WTS
Record quarter, bigger ambitions
Watts Water Technologies came into its Q2 2026 earnings call with a pretty simple message: business is humming. The company said it delivered record sales, operating income, and earnings per share, helped by 12% organic sales growth and a big boost from data centers.
Sales climbed 19% to $763 million, adjusted EBITDA rose 15% to $177 million, and adjusted EPS came in at $3.66, up 18%. Not exactly the kind of quarter that makes management reach for the stress ball.
The data center jackpot
The real star of the show was data centers, which have gone from niche growth driver to full-on strategic obsession. Watts said sales tied to the segment tripled year over year, and new products like CoolVault thermal storage tanks are helping the company ride that wave.
That matters because data centers are one of those rare themes that can turn a plumbing-and-water-management company into an AI-adjacent growth story. Weird? A little. Investor-relevant? Very.
Acquisitions, tariffs, and the usual chaos
Watts is also digesting five acquisitions from 2025, and so far the company says the integration is going well and synergies remain on track. That’s the corporate equivalent of saying the family reunion is awkward, but no one has flipped the table.
There were some speed bumps: inflation, higher commodity prices, Middle East conflict-related disruption, and fresh tariff noise. But management sounded confident that pricing, supply chain tweaks, and productivity gains can keep the damage contained.
Big picture: Watts Water is leaning harder into higher-growth end markets, squeezing value out of recent deals, and raising its full-year outlook. That’s the kind of combo investors usually like to see — even if the macro backdrop keeps trying to ruin the mood.