Watts Water Technologies, Inc. (Watts) operates as a manufacturer and provider of water technologies and solutions that are designed to promote safety, energy efficiency, and water conservation for commercial and residential buildings.
The company's strategy is to be the preferred supplier of differentiated solutions, systems, and products that manage and conserve the flow of fluids and energy into, through, and out of buildings in the commercial and residential markets of the Americas, Europe,...
Watts Water Technologies, Inc. (Watts) operates as a manufacturer and provider of water technologies and solutions that are designed to promote safety, energy efficiency, and water conservation for commercial and residential buildings.
The company's strategy is to be the preferred supplier of differentiated solutions, systems, and products that manage and conserve the flow of fluids and energy into, through, and out of buildings in the commercial and residential markets of the Americas, Europe, and the Asia-Pacific, the Middle East, and Africa (‘APMEA’), its three geographic segments. Within this framework, the company focuses on three themes: safety and regulation, energy efficiency, and water conservation.
The company's strategy is to expand organically by introducing new, complementary products and solutions in existing markets, by enhancing its preferred brands, by promoting plumbing code development to drive the need for safety and quality products, and by continually improving merchandising in its wholesale and retail distribution channels. The company focuses on selling solutions to its customers that integrate a variety of its product offerings. It targets selected new products and geographic markets based on growth potential, including its ability to leverage its existing distribution channels. Additionally, the company leverages its distribution channels through the introduction of new products and solutions, as well as the integration of products from its acquired companies.
The Internet of Things (‘IoT’) has allowed companies to transform components and products into smart and connected solutions. The company is committed to enhancing its smart and connected capabilities by expanding its internal competencies and making strategic acquisitions. It continues to invest in these capabilities by expanding its architecture development, enhancing digital tools used by its customers, including Watts’ website, and investing in new smart and connected product development projects. The company's strategy focuses on three dimensions: Connect, Control, and Conserve. In 2024, 25% of the company’s revenue was from smart and connected enabled products. The company has introduced and plans to continue offering new products that will connect its customers with smart systems, control systems for optimal performance, and conserve critical resources by increasing operability, efficiency and safety.
In 2024, the company launched Nexa, the intelligent water management solution, which integrates sensing hardware, smart and connected equipment and software to provide a powerful offering for customers in the commercial building space and users of a building’s water system. This new solution provides insight into water systems and unlocks significant value in onsite operations and water risk management, while supporting customers’ sustainability targets.
In 2024, the company completed a project to conduct Life Cycle Assessments (LCAs) for all of its products produced in its largest production plant and foundry located in Franklin, New Hampshire, representing many of its largest and most impactful product lines. This project also allowed the company to generate 30 Environmental Product Declarations (EPDs) for its top-selling products, and it plans to generate EPDs for all Backflow, ACV, Regulators, Relief Valves, and Mixing Valves in 2025. Globally, the company completed its first plant-level LCA for its plant in Vildbjerg, Denmark, which covers all stainless steel products produced at the location, and in 2025, it plans to generate EPDs for stainless steel products produced at this location. The company’s strategy is anchored by a commitment to connect its customers to smart systems, control those systems for optimal performance, and conserve critical water and other resources by increasing operability, efficiency, and safety. In 2024, it broadened the offerings of its enabled backflow preventor product line with smart and connected capability options that provide flood and freeze detection, helping avoid water waste and mitigate damage.
The company intends to generate incremental growth by targeting select acquisitions both in its core markets and in new complementary markets. It has completed 14 acquisitions since 2015. The company's acquisition strategy focuses on businesses that manufacture preferred brand name products that address its themes of safety and regulation, energy efficiency, and water conservation. It targets businesses that will provide it with one or more of the following: an entry into new markets, improved channel access, unique and/or proprietary technologies, advanced production capabilities, or complementary solution offerings. In the last two years, the company completed four strategic and complementary acquisitions that expanded its addressable market and are intended to enable value creation through greater scale and growth opportunities.
Additionally, a majority of the company's manufacturing facilities are ISO 9001 certified by an accredited third-party certification body to the ISO standards.
The majority of the company's sales are for products that have been approved under regulatory standards incorporated into state and municipal plumbing, heating, building, and fire protection codes in the Americas, Europe, and certain countries within APMEA.
Products and Solutions
The company has a broad range of products and solutions in terms of design distinction, size, and configuration. It classifies its many products and solutions into four global categories. These categories are:
Residential & commercial flow control and protection—includes products and solutions typically sold into plumbing and hot water applications, such as backflow preventers, water pressure regulators, temperature and pressure relief valves, thermostatic mixing valves, leak detection and protection products, commercial washroom solutions, and emergency safety products and equipment. Many of the company's flow control and protection products are now smart and connected enabled, warning of leaks, floods, freezing temperatures, and other hazards with alerts to Building Management Systems (‘BMS’) and/or personal devices, giving its customers greater insight into their water management and the ability to shut off the water supply to avoid waste and mitigate damage. Residential & commercial flow control and protection products accounted for approximately 60% of the company's total net sales in 2024.
Heating, ventilation, and air conditioning (‘HVAC’) & gas—includes commercial high-efficiency boilers, water heaters, and custom heat and hot water solutions, hydronic and electric heating systems for under-floor radiant applications, hydronic pump groups for boiler manufacturers, and alternative energy control packages, as well as flexible stainless steel connectors for natural and liquid propane gas in commercial food service and residential applications. Most of the company's HVAC products and solutions feature advanced controls enabling customers to easily connect to the BMS for better monitoring, control, and operation. HVAC & gas products and solutions accounted for approximately 24% of the company's total net sales in 2024.
Drainage & water re-use—includes drainage products and engineered rainwater harvesting solutions for commercial, industrial, marine, and residential applications, including connected roof drain systems. Drainage & water re-use products and solutions accounted for approximately 11% of the company's total net sales in 2024.
Water quality—includes point-of-use and point-of-entry water filtration, monitoring, conditioning, and scale prevention systems for commercial, marine, and residential applications. Water quality products and solutions accounted for approximately 5% of the company's total net sales in 2024.
Customers and Markets
The company sells its products and solutions to plumbing, heating, and mechanical wholesale distributors and dealers, original equipment manufacturers (‘OEMs’), specialty product distributors, and major do-it-yourself (‘DIY’) and retail chains.
Wholesalers: Approximately 66% of the company's net sales in 2024, were to wholesale distributors for commercial and residential applications.
OEMs: Approximately 11% of the company's net sales in 2024, were to OEMs. In the Americas, the company's typical OEM customers are water heater manufacturers and equipment and water systems manufacturers needing flow control devices and other products. Its sales to OEMs in Europe are primarily to boiler manufacturers and radiant system manufacturers. The company's sales to OEMs in APMEA are primarily to water heater, air conditioning, and appliance manufacturers.
Specialty: Approximately 19% of the company's net sales in 2024, were through its specialty channel. The specialty channel primarily includes sales related to high-efficiency boilers and water heaters, water filtration and conditioning products and solutions, specialty floor and tile products, food service products, and leak detection products.
DIY Chains: Approximately 4% of the company's net sales in 2024, were to DIY chains. The DIY channel primarily includes sales related to valves and a portion of the company's water quality products.
Marketing and Sales
For product sales in the Americas, the company relies primarily on commissioned manufacturers’ representatives to market its product lines, some of which maintain a consigned inventory of the company's products. These representatives sell primarily to plumbing and heating wholesalers and contractors or supply DIY stores. The company's specialty channel products in the Americas are sold through independent representatives, dealers, and distributors. It also sells products directly to wholesalers, OEMs, and private label accounts primarily in Europe and APMEA, and to a lesser extent, in the Americas.
The company intends to inform and educate its channel partners, installers and end-use customers on how to maximize its product solutions. The company does so through a variety of traditional and digital marketing avenues, including social media, trade shows, and advertising. It prides itself on providing product education through four distinct training vehicles: Online Courses, on-location Lunch and Learns, Live and Virtual Instructor Led Training, and Continuing Education Units (CEUs) for designers.
Manufacturing
The company has integrated and automated manufacturing capabilities, including a foundry dedicated exclusively to the production of products that qualify as ‘lead-free’ under the U.S. Safe Drinking Water Act; and machining capabilities, plastic extrusion, and injection molding and assembly operations.
Code Compliance
The major standards and/or guidelines that the company’s products must meet are AFNOR (France), DVGW (Germany), UNI/ICIM (Italy), SVGW (Switzerland), SITAC (Sweden), WRAS (United Kingdom) and CEN (Denmark). Further, there are local regulatory standards requiring compliance as well.
The company is a primary participating member of the U.S.-based voluntary industry association American Supply Association (‘ASA’), which provides its members with industry information and coordinates resources for addressing regulatory issues and developing and maintaining codes and standards. The company is also a member of the Canadian Institute of Plumbing and Heating (CIPH), which provides a similar function and benefit as ASA by monitoring and advocating on behalf of its members on various legislative and regulatory issues.
New Product Development and Engineering
In 2024, the company launched 25 new smart and connected product offerings, adding to its portfolio and expansion of its smart and connected strategy.
Research and Development
The company’s research and development costs included in selling, general, and administrative expense amounted to $70.4 million for the year ended December 31, 2024.
History
Watts Water Technologies, Inc. was founded in 1874. The company was incorporated in 1985.