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Pentair (PNR) investor relations material
Pentair Q3 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q3 net sales were $976.4M, down 4.5% YoY; adjusted EPS was $1.18, down 5%, but exceeded guidance. Pool destocking weighed on results while Flow and Water Solutions grew segment income and margins.
Pool channel inventory destocking was complete by quarter-end; the October 1 Taco acquisition adds a growth platform expected to contribute to adjusted EPS in 2027.
Financial highlights
Q3 adjusted operating income was $242.0M versus $262.6M; reported operating income was $195.9M versus $231.7M. Adjusted ROS was 24.8%, down 90 bps YoY.
Q3 gross profit was $395.2M, down 5.6%, and gross margin was 40.5%, down 0.5 pts; SG&A rose 8.4% to $175.9M.
Q3 free cash flow was $153M versus $179M YoY; 9M free cash flow was $619.9M versus $719.0M, and operating cash flow was $673.7M.
Q3 included $7.8M of IEEPA tariff refunds; 9M refunds totaled $42.7M.
Outlook and guidance
FY26 adjusted EPS midpoint was reaffirmed at $4.70; reported sales are expected to decline ~3%, and adjusted operating income is expected to decline ~6%.
Q4 reported sales are expected to rise 7%-9%, including Taco, while core sales are forecast down 2%-3%; adjusted EPS guidance is ~$1.15.
FY26 productivity savings are expected to be ~$55M, with price expected to offset inflation; free cash flow is targeted above 100% of net income.
Pool 2027 sell-through is expected near $1.45B with ~30% ROS; anticipated reported sales growth of ~$180M, or ~14%, reflects channel normalization, not market recovery.
Tariff recoveries provided $42.7M of 2026 benefit and are not expected to recur in 2027; no further Q4 refunds are expected.
- Q2 2026 sales dropped 17% year-over-year, but record margins and Taco deal drive future growth.PNR
Q2 2026 - Sales and earnings for 2026 are pressured by Pool inventory adjustments, partly offset by refunds.PNR
Q2 2026 earnings pre-release presentation - Transformation and innovation drive growth and margin gains, with disciplined capital allocation.PNR
Baird 55th Annual Global Industrial Conference - Sales up 3%, adjusted EPS up 10%, dividend raised, and $200M in shares repurchased.PNR
Q1 2026 - Q3 delivered 3% sales growth, double-digit EPS gains, and raised full-year guidance.PNR
Q3 2025 - Q2 sales up 2.2%, adjusted EPS up 14%, and free cash flow hit a record, guidance raised.PNR
Q2 2025 - Record Q2 margin and EPS growth led to raised 2024 guidance amid strong execution.PNR
Q2 2024 - Q1 2025 delivered double-digit EPS and net income growth, driven by margin gains.PNR
Q1 2025 - Record margin expansion and strong cash flow support continued EPS growth in 2025.PNR
Q4 2024
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Frequently asked questions
Water Treatment
Pentair is an American company with multinational operations that specializes in water treatment and sustainable solutions. It operates in various sectors, including residential, commercial, industrial, and infrastructure markets, offering a broad range of products and services. These include water filtration systems, pool and spa equipment, pumps, valves, and automation solutions to manage water quality and flow. The company is incorporated in Ireland, has its headquarters and tax residency in the UK, and is listed on the NYSE.
High Altitude Balloons
In 1966, Pentair was established in a suburb of St. Paul, Minnesota, by a group of five friends who set out to build high-altitude balloons, a venture that didn’t quite get the results the founders had envisioned. However, the company rapidly diversified beyond its original scope in search of something more profitable and eventually found itself in the tool industry and with time, water systems and pool equipment. Over time, Pentair narrowed down its operations, eventually concentrating on water treatment and sustainable solutions, partly through acquisitions and partly by conducting spin-offs of various departments.
The Products
Pentair is a global company specializing in water treatment and sustainable solutions. It designs, manufactures, and markets a wide range of products and services aimed at improving the quality, safety, and availability of water. Its portfolio includes water filtration and purification systems, pumps, valves, and controls for residential, commercial, and industrial applications. Pentair also offers solutions for pool and spa management, including equipment for heating, cleaning, and water circulation. Companies offering similar products and services include names such as Danaher, Xylem, and Ecolab.
Sustainability
Pentair's commitment to sustainability is deeply integrated into its business model, particularly in how it addresses water conservation and quality. The company's sustainable water solutions are designed to reduce environmental impact while enhancing water efficiency. A clear of this example is the company’s energy-efficient pool pumps, which are engineered to consume less electricity, thereby reducing carbon footprint. Pentair also invests in advanced water filtration, rainwater harvesting, and desalination technologies, used for purifying and reclaiming water in areas with limited resources.
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