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Why Watts Water Technologies’ Data Center Push & Acquisition Strategy Are Reshaping Its Long-Term Growth Profile!

Watts Water Technologies, Inc. reported a commendable financial performance in the fourth quarter and full year of 2025. The company achieved record sales, operating margins, and earnings per share, driven by an 8% growth in organic sales for the quarter and a 5% rise for the full year. The adjusted operating margin also improved significantly, reaching 19% in Q4 and 19.6% for the year. The company’s strategic focus on investment in growth opportunities is evident in the $356 million of free cash flow generated, which marks a 7% increase from the previous year, and a conversion rate of 105%. The company has been actively pursuing strategic acquisitions, contributing to increased sales and bolstering its market presence. Noteworthy acquisitions include Superior Boiler and Saudi Cast, both of which are positioned to enhance Watts’ product offerings and geographic reach.