Thu, May 8, 2:19 PM (7 days ago)
**Watts Water Technologies, Inc. (WTS) Q1 2025 Financial Summary** **Financial Performance:** - **Revenue:** $558.0 million, down 2.3% year-over-year (YoY) due to fewer shipping days and foreign exchange impacts, partially offset by acquisitions and organic growth in APMEA. - **Gross Profit:** $272.5 million, up 1.9% YoY, with a gross margin of 48.8%, driven by higher price realization and productivity. - **Operating Income:** $87.7 million, down 9.3% YoY, impacted by restructuring charges and lower volume, partially offset by productivity gains. - **Net Income:** $74.0 million, up 1.9% YoY, with earnings per share (EPS) of $2.21. - **Cash Flow:** $55.2 million from operating activities, up from $45.6 million in Q1 2024. **Segment Performance:** - **Americas:** Sales down 0.2% YoY, with organic growth of 1.1% driven by heating and hot water solutions. - **Europe:** Sales down 12.1% YoY, impacted by destocking and market weakness, partially offset by favorable price realization. - **APMEA:** Sales up 9.4% YoY, driven by growth in China, Australia, and the Middle East. **Strategic Highlights:** - Completed acquisition of I-CON Systems Holdings LLC for $70.3 million. - Declared a quarterly dividend of $0.52 per share. - Expect to invest $35-$40 million in capital expenditures for 2025. **Financial Position:** - Cash and cash equivalents: $336.8 million. - Long-term debt: $197.2 million. - Net debt to capitalization ratio: -8.6%. **Outlook and Uncertainties:** - Expects continued investment in smart and connected solutions. - Faces challenges from tariffs, inflation, and geopolitical uncertainties. - Focused on navigating macroeconomic conditions and maintaining operational efficiency. **Future Operations Impact:** - Continued investment in innovation and acquisitions to drive growth. - Focus on cost management and operational efficiency to mitigate economic headwinds.