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.

• Transformation initiatives and disciplined execution drove 15 consecutive quarters of margin expansion and consistent earnings growth.

• Strategic leadership changes and segment realignment position the company for accelerated growth and operational efficiency in 2026.

• Innovation and sustainability remain core priorities, with notable product launches and industry awards in filtration and ice machine segments.

• 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 and $225 million returned to shareholders via share repurchases.

Outlook and guidance

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

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

• Transformation savings of $70 million targeted for 2026, with balanced contributions from all segments and no residential recovery assumed in guidance.

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