Slides
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Q3 2026 Earnings Conference Call November 5, 2026
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2© 2026 Watts Water Technologies, Inc. Forward Looking Statements Certain statements in this presentation constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are related to forecasts of sales, margins, earnings, earnings per share, effective tax rate, capital expenditures, cash flow, market growth including data center market growth, acquisition strategy and integration, construction outlook, inflation and management goals and objectives. Watts cautions investors that any such forward-looking statements made by Watts are not guarantees of future performance. All forward-looking statements are subject to known and unknown risks, uncertainties, and contingencies, many of which are beyond the control of Watts, which may cause actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by the forward-looking statements. Factors that might affect forward-looking statements include overall economic and business conditions, changes in tariff rates, competitive factors, changes in laws affecting Watts, future acquisitions of material assets or businesses by Watts, the demand forWatts’ products and services and other factors identified in“Item 1A. RiskFactors” in our most recent Annual Report on Form 10-K and in subsequent reports filed with the SEC.
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3© 2026 Watts Water Technologies, Inc. 75% 25% Non-Residential Residential60% 40% End Markets 2026 (Est.)** 2022 Q3 Overview and 2026 Outlook * See Appendix for reconciliation of non-GAAP measures to their corresponding GAAP measures. ** Estimated based on full year 2026 financial guidance issued on November 4, 2026 Q3 2026 Performance Record Q3 exceeded expectations across all regions Organic sales* increased 12% driven by strong data center sales and favorable price realization Adjusted operating margin* of 20.9%, increased by 240 bps driven by price, volume leverage, and productivity Balance sheet remains strong, supporting capital allocation priorities Business Updates Successfully staying ahead of price/cost dynamics in persistent inflationary environment Data center momentum, strategic M&A, and 80/20 initiatives driving portfolio evolution 2026 Outlook Increasing FY sales and margin outlook ▲ Q3 performance and Q4 outlook ▲ Data center demand ▼ Higher interest rates, inflation and commodity prices negatively impacting new construction
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© 2026 Watts Water Technologies, Inc. 4 18.5% 20.9% 20.9% 23.2% 2025 2026 Adj. OM Adj. EBITDA Q3 2026 Financial Summary * See Appendix for reconciliation of non-GAAP measures to their corresponding GAAP measures. Segment sales • Americas: $553M; +12% organic; acquisitions +$35M; 80/20 ~($8M) • Europe: $120M; +9% organic; 80/20 ~($1M); ($2M) FX headwind • APMEA: $56M; +30% organic: acquisition +$6M; $3M FX benefit • Adj. EBITDA: $169M, +32% • Adj. operating income: $152M, +34% • Segment margin - Americas: 25.5%; +180 bps - Europe: 14.5%; +230 bps - APMEA: 21.1%; +170 bps • Excludes impact of tariff refunds • Operations: +$0.74 • Acquisitions: +$0.11 • Net interest / FX / other income: Flat • Tax: +$0.05; Adj. ETR 24.6% • Excludes impact of tariff refunds YTD FCF ($M)* • Cash flow: +$14M - Higher net income, including tariff refunds - Offset by higher working capital, capex, and cash taxes • Anticipate strong Q4 FCF • Balance sheet remains strong $612 $728 2025 2026 $2.50 $3.40 2025 2026 $216 $230 2025 2026 Adj. EBITDA and Adj. Operating Margin (%)*Sales ($M) +230 bps +36% +7% +19% Reported +12% Organic* Adj. EPS ($)* +240 bps
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5© 2026 Watts Water Technologies, Inc. Q4 and Full Year 2026 Outlook* Previous FY Outlook Updated FY Outlook Q4 Outlook Sales Growth Reported +14% to +17% Organic +8% to +11%** Reported +17% to +18% Organic +11% to +12%** Reported +11% to +14% Organic +9% to +12%** Segment Organic Growth Americas: +9% to +12% Europe: +1% to +4% APMEA: +9% to +12% Americas: +12% to +13% Europe: +5% to +6% APMEA: +18% to +19% Americas: +11% to +14% Europe: +2% to +5% APMEA: +9% to +12% Acquired Americas ~+$105M to +$110M APMEA ~+$21M to +$22M Americas ~+$107M to +$109M APMEA ~+$21M to +$22M Americas ~+$13M to +$15M APMEA ~+$3M to +$4M 80/20 Americas ~($25M) to ($26M)** Europe ~($6M) to ($8M)** Americas ~($26M) to ($28M)** Europe ~($4M) to ($5M)** Americas ~($4M) to ($6M)** Europe ~($1M) to ($2M)** FX Sales ~+$18M EPS ~+$0.06 Sales ~+$20M EPS ~+$0.07 Sales ~($2M) EPS ~($0.01) Adj. EBITDA Margin 22.1% to 22.7% / +20 bps to +80 bps 22.6% to 22.7% / +70 bps to +80 bps 21.6% to 22.2% / +20 bps to +80 bps Adj. Op. Margin 19.8% to 20.4% / +20 bps to +80 bps 20.3% to 20.4% / +70 bps to +80 bps 19.1% to 19.7% / +10 bps to +70 bps Americas: 24.3% to 24.9% / (20) bps to +40 bps Europe: 13.5% to 14.1% / +20 bps to +80 bps APMEA: 18.6% to 19.2% / +30 bps to +90 bps Acquisition dilution: ~(50) bps Watts / ~(100) bps Americas Americas: 24.8% to 24.9% / +30 bps to +40 bps Europe: 14.2% to 14.3% / +90 bps to +100 bps APMEA: 19.2% to 19.3% / +100 bps to +110 bps Acquisition dilution: ~(50) bps Watts / ~(90) bps Americas Americas: 23.7% to 24.3% / +40 bps to +100 bps Europe: 15.1% to 15.7% / Flat to +60 bps APMEA: 16.8% to 17.4% / (50) bps to +10 bps Acquisition dilution: ~Flat bps Watts / ~(20) bps Americas Free Cash Flow ≥ 90% of Net Income ≥ 90% of Net Income Seasonally Strong * Outlook incorporates estimates as of November 4, 2026. Assumes no change in the level of impact resulting from the Middle Eas t conflict. Incorporates the estimated impact of tariffs in place or announced as of November 3, 2026. Outlook for Adjusted EBITDA margin and Adjusted Operating Margin does not include the impact of tariff refunds and related in terest income, which are classified as a special item. See Appendix for other Outlook assumptions. ** Organic growth guidance includes 80/20 product rationalization. Excluding 80/20 product rationalization, organic growth outlo ok would be approximately 1% higher.
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© 2026 Watts Water Technologies, Inc. 6 Record Q3 performance exceeded expectations across all regions Driving growth through strategic initiatives and capitalizing on strong data center momentum Raising full year 2026 sales and margin outlook Capital allocation priorities remain unchanged, supported by healthy balance sheet Key Takeaways
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Appendix
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8© 2026 Watts Water Technologies, Inc. Other 2026 Outlook* Inputs Previous Other FY Inputs Updated Other FY Inputs Other Q4 Inputs Corporate Costs $64M to $66M ~$67M ~$19M Net Interest Expense ~$1M to $2M ~$1M to $2M ~Flat Stock-based Compensation ~$27M ~$28M ~$7M Adj. Effective Tax Rate ~25% ~24% to 24.5% ~24% to 25% Share Count ~33.5M ~33.5M ~33.5M Capex $60M to $65M $65M to $70M $16M to $21M Depreciation and Amortization ~$67M ~$68M ~$18M FX Europe (EUR at 1.15) ~+$10M Americas (CAD) ~Flat APMEA (RMB/AUD/NZD) ~+$8M Europe (EUR at ~1.15) ~+$10M Americas (CAD) ~Flat APMEA (RMB/AUD/NZD) ~+$10M Europe (EUR at ~1.12) ~($4M) Americas (CAD) ~Flat APMEA (RMB/AUD/NZD) ~+$2M * As of November 4, 2026. See Appendix for reconciliation of non-GAAP measures to their corresponding GAAP measures.
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9© 2026 Watts Water Technologies, Inc. Watts Water Snapshot (NYSE: WTS) *Reflects proforma sales assuming all 2025 acquisitions were acquired as of January 1, 2025 2025 Key Statistics With 5 Year Performance vs. 2020 $10.58 Adj. EPS +22% CAGR 19.6% Adj. Operating Margin +670 bps Expansion $1.99 Dividends +17% CAGR 20.5% ROIC (GAAP) +880 bps Expansion 103% 5-yr Avg Reinvestment 100% 5-yr Avg Free Cash Flow Conversion $2.4B Net Sales 10% CAGR 76% 17% 7% Geography* Americas Europe APMEA 60% 40% Repair & Replace New Construction End Markets 60%24% 11% 5% Products* Flow Control and Protection HVAC & Gas Drainage & Water Re-use Water Quality 66% 10% 21% 3% Channels Wholesale OEM Specialty DIY 70% 30% Non-Residential Residential End Markets*
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10© 2026 Watts Water Technologies, Inc. Key Themes Focus on Innovation and Profitable Growth Continuing investment in digital strategy Driving One Watts Performance System to expand margins Recognized Leader Global reach with leading market positions in commercial, residential and light industrial water space Aligned to Long-term Secular Trends and Diverse Markets Solutions aligned with global macro trends Broad portfolio diversifies market exposure Resilient Business Model Tested Across Economic Cycles Large installed base; strong repair and replacement footprint Focused on long-term strategy Accretive Capital Deployment and Strong Balance Sheet Targeting >100% cash conversion with efficient capital structure Balanced capital allocation
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© 2026 Watts Water Technologies, Inc. 11 Consolidated Statements of Operations Third Quarter 2026 2025 B/(W) % Net sales $728.0 $611.7 $116.3 19% Cost of goods sold 327.0 313.3 (13.7) (4%) Gross profit 401.0 298.4 102.6 34% 55.1% 48.8% 630 bps Selling, general & administrative expenses 209.9 185.1 (24.8) (13%) 28.8% 30.3% (150) bps Restructuring 0.3 1.9 1.6 84% Operating income 190.8 111.4 79.4 71% 26.2% 18.2% 800 bps Other (income) expense (1.1) 0.4 1.5 375% Income before taxes 191.9 111.0 80.9 73% Provision for income taxes 46.5 28.8 (17.7) (61%) Net income $145.4 $82.2 $63.2 77% Diluted earnings per share $4.34 $2.45 $1.89 77% (M) (Unaudited)
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12© 2026 Watts Water Technologies, Inc. Reconciliation of Net Sales to Organic Net Sales Third Quarter Americas Europe APMEA Total Net sales 2026 $552.6 $119.8 $55.6 $728.0 Net sales 2025 $464.1 $111.6 $36.0 $611.7 Dollar change $88.5 $8.2 $19.6 $116.3 Net sales % increase 19% 7% 54% 19% Foreign exchange impact - 2% (7%) - Acquisition impact (7%) - (17%) (7%) Organic sales % increase 12% 9% 30% 12% (M) (Unaudited) Nine Months Americas Europe APMEA Total Net sales 2026 $1,652.7 $365.8 $149.9 $2,168.4 Net sales 2025 $1,380.8 $331.0 $101.6 $1,813.4 Dollar change $271.9 $34.8 $48.3 $355 Net sales % increase 20% 11% 48% 20% Foreign exchange impact - (5%) (8%) (2%) Acquisition impact (7%) - (18%) (6%) Organic sales % increase 13% 6% 22% 12%
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© 2026 Watts Water Technologies, Inc. 13 Reconciliation of GAAP to Non-GAAP Measures Third Quarter Nine Months 2026 2025 2026 2025 Net Sales $728.0 $611.7 $2,168.4 $1,813.4 Operating income $190.8 $111.4 $477.8 $334.4 Operating margin % 26.2% 18.2% 22.0% 18.4% Adjustments for special items: Restructuring $0.3 $1.9 $6.1 $22.6 Acquisition-related costs - - 3.1 1.5 Tariff refunds (39.3) - (39.3) - Adjusted operating income $151.8 $113.3 $447.7 $358.5 Adjusted operating margin % 20.9% 18.5% 20.6% 19.8% Net income $145.4 $82.2 $363.3 $257.1 Adjustments for special items - tax effected: Restructuring $0.2 $1.5 $4.6 $17.0 Acquisition-related costs - - 2.4 1.0 Tariff refunds (31.6) - (31.6) - Tax adjustment items - - - (8.3) Adjusted net income $114.0 $83.7 $338.7 $266.8 Diluted earnings per share $4.34 $2.45 $10.84 $7.67 Adjustments for special items (0.94) 0.05 (0.74) 0.29 Adjusted diluted earnings per share $3.40 $2.50 $10.10 $7.96 (M) (Unaudited)
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14© 2026 Watts Water Technologies, Inc. Segment Earnings and Margin Summary Third Quarter 2026 Americas Europe APMEA Corp. Consolidated Segment earnings / Corp expenses / Adj. OI $140.7 17.4 11.7 (18.0) $151.8 Segment margin / Adjusted operating margin % 25.5% 14.5% 21.1% 20.9% Adjustments for special items $39.3 (0.3) - - $39.0 Operating Income $190.8 Operating Margin 26.2% (M) (Unaudited) Third Quarter 2025 Americas Europe APMEA Corp. Consolidated $110.0 13.6 7.0 (17.3) $113.3 23.7% 12.2% 19.4% 18.5% $ - (1.9) - - ($1.9) $111.4 18.2% Nine Months 2026 Americas Europe APMEA Corp. Consolidated Segment earnings / Corp expenses / Adj. OI $415.3 50.6 29.9 (48.1) $447.7 Segment margin / Adjusted operating margin % 25.1% 13.8% 20.0% 20.6% Adjustments for special items $35.3 (4.1) (1.1) - $30.1 Operating Income $477.8 Operating Margin 22.0% Nine Months 2025 Americas Europe APMEA Corp. Consolidated $343.5 41.7 19.0 (45.7) $358.5 24.9% 12.6% 18.6% 19.8% ($1.5) (22.5) (0.1) - ($24.1) $334.4 18.4%
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© 2026 Watts Water Technologies, Inc. 15 Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow Nine Months 2026 2025 Net cash provided by operating activities $278.9 $247.3 Less: additions to property, plant, equipment and other long-lived assets (48.8) (31.3) Plus: proceeds from the sale of property, plant, and equipment 0.1 - Free cash flow $230.2 $216.0 Net income $363.3 $257.1 Cash conversion rate of free cash flow to net income 63% 84% (M) (Unaudited)
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16© 2026 Watts Water Technologies, Inc. Reconciliation of Long-term Debt (Including Current Portion) to Net Debt to Capitalization Ratio September 27, 2026 December 31, 2025 Current portion of long-term debt $ - $ - Plus: Long-term debt, net of current portion 98.2 197.7 Less: Cash and cash equivalents (444.8) (405.5) Net debt ($346.6) ($207.8) Net debt ($346.6) ($207.8) Plus: Total stockholders' equity 2,319.4 2,027.7 Capitalization $1,972.8 $1,819.9 Net debt to capitalization ratio (18%) (11%) (M) (Unaudited)
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© 2026 Watts Water Technologies, Inc. 17 Calculations of EBITDA & Gross and Net Leverage (M) (Unaudited) Third Quarter Ended September 27, 2026 Third Quarter Ended September 28, 2025 Trailing Twelve Months Through September 27, 2026 Sales $728.0 $611.7 $2,793.6 Net income – as reported $145.4 $82.2 $447.0 Plus: Interest (income) expense, net (1.4) 0.2 - Plus: Income taxes 46.5 28.8 143.2 Plus: Depreciation 10.3 9.2 38.6 Plus: Amortization 5.9 5.1 23.7 EBITDA – Earnings before interest, taxes, depreciation and amortization $206.7 $125.5 $652.5 EBITDA Margin % 28.4% 20.5% 23.4% Adjustments for special items (excluding depreciation & amortization) & amortization of cloud computing arrangements (37.9) 2.2 (22.1) Adjusted EBITDA – Adjusted earnings before interest, taxes, depreciation and amortization $168.8 $127.7 $630.4 Adjusted EBITDA Margin % 23.2% 20.9% 22.6% Gross debt as of September 27, 2026 $98.2 Less: Cash & cash equivalents as of September 27, 2026 (444.8) Net debt ($346.6) Gross debt to EBITDA ratio (Gross leverage) 0.2x Net debt to EBITDA ratio (Net leverage) (0.5x)
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18© 2026 Watts Water Technologies, Inc. Reconciliation of “Adjusted” Non-GAAP Effective Tax Rate Third Quarter Nine Months 2026 2025 2026 2025 Income before income taxes $191.9 $111.0 $477.0 $332.6 Provision for income taxes $46.5 $28.8 $113.7 $75.5 Effective tax rate 24.2% 25.9% 23.8% 22.7% Income before income taxes $191.9 $111.0 $477.0 $332.6 Total adjustments for special items * (40.6) 1.9 (31.7) 24.1 Adjusted Income before income taxes $151.3 $112.9 $445.3 $356.7 Provision for income taxes $46.5 $28.8 $113.7 $75.5 Tax effect of total adjustment for special items * (9.2) 0.4 (7.1) 14.4 Adjusted provision for income taxes $37.3 $29.2 $106.6 $89.9 Adjusted effective tax rate 24.6% 25.8% 23.9% 25.2% (M) (Unaudited) * Includes the effect of interest income related to the tariff refunds received of $1.6 million for third quarter and nine mo nths ended of 2026
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© 2026 Watts Water Technologies, Inc. 19 Reconciliation between GAAP and Non-GAAP Measures Included in 2026 Outlook* Fourth Quarter 2026 Full Year 2026 Net Sales Net sales growth +11% to +14% +17% to +18% Forecasted impact of acquisition / FX (2%) (6%) Organic net sales growth +9% to +12% +11% to +12% Operating Margin Operating margin range 20.3% to 20.9% 21.6% to 21.7% Forecasted restructuring / other costs (1.2%) (1.3%) Adjusted operating margin range 19.1% to 19.7% 20.3% to 20.4% * As of November 4, 2026.