Total Revenue

–0.7% (from $1,017.2M to $1,010.4M)

Total Revenue remained essentially flat with a slight decline of 0.7% YoY. This stability suggests that any downward pressure from volume reductions was largely offset by pricing adjustments and a consistent geographic mix, as seen in the detailed revenue breakdown. " "

Operating Income

+12% (from $180.8M to $203.1M)

Operating Income increased by 12% YoY, reflecting improvements in pricing and cost control measures. The enhanced margins indicate stronger operational efficiencies compared to Q1 2024, supporting increased profitability. " "

Net Income

+16% (from $133.3M to $154.9M)

Net Income rose by 16% YoY, driven by the improved operating margins and lower operating expenses. The jump in net income is consistent with the marked improvement in operational performance and cost management relative to the previous period. " "

Cash Flow from Operations

64% improvement (from –$107.6M to –$38.9M)

Cash Flow from Operations improved dramatically by nearly 64% YoY, indicating better working capital management and reduced operating outflows. Despite being negative, the reduction in cash outflow underscores enhanced operational efficiency relative to Q1 2024. " "

Long-Term Debt

–11.9% (from $2,084.3M to $1,835.7M)

Long-Term Debt decreased by 11.9% YoY, reflecting proactive debt repayment strategies and reduced borrowings. This reduction in debt levels relative to Q1 2024 indicates the company’s focus on deleveraging and strengthening its balance sheet. " "

Cash & Cash Equivalents

+29% (from $109.1M to $140.6M)

Cash & Cash Equivalents increased by 29% YoY, driven by improved net inflows from financing activities along with better operating performance. The higher liquidity position compared to Q1 2024 provides the company with a stronger short-term financial footing. " "

Adjusted Operating Income

Q2 2025

Expected to increase 3% to 5% "

Expected to increase 5% to 8% "

raised

Adjusted EPS

Q2 2025

$1.00 to $1.02 "

$1.31 to $1.35 "

raised

Pool Sales

Q2 2025

Expected to grow 3% to 4% "

Expected to grow mid-single digits "

raised

Sales Growth

Q2 2025

no prior guidance

Expected to be up approximately 1% to 2% "

no prior guidance

Water Solutions and Flow Segment Sales

Q2 2025

no prior guidance

Expected to be roughly flat "

no prior guidance

Sales Growth

FY 2025

Approximately flat to up 2%, including FX headwinds " "

Approximately flat to up 2%, assuming FX and tariff‐related price increases offset declines "

no change

Adjusted Operating Income

FY 2025

Expected to increase approximately 6% to 9% "

Expected to increase 6% to 9% "

no change

Adjusted EPS

FY 2025

$4.65 to $4.80 " "

$4.65 to $4.80 "

no change

Return on Sales (ROS)

FY 2025

Expected to expand by 125 basis points to approximately 24.5%–25% " "

Targeting approximately 25%, up from 23.5% in 2024 " "

no change

Transformation Savings

FY 2025

no prior guidance

Approximately $80 million, net of investments "

no prior guidance

Tariff Impact & Mitigation Strategies

In Q4 2024, tariffs (especially China and potential Mexico/Canada tariffs) were embedded in EPS guidance with pricing actions and sourcing adjustments discussed. " " " Q3 and Q2 2024 had no specific details on tariffs.

Q1 2025 offered detailed estimates (e.g., $140 million impact net of mitigation), reinforced timing (impact expected in H2 2025), and expanded on mitigation (phased price increases, inventory prepositioning, transformation sourcing) " " " " "

Increased detail and proactive planning: The focus has shifted to more targeted mitigation strategies, with an emphasis on phased timing and diversified sourcing explicitly to counter tariff impacts.

Phased Price Increases and Channel Acceptance

Q3 2024 discussed phased price increases in the Pool segment and early buy order dynamics " ; Q4 2024 did not address these topics.

Q1 2025 provided a comprehensive review of phased price increases rolled out in 30-day increments and noted generally acceptable channel responses despite inherent resistance " " " "

Enhanced clarity and execution: The current period shows greater detail in implementation and communication to channels, emphasizing transparent, phased adjustments while building on earlier discussions.

Transformation Initiatives and Productivity Savings

Q2, Q3, and Q4 2024 detailed transformation efforts with savings targets (ranging from $100 million to nearly $175 million cumulatively) and outlined the role of sourcing, operational efficiency, and the 80/20 strategy. " " " " " " " " "

Q1 2025 reaffirmed ongoing transformation achievements with specific figures (e.g., $80 million expected savings in 2025, increased ROS guidance) and described higher-than-expected productivity despite lower volumes " " " " "

Consistent progress with increased emphasis: The initiatives remain central and are advancing as planned, with added focus on long-term savings and margin expansion despite current volume challenges.

Supply Chain Diversification and Reduced China Dependency

In Q4 2024, discussions revolved around sourcing adjustments and mitigating tariffs without explicit mention of reduced China dependency; Q3 and Q2 2024 did not mention this topic.

Q1 2025 highlighted significant progress in reducing reliance on China (now less than $100 million vs. previous levels) and described ongoing challenges with products that can only be sourced from China " " "

Emerging strategic focus: The current period brings a clearer commitment to diversifying the supply chain and reducing concentration risk, marking a trend toward deliberate repositioning post-tariff challenges.

Demand and Sales Weakness in Key Segments (Residential, Water Solutions, Flow)

Q2, Q3, and Q4 2024 consistently noted weakness in residential sales due to higher interest rates, along with mixed performance in Water Solutions and Flow, with declines tied to macroeconomic pressures and delayed projects. " " " " " " " "

Q1 2025 reiterated notable declines in residential sales (e.g., a 6% drop in Flow) while also reporting specific segment performance figures, confirming ongoing challenges with high interest rates and economic uncertainty " "

Steady and persistent weakness: The narrative remains consistent across periods with residential segments under pressure, although each period reaffirms market challenges and measured expectations for recovery.

Pool Segment Performance and New Pool Build Dynamics

Q2 2024 showed strong sales growth—with record positive margins—as well as concerns about historically low new pool builds. Q3 and Q4 2024 highlighted steady performance and specific weather or acquisition impacts. " " " " " "

Q1 2025 noted improved Pool sales (7% growth, supported by a recent acquisition) and detailed new pool build projections (around 60,000 builds), while acknowledging potential softness in remodeling demand " " " " "

Robust operational performance amid structural challenges: While strong sales and margin improvements continue, new build dynamics remain weak, reflecting ongoing macro trends in the residential market, even as strategic acquisitions help supplement growth.

Capital Allocation Strategies, Free Cash Flow Generation, and Share Repurchases

Q2, Q3, and Q4 2024 consistently stressed a balanced, disciplined approach with regular share repurchases, dividend increases, and strong free cash flow generation (e.g., $693 million free cash flow in Q4, and record free cash flow in Q3). " " " " "

Q1 2025 reaffirmed a balanced strategy with a detailed review: free cash flow improved by $70 million year-over-year, targeted share repurchases ($50 million executed), and emphasis on debt reduction and strategic investments " " "

Sustained discipline with incremental improvements: The long-term focus on capital efficiency remains firm, with Q1 showing enhanced free cash flow metrics and proactive share buyback actions reinforcing shareholder return priorities.

Macroeconomic Headwinds: Inflation, Sluggish Economy, and Interest Rate Pressures

In Q2, Q3, and Q4 2024, the calls discussed persistent inflationary pressures (albeit with moderating trends in Q4), a sluggish economic backdrop affecting end markets, and higher interest rate impacts particularly hurting residential segments. " " " " " " " "

Q1 2025 continued to address these headwinds, noting inflation managed via pricing strategies and transformation, persistent challenges in residential segments due to high interest rates, and cautious outlooks because of broader economic sluggishness " " " "

Persistent macro challenges with active mitigation: While the pressures remain, Pentair’s approach via pricing actions and operational efficiencies shows a consistent effort to manage these issues, with little change in overall sentiment compared to previous periods.

80/20 Initiatives: Shifting Product/Customer Focus with Mixed Sentiment

Q2, Q3, and Q4 2024 provided detailed breakdowns of the 80/20 initiatives, explaining how Quadrant 1 expansion and Quad 4 exits were being implemented, while also noting mixed short-term revenue impacts and significant cultural shifts. " " " " " " " " "

Q1 2025 described the initiative with emphasis on shifting focus toward high-value customers and discontinuing lower-margin products, acknowledging volume declines but expecting improved profitability; the mixed sentiment remains with fair channel feedback despite price increases " " "

Consistent long-term strategic pivot amid short-term revenue trade-offs: The initiative continues across periods with evolving implementation details and a balanced view that recognizes both immediate challenges and long-term benefits.

Industrial Capital Expenditure Delays in the Industrial Segment

Q2 2024 noted delays in CapEx spending by key industrial customers; Q3 2024 highlighted several-quarter delays in larger projects across industrial segments and Q4 2024 mentioned delays related to financing issues in industrial projects. " " " "

Q1 2025 mentioned that while industrial sales in Flow were lower (down 9%), there were no significant project pushouts or cancellations—with an ongoing monitoring of project pipelines, particularly in food & beverage and larger infrastructure projects " "

Slight moderation but continued caution: While previous periods flagged substantial delays, Q1 2025 shows a more nuanced picture—monitoring delays without drastic project cancellations—indicating potential stabilization in industrial CapEx dynamics.