans and natural inspiration for sailors, this is the right time,' Pagano noted. Global Recognition, Stronger Identity Pagano further highlighted the strategic value of Team AMAALA: 'This project enhances our global identity and presence. While Red Sea Global has been a proud part of The Ocean Race family since 2023, now it's time for Team AMAALA to raise its flag on the global stage and forge deeper connections with the sailing world and the luxury yachting lifestyle central to our destination.' Following its debut in The Ocean Race Europe 2025, Team AMAALA is set to participate in future landmark events, including: A transatlantic race from New York to Barcelona in 2026 A round-the-world race in 2027, with the AMAALA destination as the grand finale, making it the first time the race concludes on the Red Sea coast Commitment to Ocean Science, Research As part of its participation, AMAALA will also serve as an official supporter of The Ocean Race's science program during both the 2025 and 2027 races. This initiative will collect critical ocean data, such as: Water temperature Salinity levels Oxygen and CO₂ content Microplastic concentrations Environmental DNA samples This data will be shared with international scientific bodies, contributing to a deeper understanding of changing oceanic conditions, particularly in European waters. The 2023 edition of the race yielded over four million data points for scientific research. Corallium One of the key beneficiaries of this data will be Corallium, AMAALA's marine life center set to open later this year. Corallium will serve as a global hub for: Ocean conservation Marine education Environmental awareness Ocean Race Finally, Red Sea Global's partnership with The Ocean Race began in 2023, rooted in a shared mission to promote ocean health and sustainability. In 2024, AMAALA was officially named the final destination for the 15th edition of The Ocean Race in 2027—an honor that underscores the Red Sea's growing significance in the global sailing and marine conservation communities. Related Topics : AMAALA Project: New Milestones in Luxury Red Sea Destination Red Sea International Earns 7 LEED Certificates for Real Estate Projects Saudi Red Sea Authority Launches 'More than One Sea' Campaign Short link : Post Views: 20
Time of India
23-06-2025
- Entertainment
- Time of India
Psycho Clown finally WWE-bound? Major update on top AAA star's future
Psycho Clown (Image via Getty Images) The rumours just keep getting louder. Is Psycho Clown finally heading to WWE ? For months now, the wrestling world has been busy with speculation about what's next for the masked AAA star. And now, the latest update has fans convinced that his WWE debut is no longer a matter of 'if' but 'when. ' Psycho Clown has been one of the most exciting and unpredictable stars in Mexican wrestling for over two decades. With his colorful mask, wild personality, and proud lucha libre roots, he has carved out a massive fan base. And after all his success in AAA, it looks like he might finally be ready for the global stage in WWE. WWE eyes Psycho Clown as latest AAA signing Earlier this year, WWE shocked the wrestling world when it announced its partnership with AAA. The historic deal opened the door for AAA's biggest names to join WWE, and fans have been curious to see who makes the jump. While names like Mr. Iguana have already caught attention, Psycho Clown's name has been at the center of speculation for months. Now, according to Cory Hays, those rumours seem close to reality. The report states that Psycho Clown will no longer be accepting independent bookings after August 2025, a move that often signals a wrestler is preparing to sign with WWE. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch CFD với công nghệ và tốc độ tốt hơn IC Markets Đăng ký Undo Although WWE has not officially confirmed anything, insiders believe it's only a matter of time before Psycho Clown reports to the WWE Performance Center. It is still unclear if he will debut through NXT or go straight to RAW or SmackDown, but one thing's for sure, WWE officials are keeping a close eye on him. A fantastic career and recent WWE appearance Psycho Clown comes from the famous Alvarado wrestling family and has been part of the business since 2000. Over the years, he has won several major championships in AAA, including the Latin American Title, World Tag Team Titles, and World Trios Titles. He has also captured the Rey de Reyes tournament and the Lucha Libre World Cup alongside Pagano. Legado del Fantasma vs. El Hijo de Dr. Wagner, Pagano & Psycho Clown: Worlds Collide 2025 highlights Fans recently got a glimpse of him in action during WWE x AAA Worlds Collide. Psycho Clown teamed with Pagano and El Hijo de Dr. Wagner Jr. against Legado del Fantasma. Even though they didn't win, his performance was enough to get people backstage talking. With his indie dates winding down and WWE interest heating up, it feels like only a matter of time before Psycho Clown makes his WWE debut, ready to bring his chaotic, high-energy style to a whole new audience. Also Read: Michelle McCool talks about future plans for WWE return, The Undertaker has a big role in it For real-time updates, scores, and highlights, follow our live coverage of the India vs England Test match here . Game On Season 1 kicks off with Sakshi Malik's inspiring story. Watch Episode 1 here
USA Today
14-06-2025
- Sport
- USA Today
Chuck Pagano's Ravens return doubles as a shot at some unfinished business
Chuck Pagano's Ravens return doubles as a shot at some unfinished business Chuck Pagano's return draws smiles each time it is mentioned, but it may also gist the longtime Raven with some closure. Every glimpse of Chuck Pagano in the Baltimore Ravens' black and purple forces an immediate smile across the countenance. It's like he never left (even though we know he did). He never looked quite right in that Indianapolis Colts gear, nor did he ever look like a Chicago Bears coach. Chuck's home is with the flock. It always has been. He's probably forgotten more about defense than some of these younger coaches will ever know. He has coached for nearly four decades, and he's still going strong. Baltimore recently dropped its look "Inside Rookie Minicamp with Malaki Starks", and the Ravens' secondary coach allowed some behind-the-scenes access. Coach Pagano knows what he's doing, and he knows great defensive talent when he sees it. After all, he once led a unit that featured Ray Lewis, Ed Reed, and Terrell Suggs. He hasn't paced an NFL sideline since the 2020 NFL season, but it's good to have him back. While he's in town, the Ravens may as well help him handle some unfinished business. Chuck Pagano has an opportunity to win a Super Bowl that he missed out on the last time He's the owner of a coaching resume that many would love to have. His journey began in 1984 as a graduate assistant at USC. Fate eventually led him to Baltimore. Pagano spent three years as the Ravens' secondary coach before assuming the title of defensive coordinator in 2011. That season didn't go as planned. It ended with Billy Cundiff's missed field goal in the AFC Championship Game vs. the New England Patriots. Three days later, Coach Pagano was introduced as the head coach of the Indianapolis Colts. Baltimore would win the Super Bowl one year later, in Ray Lewis and Ed Reed's final season with the team. Chuck still has yet to taste Super Bowl glory. You can see where all of this is headed, right? More than 13 years separate Coach Pagano's exit from his return. This season feels like unfinished business, both for the Ravens and their secondary coach. As he did many moons ago, he's fortunate to have some talent in the secondary. Kyle Hamilton and Marlon Humphrey are his Pro Bowlers. Malaki Starks is the talented rookie. Pagano has never been a stranger to hard work. Starks recently shared a story of his position coach texting him about film at 5 a.m. That's precisely the type of work ethic this team will need to win it all. Two seasons ago, they lost in the AFC Championship Game. A year ago, they were bounced in the Divisional Round. Might this be their year? Let's hope so for the fans, this roster, and some returning friends.
Yahoo
12-06-2025
- Business
- Yahoo
WTS Q1 Earnings Call: Tariffs, Supply Chain Strategy, and Cautious Outlook Shape Results
Water management manufacturer Watts Water (NYSE:WTS) reported revenue ahead of Wall Street's expectations in Q1 CY2025, but sales fell by 2.3% year on year to $558 million. Its non-GAAP profit of $2.37 per share was 11.3% above analysts' consensus estimates. Is now the time to buy WTS? Find out in our full research report (it's free). Revenue: $558 million vs analyst estimates of $547.8 million (2.3% year-on-year decline, 1.9% beat) Adjusted EPS: $2.37 vs analyst estimates of $2.13 (11.3% beat) Adjusted EBITDA: $119.8 million vs analyst estimates of $110.1 million (21.5% margin, 8.8% beat) Operating Margin: 15.7%, down from 16.9% in the same quarter last year Organic Revenue fell 2.1% year on year (6.4% in the same quarter last year) Market Capitalization: $8.17 billion Watts Water's first quarter results were shaped by the impact of tariffs, ongoing supply chain adjustments, and weakness in European markets. CEO Bob Pagano attributed the 2% organic sales decline primarily to fewer shipping days and ongoing challenges in Europe, while highlighting incremental contributions from the I-CON acquisition. The company also benefited from productivity measures and cost controls that offset inflationary pressures. Pagano noted, 'We benefited from incremental sales from our I-CON acquisition. However, the benefit was more than offset by unfavorable foreign exchange.' The quarter also saw Watts Water continue automation and restructuring actions, including the exit from a French manufacturing facility, to drive further productivity. Looking ahead, Watts Water's guidance reflects caution around macroeconomic uncertainty, especially regarding tariffs and their impact on global demand. Management expects price increases, global sourcing actions, and accelerated onshoring of production to mitigate additional tariff costs and potential demand reduction later in the year. CEO Bob Pagano explained, 'Despite the uncertainty around the trade environment and resulting demand impacts, we are maintaining our full year organic sales and adjusted operating margin outlook.' The company anticipates ongoing softness in Europe due to continued heat pump destocking and construction market weakness, with some signs of recovery potentially emerging in the second half. Management is focused on leveraging its U.S. manufacturing base and maintaining flexibility in capital allocation to support growth opportunities. Management identified tariffs, supply chain adjustments, and regional demand trends as key drivers of the quarter's performance and outlook. Tariff management and pricing: Watts Water is proactively addressing tariff impacts through price increases, supply chain relocation, and increased U.S. manufacturing. Management emphasized its ongoing strategy of "making products in the regions for the region" to reduce exposure to tariffs, particularly those affecting components sourced from China. Productivity and cost controls: The company continues to implement automation, lean initiatives, and selective restructuring. The exit from a French facility and integration of recent acquisitions are expected to enhance productivity and reduce operational costs, supporting margins even as sales volumes face headwinds. Regional performance differences: Americas performance was described as solid, helped by U.S.-based manufacturing and pre-buying ahead of tariff-related price increases. Europe remained weak due to destocking in heat pumps and a slowdown in construction, while APMEA (Asia-Pacific, Middle East, and Africa) showed growth, partly offset by fewer shipping days in some markets. Acquisition integration: The integration of recent acquisitions, especially I-CON, is progressing ahead of schedule, with cost and revenue synergies already being realized. Management expects these businesses to contribute positively to adjusted EBITDA margins and earnings per share in 2025. Inventory and supply chain resilience: Watts Water maintains approximately three months of inventory and has secured sufficient raw material supplies, mitigating risks from supply chain disruptions and raw material shortages. Management noted ongoing efforts to diversify suppliers and maintain flexibility in the current trade environment. Watts Water's outlook for the remainder of the year is shaped by tariff impacts, regional demand softness, and its ability to offset cost pressures through operational measures. Tariff and trade environment: Management expects tariffs to remain a headwind, particularly for products with components sourced from China. The company is relying on price increases, supply chain shifts, and onshoring to offset these costs. CEO Bob Pagano cautioned that prolonged high tariffs could impact demand, especially in the second half of the year. European market challenges: The company forecasts continued weakness in Europe due to new construction slowdowns and ongoing heat pump destocking. While there are some indications that demand could stabilize later in the year, management remains cautious and has built conservative assumptions into its guidance. Capital allocation and productivity: Watts Water plans to maintain capital allocation flexibility, including a recently announced 21% dividend increase. Continued investment in automation, lean initiatives, and restructuring—such as the French facility exit—are central to its strategy for protecting margins and supporting long-term growth. In the coming quarters, the StockStory team will be monitoring (1) the effectiveness of Watts Water's tariff mitigation strategies and supply chain adjustments, (2) trends in European demand, particularly any recovery in the construction and heat pump markets, and (3) the continued integration and performance of acquisitions like I-CON. Progress on cost controls, price realization, and capital allocation decisions will also be notable signposts for sustained profitability. Watts Water Technologies currently trades at a forward P/E ratio of 26.4×. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
