Watts Water Technologies Inc (WTS, Financial), a leading manufacturer and provider of plumbing, heating, and water quality products and solutions, announced its third-quarter results for 2023 on November 1, 2023. The company reported record third-quarter sales, operating earnings, operating margin, and EPS, even in comparison to a strong third quarter in 2022.
Financial Performance
WTS reported sales of $504.3 million in Q3 2023, a 3% increase from $487.8 million in Q3 2022. Net income for the quarter was $65.8 million, up 12% from $58.7 million in the same period last year. Diluted net income per share was $1.96, a 12% increase from $1.75 in Q3 2022.
Acquisition of Bradley Corporation
Following the close of the third quarter, WTS completed the acquisition of Bradley Corporation. The acquisition is expected to expand the company's addressable market and enable value creation through greater scale, growth opportunities, and meaningful synergies.
Financial Outlook
Given the company's performance through the third quarter and its expectations for the fourth quarter, WTS is increasing its full-year 2023 operating margin outlook. The adjusted operating margin is now expected to range from 17.6% to 17.7%, raising the midpoint by over 60 basis points.
Balance Sheet and Cash Flow
WTS's balance sheet remains strong, with cash and cash equivalents of $362.7 million as of September 24, 2023. The company's robust cash flow continues to support investment in the business and the execution of its long-term strategy.
Conclusion
WTS's strong performance in Q3 2023, coupled with the strategic acquisition of Bradley Corporation, positions the company well for future growth. The company's increased operating margin outlook for 2023 reflects its confidence in its business strategy and market position.
Explore the complete 8-K earnings release (here) from Watts Water Technologies Inc for further details.
