Filing Flows › Watts Water Technologies (WTS) › Q3 2026 › vs Q2 2026
Watts Water Technologies (WTS) Q3 2026 vs Q2 2026 (quarter over quarter)
Watts Water Technologies's revenue fell $35.2M (-5%) from $763M in Q2 2026 to $728M in Q3 2026. The biggest changes: Flow control and Protection −$30.5M (-6%); Drainage and Water Re-use Products −$4.1M (-5%); HVAC and Gas Products −$1.2M (-0.7%). Gross margin 55.1% against 49.0% (+6.1 pts).
Watts Water Technologies, Q3 2026: revenue $728M (+19% year over year), operating margin 26.2%, net earnings $145M, operating cash flow $158M. The chart draws each line against Q2 2026, the increases inside each band.
Margins
| Q3 2026 | Q2 2026 | Change | |
|---|---|---|---|
| Gross margin | 55.1% | 49.0% | +6.1 pts |
| Operating margin | 26.2% | 20.2% | +6.0 pts |
| Net margin | 20.0% | 15.5% | +4.5 pts |
| Free cash flow margin | 18.1% | 12.0% | +6.1 pts |
Every line
| Line | Q3 2026 | Q2 2026 | Change | % |
|---|---|---|---|---|
| Flow control and Protection | $441M | $472M | −$30.5M | -6% |
| HVAC and Gas Products | $180M | $181M | −$1.2M | -0.7% |
| Drainage and Water Re-use Products | $74.7M | $78.8M | −$4.1M | -5% |
| Water quality | $32.3M | $31.7M | $600K | +2% |
| Revenue | $728M | $763M | −$35.2M | -5% |
| Gross profit | $401M | $374M | $26.9M | +7% |
| Cost of revenue | $327M | $389M | −$62.1M | -16% |
| Operating profit | $191M | $154M | $36.8M | +24% |
| Operating expenses | $210M | $220M | −$9.9M | -4% |
| Pre-tax earnings | $192M | $154M | $38.2M | +25% |
| Net earnings | $145M | $118M | $27.1M | +23% |
| Income tax | $46.5M | $35.4M | $11.1M | +31% |
| Depreciation & amortization | $16.3M | $15.8M | $500K | +3% |
| Share-based compensation | $7.5M | $8.3M | −$800K | -10% |
| Working capital & other | $11.1M | $39.5M | −$28.4M | -72% |
| Operating cash flow | $158M | $103M | $55.2M | +54% |
| Free cash flow (OCF − capex) | $132M | $91.6M | $40.3M | +44% |
| Capital expenditures | $26.2M | $11.3M | $14.9M | +132% |
Questions
How much did Watts Water Technologies's revenue grow quarter over quarter in Q3 2026?
Watts Water Technologies's revenue fell $35.2M (-5%) from $763M in Q2 2026 to $728M in Q3 2026.
What drove Watts Water Technologies's revenue change in Q3 2026?
Flow control and Protection −$30.5M (-6%); Drainage and Water Re-use Products −$4.1M (-5%); HVAC and Gas Products −$1.2M (-0.7%).