Waterco (ASX:WAT) Delivers Record FY26 Profit as Dividends Rise and Margins Improve

Aditi Sarkar

06 November 2026 10:33 PM AEDT

Waterco (ASX:WAT) Delivers Record FY26 Profit as Dividends Rise and Margins Improve

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Highlights

Waterco achieved record FY26 net profit after tax of $15.4 million, up 59% despite broadly stable group Revenue during FY26.
Waterco increased revenue 1.7% to $259.3 million as underlying EBIT rose 20.3% to $24.8 million, indicating stronger underlying operating margins.
Sales in North America and Europe increased 21%, while Asia and Middle East sales grew 11% during the FY26 period.
Waterco raised its fully franked FY26 Dividend 33% to 20 cents per share, compared with 15 cents in FY25 previously.

Waterco Limited (ASX:WAT) is a diversified manufacturer, distributor, and marketer of water management and treatment products, including pool equipment and water filtration systems. The company operates across ANZ, North America, Europe, and Asia and Middle East markets. Following a restructuring and margin reset program initiated in FY25, Waterco delivered a record Earnings year in FY26.

FY26 Financial Results

Waterco reported total revenue from continuing operations of $259.3 million for the year ended 30 June 2026, up 1.7% from $254.9 million in FY25. Sales revenue of $253.0 million grew 1%, with the more modest top-line growth masking a substantial improvement in profitability. Net profit after tax from continuing operations reached $15.4 million, up 61.6%, a record result for the company. Underlying EBIT grew 20.3% to $24.8 million, while statutory EBIT rose 42.3% to $23.8 million.

Regional Performance

Waterco's international segments drove growth in FY26. North America and Europe delivered sales growth of 21%, and Asia and Middle East revenue increased 11%, both benefiting from product innovation and improved market positioning. The ANZ segment, which represents the company's largest geographic market, saw sales decline 3% due to Supply chain realignment. The improvement in EBIT to sales margin was a key operational focus for management during FY26, with material cost reductions in raw materials, warranty expense, and foreign currency management all contributing positively.

Dividend and Outlook

The Waterco board declared a total FY26 dividend of 20 cents per share, fully franked, an increase of 33% from the 15 cents paid in FY25. The company's FY27 outlook includes anticipated savings from new Warehouse infrastructure investments made during FY26, which are expected to benefit the cost base in the year ahead. Management remains focused on lifting the EBIT to sales revenue ratio through closer management of sales margins and product mix across its global markets.

Stock Price Information

Shares in Waterco Limited (ASX:WAT) have reflected the company's improved profitability in FY26. As of 6 November 2026, WAT shares were trading on the ASX. Investors should refer to ASX announcements at www.asx.com.au for current pricing and the latest company disclosures.

FAQs

Q: What drove Waterco's 59% profit increase in FY26?

A: Waterco's FY26 NPAT surged 59% to $15.4 million through structural cost reductions rather than volume growth. Key drivers included insourcing of manufacturing components, reduced raw material costs, lower warranty expense, and improved foreign currency management, which expanded margins significantly on a broadly flat revenue base.

Q: How did Waterco's international markets perform in FY26?

A: Waterco's North America and Europe segment grew sales 21%, and Asia and Middle East grew 11% in FY26. These growth regions partially offset a 3% decline in ANZ, where the company undertook supply chain realignment. International revenue expansion was supported by product innovation and stronger market penetration.

Q: What is Waterco's business?

A: Waterco is a manufacturer and distributor of water management and treatment products, including pool filtration equipment, water treatment systems, and related products. The company sells across Australia, New Zealand, North America, Europe, and Asia, serving residential and commercial customers.

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