Nick Ash's questions to Pentair PLC (PNR) leadership • Q1 2025
Question
Speaking for Brian Lee, Nick Ash asked how the implementation of tariffs could potentially accelerate Pentair's 80/20 simplification strategy by forcing decisions on lower-margin customers and products.
Answer
CEO John Stauch agreed that tariffs do accelerate 80/20 initiatives, with the impact being captured in the volume forecast. He explained that the tariff impact on certain Quad 4 (low-volume, high-complexity) products may make them uncompetitive, forcing a discontinuation. This reinforces the strategy of focusing on Quad 1 (best customers, best products) and underscores the value of the 80/20 toolkit in the current environment.