$WTS

WATTS WATER TECHNOLOGIES INC

CIK:0000795403|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 28, 2026	Jun. 29, 2025	Jun. 28, 2026	Jun. 29, 2025
CONSOLIDATED STATEMENTS OF OPERATIONS
Net sales	$ 763.2	$ 643.7	$ 1,440.4	$ 1,201.7
Cost of goods sold	389.1	317.8	740.1	603.3
GROSS PROFIT	374.1	325.9	700.3	598.4
Selling, general and administrative expenses	214.5	187.2	407.5	354.7
Restructuring	5.6	3.4	5.8	20.7
OPERATING INCOME	154.0	135.3	287.0	223.0
Other (income) expense:
Interest income	(1.7)	(2.3)	(3.4)	(4.6)
Interest expense	2.2	2.7	4.8	5.4
Other (income) expense, net	(0.2)	0.2	0.5	0.6
Total other expense	0.3	0.6	1.9	1.4
INCOME BEFORE INCOME TAXES	153.7	134.7	285.1	221.6
Provision for income taxes	35.4	33.8	67.2	46.7
NET INCOME	$ 118.3	$ 100.9	$ 217.9	$ 174.9
Basic EPS
NET INCOME PER SHARE	$ 3.53	$ 3.01	$ 6.5	$ 5.22
Weighted average number of shares	33.5	33.5	33.5	33.5
Diluted EPS
NET INCOME PER SHARE	$ 3.53	$ 3.01	$ 6.5	$ 5.22
Weighted average number of shares	33.5	33.5	33.5	33.5
Dividends declared per share	$ 0.63	$ 0.52	$ 1.15	$ 0.95

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 28, 2026	Jun. 29, 2025
OPERATING ACTIVITIES
Net income	$ 217.9	$ 174.9
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	19.2	17.9
Amortization of intangibles	11.9	9.9
Amortization of cloud computing arrangements	1.2	0.4
Loss on disposal of long-lived assets	0.2	0.2
Stock-based compensation	13.5	9.5
Deferred income tax	0.5	(6.2)
Changes in operating assets and liabilities, net of effects from business acquisitions:
Accounts receivable	(114.4)	(69.3)
Inventories	(25.0)	(37.0)
Prepaid expenses and other assets	(18.4)	(16.3)
Accounts payable, accrued expenses and other liabilities	14.2	40.9
Net cash provided by operating activities	120.8	124.9
INVESTING ACTIVITIES
Additions to property, plant and equipment	(22.6)	(19.8)
Business acquisitions, net of cash acquired	(1.7)	(85.7)
Net cash used in investing activities	(24.3)	(105.5)
FINANCING ACTIVITIES
Payments of long-term debt	(90.0)
Payments for withholding taxes on vested awards	(13.1)	(11.1)
Payments for finance leases and other	(1.4)	(1.3)
Payments to repurchase common stock	(7.9)	(7.9)
Dividends	(38.8)	(32.0)
Net cash used in financing activities	(151.2)	(52.3)
Effect of exchange rate changes on cash and cash equivalents	(2.9)	15.3
DECREASE IN CASH AND CASH EQUIVALENTS	(57.6)	(17.6)
Cash and cash equivalents at beginning of year	405.5	386.9
CASH AND CASH EQUIVALENTS AT END OF PERIOD	347.9	369.3
Acquisition of businesses:
Fair value of assets acquired	2.0	90.2
Cash paid, net of cash acquired	1.7	85.7
Liabilities assumed	0.3	4.5
Issuance of stock under management stock purchase plan	0.4	0.7
CASH PAID FOR:
Interest	4.5	4.9
Income taxes	$ 59.9	$ 52.6

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 28, 2026	Dec. 31, 2025
CURRENT ASSETS:
Cash and cash equivalents	$ 347.9	$ 405.5
Trade accounts receivable, less reserve allowances of $16.9 million at June 28, 2026 and $12.5 million at December 31, 2025	404.4	294.0
Inventories, net:
Raw materials	206.4	190.8
Work in process	23.1	28.5
Finished goods	317.0	305.0
Total Inventories	546.5	524.3
Prepaid expenses and other current assets	66.8	62.3
Total Current Assets	1,365.6	1,286.1
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment, at cost	779.5	777.1
Accumulated depreciation	(484.0)	(480.0)
Property, plant and equipment, net	295.5	297.1
OTHER ASSETS:
Goodwill	858.4	859.0
Intangible assets, net	280.6	294.6
Deferred income taxes	18.3	17.9
Other, net	133.1	126.5
TOTAL ASSETS	2,951.5	2,881.2
CURRENT LIABILITIES:
Accounts payable	182.1	182.2
Accrued expenses and other liabilities	248.5	234.7
Accrued compensation and benefits	82.7	95.5
Total Current Liabilities	513.3	512.4
LONG-TERM DEBT	108.0	197.7
DEFERRED INCOME TAXES	37.0	36.5
OTHER NONCURRENT LIABILITIES	103.8	106.9
STOCKHOLDERS' EQUITY:
Additional paid-in capital	736.9	720.6
Retained earnings	1,589.4	1,431.3
Accumulated other comprehensive loss	(140.2)	(127.5)
Total Stockholders' Equity	2,189.4	2,027.7
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	2,951.5	2,881.2
Class A
STOCKHOLDERS' EQUITY:
Common Stock	2.7	2.7
Class B
STOCKHOLDERS' EQUITY:
Common Stock	$ 0.6	$ 0.6