Watts Water Technologies, Inc.

Filing receipts

“The increase in SG&A expenses was attributable to the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (in millions) ​ ​ ​ % Change Organic ​ $ 10.0 6.0 % Foreign exchange ​ 4.2 2.5 ​ Acquired ​ 11.2 6.7 ​ Total ​ $ 25.4 15.2 % ​ The increase in organic SG&A expenses was primarily due to general inflation of $4.1 million, an increase in strategic investments of $3.4 million, increased variable costs of $2.1 million due to higher net sales, a net increase in short-term and long-term compensation accruals of $1.2 million and $1.2 million in higher travel and marketing spend, partially offset by $2.4 million from productivity initiatives and restructuring savings compared to the first quarter of 2025.”

“The increase in organic operating income of $29.3 million, or 24.7%, was primarily due to higher price realization, incremental volume in the Americas mostly driven by data center growth and productivity savings, partially offset by inflation, tariffs and investments. ​ Interest Income.”

“Gross profit and gross profit as a percent of net sales (gross margin) for the first quarters of 2026 and 2025 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ First Quarter Ended ​ ​ March 29, 2026 ​ March 30, 2025 ​ ​ ​ (dollars in millions) Gross profit ​ $ 326.1 ​ $ 272.5 ​ Gross margin ​ 48.1 % 48.8 % ​ Gross profit increased primarily due to higher price realization, productivity, volume leverage and acquisitions which more than offset inflation and tariffs.”