Filing Flows › Watts Water Technologies (WTS) › Q2 2025
Watts Water Technologies (WTS) Q2 2025 earnings results (second quarter 2025)
10-Q filed Aug 7, 2025
Watts Water Technologies (WTS) reported revenue of $644M for the second quarter 2025 (Q2 2025), +8% from a year earlier and +15% from the quarter before. Operating margin was 21.0%, net earnings $101M (15.7% of revenue).
Watts Water Technologies, Q2 2025: revenue $644M (+8% year over year), operating margin 21.0%, net earnings $101M, operating cash flow $69.7M. The chart follows the revenue to costs, profit and cash.
| Q2 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $644M | +15% | +8% |
| Gross profit | $326M | +20% | +14% |
| Operating profit | $135M | +54% | +21% |
| Net earnings | $101M | +36% | +23% |
| Operating cash flow | $69.7M | +26% | -18% |
| Free cash flow | $59.5M | +30% | -24% |
What changed
Revenue was $643.7M in Q2 2025, up 8% year over year and up 15% from the previous quarter. Residential & Commercial Flow Control was the largest line at 61% of revenue. Residential & Commercial Flow Control added $34.1M year over year (up 9%), 73% of the total change.
Gross margin was 50.6%, up 2.9 points from a year earlier. Operating profit was $135.3M, a 21.0% margin (up 2.4 points year over year). Of the extra revenue versus a year earlier, 51% reached operating profit, above the 19% margin then. Operating expenses grew 10% against revenue growth of 8%. Net earnings were $100.9M, up 23% year over year. The effective tax rate was 25.1%.
Operating cash flow was $69.7M (down 18% year over year), 69% of net earnings. Non-cash charges added back $14.5M of depreciation and amortization and $6.6M of share-based compensation. Working capital and other items used $52.3M. Capital expenditures of $10.2M left free cash flow of $59.5M.
Questions
What was Watts Water Technologies' revenue in the second quarter 2025?
Watts Water Technologies (WTS) reported revenue of $644M for the second quarter 2025 (Q2 2025), +8% from a year earlier and +15% from the quarter before.
Was Watts Water Technologies profitable in the second quarter 2025?
Operating profit was $135M (21.0% of revenue) and net earnings $101M.