Short answer
WATTS WATER TECHNOLOGIES INC (WTS) filed its fiscal 2025 10-K annual report with the SEC on Feb 23, 2026. It reported revenue of $2.4B (+8.3% year over year) and net income of $341M.
- Top risk flagged: Tariffs impact operating income with inflation and higher restructuring costs in 2025 offsetting gains
FY2025 key financial metrics · XBRL
- Revenue
- $2.4B
- +8.3% YoY
- Net income
- $341M
- +17.0% YoY
- Operating margin
- 18.4%
- +1.0 pp YoY
- Gross margin
- 49.5%
- +2.3 pp YoY
- EPS (diluted)
- $10.17
- +17.0% YoY
- ROE
- 16.8%
- −0.2 pp YoY
- Operating cash flow
- $402M
- +11.3% YoY
Source: XBRL data from the WATTS WATER TECHNOLOGIES INC (WTS) FY2025 10-K on SEC EDGAR. USD.
WATTS WATER TECHNOLOGIES INC FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business model: supplier of products and solutions managing fluid and energy flow in buildings across commercial, industrial, and residential markets globally
- Strategic emphasis on excess and obsolete inventory reserve, valuing $73.6M on $524.3M total inventories as of Dec 31, 2025, reflecting inventory risk management focus
- Significant increase in goodwill to $859.0M in 2025 from $715.0M in 2024, indicating recent acquisitions backing growth strategy
- Net sales $2.44B in 2025, up 8.3% YoY, with net income rising to $340.8M from $291.2M, demonstrating strong financial growth
- Noteworthy audit focus on inventory valuation due to rapid changes in product demand and technological shifts impacting reserves
Management Discussion & Analysis
- Revenue $2,438.5M, up 8.3% YoY; Americas best at $1,847.4M (+11.0%), Europe down $2.6M (-0.6%)
- Gross margin 49.5% vs 47.2% YoY; Operating margin approx. 18.4% (segment earnings/ net sales) up from prior year
- Best segment Americas operating income $452.2M (+19.5%), worst Europe $59.8M (+1.7%) despite sales decline
- Operating cash flow $402.0M, capex approx. $50-60M planned for 2026, dividends $66.9M paid in 2025, $16.0M stock buybacks
- Management expects sufficient cash and credit, continued repurchases, ~$25-30M SAP investment; risks include inflation, tariffs, restructuring costs
Risk Factors
- Tariffs impact operating income with inflation and higher restructuring costs in 2025 offsetting gains
- Europe segment exposure with lower sales volume reducing organic growth despite Americas and APMEA increases
- Supply chain risk from prior restructuring actions affecting productivity and cost savings realization
- Competitor disruption risk not disclosed; reliance on organic price increments and acquisitions for growth
- No specified financial leverage or key-person risk detailed in provided text
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