Fourth Quarter 2024 Highlights
- Sales of $540 million, down 1% on a reported basis and down
5% organically
- Operating margin of 16.5%, up 210 bps; adjusted operating
margin of 16.8%, up 100 bps
- Diluted EPS of $2.02, up 21%; adjusted diluted EPS of $2.05,
up 4%
- Closed the acquisition of I-CON Systems, Inc. on January 2,
2025
Full Year 2024 Highlights
- Sales of $2.25 billion, up 10% on a reported basis and down
1% organically
- Operating margin of 17.3%, up 20 bps; adjusted operating
margin of 17.7%, down 10 bps
- Diluted EPS of $8.69, up 11%; adjusted diluted EPS of $8.86,
up 7%
- Operating cash flow of $361 million and free cash flow of
$332 million, a 16% and 18% increase, respectively
Note changes in performance are relative to fourth quarter
and year ended December 31, 2023
Watts Water Technologies, Inc. (NYSE: WTS) – through its
subsidiaries, one of the world’s leading manufacturers and
providers of plumbing, heating and water quality products and
solutions – today announced results for the fourth quarter and full
year 2024.
Chief Executive Officer Robert J. Pagano Jr. commented, “We
closed out 2024 with record results for the quarter and full year,
including record operating income, adjusted earnings per share and
full year sales. I would like to commend the Watts team for their
dedication throughout 2024 as we delivered on our commitments to
serve our customers, executed on new product development and
advanced our long-term strategy.”
“We are also pleased to have completed the acquisition of I-CON
Systems on January 2, 2025, which will enable expansion of our
digital offerings and provide growth opportunities in the
correctional facility niche of the institutional market. The
integration is underway and is progressing well.”
Mr. Pagano concluded, “As we enter 2025, we are monitoring
ongoing geo-political uncertainty and mixed global markets. We are
taking actions to adjust our cost structure and are confident that
our experienced team is well-equipped to navigate current market
conditions. Our balance sheet remains strong, and our robust cash
flow continues to support strategic investment into the business
and return of capital to shareholders. We will continue to invest
for the future and position ourselves to capitalize on growth
opportunities aligned to favorable, secular trends. We are
confident that our resilient business strategy will drive
sustainable, long-term growth and shareholder value creation.”
A summary of fourth quarter and full year financial results is
as follows:
Fourth Quarter and Full Year
Earnings Summary
Fourth quarter ended December
31,
Year ended December
31,
(In millions, except per share
information)
2024
2023
% Change
2024
2023
% Change
Net sales
$
540.4
$
547.5
(1)
%
$
2,252.2
$
2,056.3
10
%
Organic sales growth % (1)
(5)
%
(1)
%
Operating income
$
89.0
$
78.8
13
%
$
390.4
$
350.9
11
%
Operating margin %
16.5
%
14.4
%
210
bps
17.3
%
17.1
%
20
bps
Adjusted operating income (1)
$
90.9
$
86.4
5
%
$
399.6
$
365.2
9
%
Adjusted operating margin % (1)
16.8
%
15.8
%
100
bps
17.7
%
17.8
%
(10)
bps
Diluted earnings per share
$
2.02
$
1.67
21
%
$
8.69
$
7.82
11
%
Special items (1)
0.03
0.30
0.17
0.45
Adjusted diluted earnings per share
(1)
$
2.05
$
1.97
4
%
$
8.86
$
8.27
7
%
___________________________
(1)
Organic sales growth, adjusted
operating income, adjusted operating margin, special items,
adjusted diluted earnings per share and free cash flow represent
non-GAAP financial measures. For a reconciliation of GAAP to
non-GAAP items, please see the tables attached to this press
release.
Fourth Quarter Financial Highlights Fourth quarter
2024 performance relative to fourth quarter 2023
Sales of $540 million decreased 1% on a reported basis and 5% on
an organic basis. Incremental sales from acquisitions within the
Americas totaled $23 million and contributed 4% to reported growth.
Organic sales growth within Asia Pacific, Middle East and Africa
(“APMEA”) was more than offset by declines in the Americas and
Europe primarily due to fewer shipping days, which accounted for
approximately 5% of the sales decrease. Foreign exchange movements
had an immaterial impact on sales.
Operating margin increased 210 basis points on a reported basis
and 100 basis points on an adjusted basis. Adjusted operating
margin increased primarily due to favorable price and productivity,
which more than offset volume deleverage from fewer shipping days,
inflation and the dilutive impact of the Bradley acquisition.
Operating margin was favorably impacted by the decrease in
restructuring and acquisition-related charges.
Regional Performance
Americas Sales of $398 million increased 3% on a reported
basis and declined 3% on an organic basis. The acquisitions of
Bradley and Josam contributed $23 million of incremental sales, or
6% to reported growth. Organic sales decreased primarily due to
fewer shipping days, which decreased sales by mid-single-digits and
more than offset price realization.
Segment margin increased 160 basis points as benefits from price
realization and productivity more than offset inflation, volume
deleverage and the dilutive impact of the Bradley acquisition.
Europe Sales of $109 million decreased 15% on a reported
and organic basis. Sales declined as a result of lower volumes due
to fewer shipping days and declines in the OEM channel, which was
impacted by reduced government energy incentives and continued heat
pump and wholesale channel destocking. Foreign exchange movements
had an immaterial impact on sales.
Segment margin decreased 480 basis points as volume deleverage
and inflation more than offset benefits from productivity.
APMEA Sales of $34 million increased 4% on a reported
basis and 3% on an organic basis. Favorable foreign exchange
movements increased sales by 1%. Sales increased due to growth in
China and the Middle East, which was partly offset by a decline in
Australia and New Zealand driven by fewer shipping days.
Segment margin increased 490 basis points as benefits from
higher trade and affiliates sales volume as well as productivity
more than offset inflation and incremental investments.
Cash Flow and Capital Allocation
For full year 2024, operating cash flow was $361 million and net
capital expenditures were $29 million, resulting in free cash flow
of $332 million. For full year 2023, operating cash flow was $311
million and net capital expenditures were $30 million, resulting in
free cash flow of $281 million. Operating and free cash flow
increased in 2024 due to higher net income, improved working
capital and cash flow generated by acquisitions.
The Company repurchased approximately 20,000 shares of Class A
common stock at an aggregate cost of $4 million during the fourth
quarter of 2024. For full year 2024, the Company repurchased
approximately 85,000 shares at an aggregate cost of $17 million.
Approximately $145 million remains available under the stock
repurchase program authorized in 2023. There is no expiration date
for this program.
Full Year 2025 Outlook
The Company anticipates full year 2025 sales growth to range
from down 3% to up 2% on a reported and organic basis. Full year
operating margin is expected to be between 16.7% and 17.3%, or down
60 basis points to flat, and adjusted operating margin is expected
to be between 17.7% and 18.3%, or flat to up 60 basis points.
Further 2025 planning assumptions are included in the fourth
quarter earnings materials posted in the Investor Relations section
of our website at www.watts.com.
For a reconciliation of GAAP to non-GAAP items and a statement
regarding the usefulness of these measures to investors and
management in evaluating our operating performance, please see the
tables attached to this press release.
Watts Water Technologies, Inc. will hold a live webcast of its
conference call to discuss fourth quarter and full year 2024
results on Tuesday, February 11, 2025 at 9:00 a.m. EST. This press
release and the live webcast can be accessed by visiting the
Investor Relations section of the Company's website at
www.watts.com. Following the webcast, the call recording will be
available at the same address until February 10, 2026.
This press release includes “forward-looking statements” as
defined in the Private Securities Litigation Reform Act of 1995,
including statements relating to expected full year 2025 financial
results, including organic sales growth and adjusted operating
margin, our strategy, investments, the benefits from recent
acquisitions, our ability to manage geo-political uncertainty and
current market conditions and return of capital to shareholders.
These forward-looking statements reflect our current views about
future events. You should not rely on forward-looking statements
because our actual results may differ materially from those
predicted as a result of a number of potential risks and
uncertainties. These potential risks and uncertainties include, but
are not limited to: the effectiveness, timing and expected savings
associated with our cost-cutting actions, restructuring and
initiatives; integration of acquired businesses in a timely and
cost-effective manner, retention of supplier and customer
relationships and key employees, and the ability to achieve
synergies and cost savings in the amounts and within the time
frames currently anticipated; current economic and financial
conditions, which can affect the housing and construction markets
where our products are sold, manufactured and marketed; shortages
in and pricing of raw materials and supplies; our ability to
compete effectively; changes in variable interest rates on our
borrowings; inflation; failure to expand our markets through
acquisitions; failure to successfully develop and introduce new
product offerings or enhancements to existing products; failure to
manufacture products that meet required performance and safety
standards; foreign exchange rate fluctuations; cyclicality of
industries where we market our products, such as plumbing and
heating wholesalers and home improvement retailers; environmental
compliance costs; product liability risks and costs; changes in the
status of current litigation; the war in Ukraine and other global
crises; supply chain and logistical disruptions or labor shortages
and workforce disruptions that could negatively affect our supply
chain, manufacturing, distribution, or other business processes;
and other risks and uncertainties discussed under the heading “Item
1A. Risk Factors” and in Note 16 of the Notes to the Consolidated
Financial Statements in our Annual Report on Form 10-K for the year
ended December 31, 2023, filed with the Securities and Exchange
Commission (“SEC”), as well as risk factors disclosed in our
subsequent filings with the SEC. We undertake no duty to update the
information contained in this press release, except as required by
law.
WATTS WATER TECHNOLOGIES, INC. AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in millions, except per share information)
(Unaudited)
Fourth Quarter Ended
Year Ended
December 31,
December 31,
December 31,
December 31,
2024
2023
2024
2023
Net sales
$
540.4
$
547.5
$
2,252.2
$
2,056.3
Cost of goods sold
287.7
291.8
1,190.2
1,095.4
GROSS PROFIT
252.7
255.7
1,062.0
960.9
Selling, general and administrative
expenses
162.9
173.1
664.4
604.5
Restructuring
0.8
3.8
7.2
5.5
OPERATING INCOME
89.0
78.8
390.4
350.9
Other (income) expense:
Interest income
(2.8
)
(3.2
)
(8.9
)
(7.2
)
Interest expense
2.8
3.8
14.7
8.2
Other expense (income), net
—
0.8
(1.4
)
0.4
Total other expense
—
1.4
4.4
1.4
INCOME BEFORE INCOME TAXES
89.0
77.4
386.0
349.5
Provision for income taxes
21.5
21.6
94.8
87.4
NET INCOME
$
67.5
$
55.8
$
291.2
$
262.1
BASIC EPS
NET INCOME PER SHARE
$
2.02
$
1.67
$
8.70
$
7.85
Weighted average number of shares
33.4
33.4
33.5
33.4
DILUTED EPS
NET INCOME PER SHARE
$
2.02
$
1.67
$
8.69
$
7.82
Weighted average number of shares
33.5
33.5
33.5
33.5
Dividends declared per share
$
0.43
$
0.36
$
1.65
$
1.38
WATTS WATER TECHNOLOGIES, INC. AND
SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Amounts in
millions, except share information) (Unaudited)
December 31,
December 31,
2024
2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
386.9
$
350.1
Trade accounts receivable, less reserve
allowances of $11.9 million at December 31, 2024 and December 31,
2023
253.2
259.8
Inventories, net:
Raw materials
141.9
150.6
Work in process
16.9
20.2
Finished goods
233.3
228.5
Total Inventories
392.1
399.3
Prepaid expenses and other current
assets
51.3
51.8
Total Current Assets
1,083.5
1,061.0
PROPERTY, PLANT AND EQUIPMENT:
Property, plant and equipment, at cost
691.6
677.2
Accumulated depreciation
(436.8
)
(429.0
)
Property, plant and equipment, net
254.8
248.2
OTHER ASSETS:
Goodwill
715.0
693.0
Intangible assets, net
235.0
216.1
Deferred income taxes
36.4
23.6
Other, net
72.3
67.5
TOTAL ASSETS
$
2,397.0
$
2,309.4
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable
$
148.0
$
131.8
Accrued expenses and other liabilities
190.8
190.3
Accrued compensation and benefits
79.1
83.7
Total Current Liabilities
417.9
405.8
LONG-TERM DEBT
197.0
298.3
DEFERRED INCOME TAXES
10.9
13.5
OTHER NONCURRENT LIABILITIES
63.3
78.5
STOCKHOLDERS’ EQUITY:
Preferred Stock, $0.10 par value;
5,000,000 shares authorized; no shares issued or outstanding
—
—
Class A common stock, $0.10 par value;
120,000,000 shares authorized; 1 vote per share; issued and
outstanding: 27,366,685 shares at December 31, 2024 and 27,352,701
shares at December 31, 2023
2.7
2.7
Class B common stock, $0.10 par value;
25,000,000 shares authorized; 10 votes per share; issued and
outstanding: 5,953,290 shares at December 31, 2024 and 5,958,290
shares at December 31, 2023
0.6
0.6
Additional paid-in capital
696.2
674.3
Retained earnings
1,184.8
979.1
Accumulated other comprehensive loss
(176.4
)
(143.4
)
Total Stockholders’ Equity
1,707.9
1,513.3
TOTAL LIABILITIES AND STOCKHOLDERS’
EQUITY
$
2,397.0
$
2,309.4
WATTS WATER TECHNOLOGIES, INC. AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in millions) (Unaudited)
Year Ended
December 31,
December 31,
2024
2023
OPERATING ACTIVITIES
Net income
$
291.2
$
262.1
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation
34.6
30.1
Amortization of intangibles
19.8
13.2
(Gain) on sale of assets, loss on
disposal, impairment of long-lived asset and other
(5.2
)
0.2
Stock-based compensation
19.5
20.2
Deferred income tax
(14.7
)
(18.8
)
Changes in operating assets and
liabilities, net of effects from business acquisitions:
Accounts receivable
3.3
6.2
Inventories
13.6
27.0
Prepaid expenses and other assets
(9.0
)
(20.6
)
Accounts payable, accrued expenses and
other liabilities
8.0
(8.8
)
Net cash provided by operating
activities
361.1
310.8
INVESTING ACTIVITIES
Additions to property, plant and
equipment
(35.3
)
(29.7
)
Proceeds from the sale of property, plant
and equipment
5.9
—
Business acquisitions, net of cash
acquired
(96.3
)
(313.4
)
Other investing activity
1.0
—
Net cash used in investing activities
(124.7
)
(343.1
)
FINANCING ACTIVITIES
Proceeds from long-term borrowings
—
240.0
Payments of long-term debt
(100.0
)
(90.0
)
Payments for tax withholdings on vested
stock awards
(13.0
)
(15.8
)
Payments for debt issuance costs
(2.3
)
—
Payments for finance leases and other
(2.7
)
(2.8
)
Proceeds from share transactions under
employee stock plans
—
0.1
Payments to repurchase common stock
(17.0
)
(16.0
)
Dividends
(55.5
)
(46.5
)
Net cash (used in) provided by financing
activities
(190.5
)
69.0
Effect of exchange rate changes on cash
and cash equivalents
(9.1
)
2.6
INCREASE IN CASH AND CASH EQUIVALENTS
36.8
39.3
Cash and cash equivalents at beginning of
year
350.1
310.8
CASH AND CASH EQUIVALENTS AT END OF
YEAR
$
386.9
$
350.1
Segment Earnings and Non-GAAP Financial
Measures
In this press release, segment earnings is our GAAP performance
measure used by our chief operating decision-maker (“CODM”) to
assess and evaluate segment results. Segment earnings exclude the
impact of non-recurring and unusual items, such as restructuring
costs, acquisition-related costs, gain or loss on sale of assets,
pension settlements and contingent consideration adjustments. The
CODM uses segment earnings for insight into underlying trends
comparing past financial performance with current performance by
reporting segment on a consistent basis. Segment margin is defined
as segment earnings divided by segment revenue.
We refer to non-GAAP financial measures (including adjusted
operating income, adjusted operating margin, adjusted net income,
adjusted diluted earnings per share, organic sales, organic sales
growth, free cash flow, cash conversion rate of free cash flow to
net income and net debt to capitalization ratio) and provide a
reconciliation of those non-GAAP financial measures to the
corresponding financial measures contained in our consolidated
financial statements prepared in accordance with GAAP. We believe
these financial measures enhance the overall understanding of our
historical financial performance and give insight into our future
prospects. Adjusted operating income, adjusted operating margin,
adjusted net income and adjusted diluted earnings per share
eliminate certain expenses incurred and benefits recognized in the
periods presented that relate primarily to our global restructuring
programs, acquisition-related costs, gain or loss on sale of
assets, pension settlements, contingent consideration adjustments,
other investment gain and the related income tax impacts on these
items and tax adjustment items. Management then utilizes these
adjusted financial measures to assess the run rate of the Company’s
operations against those of comparable periods. Organic sales and
organic sales growth are non-GAAP measures of sales and sales
growth excluding the impacts of foreign exchange, acquisitions and
divestitures from period-over-period comparisons. Management
believes reporting organic sales and organic sales growth provides
useful information to investors, potential investors and others,
and allows for a more complete understanding of underlying sales
trends by providing sales and sales growth on a consistent basis.
Free cash flow, cash conversion rate of free cash flow to net
income, and the net debt to capitalization ratio, which are
adjusted to exclude certain cash inflows and outlays, and include
only certain balance sheet accounts from the comparable GAAP
measures, are an indication of our performance in cash flow
generation and also provide an indication of the Company's relative
balance sheet leverage to other industrial manufacturing companies.
These non-GAAP financial measures are among the primary indicators
management uses as a basis for evaluating our cash flow generation
and our capitalization structure. In addition, free cash flow is
used as a criterion to measure and pay certain compensation-based
incentives. For these reasons, management believes these non-GAAP
financial measures can be useful to investors, potential investors
and others. The Company’s non-GAAP financial measures may not be
comparable to similarly titled measures reported by other
companies. The presentation of this additional information is not
meant to be considered in isolation or as a substitute for
financial measures prepared in accordance with GAAP.
TABLE 1 RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES EXCLUDING THE EFFECT OF
ADJUSTMENTS FOR SPECIAL ITEMS (Amounts in millions, except
per share information) (Unaudited)
CONSOLIDATED RESULTS
Fourth Quarter Ended
Year Ended
December 31,
December 31,
December 31,
December 31,
2024
2023
2024
2023
Net sales
$
540.4
$
547.5
$
2,252.2
$
2,056.3
Operating income
$
89.0
$
78.8
$
390.4
$
350.9
Operating margin %
16.5
%
14.4
%
17.3
%
17.1
%
Adjustments for special items:
Restructuring
$
0.8
$
3.8
$
7.2
$
5.5
Acquisition-related costs
1.1
6.3
14.2
11.3
Contingent consideration adjustment
—
(2.5)
—
(2.5)
Gain on sale of assets
—
—
(4.4)
—
Pension settlement
—
—
(7.8)
—
Total adjustments for special
items
$
1.9
$
7.6
$
9.2
$
14.3
Adjusted operating income
$
90.9
$
86.4
$
399.6
$
365.2
Adjusted operating margin %
16.8
%
15.8
%
17.7
%
17.8
%
Net income
$
67.5
$
55.8
$
291.2
$
262.1
Adjustments for special items - tax
effected:
Restructuring
$
0.6
$
2.8
$
5.4
$
4.1
Acquisition-related costs
0.8
4.7
10.7
8.3
Contingent consideration adjustment
—
(2.5)
—
(2.5)
Gain on sale of assets
—
—
(3.5)
—
Pension settlement
—
—
(5.8)
—
Other investment gain
—
—
(1.0)
—
Tax adjustment items
(0.4)
5.3
—
5.3
Total adjustments for special items -
tax effected
$
1.0
$
10.3
$
5.8
$
15.2
Adjusted net income
$
68.5
$
66.1
$
297.0
$
277.3
Diluted earnings per share
$
2.02
$
1.67
$
8.69
$
7.82
Restructuring
0.02
0.08
0.16
0.12
Acquisition-related costs
0.02
0.14
0.32
0.25
Contingent consideration adjustment
—
(0.08)
—
(0.08)
Gain on sale of assets
—
—
(0.11)
—
Pension settlement
—
—
(0.17)
—
Other investment gain
—
—
(0.03)
—
Tax adjustment items
(0.01)
0.16
—
0.16
Adjusted diluted earnings per
share
$
2.05
$
1.97
$
8.86
$
8.27
TABLE 2 SEGMENT INFORMATION -
RECONCILIATION OF SEGMENT EARNINGS TO CONSOLIDATED OPERATING INCOME
- GAAP (Amounts in millions) (Unaudited)
Fourth Quarter Ended
Fourth Quarter Ended
December 31, 2024
December 31, 2023
Americas
Europe
APMEA
Total
Americas
Europe
APMEA
Total
Total segment net sales
$
400.2
113.6
54.8
$
568.6
$
389.5
132.8
50.3
$
572.6
Elimination of intersegment sales
(2.2)
(5.0)
(21.0)
(28.2)
(2.5)
(4.8)
(17.8)
(25.1)
Net sales from external
customers
$
398.0
108.6
33.8
$
540.4
$
387.0
128.0
32.5
$
547.5
Segment earnings
$
86.9
11.0
5.9
$
103.8
$
78.2
19.2
4.1
$
101.5
Segment margin %
21.8
%
10.2
%
17.5
%
19.2
%
20.2
%
15.0
%
12.6
%
18.5
%
Corporate operating loss - excluding
special items
$
(12.9)
$
(15.1)
Corporate special items
(1.1)
(3.0)
Corporate operating loss
$
(14.0)
$
(18.1)
Adjustments for segment special
items:
$
1.2
(1.9)
(0.1)
$
(0.8)
$
(2.8)
(1.9)
0.1
$
(4.6)
Operating income
$
89.0
$
78.8
Operating margin %
16.5
%
14.4
%
Year Ended
Year Ended
December 31, 2024
December 31, 2023
Americas
Europe
APMEA
Total
Americas
Europe
APMEA
Total
Total segment net sales
$
1,673.8
476.3
218.7
$
2,368.8
$
1,436.0
536.8
201.3
$
2,174.1
Elimination of intersegment sales
(8.9)
(23.0)
(84.7)
(116.6)
(7.9)
(24.7)
(85.2)
(117.8)
Net sales from external
customers
$
1,664.9
453.3
134.0
$
2,252.2
$
1,428.1
512.1
116.1
$
2,056.3
Segment earnings
$
376.0
53.2
24.5
$
453.7
$
328.5
72.4
19.3
$
420.2
Segment margin %
22.6
%
11.7
%
18.3
%
20.1
%
23.0
%
14.1
%
16.6
%
20.4
%
Corporate operating loss - excluding
special items
$
(54.1)
$
(55.0)
Corporate special items
(1.7)
(5.8)
Corporate operating loss
$
(55.8)
$
(60.8)
Adjustments for segment special
items:
$
(3.5)
(3.4)
(0.6)
$
(7.5)
$
(3.3)
(2.0)
(3.2)
$
(8.5)
Operating income
$
390.4
$
350.9
Operating margin %
17.3
%
17.1
%
TABLE 3 SEGMENT INFORMATION -
RECONCILIATION OF NET SALES TO NON-GAAP ORGANIC SALES
(Amounts in millions) (Unaudited)
Fourth Quarter Ended
Americas
Europe
APMEA
Total
Net sales December 31, 2024
$
398.0
$
108.6
$
33.8
$
540.4
Net sales December 31, 2023
387.0
128.0
32.5
547.5
Dollar change
$
11.0
$
(19.4)
$
1.3
$
(7.1)
Net sales % increase (decrease)
2.8
%
(15.2)
%
4.0
%
(1.3)
%
Foreign exchange impact
0.2
%
(0.1)
%
(0.6)
%
—
%
Acquisition impact
(5.9)
%
—
%
—
%
(4.1)
%
Organic sales (decrease)
increase
(2.9)
%
(15.3)
%
3.4
%
(5.4)
%
Year Ended
Americas
Europe
APMEA
Total
Net sales December 31, 2024
$
1,664.9
$
453.3
$
134.0
$
2,252.2
Net sales December 31, 2023
1,428.1
512.1
116.1
2,056.3
Dollar change
$
236.8
$
(58.8)
$
17.9
$
195.9
Net sales % increase (decrease)
16.6
%
(11.5)
%
15.4
%
9.5
%
Foreign exchange impact
0.1
%
(0.3)
%
0.8
%
—
%
Acquisition impact
(14.5)
%
—
%
(7.0)
%
(10.4)
%
Organic sales increase
(decrease)
2.2
%
(11.8)
%
9.2
%
(0.9)
%
Fourth Quarter Ended
Americas
Europe
APMEA
Total
Net sales December 31, 2023
$
387.0
$
128.0
$
32.5
$
547.5
Net sales December 31, 2022
350.4
128.3
23.2
501.9
Dollar change
$
36.6
$
(0.3)
$
9.3
$
45.6
Net sales % increase (decrease)
10.4
%
(0.2)
%
40.1
%
9.1
%
Foreign exchange impact
—
%
(5.1)
%
0.7
%
(1.3)
%
Acquisition impact
(9.5)
%
—
%
(37.3)
%
(8.4)
%
Organic sales increase
(decrease)
0.9
%
(5.3)
%
3.5
%
(0.6)
%
Year Ended
Americas
Europe
APMEA
Total
Net sales December 31, 2023
$
1,428.1
$
512.1
$
116.1
$
2,056.3
Net sales December 31, 2022
1,390.0
499.1
90.4
1,979.5
Dollar change
$
38.1
$
13.0
$
25.7
$
76.8
Net sales % increase
2.7
%
2.6
%
28.4
%
3.9
%
Foreign exchange impact
0.2
%
(1.8)
%
4.5
%
(0.1)
%
Acquisition impact
(2.4)
%
—
%
(27.9)
%
(3.0)
%
Organic sales increase
0.5
%
0.8
%
5.0
%
0.8
%
TABLE 4 RECONCILIATION OF NET CASH
PROVIDED BY OPERATIONS TO FREE CASH FLOW (Amounts in
millions) (Unaudited)
Year Ended
December 31,
December 31,
2024
2023
Net cash provided by operations
$
361.1
$
310.8
Less: additions to property, plant, and
equipment
(35.3)
(29.7)
Plus: proceeds from the sale of property,
plant, and equipment
5.9
—
Free cash flow
$
331.7
$
281.1
Net income
$
291.2
$
262.1
Cash conversion rate of free cash flow to
net income
113.9
%
107.2
%
TABLE 5 RECONCILIATION OF LONG-TERM
DEBT (INCLUDING CURRENT PORTION) TO NET DEBT AND NET DEBT TO
CAPITALIZATION RATIO (Amounts in millions)
(Unaudited)
December 31,
December 31,
2024
2023
Current portion of long-term debt
$
—
$
—
Plus: Long-term debt, net of current
portion
197.0
298.3
Less: Cash and cash equivalents
(386.9)
(350.1)
Net debt
$
(189.9)
$
(51.8)
Net debt
$
(189.9)
$
(51.8)
Plus: Total stockholders’ equity
1,707.9
1,513.3
Capitalization
$
1,518.0
$
1,461.5
Net debt to capitalization ratio
(12.5)
%
(3.5)
%
TABLE 6 2025 FULL YEAR OUTLOOK –
RECONCILIATION OF NET SALES GROWTH TO ORGANIC SALES GROWTH AND
OPERATING MARGIN TO ADJUSTED OPERATING MARGIN
(Unaudited)
Total Watts
Full Year
2025 Outlook
Approximately
Net Sales
Net sales growth
(3)% to 2%
Forecasted impact of acquisition / FX
-
Organic sales growth
(3)% to 2%
Operating Margin
Operating margin
16.7% to 17.3%
Forecasted restructuring / other costs
1.0%
Adjusted operating margin
17.7% to 18.3%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250210020111/en/
Diane McClintock SVP FP&A & Investor Relations email:
investorrelations@wattswater.com
Watts Water Technologies (NYSE:WTS)
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부터 1월(1) 2025 으로 2월(2) 2025
Watts Water Technologies (NYSE:WTS)
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부터 2월(2) 2024 으로 2월(2) 2025
