WATTS WATER TECHNOLOGIES INC (WTS)

Watts Water Technologies, Inc. is a global manufacturer and one of the world's leading providers of water technologies and solutions designed to promote safety, energy efficiency and water conservation in commercial and residential buildings. Founded in 1874 in Lawrence, Massachusetts as Watts Regulator Co., a small machine shop supplying parts to New England textile mills, the company was incorporated in Delaware in 1985 as the parent of Watts Regulator Co. Its strategy is to be the preferred supplier of differentiated products and solutions that manage and conserve the flow of fluids and energy into, through and out of buildings, with a focus on safety and regulation, energy efficiency and water conservation. Growth comes from new products, brand enhancement, plumbing code advocacy, and acquisitions (17 since 2016, eight in the last three years). It is also advancing a digital strategy built on "connect, control and conserve," including Nexa, an intelligent water management solution launched in 2024 that combines sensing, smart connected equipment and a cloud-based SaaS platform.

The company reports in three geographic segments: the Americas, Europe, and Asia-Pacific, Middle East and Africa (APMEA). Products fall into four global categories. Residential and commercial flow control and protection (about 61% of 2025 net sales) includes backflow preventers, pressure regulators, relief valves, thermostatic mixing valves, leak detection, commercial washroom solutions, hydration solutions and emergency safety equipment, many now smart and connected. HVAC and gas (about 23%) includes high-efficiency boilers, water heaters, hydronic and electric under-floor heating systems, hydronic pump groups, alternative energy control packages and flexible stainless steel gas connectors. Drainage and water re-use (about 11%) covers drainage products, engineered rainwater harvesting and connected roof drains. Water quality (about 5%) covers filtration, monitoring, conditioning and scale prevention systems for commercial, marine, light industrial and residential uses.

Watts sells to plumbing, heating and mechanical wholesale distributors and dealers, OEMs, specialty distributors, and DIY and retail chains. In 2025, wholesalers accounted for about 66% of net sales, the specialty channel 21%, OEMs 10% and DIY chains 3%. OEM customers include water heater, boiler, radiant system, air conditioning and appliance manufacturers. No customer exceeded 10% of net sales, and the top ten customers represented 23.4% ($570.3 million). In the Americas, the company relies mainly on commissioned manufacturers' representatives, with independent representatives, dealers and distributors for specialty products; in Europe and APMEA it sells more directly to wholesalers, OEMs and private label accounts. Most sales are of products approved under state and municipal plumbing, heating, building and fire protection codes in the Americas, Europe and parts of APMEA. It also provides product training for channel partners, installers and designers.

Manufacturing is integrated and automated, including a foundry in Franklin, New Hampshire, its largest production facility, dedicated to "lead-free" products under the U.S. Safe Drinking Water Act, plus machining, plastic extrusion, injection molding, assembly and metal fabrication. Facilities in lower-cost regions include a contract manufacturer in Mexico and plants in China, Bulgaria and Tunisia. Other sites mentioned include Landau, Germany and BLÜCHER in Denmark. The company uses Lean methods, has restructured to reduce its manufacturing and distribution footprint, and most plants are ISO 9001 certified. It began a multi-year SAP ERP rollout across the Americas and APMEA in 2024.