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National Post
19-05-2025
- Business
- National Post
Watts Water Technologies, Inc. to Participate in Upcoming Investor Conferences
Article content NORTH ANDOVER, Mass. — Watts Water Technologies, Inc. (NYSE: WTS) today announced that Robert J. Pagano, Jr., Chief Executive Officer & President; Shashank Patel, Chief Financial Officer; Andre Dhawan, Chief Operating Officer, and Diane McClintock, Senior Vice President FP&A and Investor Relations will participate in the following investor conferences: Article content Article content KeyBanc Capital Markets' 2025 Industrials & Basic Materials Conference, InterContinental Hotel, 510 Atlantic Avenue, Boston, MA on Wednesday, May 28, 2025, with management hosting investor meetings, starting at 8:00 a.m. (Eastern Time). Article content Stifel 2025 Boston Cross Sector Conference, InterContinental Hotel, 510 Atlantic Avenue, Boston, MA on Tuesday, June 3, 2025, with management hosting investor meetings, starting at 8:00 a.m. (Eastern Time). Article content Deutsche Bank 16 th Annual Global Industrials & Materials Conference, Deutsche Bank Center, One Columbus Circle, New York, NY on Thursday, June 5, 2025, with management hosting investor meetings, starting at 9:00 a.m. (Eastern Time). Article content Watts Water Technologies, Inc., through its family of companies, is a global manufacturer headquartered in the USA that provides one of the broadest plumbing, heating, and water quality product lines in the world. Watts Water companies and brands offer innovative plumbing, heating, and water quality solutions to control the efficiency, safety, and quality of water within commercial, residential, and industrial applications. For more information visit Article content Article content Article content Article content
National Post
16-05-2025
- Business
- National Post
Watts Water Technologies, Inc. Named One of the "World's Greenest Companies 2025" by Newsweek
Article content NORTH ANDOVER, Mass. — Watts Water Technologies, Inc. (NYSE: WTS) a leading global manufacturer of plumbing, heating, and water quality solutions, has been named one of the World's Greenest Companies by Newsweek. Article content Article content To compile the list, which recognizes 750 of the most environmentally conscious and sustainable companies across 26 countries, Newsweek and its partners evaluated over 8,000 publicly listed companies. As a baseline, companies had to meet the European Union's sustainability standard, in addition to having publicly available sustainability disclosures and over 1,000 employees. Each company was scored using over 25 parameters based on greenhouse gas emissions, water usage, waste generation, and their sustainability data disclosure and commitments. Article content 'As a leading provider of technologies and solutions designed to promote water safety, energy efficiency and water conservation around the world, this recognition demonstrates that our actions have a ripple effect,' said Robert J. Pagano, Jr., CEO, President and Chairperson of the Board. 'We are honored to once again be acknowledged by Newsweek, first as one of America's Greenest Companies for the past two years and now on a global scale. We look forward to continuing our work to combat climate change and preserve our most precious natural resource – water – for years to come.' Article content To learn more about Watts' Environmental, Social and Governance (ESG) efforts, read the company's 2023 Sustainability Report and visit Article content Watts Water Technologies, Inc., through its family of companies, is a global manufacturer headquartered in the USA that provides one of the broadest plumbing, heating, and water quality product lines in the world. Watts Water companies and brands offer innovative plumbing, heating, and water quality solutions to control the efficiency, safety, and quality of water within commercial, residential, and industrial applications. For more information visit Article content Article content Article content Article content Contacts Article content Article content Article content
National Post
07-05-2025
- Business
- National Post
Watts Water Technologies Reports First Quarter 2025 Results
Article content Sales of $558 million, down 2% on a reported and organic basis Operating margin of 15.7%, down 120 bps; adjusted operating margin of 19.0%, up 80 bps Diluted EPS of $2.21, up 2%; adjusted diluted EPS of $2.37, up 2% Announced 21% increase in quarterly dividend payments to $0.52 per share Maintaining full year 2025 organic sales and adjusted operating margin outlook Article content Article content Note changes in performance are relative to first quarter 2024 Article content NORTH ANDOVER, Mass. — 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 first quarter of 2025. Article content Chief Executive Officer Robert J. Pagano Jr. said, 'We had a solid start to the year with our first quarter results exceeding expectations as we achieved record adjusted operating income, adjusted operating margin and adjusted EPS. (1) I would like to thank our dedicated employees who continued to execute well against a challenging backdrop.' Article content Mr. Pagano continued, 'We are proactively responding to the dynamic trade environment by leveraging our global sourcing strategy, driving incremental productivity within our operations and implementing appropriate pricing actions. We expect that our strategic vertical integration, with manufacturing close to our customers, will continue to be an advantage for us. We have a proven track record of successfully navigating inflation and supply chain challenges and we are confident in our ability to continue delivering on commitments to stakeholders. Given the macro uncertainty, we are maintaining our full year 2025 organic sales and adjusted operating margin outlook. (1) Our balance sheet remains strong, and our solid cash flow generation should continue to support our capital allocation priorities as we create sustainable long-term value.' Article content First Quarter Ended March 30, March 31, (In millions, except per share information) 2025 2024 % Change Net sales $ 558.0 $ 570.9 (2) % Organic sales growth % (1) (2) % Operating income $ 87.7 $ 96.7 (9) % Operating margin % 15.7 % 16.9 % (120) bps Adjusted operating income (1) $ 106.1 $ 103.8 2 % Adjusted operating margin % (1) 19.0 % 18.2 % 80 bps Diluted earnings per share $ 2.21 $ 2.17 2 % Special items (1) 0.16 0.16 Adjusted diluted earnings per share (1) $ 2.37 $ 2.33 2 % Article content ___________________________ (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. Article content First Quarter Financial Highlights First quarter 2025 performance relative to first quarter 2024 Article content Sales of $558 million decreased 2% on a reported and organic basis. Incremental acquisition sales within the Americas were $5 million and contributed 1% to reported growth. Organic sales declined due to fewer shipping days across all regions, which drove an approximate 3% decline, as well as continuing market weakness and destocking in Europe. Unfavorable foreign exchange movements decreased sales by $6 million, or 1%. Article content Operating margin decreased 120 basis points on a reported basis and increased 80 basis points on an adjusted basis. Operating margin was unfavorably impacted by the increase in restructuring charges, partially offset by a reduction in acquisition-related charges. Adjusted operating margin increased primarily due to favorable price, productivity and cost actions which more than offset volume deleverage from fewer shipping days, weakness in Europe and inflation. Article content Americas Sales of $418 million were flat on a reported basis and declined 1% on an organic basis, primarily due to fewer shipping days, which drove an approximate 3% decline that more than offset price realization. The acquisition of I-CON contributed $5 million of incremental sales, or 1% to reported growth. Article content Segment margin increased 130 basis points as benefits from price realization, productivity and cost actions more than offset inflation and volume deleverage. Article content Europe Sales of $108 million decreased 12% on a reported and 9% on an organic basis. Sales declined as a result of lower volumes due to fewer shipping days and continued heat pump and wholesale channel destocking. Unfavorable foreign exchange movements decreased reported sales by 3%. Article content Segment margin decreased 180 basis points as volume deleverage and inflation more than offset benefits from price and productivity. Article content APMEA Sales of $32 million increased 9% on a reported basis and 13% on an organic basis. Sales increased due to growth in China, Australia and the Middle East, which was partly offset by a decline in New Zealand, primarily driven by fewer shipping days. Unfavorable foreign exchange movements decreased sales by 4%. Article content Segment margin decreased 70 basis points as benefits from higher sales and productivity were more than offset by inflation and sales mix. Article content Cash Flow and Capital Allocation Article content For the first quarter of 2025, operating cash flow was $55.2 million and net capital expenditures were $9.6 million, resulting in free cash flow of $45.6 million. In the comparable period last year, operating cash flow was $45.6 million and net capital expenditures were $9.0 million, resulting in free cash flow of $36.6 million. Operating and free cash flow increased primarily due to lower income tax payments. Sequential improvement in operating and free cash flow is expected throughout 2025 due to normal seasonality. Article content On May 5, 2025, the Company announced a 21% increase in quarterly dividend payments, increasing the quarterly payments from $0.43 cents per share to $0.52 cents per share beginning in June 2025. Article content The Company repurchased approximately 19,000 shares of Class A common stock at a cost of $3.9 million during the first quarter of 2025. Approximately $141 million remains available under the stock repurchase program authorized in 2023. There is no expiration date for this program. Article content Full Year 2025 Outlook Article content The Company is maintaining its previous full year organic sales and midpoint of adjusted operating margin outlook. Reported sales are expected to range between -2% to +3% and organic sales to range from -3% to +2%. Full year operating margin is expected to be between 16.7% and 17.3%, or down 60 basis points to flat, and adjusted operating margin is expected to be between 17.7% and 18.3%, or flat to up 60 basis points. The full year outlook incorporates estimated tariff impact and actions as of May 7, 2025. Article content Further 2025 planning assumptions are included in the first quarter earnings materials posted in the Investor Relations section of our website at Article content 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. Article content Watts Water Technologies, Inc. will hold a live webcast of its conference call to discuss first quarter 2025 results on Thursday, May 8, 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 May 7, 2026. Article content The Company's 2025 Annual Meeting of Stockholders will be held at 9:00 a.m. EDT on Wednesday, May 21, 2025 at the Company's executive offices located at 815 Chestnut Street, North Andover, Massachusetts. Article content 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 organic sales growth and adjusted operating margin, future dividends, our strategy, investments, the benefits from recent acquisitions, improvements in operating and free cash flow throughout 2025, our ability to manage geo-political uncertainty and current market conditions 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. Article content Segment Earnings and Non-GAAP Financial Measures Article content 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. Article content 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. Article content TABLE 3 SEGMENT INFORMATION – RECONCILIATION OF NET SALES TO NON-GAAP ORGANIC SALES (Amounts in millions) (Unaudited) Article content TABLE 4 RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW (Amounts in millions) (Unaudited) Article content TABLE 5 RECONCILIATION OF LONG-TERM DEBT (INCLUDING CURRENT PORTION) TO NET DEBT AND NET DEBT TO CAPITALIZATION RATIO (Amounts in millions) (Unaudited) Article content Article content Article content Article content Article content Contacts Article content Article content Article content
