Q2 2024 Watts Water Technologies Inc Earnings Call Transcript
Key Points
- Watts Water Technologies Inc (WTS) reported record sales, adjusted operating income, and earnings per share for the second quarter of 2024.
- The company's acquisitions of Bradley and Josam are performing ahead of expectations, contributing positively to sales and long-term success.
- Free cash flow for the first half of the year was solid, with expectations for stronger performance in the second half.
- The integration of acquisitions such as Bradley, Josam, and Enware is progressing well, with synergy realization ahead of schedule.
- Watts Water Technologies Inc (WTS) maintains a robust balance sheet, providing flexibility for disciplined capital allocation and future investments.
- Organic sales in Europe were weaker than expected, with significant declines in wholesale plumbing and OEM businesses.
- The company faces challenges from heat pump destocking in Europe, which is expected to continue impacting sales into 2025.
- Nonresidential new construction indicators in the Americas are showing signs of softness, particularly in office, retail, and recreation subverticals.
- The company anticipates a slowdown in multifamily new construction in the Americas due to double-digit declines in starts and permits.
- Watts Water Technologies Inc (WTS) is experiencing destocking in the wholesale channel in the Americas, impacting sales in the third quarter.
Welcome to the Watts Water Technologies, Inc., second-quarter 2024 earnings call, hosted by Bob Pagano, President and CEO; Shashank Patel, CFO; and Diane McClintock, Senior Vice President, FP&A and Investor Relations. At the end of the presentation, we will open the line for questions.
I will now turn the call over to Diane McClintock.
Thank you, and good morning, everyone. Welcome to our second-quarter earnings conference call. Joining me today are Bob Pagano, President and CEO; and Shashank Patel, our CFO. During today's call, Bob will provide an overview of the second quarter and discuss the current state of our markets and operations. Shashank will discuss the details of our second-quarter performance and provide our outlook for the third quarter and for the full year.
Following our remarks, we will address questions related to the information covered during the call. Today's webcast is accompanied by a presentation, which can be
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