Pentair (PNR) Q4 2025 earnings summary

Executive summary

• Achieved record annual sales, adjusted operating income, return on sales (ROS), and adjusted EPS for 2025, with strong Q4 performance driven by Pool and Flow segments and robust free cash flow generation.

• Transformation initiatives and disciplined execution drove 15 consecutive quarters of margin expansion and consistent shareholder value creation.

• Leadership transition with a new CFO and expanded roles for key executives to support growth and operational excellence.

• Strategic combination of Residential Flow and Water Solutions businesses to enhance channel alignment and operational efficiency.

• Exiting 2025 with a solid balance sheet, strong free cash flow, and 50th consecutive year of dividend increases.

Financial highlights

• FY'25 sales reached $4.18 billion, up 2% year-over-year; Q4 sales exceeded $1 billion, up 5% year-over-year.

• Adjusted operating income for FY'25 was $1,054 million, up 10%; Q4 adjusted operating income was $252 million, up 9%.

• Adjusted EPS for FY'25 was $4.92, up 14%; Q4 adjusted EPS was $1.18, up 9%.

• Record free cash flow of $748 million; $225 million returned to shareholders via share repurchases.

• 50th consecutive year of dividend increases, with a new quarterly dividend of $0.27 per share, up 8%.

Outlook and guidance

• 2026 adjusted EPS guidance of $5.25–$5.40, up 7–10%; sales growth expected at 3–4%; adjusted operating income growth of 5–8%.

• Q1 2026 adjusted EPS guidance of $1.15–$1.18, up 4–6% year-over-year; Q1 sales expected to rise 1–2%.

• Targeting free cash flow at ~100% of net income and EBITDA of ~$1.2 billion at midpoint for FY'26.

• Transformation savings of ~$70 million net of investments targeted for 2026.

• No residential recovery assumed in 2026 guidance; balanced segment contribution expected.