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Pentair (PNR) investor relations material
Pentair Baird 55th Annual Global Industrial Conference summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Leadership transition and company overview
Incoming CFO Nick Brassis will take over from Bob Fishman on March 1, ensuring a smooth transition.
The company operates in three segments: Flow, Water Solutions, and Pool, with over $4B in revenue and $1.1B EBITDA.
75% of revenue is through distribution and break-fix, providing resilience in uncertain times.
Transformation program launched 2.5 years ago has driven nearly 600 basis points of ROS improvement.
Technology sharing across segments fosters innovation and operational efficiency.
Transformation strategy and operational focus
Transformation centers on four pillars: standardizing processes, pricing, sourcing, and digitizing global support.
Sourcing and pricing standardization have delivered the most benefit so far.
The company is balancing organic volume growth with continued transformation benefits into 2026-2028.
The 80/20 approach has led to portfolio exits and SKU rationalization, with headwinds expected to subside by Q4.
Business leaders are incentivized on realized standard margin, driving focus on profitable growth.
Segment performance and growth opportunities
Flow segment is stabilizing, with residential recovering and commercial/infrastructure growing for 12 consecutive quarters.
HydroStop acquisition enhances municipal repair offerings and creates cross-selling opportunities.
Standardization and improved lead times have built momentum, with Q4 guidance for high single-digit growth.
Pool segment faces a flattish environment due to high interest rates but expects innovation-driven growth in 2026-2027.
Dealer segmentation and targeted support are key to driving demand and adoption of automation.
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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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