Overview

* Watts Water ( WTS ) Q2 sales rise 8% to $644 mln, beating analyst expectations, per LSEG data

* Adjusted EPS for Q2 increases 26%, beating analyst estimates

* Co acquired Freije Treatment Systems, boosting water quality portfolio

Outlook

* Watts Water ( WTS ) raises full-year sales growth outlook to 2%-5%

* Company expects organic sales growth to be flat to up 3%

* Watts Water ( WTS ) forecasts operating margin of 17.2%-17.8% for 2025

* Company sees adjusted operating margin between 18.2% and 18.8%

Result Drivers

* AMERICAS GROWTH - Sales in the Americas rose 11% due to price increases, volume leverage, and pull-forward demand

* EUROPEAN WEAKNESS - European sales declined 3% due to lower volumes and market weakness, despite favorable pricing

* ACQUISITIONS - Incrementalcquisitions contributed $7 mln to sales growth in the Americas

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Beat $643.70 $611.70

mln mln (9

Analysts

)

Q2 Beat $3.09 $2.65 (8

Adjusted Analysts

EPS )

Q2 EPS $3.01

Q2 Net $100.90

Income mln

Q2 21.6%

Adjusted

Operatin

g Margin

Q2 21.0%

Operatin

g Margin

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the industrial machinery & equipment peer group is "buy."

* Wall Street's median 12-month price target for Watts Water Technologies Inc ( WTS ) is $240.60, about 9.6% below its August 5 closing price of $263.74

* The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)