Europe and APMEA Surpass Estimates in Watts Water’s 15.7% Revenue Gain
Watts Water’s total revenue rose 15.7% year-over-year to $625.1 million in the December quarter, with international sales driving growth. European revenues hit $119.7 million (19.2% of sales), beating forecasts by 3.6%, while APMEA delivered $38.8 million (6.2%), a 10.5% surprise.
1. Quarterly Revenue and Growth Drivers
Watts Water reported total revenue of $625.1 million for the December quarter, marking 15.7% year-over-year growth driven primarily by its international operations. Robust demand for valves in plumbing, heating, and water applications supported this increase.
2. Europe Outperformance
European markets contributed $119.7 million, or 19.2% of quarter revenues, exceeding analysts’ $115.6 million forecasts by 3.6% and showing sequential improvement from $111.6 million in the prior quarter and $108.6 million a year ago.
3. APMEA Contributions
The APMEA region generated $38.8 million, representing 6.2% of total sales and surpassing estimates by 10.5%, up from $36.0 million in the previous quarter and $33.8 million in the year-ago period.
4. Analyst Outlook and Forecasts
Analyst projections for the current fiscal quarter call for $615.6 million in revenue, with Europe and APMEA expected to contribute $115.0 million and $32.0 million respectively. Full-year guidance anticipates $2.64 billion in sales, with $464.3 million from Europe and $148.0 million from APMEA.