Risk Sleuth
WTS · 10-K filed 23 Feb 2026 · year to 31 Dec 2025

Watts Water Technologies

33 named things its latest annual report says its results depend on, each in the company's own words. 26 of them are also named by other companies we've read.

Read the filing on SEC.gov ↗

Customers

Top ten customers

concentrated in · $570.3 million, or 23.4%, of our total net sales in 2025named as a risk
Our top ten customers accounted for $570.3 million, or 23.4%, of our total net sales in 2025; $512.0 million, or 22.7%, of our total net sales in 2024; and $440.4 million, or 21.4%, of our total net sales in 2023.Business (Item 1)

Also named by BGC, CBOE, CVLG, ENTG, FBIN, HUBB, LPX, MEDP and 9 more

Original equipment manufacturers (OEMs)

earns from · Approximately 10%, 11% and 15% of our net sales
Approximately 10%, 11% and 15% of our net sales in 2025, 2024 and 2023, respectively, were to OEMs.Business (Item 1)

Also named by DORM, IOT, LKQ, R, VSEC

Wholesale distributors

earns from · Approximately 66%, 66% and 62% of our net sales in 2025, 2024 and 2023
Approximately 66%, 66% and 62% of our net sales in 2025, 2024 and 2023, respectively, were to wholesale distributors for commercial and residential applications.Business (Item 1)

Also named by LPX, TREX

DIY chains

earns from · Approximately 3%, 4%, and 4% of our net sales
Approximately 3%, 4%, and 4% of our net sales in each of 2025, 2024 and 2023, respectively, were to DIY chains.Business (Item 1)

Other companies

Timothy P. Horne

approximately 68.1% of the total outstanding voting powernamed as a risk
As of December 31, 2025, Timothy P. Horne beneficially owned approximately 17.7% of our outstanding shares of Class A common stock (assuming conversion of all shares of Class B common stock beneficially owned by Mr. Horne into Class A common stock) and approximately 99.7% of our outstanding shares of Class B common stock, which represents approximately 68.1% of the total outstanding voting power.Risk factors (Item 1A)

Places

Non-U.S. sales

earns from · Approximately 29%, 31% and 36% of our net salesnamed as a risk
Approximately 29%, 31% and 36% of our net sales in 2025, 2024 and 2023, respectively, were from sales outside of the U.S.Risk factors (Item 1A)

Also named by MOD

Europe

earns fromnamed as a risk
During fiscal year 2025, our results of operations were impacted by the softening of economic conditions in Europe.Risk factors (Item 1A)

Also named by ADSK, AME, AMRC, ATR, BCSF, BKNG, BMI, BMY and 60 more

China

operates innamed as a risk
For example, the U.S., China and other countries continue to implement restrictive trade actions, including tariffs, export controls, sanctions, legislation favoring domestic investment and other actions impacting the import and export of goods, foreign investment and foreign operations in jurisdictions in which we operate.Risk factors (Item 1A)

Also named by A, AA, AAOI, AAP, AAPL, AB, ADI, AEHR and 261 more

Asia

depends onnamed as a risk
The occurrence of natural disasters, public health crises such as pandemics or epidemics, political crises such as war, terrorism or political instability, or other events that result in widespread business or supply chain disruptions or the imposition of tariffs that make it more costly or cost prohibitive to source raw materials from countries in Asia could have a material adverse effect on our ability to obtain necessary components and raw materials at times, and our business and operating results could suffer.Business (Item 1)

Also named by AAPL, AYI, CART, CB, CDW, CHD, CLS, COHR and 31 more

Mexico

operates in
We have a number of manufacturing facilities in lower-cost regions, including a contract manufacturing facility in Mexico and manufacturing facilities in China, Bulgaria and Tunisia.Business (Item 1)

Also named by AAP, AME, AMRC, ANET, AOS, ARES, AYI, AZO and 83 more

Franklin, New Hampshire

operates in
In 2024, we completed Life Cycle Assessments (“LCAs”) for all products manufactured at our largest production facility and foundry in Franklin, New Hampshire, covering many of our most impactful product lines.Business (Item 1)

Hazards

Asbestos litigation

named as a risk
We are defending lawsuits in different jurisdictions, alleging injury or death as a result of exposure to asbestos.Business (Item 1)

Also named by CCK, ESAB, FERG, LECO, PPG, ROK, VNT

Conflicts in Europe and the Middle East

named as a risk
The conflicts in Europe and the Middle East have negatively impacted, and may continue to negatively impact, the availability and prices for raw materials and components.Risk factors (Item 1A)

Also named by NDSN

Commodities and inputs

Canadian dollar

exposed to its price · approximately 80% to 85% of the forecasted intercompany purchasesnamed as a risk
We have entered into forward exchange contracts which hedge approximately 80% to 85% of the forecasted intercompany purchases between one of our Canadian subsidiaries and our U.S. operating subsidiaries for the next twelve months.Market risk (Item 7A)

Also named by ABBV, ADBE, AMG, AYI, BBY, BWXT, CBRE, CDRE and 67 more

Term SOFR

exposed to its price · notional amount of $100.0 million
Under the amended interest rate swap agreement, we receive the one-month Term SOFR subject to a -0.1% floor and pay a fixed rate of 0.942% on a notional amount of $100.0 million.Market risk (Item 7A)

Also named by BWIN, CLH, DORM, DPZ, DY, ECG, HUBB, IBP and 9 more

Copper

exposed to its pricenamed as a risk
Commodity prices, particularly copper and stainless-steel prices, have experienced tremendous volatility over the past several years, mainly due to global macroeconomic trends, including global price inflation, supply chain disruption and international conflicts.Risk factors (Item 1A)

Also named by AAON, AGX, AMKR, APG, APH, APLD, BMI, BWA and 58 more

Euro

exposed to its pricenamed as a risk
This risk is concentrated in the exchange rate between the U.S. dollar and the euro; the U.S. dollar and the Canadian dollar; and the U.S. dollar and the Chinese yuan.Market risk (Item 7A)

Also named by ABBV, ABNB, ABT, ADBE, ADI, AME, AMG, AMGN and 186 more

Chinese yuan

exposed to its pricenamed as a risk
This risk is concentrated in the exchange rate between the U.S. dollar and the euro; the U.S. dollar and the Canadian dollar; and the U.S. dollar and the Chinese yuan.Market risk (Item 7A)

Also named by ABT, ASO, BEN, CHRW, CROX, CYRX, DORM, ESI and 13 more

Brass

exposed to its pricenamed as a risk
We purchase significant amounts of bronze ingot, brass rod, cast iron, stainless steel and plastic, which are utilized in manufacturing our many product lines.Market risk (Item 7A)

Also named by BMI, EMR, FBIN, LECO, MAS, MLI

Stainless steel

exposed to its pricenamed as a risk
We cannot predict whether component costs or commodity costs, including copper and stainless steel, will significantly increase or decrease in the future.Business (Item 1)

Also named by FLS, RS, STE

Cast iron

exposed to its pricenamed as a risk
We purchase significant amounts of bronze ingot, brass rod, cast iron, stainless steel and plastic, which are utilized in manufacturing our many product lines.Market risk (Item 7A)

Also named by EMR, IR, RBC

Plastic

exposed to its pricenamed as a risk
We purchase significant amounts of bronze ingot, brass rod, cast iron, stainless steel and plastic, which are utilized in manufacturing our many product lines.Market risk (Item 7A)

Also named by FERG, WST

Bronze

exposed to its pricenamed as a risk
We purchase significant amounts of bronze ingot, brass rod, cast iron, stainless steel and plastic, which are utilized in manufacturing our many product lines.Market risk (Item 7A)

Laws and programs

OECD Pillar Two

subject to · 15% global minimum taxnamed as a risk
In October 2021, the Organization for Economic Co-operation and Development (“OECD”) issued model rules for a new global minimum tax framework, commonly referred to as “Pillar Two,” which included the introduction of a 15% global minimum tax effective beginning January 1, 2024.Risk factors (Item 1A)

Also named by APO, BAM, BAX, BF/B, CHRW, COHR, CPNG, CRM and 45 more

One Big Beautiful Bill Act (OBBBA)

subject tonamed as a risk
In addition, the One Big Beautiful Bill Act (“OBBBA”), enacted on July 4, 2025, significantly changed the U.S. tax landscape by implementing revisions to key business tax provisions, including through the expansion of rules related to deductibility of executive compensation, the reinstatement of bonus depreciation deductions for acquisitions of qualified property, the restoration of EBITDA-based business interest expense limitation and the implementation of changes relating to the computation of certain taxes in respect of non-U.S. activities.Risk factors (Item 1A)

Also named by AA, ABR, ADI, ADM, ALB, AMAT, AMGN, AMKR and 121 more

EU Corporate Sustainability Reporting Directive (CSRD)

subject tonamed as a risk
We may be subject to the European Union’s Corporate Sustainability Reporting Directive (“CSRD”), Corporate Sustainability Due Diligence Directive (“CSDDD”), and related EU Taxonomy Regulation.Risk factors (Item 1A)

Also named by AMAT, AVY, CBRE, FFIV, GNRC, HLT, IEX, INGR and 19 more

International Emergency Economic Powers Act tariffs

subject tonamed as a risk
On February 20, 2026, the U.S. Supreme Court rendered a decision invalidating tariffs imposed under the International Emergency Economic Powers Act.Risk factors (Item 1A)

Also named by AAOI, ANET, ARW, COHR, CSW, DECK, FIVE, IBP and 8 more

California SB 253 and SB 261

subject tonamed as a risk
This decision does not impact SB 253, which is still in effect.Risk factors (Item 1A)

Also named by ARE, CHE, CVLG, EWBC, HTLD, M, WDFC

European Union tariffs

subject tonamed as a risk
The U.S. has also previously proposed significant tariffs on products imported from European countries, which if implemented could have similar impacts on our operations and adversely affect our financial results.Risk factors (Item 1A)

Also named by ARE

U.S. tariffs on imports from Canada, China and Mexico

subject tonamed as a risk
The tariffs imposed in 2025 on foreign imports to the United States, particularly from Canada, China and Mexico, have increased the costs of our products and could adversely impact the gross margin we earn on our products.Business (Item 1)

U.S. Safe Drinking Water Act

subject to
We have integrated and automated manufacturing capabilities, including a state-of-the-art foundry dedicated exclusively to the production of products that qualify as “lead-free” under the U.S. Safe Drinking Water Act; and machining capabilities, plastic extrusion, and injection molding and assembly operations.Business (Item 1)

Also named by AWK, KGS, WTRG, XYL

Plumbing, heating, building and fire protection codes

subject to
The majority of our sales are for products that have been approved under regulatory standards incorporated into state and municipal plumbing, heating, building and fire protection codes in the Americas, Europe and certain countries within APMEA.Business (Item 1)

Technology

SAP ERP system

depends onnamed as a risk
In 2024, we initiated a multi-year implementation of the SAP Enterprise Resource Planning (“ERP”) system across our Americas and APMEA regions to consolidate business systems, enhance productivity, and support our smart and connected strategy.Business (Item 1)