Filing Flows › Watts Water Technologies (WTS) › Q1 2025
Watts Water Technologies (WTS) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 8, 2025
Watts Water Technologies (WTS) reported revenue of $558M for the first quarter 2025 (Q1 2025), -2% from a year earlier and +3% from the quarter before. Operating margin was 15.7%, net earnings $74.0M (13.3% of revenue).
Watts Water Technologies, Q1 2025: revenue $558M (-2% year over year), operating margin 15.7%, net earnings $74.0M, operating cash flow $55.2M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $558M | +3% | -2% |
| Gross profit | $272M | +8% | +2% |
| Operating profit | $87.7M | -1% | -9% |
| Net earnings | $74.0M | +9% | +2% |
| Operating cash flow | $55.2M | -60% | +21% |
| Free cash flow | $45.6M | — | +25% |
What changed
Revenue was $558.0M in Q1 2025, down 2% year over year and up 3% from the previous quarter. Residential & Commercial Flow Control was the largest line at 61% of revenue. HVAC and Gas Products lost $8.0M year over year (down 6%), 62% of the total change.
Gross margin was 48.8%, up 2.0 points from a year earlier. Operating profit was $87.7M, a 15.7% margin (down 1.2 points year over year). Operating expenses grew 8% against a revenue fall of 2%. Net earnings were $74.0M, up 2% year over year. The effective tax rate was 14.8%.
Operating cash flow was $55.2M (up 21% year over year), 75% of net earnings. Non-cash charges added back $13.7M of depreciation and amortization and $2.9M of share-based compensation. Working capital and other items used $35.4M. After additions to property, plant, and equipment ($9.6M), free cash flow as the company reports it was $45.6M.
Questions
What was Watts Water Technologies' revenue in the first quarter 2025?
Watts Water Technologies (WTS) reported revenue of $558M for the first quarter 2025 (Q1 2025), -2% from a year earlier and +3% from the quarter before.
Was Watts Water Technologies profitable in the first quarter 2025?
Operating profit was $87.7M (15.7% of revenue) and net earnings $74.0M.