Investing
Watts Water (WTS) Stock Rises on Record Q3, Raised Outlook
Watts Water stock rose 2.4% on November 5 after record third quarter sales of $728 million, up 19%, and a raised full year 2026 sales and margin outlook.
Watts Water Technologies (NYSE: WTS) shares were up 2.44% in early regular trading on November 5, 2026, the morning after the company reported record third quarter results. Net sales rose 19% to $728 million, and Watts Water raised its full year 2026 sales and margin outlook.
What Watts Water Technologies reported
| Metric | This period | A year earlier | Change |
|---|---|---|---|
| Net sales | $728.0 million | $611.7 million | +19% |
| Operating margin | 26.2% | 18.2% | +800 bps |
| Adjusted operating margin | 20.9% | 18.5% | +240 bps |
| Diluted EPS | $4.34 | $2.45 | +77% |
| Adjusted diluted EPS | $3.40 | $2.50 | +36% |
Operating margin is operating profit as a share of sales, and a basis point (bps) is one hundredth of a percentage point. The reported margin got a boost from $39 million of tariff refunds. "Adjusted" figures leave out one-off items like these refunds, which is why adjusted earnings per share (EPS, profit per share) rose less than the reported number.
Organic sales, which exclude acquisitions and currency effects, grew 12%, driven by data center demand and higher prices. Acquisitions added $41 million. Guidance is the company's own forecast. Watts now expects full year sales growth of 17% to 18% on a reported basis and 11% to 12% organically, with an adjusted operating margin of 20.3% to 20.4%.
Why the stock rose 2.4%
The gain was nearly two and a half times the size of a typical day's swing for the stock. The clearest drivers were the outlook increase, the second time this year that management has raised it, and the 240 basis point rise in adjusted margin, which strips out the tariff refunds. Chief Executive Robert J. Pagano Jr. said demand "remained particularly strong in data center applications."
What to watch next
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Fourth quarter and full year 2026 results against the new guidance ranges.
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Whether data center orders keep driving volume growth.
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New construction demand, which management said higher interest rates are weighing on.
FAQ
Does Watts Water pay a dividend?
Yes. It declared $0.63 per share for the third quarter, up from $0.52 a year earlier.
Which region grew fastest for Watts Water in the third quarter?
APMEA (Asia-Pacific, Middle East and Africa) sales rose 54% to $56 million, or 30% organically. The Americas, the largest region, grew 19% to $553 million.
Sources
This article is for information only and is not investment advice.