Description
Watts Water Technologies’ Big Break: Data Center Cooling Sales More Than Double!
Watts Water Technologies, Inc. reported a strong start to fiscal year 2026 with record first-quarter sales, operating income, operating margin, and earnings per share. The company achieved 12% organic sales growth, driven by favorable pricing and volume increases, as well as contributions from recent acquisitions. Adjusted operating margin improved by 110 basis points to 20.1%, reflecting benefits from price increases, volume leverage, and productivity gains that outweighed inflationary pressures, tariffs, and acquisition-related dilution totaling 80 basis points. Regionally, the Americas posted robust organic sales growth of 16%, while Europe and the Asia Pacific, Middle East, and Africa (APMEA) regions saw more modest organic gains of 1% and 3%, respectively. Acquisitions contributed notably to the reported growth, especially in the Americas and APMEA. Adjusted EBITDA rose 27% to $151 million, with an expanded margin of 22.3%. Adjusted earnings per share increased 28% to $3.
