Watts Water Technologies reported 19% sales growth to $763 million and raised its full-year guidance amid strong data center demand.
Watts Water Technologies posted record second-quarter sales of $763 million, up 19% year over year, driven by pricing, data center demand, and recent acquisitions. Adjusted earnings per share rose 18% to $3.66, while operating income increased 15% to $160 million.
Organic sales grew 12%, though adjusted operating margin declined 60 basis points to 21%. Data center sales more than tripled from the prior-year period, accounting for 8% of total sales in the first half of 2026. Executives noted residential and non-institutional construction markets remain weak.
The company raised its full-year sales and margin outlook, citing better-than-expected performance and strong demand trends.