Pentair (PNR) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 sales of $1,123.1 million, up 2.2% year-over-year, with Pool segment sales up 9% and transformation initiatives driving margin expansion for the 13th consecutive quarter.

• Adjusted EPS rose 14% to $1.39, while GAAP EPS declined 19% to $0.90 due to higher SG&A and restructuring costs.

• Free cash flow reached a record $596 million, with $75 million in share repurchases and 49 consecutive years of dividend increases.

• Transformation and restructuring initiatives generated $44 million in savings in H1 2025, with a target of $80 million for the year and over $200 million since 2023.

• Acquisition of G & F Manufacturing in late 2024 contributed to Pool segment growth.

Financial highlights

• Q2 adjusted operating income was $297 million (up 9% year-over-year); operating income was $217.7 million (down from $248 million in Q2 2024).

• Return on sales (ROS) expanded 170 bps to 26.4% (adjusted); operating margin was 19.4% (down from 22.6%).

• Gross margin improved to 40.7% from 39.8% year-over-year.

• Net income from continuing operations was $148.5 million, down from $186.1 million in Q2 2024.

• Free cash flow for Q2 was $596 million, up 14% year-over-year.

Outlook and guidance

• Full-year 2025 adjusted EPS guidance raised to $4.75–$4.85 (up 10–12%); GAAP EPS guidance $3.95–$4.05 (up 6–8%).

• Full-year sales expected to grow 1–2% on a reported basis.

• Q3 2025 adjusted EPS guidance is $1.16–$1.20 (up 6–10%); GAAP EPS $1.09–$1.13 (up 29–35%).

• Transformation and 80/20 initiatives to continue driving margin expansion; $80 million in transformation savings targeted for 2025.

• Full-year estimated tariff impact of $75 million included in guidance, with mitigation strategies in place.