Pentair (PNR) Barclays 42nd Annual Industrial Select Conference summary

Demand environment and segment performance

• Residential segment faces ongoing headwinds, while commercial and pool segments show resilience and growth.

• Flow business expected to be up slightly, with commercial up low single digits, residential flat, and industrial down due to delayed CapEx.

• Pool business guided to be up 4-5%, with new pool construction bottoming out and expected to grow low single digits in 2025 and beyond.

• Aftermarket pool segment remains resilient, benefiting from a large installed base.

• Pool segment is the most profitable, with a 33% return on sales.

Guidance, pricing, and inflation

• Guidance for residential water and flow remains cautious, with growth in the second half driven by easier comparisons.

• Price increases of 1.5%-2% are expected to offset inflation, with pricing power supported by a large distribution network.

• Inflation is anticipated to remain steady compared to last year.

• Tariff impacts, including those on China, Mexico, and Canada, are expected to be offset by inventory management, pre-buys, and pricing strategies.

• Earnings per share guidance includes China tariffs but not yet Mexico and Canada, with confidence in maintaining EPS range.

Innovation, market share, and customer focus

• New product launches in 2025, such as advanced lighting and chlorinators, aim to drive mix improvement and innovation.

• Focus on overserving top customers and dealers to drive differentiated growth and market share gains.

• Inventory levels in the pool segment have normalized, returning to historical patterns.

• Efforts to improve service and partnership with major distributors are ongoing, with positive feedback emerging.