Pentair (PNR) Q4 2024 earnings summary

Executive summary

• Achieved record adjusted operating income, return on sales (ROS), and adjusted EPS for Q4 and full-year 2024, despite a 1% sales decline year-over-year.

• Transformation initiatives and 80/20 program drove triple-digit margin expansion and operational efficiencies across all segments for the 11th consecutive quarter.

• All three segments—Flow, Water Solutions, and Pool—delivered significant margin expansion and record ROS.

• Free cash flow reached a record $693 million, up $143 million year-over-year, with balanced capital deployment.

• Introduced 2025 adjusted EPS guidance of $4.65–$4.80, up 9% at the midpoint, and marked the 49th consecutive year of dividend increases.

Financial highlights

• Q4 adjusted operating income rose 17% to $231 million; adjusted EPS up 24% to $1.08.

• Full-year 2024 sales were $4.1 billion (down 1%), with record adjusted operating income of $959 million (up 12%) and adjusted EPS of $4.33 (up 15%).

• Free cash flow for 2024 was $693 million, with a cash flow margin of 17%.

• Net income from continuing operations for 2024 was $626 million; EBITDA was $1.02 billion.

• Dividend increased by 9% for the 49th consecutive year.

Outlook and guidance

• 2025 adjusted EPS guidance: $4.65–$4.80, a 7%–11% increase year-over-year.

• 2025 sales expected to be flat to up 2%, with Q1 2025 sales expected down 3–4%.

• ROS expected to expand to 24.5%–25% in 2025.

• Transformation and 80/20 initiatives expected to deliver $80 million in productivity savings in 2025.

• 2026 ROS target raised to 26%, even with flat sales growth assumptions.