Watts Water Technologies: Vertical Integration & U.S.-Based Manufacturing to Capitalize On Its Competitive Advantages In Manufacturing & Distribution

Watts Water Technologies reported its first quarter results for 2025, which showed a mix of positive achievements and ongoing challenges. The company experienced record operating income and operating margins, along with adjusted earnings per share. Despite these results, organic sales declined by 2%, impacted by fewer shipping days and weakness in the European market. However, the acquisition of I-CON added incremental sales, though these gains were offset by unfavorable foreign exchange fluctuations. The company’s adjusted operating margin of 19% exceeded expectations due to better-than-anticipated volume, productivity, and cost control measures.