Watts Water Technologies, Inc. · NYSE:WTS
Watts Water Technologies — Q1 2026 Earnings Presentation
30 slides from Watts Water Technologies's earnings presentation, May 7, 2026
Slide 1: Watts Water Investor Presentation
WATTS WATER INVESTOR PRESENTATION February 2026 © 2026 Watts Water Technologies, Inc.
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements in this presentation constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are related to forecasts of sales, margins, earnings, earnings per share, effective tax rate, capital
Slide 3: Key Messages
Key Messages 1 Global water solutions leader in commercial, residential and light industrial end markets Industry leading brands aligned with long-term secular trends; large installed base 2 provides strong repair and replacement footprint 3 Driving profitable growth through innovation and smart & c
Slide 4: Watts Water Snapshot (NYSE: WTS)
Watts Water Snapshot (NYSE: WTS) 2025 Key Statistics With 5 Year Performance vs. 2020 $10.58 19.6% $1.99 $2.4B 100% 20.5% 103% Adj. EPS Adj. Operating Margin Dividends Net Sales 5-yr Avg Free Cash ROIC (GAAP) 5-yr Avg +22% CAGR +670 bps Expansion +17% CAGR 10% CAGR Flow Conversion +880 bps Expansion
Slide 5: Strong Global Footprint
Strong Global Footprint North Andover, MA Headquarters ~5,700 Employees 6 Continents 41 Principal Worldwide Locations Corporate Headquarters 1 Distribution Centers 2 Region Headquarters 1 Distribution Centers 3 Manufacturing Sites with Distribution 4 Distribution Centers 5 Manufacturing Sites with D
Slide 6: Aligning the Business to Secular Growth Trends
Aligning the Business to Secular Growth Trends Secular ▪ Safety and regulation – high performing products to safeguard critical water systems Growth ▪ Energy efficiency – engineered high efficiency heating and hot water products Trends ▪ Water conservation – valves, drainage, washroom and leak detec
Slide 7: Large and Diverse Addressable Markets
Large and Diverse Addressable Markets Residential Light / General Industrial Multi-Family / Commercial Hospitality – Hotel ~$22B Total Available Market Institutional – Educational Hospitality – Food Service Opportunity1 Healthcare Data Centers / Mega Projects 1 Based on Company estimates of global m
Slide 8: Broad Range of Industry-leading Products and Solutions
Broad Range of Industry-leading Products and Solutions Residential and Water Quality Drainage & Water Heating, Hot Commercial Flow Solutions Re-use Solutions Water and Other Control Solutions HVAC Solutions Safeguarding water systems Point-of-use, point-of-entry, High performance Advanced commercial
Slide 9: Non-residential Offerings
Non-residential Offerings ~70% of Sales*; More Complexity / Systems Commercial / Institutional Washroom Water Safety / Fire Protection / Irrigation Hand Washing Stations • Tapware • Fixtures • Shower Backflow Preventers • Cross Connection Systems • Isolation Valves • Valves • Partitions • Locker Sys
Slide 10: Residential Offerings
Residential Offerings ~30% of Sales*; Comprehensive Product Range Kitchen Bathroom Undersink Thermostatic Mixing Valves • Reverse Osmosis Water • Tempering Valves • Electric Tile Warming • Stainless Steel Shower Filtration Systems • Electric Tile Warming • SmartSense Excess Flow Drains • Hot Water o
Slide 11: Solving Key Water Issues for Customers and Society
Solving Key Water Issues for Customers and Society to Drive Durable, Long-term Value Creation “Triple Play” Strategy: Deliver differentiated solutions that meet customers’ needs to ensure safe and proper water management while reducing their environmental impact “Triple Play” Aligned to Secular Tren
Slide 12: Experienced Executive Leadership Team
Experienced Executive Leadership Team Strong Management Team with Sound Execution Track Record ✓ Long-standing management team with an average tenure of Bob Pagano Diane McClintock Andre Dhawan Kim Trevisan Kenneth Lepage ~10 years CEO, President and Chairperson Chief Financial Officer Chief Operati
Slide 13: Engaged and Accountable Board of Directors
Engaged and Accountable Board of Directors Board Skillsets and Attributes ✓ Operational & C-Suite Experience David Dunbar Kenneth Napolitano Bob Pagano Michael Dubose Merilee Raines ✓ International Markets Lead Independent Director Retired President of Applied CEO, President and Operating Partner, R
Slide 14: Executing on Strategic Growth Initiatives: Data Centers
Executing on Strategic Growth Initiatives: Data Centers Facility Water: Air-Cooled and Liquid-Cooled ▪ Data center suite of solutions includes cooling valves, strainers, Ductile Iron Ductile Iron chilled water tanks and drains plus traditional products Butterfly Valves Strainers ▪ Addressable market
Slide 15: Executing on Strategic Growth Initiatives: M&A
Executing on Strategic Growth Initiatives: M&A • Added strong brands with Eight Strategic Acquisitions: Deployed ~$660M Since 2023 market leadership 2023 Enware: Leading supplier for specialty plumbing and safety equipment • Expanded market, channel used in institutional and commercial end markets i
Slide 16: Disciplined M&A Strategy
Disciplined M&A Strategy Strategic Acquisition Criteria Financial Criteria ▪ Core or complementary markets ▪ ROIC > cost of capital within 3 – 5 years ▪ Brand name products, market leadership ▪ Accretive to EPS in year 1 ▪ Access to new markets, channels and ▪ Accretive to EBITDA margin within 3 – 5
Slide 17: A New Chapter in Our Smart & Connected Strategy
A New Chapter in Our Smart & Connected Strategy HSD% 25% Nexa Addressing Commercial Smart & Connected Smart & Connected Customer Challenges Revenues Revenues Sustainability Increasing focus on water scarcity and efficiency standards make comprehensive 2018 2024 2025 water usage solutions critical La
Slide 18: Continuous Improvement Through One Watts Performance System
Continuous Improvement Through One Watts Performance System (OWPS) Tools and Processes Benefits ▪ Product road maps ▪ For customers: ▪ Product development stage gates Consistency is the foundation of ▪ 80 / 20 profitability analysis high-quality products and customer STRATEGY How We Win service ▪ In
Slide 19: Balanced Capital Deployment
Balanced Capital Deployment Deployment History ($M) Priorities 2021 - 2025 1 Strategic M&A ▪ Disciplined valuation / screening process $134 2 Investing in High ROI Capex ~70% ▪ ~70% of capex invested in growth and productivity initiatives $243 Growth ▪ Reinvestment ratio >100% ~30% 3 Competitive Div
Slide 20: Flexible Balance Sheet
Flexible Balance Sheet $ in millions Dec. 31, 2025 $ in millions Year ended Dec. 31, 2025 Cash $406 Net cash provided by operations $402 Other Current Assets 880 Less: additions to property, plant, and equipment (46) Non-Current Assets 1,595 FREE CASH FLOW $356 TOTAL ASSETS $2,881 Current Liabilitie
Slide 21: Proven Track Record of Resilience
Proven Track Record of Resilience Sales ($M) Adj. EBITDA ($M)* & Adj. EPS* FCF ($M)* & Adj. EBITDA Margin (%)* FCF Conversion (%) $2,439 $534 $10.58 $356 $2,252 $332 $2,056 $454 $8.86 $1,980 $8.27 $281 $1,809 $408 $7.13 10% $363 17% 22% 14% 5-Year 5-Year $201 5-Year $1,509 CAGR $5.52 5-Year $187 $30
Slide 22: Q1 and Full Year 2026 Outlook
Q1 and Full Year 2026 Outlook* FY Outlook Q1 Outlook Sales Growth Reported +8% to +12% Reported +12% to +16% Organic +2% to +6%** Organic +4% to +8%** Segment Organic Growth Acquired: Americas ~$110M to $115M Segment Organic Growth Acquired: Americas ~$25M - $30M Americas: +3% to +7% Acquired: APMEA
Slide 23: Long-term Aspirations
Long-term Aspirations Organic Growth Operating Margin Expansion Growth through M&A and 1% Above Market 30 – 50 bps per Year Geographic Expansion How We Will Reach Our Goal… → New product development, led by our → Driving productivity through One Watts → M&A focused on strong market smart & connected
Slide 24: Appendix
APPENDIX © 2026 Watts Water Technologies, Inc.
Slide 25: Other 2026 Outlook Inputs
Other 2026 Outlook* Inputs Other FY Inputs Other Q1 Inputs Corporate Costs ~$60M ~$13M Net Interest Expense ~$3M to $4M ~$1M Stock-Based compensation ~$22M ~$4M Adj Effective Tax Rate ~25% ~25% Share Count ~33.5M ~33.5M Capex $50M to $60M ~$15M Depreciation & Amortization ~$70M ~$18M Europe (EUR at
Slide 26: Reconciliation of Long-term Debt to Net Debt to Capitalization Ratio
Reconciliation of Long-term Debt (Including Current Portion) to Net Debt to Capitalization Ratio December 31, 2025 December 31, 2024 Current portion of long-term debt $- $- Plus: Long-term debt, net of current portion 197.7 197.0 Less: Cash and cash equivalents (405.5) (386.9) Net debt ($207.8) ($18
Slide 27: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Year $ in millions 2020 2021 2022 2023 2024 2025 Net sales $1,508.6 $1,809.2 $1,979.5 $2,056.3 $2,252.2 $2,438.5 Operating income $181.1 $239.6 $315.0 $350.9 $390.4 $448.1 Operating margin % 12.0% 13.2% 15.9% 17.1% 17.3% 18.4% Adjustments for special items
Slide 28: Reconciliation of Net Cash Provided by Operations to Free Cash Flow
Reconciliation of Net Cash Provided by Operations to Free Cash Flow Year $ in millions 2020 2021 2022 2023 2024 2025 Net cash provided by operations $228.8 $180.8 $224.0 $310.8 $361.1 $402.0 Less: additions to property, plant, and equipment (43.8) (26.7) (28.1) (29.7) (35.3) (45.7) Plus: proceeds fr
Slide 29: Reconciliation between GAAP and Non-GAAP Measures Included in 2026 Outlook
Reconciliation between GAAP and Non-GAAP Measures Included in 2026 Outlook* First Quarter Full Year 2026 2026 Net Sales Net sales growth +12% to +16% +8% to +12% Forecasted impact of acquisition / FX -8% -6% Organic net sales growth +4% to +8% +2% to +6% Operating Margin Operating margin range 17.6%
Slide 30: Calculation of EBITDA
Calculation of EBITDA Year $ in millions 2020 2021 2022 2023 2024 2025 Sales $1,508.6 $1,809.2 $1,979.5 $2,056.3 $2,252.2 $2,438.5 Net income $114.3 $165.7 $251.5 $262.1 $291.2 $340.8 Plus: Interest expense, net 13.3 6.2 6.4 1.0 5.8 1.0 Plus: Income taxes 52.7 68.4 56.1 87.4 94.8 105.0 Plus: Depreci
Watts Water Technologies — Q1 2026 Earnings Presentation on 6ix