PENTAIR (PNR) Company Report

Pentair is a pure-play water company with over $4 billion in revenue and $1.1 billion of EBITDA, led by CEO John Stock; CFO Bob Fishman will retire March 1, 2026, succeeded by Nick Brassis.
Its three segments—Flow (small/large pumps, Industrial Solutions), Water Solutions (Everpure filtration, Manitowoc Ice), and Pool—account for 75% distribution and 75% break-fix sales.
The 2½-year transformation program has delivered ~600 bps of ROS expansion, focusing on sourcing, pricing, operations and digitization, with an evolving balance toward organic volume growth.
Flow (≈$1 billion revenue) saw residential stabilization, 12 consecutive quarters of commercial growth, and high-single-digit Q4 guidance aided by the HydroStop acquisition, which enhances municipal repair offerings.
Pool remains in a flattish rate-driven market (5.4 million pools, 650,000 connected), with a push on dealer segmentation, automation/AI features and mid-single-digit growth at ~34% ROS.

Nov 12, 2025, 3:05 PM

Transcript

Pentair posts Q3 2025 results

PNR

Earnings

Guidance Update

M&A

Delivered Q3 sales of $1.022 B (+3%), adjusted operating income of $263 M (+10%), return on sales of 25.7% (+160 bps) and adjusted EPS of $1.24 (+14%).
Generated record year-to-date free cash flow of $719 M (+14%), return on invested capital of 16.7% and net debt leverage of 1.3×.
Acquired HydroStop for $292 M (approximately $242 M net of a $50 M tax benefit) and repurchased $175 M of shares year to date.
Raised full-year 2025 guidance to ~2% sales growth and adjusted EPS of $4.85–4.90 (up 12–13%); Q4 outlook: sales +3–4% and adjusted EPS $1.11–1.16.
Announced CFO Bob Fishman’s departure effective March 1, 2026, with transition leadership in finance and IT appointed.

Oct 21, 2025, 1:00 PM

Transcript

Pentair reports Q3 2025 earnings results

PNR

Earnings

Guidance Update

Share Buyback

Pentair reported Q3 sales of $1,022 M, up 3%, with adjusted operating income of $263 M (+10%) and ROS at 25.7% (+160 bps).
Delivered adjusted EPS of $1.24, up 14%, driven by execution across its balanced water portfolio and transformation initiatives.
Year-to-date free cash flow hit $719 M, with $175 M in share repurchases, and maintained net debt/EBITDA at 1.3x, underscoring strong cash generation.
Raised FY 2025 adjusted EPS guidance to $4.85–$4.90 (up ~12–13%) and anticipates Q4 sales growth of ~3–4%, reflecting continued margin expansion.

Oct 21, 2025, 1:00 PM

Presentation

Pentair reports Q3 2025 results and raises guidance

PNR

Earnings

Guidance Update

M&A

Delivered 3% sales growth to $1.022 billion, 10% increase in adjusted operating income to $263 million, 25.7% ROS (+160 bps), and $1.24 adjusted EPS (+14%) in Q3 2025.
Generated $719 million of free cash flow year-to-date (+14%), repurchased $175 million of shares, and reduced net debt leverage to 1.3×.
Completed acquisition of Hydrostat for $292 million (net ~$242 million), adding ~$10 million of Q4 sales at ~30% ROS to the Flow segment.
Raised full-year 2025 guidance: sales growth of ~2% and adjusted EPS of $4.85–$4.90 (up 12–13%).
Achieved $56 million of transformation savings YTD, on track to reach $80 million for 2025, supporting margin expansion.

Oct 21, 2025, 1:00 PM

Transcript

Pentair reports Q3 2025 results

PNR

Earnings

Guidance Update

M&A

Sales of $1,022 million, up 3% vs. Q3 2024.
Operating income of $232 million; ROS 22.7% (+460 bps); adjusted ROS 25.7% (+160 bps).
GAAP EPS of $1.12 (+33%); adjusted EPS of $1.24 (+14%).
YTD cash flow: operating $764 million (+$84 million), free $719 million (+$90 million); share repurchases of $50 million in Q3 and $175 million YTD.
Updated full-year GAAP EPS guidance to $3.98–4.03 and adjusted EPS guidance to $4.85–4.90; acquired Hydra-Stop for $292 million.

Oct 21, 2025, 10:52 AM

8-K

Pentair reports Q3 2025 results

PNR

Earnings

Guidance Update

Share Buyback

Net sales of $1,022 million, up 3%, and GAAP EPS of $1.12 (+33%), with adjusted EPS of $1.24 (+14%) in Q3 2025
Operating income of $232 million (ROS 22.7%, +460 bps); adjusted ROS was 25.7% (+160 bps)
Year-to-date net cash from operations of $764 million (+$84 million) and free cash flow of $719 million (+$90 million); repurchased $50 million of shares in Q3 ($175 million YTD)
Raised full-year 2025 GAAP EPS guidance to $3.98–$4.03 (+6–8%) and adjusted EPS to $4.85–$4.90 (+12–13%); Q4 2025 EPS guidance set at $1.03–$1.08 (GAAP) and $1.11–$1.16 (adjusted)
Acquired Hydra-Stop for $292 million, with an expected $50 million tax benefit

Oct 21, 2025, 10:50 AM

Press Release

Pentair highlights margin gains and growth drivers at Morgan Stanley Laguna Conference

PNR

Revenue Acceleration/Inflection

Guidance Update

M&A

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).

Sep 11, 2025, 10:20 PM

Transcript

Pentair details transformation and growth outlook at Laguna Conference

PNR

Guidance Update

M&A

Dividends

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.

Sep 11, 2025, 10:20 PM

Transcript

Pentair presents transformation roadmap and growth outlook at Morgan Stanley’s Laguna Conference

PNR

M&A

Dividends

Share Buyback

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.

Sep 11, 2025, 10:20 PM

Transcript

Pentair outlines segments, transformation progress and 2026 margin target at Morgan Stanley Laguna Conference

PNR

Guidance Update

M&A

Dividends

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).

Sep 11, 2025, 10:20 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for PENTAIR.

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