Pentair plc is a water industrial manufacturing company that focuses on providing innovative and sustainable solutions to address water quality issues and improve water use efficiency . The company is organized into three main reporting segments: Flow, Water Solutions, and Pool, offering a range of products such as fluid treatment systems, water filtration systems, and energy-efficient pool equipment . Pentair's business strategy emphasizes growth in core businesses, digital and ESG investments, and margin expansion through its Transformation Program .
- Flow - Delivers water efficiently and transforms waste into value with products like fluid treatment and pump systems used in applications such as fluid delivery, desalination, and wastewater handling .
- Pool - Offers energy-efficient pool equipment and accessories, catering to both residential and commercial markets .
- Water Solutions - Provides commercial and residential water treatment products, including filtration systems and commercial ice machines, with a significant portion of sales from commercial operations .
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
John L. Stauch ExecutiveBoard | President and Chief Executive Officer | Director at Deluxe Corporation (Chair of Audit Committee, Member of Finance Committee) | Joined Pentair in 2007 as CFO; became CEO in 2018. Extensive leadership experience in financial strategy and operations. Previously CFO at Honeywell's Automation and Control Systems unit. | |
Adrian C. Chiu Executive | Executive Vice President and President, Water Solutions Segment | None | Joined Pentair in 2011. Held various HR and transformation roles before leading the Water Solutions segment in 2023. | |
De'Mon L. Wiggins Executive | Executive Vice President and President, Flow Segment | None | Joined Pentair in 2010. Held leadership roles in Pool and Fluid Motion platforms. Currently leads the Flow segment, focusing on profitability and operational efficiency. | |
Jerome O. Pedretti Executive | Executive Vice President and CEO, Pool Segment | None | Joined Pentair in 2005. Held leadership roles across multiple segments, including Industrial & Flow Technologies and Aquatic Systems. | |
Karla C. Robertson Executive | Executive Vice President, General Counsel, Secretary, and Chief Sustainability Officer | None | Joined Pentair in 2023. Leads ESG strategy and governance. Previously held senior legal roles and led social responsibility programs. | |
Philip M. Rolchigo Executive | Executive Vice President and Chief Technology Officer | None | Joined Pentair in 2007. Leads innovation and technology strategies. Focused on sustainable water solutions and addressing global water challenges. | |
Robert P. Fishman Executive | Executive Vice President, Chief Financial Officer, and Chief Accounting Officer | None | Joined Pentair in 2020. Previously EVP and CFO at NCR Corporation. Extensive experience in financial leadership and corporate strategy. | |
Stephen J. Pilla Executive | Executive Vice President, Chief Supply Chain Officer, and Chief Transformation Officer | None | Joined Pentair in 2002. Held various supply chain and operational leadership roles. Currently oversees supply chain and transformation initiatives. | |
Tanya L. Hooper Executive | Executive Vice President and Chief Human Resources Officer | None | Joined Pentair in December 2022. Previously held senior HR roles at Honeywell and Collins Aerospace. Extensive experience in talent management and HR strategy. | |
Billie I. Williamson Board | Director (Chair of Governance Committee) | Director at Cricut Inc. and Cushman & Wakefield plc | Joined Pentair in 2014. CPA with extensive financial and governance expertise. Former Senior Assurance Partner at Ernst & Young LLP. | |
David A. Jones Board | Chairman of the Board | Senior Advisor to Oak Hill Capital Partners | Joined Pentair in 2003. Former CEO of Spectrum Brands. Extensive experience in global operations, financial management, and M&A. | |
T. Michael Glenn Board | Director (Chair of Compensation Committee) | Chairman of the Board at Lumen Technologies, Inc.; Board Member at Safe Fleet Holdings, LLC | Joined Pentair in 2007. Former EVP at FedEx Corporation. Extensive experience in strategic planning, marketing, and communications. | |
Theodore L. Harris Board | Director | CEO and Chairman of Balchem Corporation | Joined Pentair in 2018. Extensive managerial and operational experience. Currently CEO and Chairman of Balchem Corporation. | |
Tracey C. Doi Board | Director (Audit and Finance Committee Member) | Board Member at Quest Diagnostics and Independent Trustee for SunAmerica Series Trust and Seasons Series Trust | Joined Pentair in 2023. Former CFO at Toyota Motor North America. Expertise in corporate finance, strategic planning, and transformation initiatives. |
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Both Water Solutions and Flow had productivity challenges this quarter, which, excluding transformation benefits, might imply negative productivity in these areas. Was this entirely due to negative volumes, and how do you plan to address these productivity issues going forward?
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Given the ongoing impact of higher interest rates and a slower housing market on your Pool segment, particularly affecting new and remodeled pools, what are your expectations for growth in this area, and are there any early signs of improvement you can share?
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Your free cash flow has been strong year-to-date, seemingly well above the 100% conversion guide for the year. Are there any factors beyond typical seasonal ones that could impact free cash flow in Q4, and how should we think about cash flow generation going forward?
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With your net debt leverage ratio now at 1.4x, down from 2.1x a year ago, how are you planning to strategically allocate capital, and is there a pipeline of deals you're looking at to further leverage a stronger demand environment?
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Regarding your new PFAS certified filtration products, can you provide more details on the early uptake, who the primary customers are, and how you see this opportunity scaling in the future?
Research analysts who have asked questions during PENTAIR earnings calls.
Andrew Kaplowitz
Citigroup
4 questions for PNR
Andrew Krill
Deutsche Bank
4 questions for PNR
Deane Dray
RBC Capital Markets
4 questions for PNR
Jeffrey Hammond
KeyBanc Capital Markets
4 questions for PNR
Julian Mitchell
Barclays Investment Bank
4 questions for PNR
Brett Linzey
Mizuho Securities
3 questions for PNR
Bryan Blair
Oppenheimer
3 questions for PNR
Joseph Giordano
TD Cowen
3 questions for PNR
Nathan Jones
Stifel, Nicolaus & Company, Incorporated
3 questions for PNR
Nigel Coe
Wolfe Research, LLC
3 questions for PNR
Saree Boroditsky
Jefferies
3 questions for PNR
Andrew Buscaglia
BNP Paribas
2 questions for PNR
Brian Lee
Goldman Sachs Group, Inc.
2 questions for PNR
C. Stephen Tusa
JPMorgan Chase & Co.
2 questions for PNR
Michael Halloran
Baird
2 questions for PNR
Scott Graham
Seaport Research Partners
2 questions for PNR
Steve Tusa
JPMorgan Chase & Co.
2 questions for PNR
Adam Farley
Stifel Financial Corp.
1 question for PNR
Brian Blair
Oppenheimer & Co. Inc.
1 question for PNR
Damian Karas
UBS
1 question for PNR
Joe Giordano
TD Cowen
1 question for PNR
Nick Ash
Goldman Sachs Group, Inc.
1 question for PNR
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Manitowoc Ice | 2022 | Pentair acquired Manitowoc Ice for an aggregate purchase price of $1.6 billion (net transaction of approximately $1.38 billion after $220M in tax benefits) as part of a strategic move to enhance its Consumer Solutions segment and create a combined commercial water solutions platform. This acquisition, funded partly by a $1 billion term loan facility, closed on July 28, 2022 following all regulatory approvals, and is expected to generate significant revenue and EBITDA synergies by 2025. |
Recent press releases and 8-K filings for PNR.
- Pentair’s pool segment generated $1.5 billion in revenue, with 20% from new builds, 20% from remodels and 60% break/fix; marked its 5th consecutive quarter of growth despite new pool builds hitting a cycle low of 57 k in 2025, and expects a top-line inflection in FY 26 as rates ease.
- The transformation program delivered $190 million in savings over the last two years and drove ROS expansion from 17% in 2020 to a target of 26% in FY 26, underpinned by an 80/20 complexity-reduction initiative.
- Tariff headwinds for 2025 are now estimated at $75 million (down from $140 million), fully offset by price increases in April and September, with no material impact from recent Section 232 expansions.
- The Flow segment (∼$1.6 billion revenue) is guiding mid-single-digit growth, driven by expanded fire-suppression, water supply/disposal pumps and early data-center cooling opportunities.
- Capital allocation is balanced: net debt/EBITDA reduced to 1.2×, a 9% dividend increase in 2025 (49th consecutive year), elevated share repurchases and targeted bolt-on M&A (e.g., heat-pump acquisition, Hydrostop deal).
- Pentair operates three core segments: a $1.5 billion pool business, a water solutions segment (residential & commercial filtration), and a $1.6 billion flow business covering residential, commercial infrastructure, and industrial pumps.
- The pool segment marked its fifth consecutive quarter of growth in Q2 and anticipates a 2026 top-line inflection as interest rates ease and new pool builds recover from 57,000 in 2025 versus 80,000 pre-COVID.
- A transformation program, supported by an 80/20 initiative, has generated $190 million in savings over two years, driving towards a 26% return on sales target by 2026 through sourcing, pricing, operational footprint, and OpEx optimization.
- Tariffs posed a year-to-date headwind of $75 million (revised down from $140 million), fully offset by targeted price increases in April and September, with no material impact expected from recent 232 expansions.
- Pentair has reduced net debt leverage from 2.7x to 1.2x, raised its dividend by 9% (49th consecutive increase), increased share repurchases, and is pursuing bolt-on M&A in pool heat pumps, commercial water, and flow sectors.
- Transformation progress: achieved $190 M in cost savings over the past two years, driving return on sales from 17% in 2020 toward a 26% target by 2026.
- Tariff management: expects a $75 M tariff headwind in 2025 (revised down from ~$140 M) fully offset through pricing actions; no material impact from recent 232 expansions.
- Capital allocation: reduced leverage to 1.2x net debt/EBITDA, increased the dividend by 9% for a 49th consecutive year, ramped up share buybacks, and targeting bolt-on M&A including a pending Hydra-Stop acquisition.
- Growth outlook: guiding mid-single-digit growth in the $1.6 B Flow segment and anticipating a broader top-line inflection in 2026 as consumer demand rebounds with easing interest rates.
- Pentair is a pure-play water company with three divisions—“Enjoy” (pool equipment), “Improve” (residential/commercial water solutions) and “Move” (pumps and filtration)—underpinned by approx. $1.5 billion in pump technology, $1 billion in filtration and $800 million in heating/cooling revenue.
- The $1.5 billion pool business (75% Sunbelt exposure, 5.5 million pools at ~23 years of age) achieved its fifth consecutive quarter of growth in Q2, with revenue split 20% new builds, 20% remodels and 60% break/fix.
- Its transformation program has delivered $190 million of savings over two years through sourcing, pricing excellence and an 80/20 complexity reduction (Quad 4 exit cost ~2–3% of revenue), allowing reinvestment in top customers.
- Tariff headwinds are now expected at $75 million for 2025 (down from $140 million), fully offset by targeted price increases, enabling renewed focus on organic growth and margin expansion.
- Pentair aims for 26% return on sales by 2026 with mid-single digit growth, has lowered leverage to 1.2×, raised its dividend by 9%, boosted share buybacks and is pursuing bolt-on M&A (e.g., Hydrostop).
- Pentair agrees to acquire Hydra-Stop LLC for $290 million in cash (net $240 million after expected tax benefits) to enhance its water solutions portfolio.
- Hydra-Stop, a US-based insertion valve and line stop manufacturer, is projected to generate $50 million in revenue in 2025 with an estimated 30% return on sales.
- The transaction, subject to customary regulatory approvals, is expected to close by the end of 2025, after which Hydra-Stop will operate within Pentair Flow’s Commercial & Infrastructure unit.
- Adjusted Q3 EPS of $0.99 surpassed analyst estimates, with revenue up 1.3% to $940.1 million.
- Maintained gross margins above 34% despite higher manufacturing costs and a $62 million impairment in upstream bioprocessing.
- Recurring revenues from aftermarket and proprietary solutions rose to 65% of sales, led by Industrial Solutions and Life Sciences growth.
- Raised full-year adjusted EPS guidance to $3.64–$3.70 and now expects sales growth of 1%–3%.
- 8-K Filing: Dated May 5, 2025, the document details the execution of the Second Amended and Restated Credit Agreement, outlining the roles of Pentair plc (Parent), Pentair Finance S.à r.l. (Company), and Pentair, Inc. (Affiliate Borrower).
- Key Participants: The credit agreement involves multiple financial institutions as lenders and agents—including JPMorgan Chase Bank, Bank of America, and others—establishing the framework for credit facilities and prepayment procedures.
- Q1 revenue reached $1.0 billion with core sales declining approximately 1% YoY .
- Adjusted operating income increased 12% to $243 million, with adjusted EPS up 18% to $1.11 (GAAP EPS up 16% to $0.93) .
- Transformation initiatives drove margin expansion—with improvements of 260 basis points and triple-digit gains across segments .
- The Pool segment outperformed with a 7% sales increase .
- Capital allocation remained disciplined with a $50M share repurchase and a dividend increase, marking the 49th consecutive year .
- Full-year guidance remains steady with expected sales flat to up 2% and EPS guidance of $4.65 to $4.80, supported by tariff mitigation and pricing strategies .
- Overview & Transformation: Pentair, a $4 billion water company, is focused on unlocking value through a significant transformation journey that emphasizes improved pricing, sourcing, operational excellence, and organizational cost management.
- Tariff Strategy: The company outlined a three-wave tariff scenario—with permanent 10% tariffs on China and 25% on steel/aluminum (about $50 million impact), additional $30 million headwinds from reciprocal tariffs, and a potential $80+ million impact from Canada/Mexico tariffs—planning to offset these costs through pricing adjustments.
- Market Conditions & Growth Outlook: Despite a challenged North American housing market and a flat pool market, Pentair expects revenue growth to be in the 1%-3% range with double-digit EPS growth, while strategically investing in automation and advanced water filtration technologies to drive future margins and market share.
- Capital Allocation & Operational Discipline: The firm remains focused on optimizing cash flow through debt reduction, bolt-on M&A, and share buybacks, underscoring its commitment to strong ROIC and prudent capital allocation.