NORTH ANDOVER, Mass. - Watts Water Technologies, Inc. (NYSE: NYSE:WTS) announced today that Chief Financial Officer Shashank Patel has decided to retire on March 15, 2025. Patel, who has been with the company since July 2018, will remain in his role to ensure a smooth transition to his successor. The company has begun a search for Patel's replacement, considering both internal and external candidates.
CEO and President Robert J. Pagano Jr. expressed gratitude for Patel's contributions, noting the company's profitable growth and increased free cash flow during Patel's tenure. Pagano stated that Patel's leadership had been instrumental in executing a balanced capital deployment strategy.
Patel reflected on his time as CFO with pride, highlighting the company's commitment to improving global water technologies and expressing confidence in the ongoing strategic direction of Watts. He also committed to assisting in the search for and transition to the new CFO.
Watts Water Technologies specializes in manufacturing products that control the efficiency, safety, and quality of water within various settings. The company is recognized for its broad expertise in water technologies, making it a key player in the water industry.
This announcement is based on a press release statement from Watts Water Technologies, Inc.
In other recent news, Watts Water Technologies has announced a quarterly dividend of $0.43 per share, reflecting its commitment to shareholder value. The company has also made plans to initiate discussions regarding the closure of its foundry in Hautvillers-Ouville, France, intending to relocate work primarily to other locations within France and Europe. This restructuring plan is subject to approval by the company's Board of Directors.
Watts Water Technologies surpassed Q2 expectations with record sales, adjusted operating income, and earnings per share. Despite forecasting a decline in organic sales for the third quarter, the company has maintained its annual outlook, buoyed by a robust first-half performance and the successful acquisitions of Bradley and Josam. TD Cowen has maintained its Hold rating on Watts Water shares, acknowledging mixed performance indicators within the company's operational markets.
In addition to these developments, Watts Water is progressing with the implementation of its SAP ERP system, supporting its smart and connected strategy. The company is also focusing on new product development and potential acquisitions, demonstrating its commitment to innovation and market adaptation amidst expected declines in margins due to European market conditions. These are the recent developments in the company's journey.
InvestingPro Insights
As Watts Water Technologies prepares for a leadership transition in its finance department, it's worth examining the company's financial health and market position. According to InvestingPro data, Watts Water Technologies boasts a market capitalization of $6.6 billion, reflecting its significant presence in the water technology sector.
The company's financial stability is underscored by an InvestingPro Tip indicating that Watts holds more cash than debt on its balance sheet. This strong liquidity position is further supported by the fact that its liquid assets exceed short-term obligations, providing a solid foundation as the company navigates the upcoming CFO transition.
Watts Water Technologies has demonstrated consistent shareholder value, with an InvestingPro Tip highlighting that the company has raised its dividend for 12 consecutive years. This commitment to dividend growth is particularly impressive given the company's 39-year streak of maintaining dividend payments, as noted in another InvestingPro Tip.
The company's revenue growth of 11.32% over the last twelve months, coupled with a healthy gross profit margin of 46.95%, suggests that Watts continues to execute effectively on its growth strategy. This aligns with CEO Robert J. Pagano Jr.'s comments on the company's profitable growth during Patel's tenure.
For investors seeking a deeper understanding of Watts Water Technologies' financial position and growth prospects, InvestingPro offers 12 additional tips that could provide valuable insights into the company's future trajectory.
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