EarningsQ2 2026 Earnings Report
MX:WTS Q2 2026 EPS Results
Actual EPS$66.23
Consensus EPS$60.29
Beat/MissBeat by +$5.94
One Year Ago EPS$55.91
MX:WTS Q2 2026 Revenue Results
Actual Revenue$13.81B
Expected Revenue$13.14B
Beat/MissBeat by +$673.25M
YoY Revenue Growth+18.56%
Earnings Announcement Details
QuarterQ2 2026
Date08/05/2026
TimeAfter Close
Conference CallWednesday, August 5, 2026
MX:WTS Upcoming Earnings
Watts Water Technologies's next earnings date is estimated for November 4, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:WTS Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed a broadly positive picture: management reported record top-line and EPS, strong organic growth, a sizable acceleration in data center sales (expanding TAM and new product traction), and raised full-year sales and margin guidance. These positives are tempered by margin compression from acquisition dilution and a difficult prior-year comparison, modest year-to-date free cash flow decline, continued softness in residential/new construction, and ongoing geopolitical/tariff and inflation risks. Management emphasized a strong balance sheet, disciplined capital allocation, and confidence in achieving free cash flow conversion targets.Company Guidance
Record Quarter — Sales, Operating Income and EPS
Second quarter sales of $763M (reported +19% YoY, organic +12% YoY) with record operating income and record adjusted EPS of $3.66 (+18% YoY).
Strong Adjusted EBITDA and Operating Performance
Adjusted EBITDA of $177M (+15% YoY) with adjusted EBITDA margin of 23.1% and adjusted operating margin of 21.0% (despite year-over-year margin headwinds).
Data Center Growth Surge
Data center sales more than tripled YoY in Q2; data centers represented ~8% of company sales through the first half (vs 3% in prior year), company expanded served TAM estimate from ~$1B to ~$2B and expects data centers to be mid- to high-single-digit share of full-year sales.
Raised Full-Year Sales and Margin Outlook
Full-year organic sales outlook increased to 8%–11% (reported sales guidance 14%–17%). Full-year adjusted EBITDA and operating margin expansion guidance raised by ~60–70 basis points versus prior midpoints (now +20 to +80 bps).
Regional Strength and Acquisitions Contributing to Growth
Americas organic +12% (reported +17%), Europe organic +9% (reported +12%), APMEA organic +31% (reported +57%). Recent acquisitions contributed $28M of sales in Q2 and are on track to deliver targeted synergies; full-year incremental acquired sales expected ~ $126M–$132M combined for Americas and APMEA.
Strong Balance Sheet and Cash Flow Targets
Net debt to capitalization negative 12% and net leverage -0.4x. Management expects free cash flow conversion ≥90% of net income for the full year and anticipates seasonal sequential cash flow improvement in H2.
Operational Execution and Productivity
Management cited favorable price, volume leverage and productivity gains that helped offset acquisition dilution and inflation, and noted progress integrating acquisitions via the One Watts performance system.
Sustainability Progress and Product Innovation
Published 2025 sustainability report and highlighted product innovation (e.g., Cool Vault thermal storage tanks) as drivers of new-market growth and customer value.
MX:WTS Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed