Pentair (PNR) Q1 2025 earnings summary

Executive summary

• Achieved strong margin expansion and double-digit earnings growth in Q1 2025, with adjusted EPS up 18% and net income rising 16.2% to $154.9 million, despite a 1% sales decline.

• Transformation and 80/20 initiatives drove productivity and margin gains for the 12th consecutive quarter, with $174 million in savings over 2023-2024 and $80 million targeted for 2025.

• Pool segment sales grew 7%, supported by the G&F Manufacturing acquisition, while Flow and Water Solutions segments saw sales declines but margin improvements.

• Maintained full-year 2025 sales and adjusted EPS guidance, reflecting confidence in long-term strategy and effective tariff mitigation.

• Repurchased $50 million in shares and increased dividend for the 49th consecutive year.

Financial highlights

• Q1 2025 sales were $1,010.4 million, down 0.7% year-over-year; gross profit up 3.4% to $403.3 million; adjusted operating income up 12% to $243 million.

• Adjusted EPS increased 18% to $1.11; GAAP EPS rose 16% to $0.93.

• Gross margin improved to 39.9%, up 1.5 percentage points year-over-year.

• Return on sales (ROS) expanded 260 basis points to 24%.

• Net income from continuing operations was $154.9 million in Q1 2025.

Outlook and guidance

• Maintained 2025 adjusted EPS guidance of $4.65–$4.80, up 7–11% year-over-year; GAAP EPS guidance updated to $4.27–$4.42, up 14–18%.

• 2025 sales guidance of flat to up 2%, with price increases offsetting tariff-related volume declines.

• Q2 2025 adjusted EPS guidance of $1.31–$1.35, up 7–11%; sales expected up 1–2%.

• Targeting 26% ROS by 2026, with 25% expected in 2025.

• Guidance incorporates estimated $140 million tariff impacts and mitigation strategies.