Watts Water Technologies, Inc. (WTS)

Watts Water Technologies beat expectations on both revenue and adjusted earnings in the second fiscal quarter of 2026, based on preliminary results reported Aug. 5 for the period ended June 28. Revenue rose roughly 19% to about $763.2 million from roughly $643.7 million a year ago, topping the roughly $726.0 million consensus by about 5%, while adjusted EPS of $3.66 beat the $3.33 estimate by about 10% and was up about 18% from $3.09 a year earlier. Net income rose about 17% to about $118.3 million from about $100.9 million a year ago, with gross margin around 49% and operating margin near 20%. Operating cash flow was about $120.8 million; Watts repurchased about $7.9 million of stock and paid about $38.8 million in dividends. Consensus for the next period calls for EPS of $2.89 on revenue of $672.7 million.