Filing Flows › Watts Water Technologies (WTS) › Q3 2025
Watts Water Technologies (WTS) Q3 2025 earnings results (third quarter 2025)
10-Q filed Nov 6, 2025
Watts Water Technologies (WTS) reported revenue of $612M for the third quarter 2025 (Q3 2025), +13% from a year earlier and -5% from the quarter before. Operating margin was 18.2%, net earnings $82.2M (13.4% of revenue).
Watts Water Technologies, Q3 2025: revenue $612M (+12% year over year), operating margin 18.2%, net earnings $82.2M, operating cash flow $122M. The chart follows the revenue to costs, profit and cash.
| Q3 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $612M | -5% | +13% |
| Gross profit | $298M | -8% | +16% |
| Operating profit | $111M | -18% | +20% |
| Net earnings | $82.2M | -19% | +19% |
| Operating cash flow | $122M | +76% | +35% |
| Free cash flow | $111M | +86% | +32% |
What changed
Revenue was $611.7M in Q3 2025, up 13% year over year and down 5% from the previous quarter. Residential & Commercial Flow Control was the largest line at 61% of revenue. Residential & Commercial Flow Control added $46.6M year over year (up 14%), 68% of the total change.
Gross margin was 48.8%, up 1.5 points from a year earlier. Operating profit was $111.4M, a 18.2% margin (up 1.1 points year over year). Of the extra revenue versus a year earlier, 27% reached operating profit, above the 17% margin then. Operating expenses grew 14% against revenue growth of 13%. Net earnings were $82.2M, up 19% year over year. The effective tax rate was 25.9%.
Operating cash flow was $122.4M (up 35% year over year), 149% of net earnings. Non-cash charges added back $14.2M of depreciation and amortization and $5.6M of share-based compensation. Working capital and other items added $20.4M. Capital expenditures of $11.5M left free cash flow of $110.9M.
Questions
What was Watts Water Technologies' revenue in the third quarter 2025?
Watts Water Technologies (WTS) reported revenue of $612M for the third quarter 2025 (Q3 2025), +13% from a year earlier and -5% from the quarter before.
Was Watts Water Technologies profitable in the third quarter 2025?
Operating profit was $111M (18.2% of revenue) and net earnings $82.2M.