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2025 ANNUAL REPORT
OUR MISSION CORPORATE PROFILE To improve comfort, safety, and quality of life for people around the world through our expertise in a wide range of water technologies. To be the best in the eyes of our employees, customers, and shareholders. Watts Water Technologies, Inc. is a global manufacturer headquartered in the United States that provides one of the broadest plumbing, heating, and water quality portfolios in the world serving commercial, residential, and industrial applications. Watts solutions are centered around safety and regulation, water conservation, and energy efficiency. Watts has a global presence with approximately 5,700 employees serving the Americas, Europe, Asia-Pacific, Middle East, and Africa markets. HISTORICAL PERFORMANCE Total Net Sales ($B) Adj. EBITDA ($M)* & Adj. EBITDA Margin (%)* $2.44 $2.06 16.8% 2023 $8.27 $408 $304 2022 $8.86 $454 $1.81 2021 $10.58 $534 $2.25 $1.98 Adjusted Earnings per Share* 2024 2025 2021 $363 $7.13 21.9% 20.1% 18.3% 2022 19.9% 2023 $5.52 2024 2025 2021 2022 2023 2024 2025 For further discussion of adjusted EBITDA , adjusted EBITDA margin , adjusted operating margin , adjusted earnings per share , and free cash flow , which are non-GAAP financial measures, and the reconciliation to the comparable GAAP measures, see the last page of this Annual Report to Shareholders and the section titled Management s Discussion and Analysis of Financial Condition and Results of Operations in our Form 10-K included in this Annual Report to Shareholders. WATTS WATER TECHNOLOGIES, INC. 2025 ANNUAL REPORT
TO OUR SHAREHOLDERS Watts Water Technologies, Inc. At Watts, our strategy is centered on delivering differentiated water solutions while operating with discipline and long-term focus. In 2025, we continued to execute against our strategy advancing market leadership, strengthening our operating model, investing in innovation, and deploying capital thoughtfully. These efforts enabled us to achieve record financial performance, reflecting the dedication and expertise of our global team. Our diversified portfolio and broad end market exposure continue to support resilient performance. Approximately 60% of our revenue is driven by repair and replacement, which provides a stable foundation across economic cycles. While residential markets remained soft and the European economy continued to face macroeconomic pressure, institutional markets and data center-related activity showed strength. Our teams remained closely engaged with customers, maintaining strong service levels and delivering solutions that address evolving customer needs. The One Watts Performance System remains central to how we operate. Just as importantly, this operating rigor enables us to integrate acquisitions effectively and realize synergies more quickly. Through automation, lean initiatives, and ongoing portfolio optimization under our 80/20 framework, we continue to improve productivity and profitability. Pricing actions, global supply chain initiatives and our vertically integrated footprint enabled us to offset tariff-related cost pressures. With more than 150 years of experience in water solutions, we remain focused on innovation that improves safety, efficiency, and performance for our customers. Nexa, our intelligent water management platform, provides remote monitoring, water risk management and actionable insights, supports customer sustainability objectives, and provides measurable savings with attractive payback periods. At the same time, we continued advancing innovation across our core product categories, including solutions supporting data center infrastructure and electrification-driven heating and hot water applications. These efforts align with durable secular trends in safety and regulation, energy efficiency, and water conservation, and strengthen our ability to deliver differentiated value across end markets. Our disciplined execution translated into strong financial results in 2025. Reported sales grew 8% to $2.44 billion, adjusted operating margins expanded 190 basis points to 19.6%, and adjusted diluted earnings per share increased 19% to $10.58. We also generated record free cash flow of $356 million, representing a conversion rate of 105%. This strong cash generation supports a balanced approach to capital allocation. In 2025, we invested in automation and innovation, while returning $83 million to shareholders through dividends and share repurchases, including a 20% increase in our annual dividend. Strategic acquisitions also remain an important component of our growth strategy. Over the past three years, we have completed eight acquisitions, including five in 2025, that expand our portfolio, geographic reach, channel access, and increase exposure to attractive non-residential end markets. As we look ahead, we remain confident in the strength of our strategy and the resilience of our business model. Supported by a strong balance sheet, disciplined operations, and a global team committed to our customers and diligent execution, Watts is well positioned to continue delivering sustainable performance and long-term value. Thank you for your continued trust and support. Sincerely, Robert J. Pagano, Jr. Chief Executive Officer, President, and Chairperson of the Board WATTS WATER TECHNOLOGIES, INC. 2025 ANNUAL REPORT
WATTS FAMILY OF BRANDS
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WTS Shareholder/Stockholder Letter Transcript:

2025
ANNUAL REPORT

OUR MISSION
CORPORATE PROFILE
To improve comfort, safety,
and quality of life for people
around the world through our
expertise in a wide range of
water technologies. To be
the best in the eyes of our
employees, customers,
and shareholders.
Watts Water Technologies, Inc. is a global manufacturer
headquartered in the United States that provides one of
the broadest plumbing, heating, and water quality portfolios
in the world serving commercial, residential, and industrial
applications. Watts    solutions are centered around safety
and regulation, water conservation, and energy efficiency.
Watts has a global presence with approximately 5,700
employees serving the Americas, Europe, Asia-Pacific,
Middle East, and Africa markets.
HISTORICAL PERFORMANCE
Total Net Sales ($B)
Adj. EBITDA ($M)* &
Adj. EBITDA Margin (%)*
$2.44
$2.06
16.8%
2023
$8.27
$408
$304
2022
$8.86
$454
$1.81
2021
$10.58
$534
$2.25
$1.98
Adjusted Earnings per Share*
2024
2025
2021
$363
$7.13
21.9%
20.1%
18.3%
2022
19.9%
2023
$5.52
2024
2025
2021
2022
2023
2024
2025
For further discussion of    adjusted EBITDA   ,    adjusted EBITDA margin   ,    adjusted operating margin   ,    adjusted earnings per share   , and    free cash flow   , which are non-GAAP
financial measures, and the reconciliation to the comparable GAAP measures, see the last page of this Annual Report to Shareholders and the section titled    Management   s
Discussion and Analysis of Financial Condition and Results of Operations    in our Form 10-K included in this Annual Report to Shareholders.
WATTS WATER TECHNOLOGIES, INC. 2025 ANNUAL REPORT

TO OUR SHAREHOLDERS
Watts Water Technologies, Inc.
At Watts, our strategy is centered on delivering differentiated water solutions while operating with discipline
and long-term focus. In 2025, we continued to execute against our strategy   advancing market leadership,
strengthening our operating model, investing in innovation, and deploying capital thoughtfully. These efforts
enabled us to achieve record financial performance, reflecting the dedication and expertise of our global team.
Our diversified portfolio and broad end market exposure continue to support resilient performance. Approximately
60% of our revenue is driven by repair and replacement, which provides a stable foundation across economic
cycles. While residential markets remained soft and the European economy continued to face macroeconomic
pressure, institutional markets and data center-related activity showed strength. Our teams remained closely
engaged with customers, maintaining strong service levels and delivering solutions that address evolving
customer needs.
The One Watts Performance System remains central to how we operate. Just as importantly, this operating rigor
enables us to integrate acquisitions effectively and realize synergies more quickly. Through automation, lean
initiatives, and ongoing portfolio optimization under our 80/20 framework, we continue to improve productivity and
profitability. Pricing actions, global supply chain initiatives and our vertically integrated footprint enabled us to offset
tariff-related cost pressures.
With more than 150 years of experience in water solutions, we remain focused on innovation that improves safety,
efficiency, and performance for our customers. Nexa, our intelligent water management platform, provides remote
monitoring, water risk management and actionable insights, supports customer sustainability objectives, and provides
measurable savings with attractive payback periods. At the same time, we continued advancing innovation across
our core product categories, including solutions supporting data center infrastructure and electrification-driven
heating and hot water applications. These efforts align with durable secular trends in safety and regulation, energy
efficiency, and water conservation, and strengthen our ability to deliver differentiated value across end markets.
Our disciplined execution translated into strong financial results in 2025. Reported sales grew 8% to $2.44 billion,
adjusted operating margins expanded 190 basis points to 19.6%, and adjusted diluted earnings per share increased
19% to $10.58. We also generated record free cash flow of $356 million, representing a conversion rate of 105%.
This strong cash generation supports a balanced approach to capital allocation. In 2025, we invested in automation
and innovation, while returning $83 million to shareholders through dividends and share repurchases, including a
20% increase in our annual dividend. Strategic acquisitions also remain an important component of our growth
strategy. Over the past three years, we have completed eight acquisitions, including five in 2025, that expand our
portfolio, geographic reach, channel access, and increase exposure to attractive non-residential end markets.
As we look ahead, we remain confident in the strength of our strategy and the resilience of our business model.
Supported by a strong balance sheet, disciplined operations, and a global team committed to our customers and
diligent execution, Watts is well positioned to continue delivering sustainable performance and long-term value.
Thank you for your continued trust and support.
Sincerely,
Robert J. Pagano, Jr.
Chief Executive Officer, President, and Chairperson of the Board
WATTS WATER TECHNOLOGIES, INC. 2025 ANNUAL REPORT

WATTS FAMILY OF BRANDS


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