Core Insights - Pentair plc (PNR) reported adjusted earnings per share (EPS) of $1.39 for Q2 2025, exceeding the Zacks Consensus Estimate of $1.33 by 4.5% and marking a 14% increase from the previous year [1][10] - The company raised its 2025 EPS guidance to $4.75-$4.85, indicating a year-over-year growth of 9.1% at the midpoint [11] Financial Performance - Net sales increased by 2% year over year to $1.123 billion, surpassing the Zacks Consensus Estimate of $1.115 billion [2] - The cost of sales rose by 0.8% to $667 million, with gross profit reaching $457 million, a 4.3% increase from the prior year [2] - SG&A expenses totaled $214 million, up 29.5% from $165 million in the prior year [3] - Adjusted segment operating income increased by 9% year over year to $296.7 million, with an adjusted segment operating margin of 26.4% [4] Segment Performance - Flow segment net sales were flat at $397 million, with operating earnings rising 10% to $93 million [5] - Water Solutions segment net sales decreased by 4% to $298 million, with earnings declining 3% to $70 million [6] - Pool segment net sales increased by 9% to $427 million, with operating earnings growing 14.3% to $152.7 million [7] Cash Flow and Balance Sheet - Cash and cash equivalents were approximately $143 million at the end of Q2 2025, up from $119 million at the end of 2024 [8] - Net cash generated from operating activities was $568 million in the first half of 2025, compared to $432 million in the same period last year [8] - Long-term debt decreased to $1.39 billion as of June 30, 2025, down from $1.64 billion at the end of 2024 [8] Shareholder Returns - Pentair increased its dividend by 9% to 25 cents per share, marking the 49th consecutive year of dividend increases [9] - The company repurchased 1.3 million shares for $125 million in 2025, with $325 million remaining under its share repurchase authorization [9] Future Guidance - For Q3 2025, Pentair expects adjusted EPS between $1.16 and $1.20, implying an 8% rise at the midpoint [12] - The company anticipates sales to be flat to up 1% from the year-ago quarter [12] Stock Performance - Pentair's stock has gained 20.3% over the past year, outperforming the industry growth of 4.2% [13]

Core Insights - Pentair plc reported revenue of $1.12 billion for the quarter ended June 2025, marking a year-over-year increase of 2.2% and an EPS of $1.39 compared to $1.22 a year ago, indicating positive growth [1] - The revenue exceeded the Zacks Consensus Estimate of $1.11 billion by 0.73%, while the EPS surpassed the consensus estimate of $1.33 by 4.51% [1] Revenue Performance - Core revenue growth for Flow was -1.3%, underperforming the estimated growth of 0.6% [4] - Core revenue growth for Pool was 7.3%, significantly exceeding the estimated growth of 2.3% [4] - Total core revenue growth for Pentair was 1.3%, above the estimated growth of 0.8% [4] - Core revenue growth for Water Solutions was -3%, worse than the estimated decline of -0.8% [4] Segment Sales and Income - Net Sales for Pool reached $427.2 million, surpassing the average estimate of $409.1 million, with a year-over-year change of +9.1% [4] - Net Sales for Flow were $397.3 million, slightly below the average estimate of $398.26 million, with a year-over-year change of +0.1% [4] - Net Sales for Water Solutions were $298.3 million, below the average estimate of $307.16 million, reflecting a year-over-year decline of -3.9% [4] - Segment income for Corporate and other was -$19.3 million, better than the average estimate of -$20.2 million [4] - Segment income for Pool was $152.7 million, exceeding the average estimate of $143.57 million [4] - Segment income for Water Solutions was $70.2 million, below the average estimate of $74.5 million [4] - Segment income for Flow was $93.1 million, surpassing the average estimate of $89.57 million [4] Stock Performance - Pentair's shares have returned +5.3% over the past month, compared to the Zacks S&P 500 composite's +5.9% change [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company reported record results in Q2 across all metrics: sales increased by 2% to $1.1 billion, adjusted operating income rose by 9% to $297 million, return on sales (ROS) expanded by 170 basis points to 26.4%, and adjusted EPS increased by 14% to $1.39 [8][15][22] - Free cash flow reached a record $596 million, up 14% year over year, with a net debt leverage ratio of 1.2 times, down from 1.6 times a year ago [20][21] Business Line Data and Key Metrics Changes - **Flow Segment**: Sales were flat year over year, with residential sales down 1% due to higher interest rates impacting the residential market, while commercial sales rose by 1% [16][18] - **Water Solutions Segment**: Sales declined by 4% to $298 million, primarily due to lower volume, with commercial sales down 3% and residential sales down 6% [18][19] - **Pool Segment**: Sales increased by 9% to $427 million, driven by price, volume, and the acquisition of Gulfstream [19] Market Data and Key Metrics Changes - The company anticipates flow sales to grow in the low single digits, while water solutions are expected to decline in the mid single digits, and pool sales are projected to increase by approximately 6% to 7% for the full year [22][23] Company Strategy and Development Direction - The company is focused on transformation initiatives and strategic growth, including investments in high-performing talent and new product innovations [10][13] - The company aims to achieve $80 million in transformation savings for 2025 and targets a ROS of 26% by the end of 2026 [12][13] Management's Comments on Operating Environment and Future Outlook - Management noted that the softer residential end market allows the company to improve overall business positioning for when demand recovers, with expectations that lower interest rates will catalyze an improving housing market [11][14] - The company remains agile in a rapidly changing macroeconomic and geopolitical environment, with a strong balance sheet and capital allocation strategy [26] Other Important Information - The company made an investment in a startup, Hope Hydration, to deliver free water through digitally connected refill stations, which aligns with its sustainability goals [9] - The company updated its full-year guidance, expecting sales growth of approximately 1% to 2% and adjusted EPS of approximately $4.75 to $4.85 [22][24] Q&A Session Summary Question: Insights on pool unit volumes and pricing sensitivity - Management indicated that new pool builds are expected to be modestly down, with customers extending product life through repairs rather than new purchases, influenced by pricing increases [32][33] Question: Price versus cost outlook for the year - Management clarified that pricing is expected to offset tariffs, with a net benefit from lower tariffs and staggered pricing strategies implemented [35][36] Question: Pool volume outlook and channel inventories - Management confirmed that pool volume expectations have slightly shifted to a more challenging outlook, but channel inventories are being monitored effectively [86][87] Question: Impact of tariffs on pricing and future increases - Management stated that they are prepared to react to any tariff changes and will work with dealers to recover costs as needed [89] Question: Divestiture of the commercial services business - Management explained that the decision to divest was based on changing dynamics and a focus on higher-margin businesses, with no expected loss in aftermarket sales [62][95]

Financial Data and Key Metrics Changes - The company reported record results in Q2, with sales increasing by 2% to $1.1 billion, adjusted operating income rising by 9% to $297 million, and adjusted EPS increasing by 14% to $1.39 [7][15] - Return on sales (ROS) expanded by 170 basis points to 26.4%, driven primarily by transformation initiatives and pricing strategies [7][15] - Free cash flow reached a record $596 million, up 14% year over year, with a net debt leverage ratio decreasing from 1.6 times to 1.2 times [20][21] Business Line Data and Key Metrics Changes - **Flow Segment**: Sales were flat year over year, with residential sales down 1% due to higher interest rates impacting the residential market, while commercial sales rose by 1% [16][18] - **Water Solutions Segment**: Sales declined by 4% to $298 million, primarily due to lower volume, with commercial sales down 3% and residential sales down 6% [18][19] - **Pool Segment**: Sales increased by 9% to $427 million, driven by price increases, volume growth, and the acquisition of Gulfstream [19][20] Market Data and Key Metrics Changes - The company anticipates flow sales to grow in the low single digits, while water solutions are expected to decline in the mid single digits, and pool sales are projected to increase by approximately 6% to 7% for the full year [22][23] - The company noted a softer residential end market, which has allowed for a focus on improving overall business operations [11][12] Company Strategy and Development Direction - The company is focused on driving long-term shareholder value through transformation initiatives and strategic growth investments, including talent acquisition and product innovation [10][13] - The company has committed to achieving $80 million in transformation savings for 2025, with expectations for continued margin improvement beyond 2026 [12][13] - The company is adapting to a rapidly changing macroeconomic environment and is optimistic about future demand recovery as interest rates potentially decrease [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute its strategy despite a challenging environment, with expectations for sales growth of 1% to 2% and adjusted EPS guidance of $4.75 to $4.85 for the full year [8][22] - The management highlighted the importance of monitoring macroeconomic conditions and adjusting strategies accordingly, particularly in response to tariff impacts and inflation [24][25] Other Important Information - The company made an investment in a startup, Hope Hydration, which aims to provide free water through digitally connected refill stations, leveraging Pentair's technology [9] - The company strategically divested its small commercial services business to focus on higher-margin filtration and ice businesses [18][66] Q&A Session Summary Question: Insights on pool unit volumes and pricing sensitivity - Management noted that new pool builds are expected to be modestly down, with customers extending product life through repairs rather than new purchases, influenced by pricing increases [31][32] Question: Price versus cost outlook for the year - Management indicated that pricing strategies are designed to offset tariff impacts, with a net benefit from lower tariffs contributing to raised guidance [35][36] Question: Pool volume outlook and channel inventories - Management confirmed that while pool volume outlook remains modestly challenging, channel inventories are well managed and in line with historical levels [90] Question: Impact of tariffs on pricing and operational decisions - Management stated that the tariff situation has paused some decision-making but remains committed to localizing supply chains and optimizing operational efficiencies [85][86] Question: Future divestitures and cash flow performance - Management clarified that while there are no immediate divestitures planned, they are focused on product line exits that do not align with their strategic goals, and highlighted strong cash flow performance due to improved working capital management [100][101]

Core Insights - Pentair plc reported quarterly earnings of $1.39 per share, exceeding the Zacks Consensus Estimate of $1.33 per share, and showing an increase from $1.22 per share a year ago, resulting in an earnings surprise of +4.51% [1] - The company achieved revenues of $1.12 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.73% and reflecting a year-over-year increase from $1.1 billion [2] - Pentair has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] Earnings Outlook - The sustainability of Pentair's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3] - The current consensus EPS estimate for the upcoming quarter is $1.17 on revenues of $1.01 billion, while for the current fiscal year, the estimate is $4.75 on revenues of $4.12 billion [7] Industry Context - The Waste Removal Services industry, to which Pentair belongs, is currently ranked in the bottom 32% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Pentair's stock performance [5] Stock Performance - Since the beginning of the year, Pentair shares have increased by approximately 4.2%, underperforming compared to the S&P 500's gain of 7.2% [3] - The estimate revisions trend for Pentair was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expectations of underperformance in the near future [6]

Q2 2025 Performance - Sales increased by 2% year-over-year, reaching $1,123 million[18, 27] - Adjusted Operating Income increased by 9% year-over-year, reaching $297 million[18, 30] - Adjusted EPS increased by 14% year-over-year[18, 31] - ROS expanded by 170 bps year-over-year to 264%[18, 30] Segment Performance - Flow sales remained flat year-over-year at $397 million, with segment income up 10% and ROS at 234%, a 210 bps increase[31, 33, 37] - Water Solutions sales decreased by 4% year-over-year to $298 million, with segment income down 4% and ROS flat at 235%[31, 41, 45] - Pool sales increased by 9% year-over-year to $427 million, with segment income up 14% and ROS at 357%, a 160 bps increase[31, 48, 52] Financial Position and Outlook - Free Cash Flow reached a new quarterly record of $596 million[20, 57] - The company repurchased $75 million of shares[20, 58] - Full year 2025 sales are expected to increase by approximately 1% to 2%, reaching $4,125 million to $4,165 million[61] - Full year 2025 Adjusted EPS is projected to be between $475 and $485, an increase of approximately 10% to 12%[61]

News Release Pentair Reports Strong Second Quarter 2025 Results Reconciliations of GAAP to Non-GAAP measures are in the attached financial tables. LONDON, United Kingdom — July 22, 2025 — Pentair plc (NYSE: PNR), a leader in helping the world sustainably move, improve and enjoy water, life's most essential resource, today announced second quarter 2025 sales of $1.1 billion. Sales were up 2 percent compared to sales for the same period last year. Excluding currency translation, acquisitions and divestitures, ...

Summary Information. The information in this document is in summary form and should not be relied upon as a complete and accurate representation of any matters that a reader should consider in evaluating Pantoro. While management has taken every effort to ensure the accuracy of the material in this presentation, Pantoro and its advisers have not verified the accuracy or completeness of the material contained in this presentation. QUARTERLY RESULTS PRESENTATION Q4 FY 2025 ASX: PNR For personal use only IMPOR ...

Core Insights - Pentair plc (PNR) is scheduled to report its second-quarter 2025 results on July 22, with sales expected to reach $1.11 billion, reflecting a 1.4% year-over-year growth [1][5] - The consensus estimate for earnings is $1.33 per share, indicating a 9% year-over-year increase, although no earnings beat is anticipated this quarter [2][5] Sales and Earnings Estimates - The Zacks Consensus Estimate for PNR's second-quarter sales is $1.11 billion, which is a 1.4% increase from the previous year [1] - The earnings estimate of $1.33 per share has remained unchanged over the past 60 days, suggesting a 9% growth compared to the same quarter last year [2] Earnings Surprise History - Pentair has a history of beating Zacks Consensus Estimates, with an average surprise of 5.9% over the last four quarters [2][3] - The reported earnings for the last four quarters were consistently above estimates, with the most recent quarter showing a 9.9% surprise [3] Segment Performance - The Pool segment is expected to see sales of $399 million, a 2.1% year-over-year increase, despite a decline in volume growth [8] - The Flow segment's sales are projected to be $407 million, reflecting a 2.5% increase from the prior year, aided by a slight volume pickup [10] - The Water Solutions segment is anticipated to decline by 1.3% year-over-year to $306 million, primarily due to ongoing weakness in the residential market [11] Market Conditions and Challenges - The company is facing tight raw material supplies and rising logistics costs, but has managed to achieve margin expansion through pricing and cost-saving initiatives [12] - The residential market remains weak due to high interest rates, impacting the Flow and Water Solutions segments [9] Stock Performance - Pentair's stock has increased by 32.9% over the past year, significantly outperforming the industry average growth of 4.6% [13]

Investment Rating - The report provides a "Buy" rating for companies IGO, NST, NEM, CMM, BGL, VAU, WGX, and PNR, while recommending a "Sell" rating for MIN and RRL [4]. Core Insights - The report highlights the potential upside for various companies based on their current pricing and NAV valuations, with IGO showing a 2% downside to its price target and NST having a 14% upside [4]. - The report emphasizes the strong performance of gold and lithium sectors, with specific companies positioned favorably for growth [4][8]. Company Summaries - **IGO**: Rated "Buy" with a market cap of US$2.1 billion, current price A$4.32, and a 12-month price target of A$5.03, indicating a 2% downside [4]. - **NST**: Rated "Buy" with a market cap of US$17.4 billion, current price A$18.56, and a 12-month price target of A$22.53, indicating a 14% upside [4]. - **NEM**: Rated "Buy" with a market cap of US$66.7 billion, current price A$90.58, and a 12-month price target of A$98.83, indicating a 7% upside [4]. - **CMM**: Rated "Buy" with a market cap of US$2.7 billion, current price A$9.44, and a 12-month price target of A$10.09, indicating a 6% upside [4]. - **BGL**: Rated "Buy" with a market cap of US$0.9 billion, current price A$0.93, and a 12-month price target of A$0.97, indicating a 29% upside [4]. - **MIN**: Rated "Sell" with a market cap of US$3.2 billion, current price A$24.44, and a 12-month price target of A$20.30, indicating an 18% downside [4]. - **RRL**: Rated "Sell" with a market cap of US$2.2 billion, current price A$4.53, and a 12-month price target of A$4.24, indicating a 1% downside [4]. Commodity & FX Forecasts - The report includes forecasts for various commodities, with gold expected to reach US$3,503 per ounce in Q4 2025 and lithium carbonate projected at US$8,005 per ton in 2025 [8]. - Nickel prices are forecasted to stabilize around US$7.17 per pound in Q4 2025, while copper is expected to be around US$4.52 per pound [8].