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How Watts Water Technologies (WTS) makes money
Watts Water Technologies (WTS) made $728M of revenue in the third quarter 2026 (Q3 2026), +19% from a year earlier. Flow control and Protection brought in $441M (61%); HVAC and Gas Products brought in $180M (25%); Drainage and Water Re-use Products brought in $74.7M (10%). Of every dollar of revenue, 55¢ was left as gross profit, 26¢ was left as operating profit, 20¢ was left as net earnings.
Drawing the Sankey…
Revenue by segment, Q3 2026
| Segment | Revenue | Share | Q/Q | Y/Y |
|---|---|---|---|---|
| Flow control and Protection | $441M | 60.6% | -6% | +18% |
| HVAC and Gas Products | $180M | 24.7% | -0.7% | +25% |
| Drainage and Water Re-use Products | $74.7M | 10.3% | -5% | +11% |
| Water quality | $32.3M | 4.4% | +2% | +19% |
Where each dollar of revenue goes
| Line | Q3 2026 | % of revenue |
|---|---|---|
| Revenue | $728M | 100.0% |
| Cost of revenue | $327M | 44.9% |
| Gross profit | $401M | 55.1% |
| Operating expenses | $210M | 28.9% |
| Operating profit | $191M | 26.2% |
| Income tax | $46.5M | 6.4% |
| Net earnings | $145M | 20.0% |
| Operating cash flow | $158M | 21.7% |
| Free cash flow | $132M | 18.1% |
Revenue, quarter by quarter
| Quarter | Revenue | Y/Y |
|---|---|---|
| Q3 2026 | $728M | +19% |
| Q2 2026 | $763M | +19% |
| Q1 2026 | $677M | +21% |
| Q4 2025 | $625M | +16% |
| Q3 2025 | $612M | +12% |
| Q2 2025 | $644M | +8% |
| Q1 2025 | $558M | -2% |
From Watts Water Technologies' 10-Q filed Nov 5, 2026 (on EDGAR).
Questions
How does Watts Water Technologies make money?
Watts Water Technologies (WTS) made $728M of revenue in the third quarter 2026 (Q3 2026), +19% from a year earlier. Flow control and Protection brought in $441M (61%); HVAC and Gas Products brought in $180M (25%); Drainage and Water Re-use Products brought in $74.7M (10%). Of every dollar of revenue, 55¢ was left as gross profit, 26¢ was left as operating profit, 20¢ was left as net earnings.
What is Watts Water Technologies' biggest business?
Flow control and Protection: $441M in the third quarter 2026, 61% of revenue, +18% from a year earlier.
What is Watts Water Technologies' profit margin?
Net earnings were $145M, 20.0% of revenue, in the third quarter 2026; the operating margin was 26.2%.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.