Brian Blair's questions to Pentair PLC (PNR) leadership • Q2 2025
Question
Brian Blair of Oppenheimer & Co. Inc. requested more detail on the decision to divest the KBI commercial services business, asking if its profitability had deteriorated. He also inquired about the differing business dynamics between U.S. and international markets within the Water Solutions segment.
Answer
EVP and CFO Bob P. Fishman explained that the KBI divestiture was driven by challenging dynamics, including being locked into a fixed-price contract while facing significant labor inflation and inefficient low-density service routes. He noted that the portfolio rationalization in Water Solutions is a global effort, particularly in Europe and China, aimed at exiting lower-margin commodity products to strengthen the core filtration business.