Watts Water Q4 Sales Jump 15.7% to $625.1M, EPS Beats by 12%
Watts Water reported Q4 2025 sales grew 15.7% year-over-year to $625.1 million, topping estimates by 2.3%, while adjusted EPS of $2.62 beat forecasts by 12%. Operating margin rose to 18.2% and gross margin expanded to 49.5%, driving a 6.8% share price increase.
1. Q4 2025 Financial Beats
Watts Water delivered fourth-quarter 2025 revenue of $625.1 million, a 15.7% increase from a year earlier, beating consensus by 2.3%. Adjusted earnings per share reached $2.62, exceeding analyst forecasts by 12%.
2. Profitability Improvements
The company’s operating margin climbed to 18.2% from 16.5% in the prior year period, supported by a rise in gross margin to 49.5%. This margin expansion reflects improved cost controls and pricing strategies.
3. Stock Reaction
Shares of Watts Water jumped 6.8% in the morning session, marking one of only five moves above 5% in the past year and signaling that investors view the results as meaningful. The strong top- and bottom-line beats drove positive sentiment and market momentum.
4. Longer-Term Performance
Year-to-date, Watts Water is up 20.3% and has set a new 52-week high, while a $1,000 investment five years ago would now be worth approximately $2,756. The company’s consistent growth track record underpins its long-term shareholder returns.