Filing Flows › Watts Water Technologies (WTS) › Q1 2026
Watts Water Technologies (WTS) Q1 2026 earnings results (first quarter 2026)
10-Q filed May 7, 2026
Watts Water Technologies (WTS) reported revenue of $677M for the first quarter 2026 (Q1 2026), +21% from a year earlier and +8% from the quarter before. Operating margin was 19.6%, net earnings $99.6M (14.7% of revenue).
Watts Water Technologies, Q1 2026: revenue $677M (+21% year over year), operating margin 19.6%, net earnings $99.6M, operating cash flow $17.9M. The chart follows the revenue to costs, profit and cash.
| Q1 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $677M | +8% | +21% |
| Gross profit | $326M | +5% | +20% |
| Operating profit | $133M | +17% | +52% |
| Net earnings | $99.6M | +19% | +35% |
| Operating cash flow | $17.9M | -88% | -68% |
| Free cash flow | $6.6M | — | -86% |
What changed
Revenue was $677.3M in Q1 2026, up 21% year over year and up 8% from the previous quarter. Residential & Commercial Flow Control was the largest line at 62% of revenue. Residential & Commercial Flow Control added $78.5M year over year (up 23%), 66% of the total change.
Gross margin was 48.1%, down 0.7 points from Q1 2025. Operating profit was $133.0M, a 19.6% margin (up 3.9 points year over year). Of the extra revenue versus Q1 2025, 38% reached operating profit, above the 16% margin then. Operating expenses grew 4% against revenue growth of 21%. Net earnings were $99.6M, up 35% year over year. The effective tax rate was 24.2%.
Operating cash flow was $17.9M (down 68% year over year), 18% of net earnings. Non-cash charges added back $15.4M of depreciation and amortization and $5.2M of share-based compensation. Working capital and other items used $102.3M. After additions to property, plant, and equipment ($11.3M), free cash flow as the company reports it was $6.6M.
Questions
What was Watts Water Technologies' revenue in the first quarter 2026?
Watts Water Technologies (WTS) reported revenue of $677M for the first quarter 2026 (Q1 2026), +21% from a year earlier and +8% from the quarter before.
Was Watts Water Technologies profitable in the first quarter 2026?
Operating profit was $133M (19.6% of revenue) and net earnings $99.6M.