Watts Water Technologies Strong Execution and Growth Acceleration into 2026

Watts Water Technologies (WTS) delivered a strong 4Q25 beat and raised its 2026 outlook, driven by data center expansion and strategic acquisitions. Goldman Sachs maintains a Neutral rating with a raised price target of $323.

Key Takeaways

• 1.WTS reported a strong 4Q25 beat with revenue of $625mn and organic growth of 8%, surpassing expectations in the Americas and APMEA regions.
• 2.FY2026 guidance was issued above expectations, driven by acquisitions, data center expansion, and repair/replacement demand.
• 3.Data centers are becoming a primary growth engine, with a total addressable market (TAM) estimated at over $1bn.

Table of Contents

• Implications
• Valuation
• Key Risks
• Disclosure Appendix
• Price target and rating history chart(s)
• Regulatory disclosures
• Ratings, coverage universe and related definitions
• Global product; distributing entities
• General disclosures

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