Pentair(US:PNR)2026-02-03 11:52Financial Performance - Fourth quarter 2025 sales were $1,021 million, up 5% year-over-year; full year 2025 sales totaled $4.2 billion, an increase of 2% compared to 2024[3][5][7] - Fourth quarter operating income was $205 million, reflecting a 5% increase; full year operating income reached $858 million, up 7% from 2024[4][6][7] - Fourth quarter GAAP EPS was $0.98, down 1%; adjusted EPS was $1.18, up 9%; full year GAAP EPS was $3.93, up 5%; adjusted EPS was $4.92, up 14%[7] - Net income for the year ended December 31, 2025, was $653.8 million, compared to $625.4 million in 2024, reflecting a 4.5% growth[24] - Net income from continuing operations for 2025 was reported at $649.5 million, with quarterly figures of $154.9 million in Q1, $148.5 million in Q2, $184.3 million in Q3, and $161.8 million in Q4[34] Cash Flow and Dividends - Full year net cash provided by operating activities was $815 million, an increase of $48 million; free cash flow for the year was $748 million, up $55 million[7][13] - The company repurchased 0.5 million shares for $50 million in Q4 2025, totaling 2.3 million shares for $225 million for the full year[14] - Cash dividends paid per ordinary share increased to $1.00 in 2025, up from $0.92 in 2024[24] - The company will celebrate its 60th anniversary in 2026 and marks 50 consecutive years of dividend increases, with a quarterly cash dividend increase to $0.27 per share[5][14] Segment Performance - Flow sales increased by 9% in Q4 2025; full year Flow sales were up 3% compared to 2024[8][9] - Water Solutions sales decreased by 10% in Q4 2025; full year Water Solutions sales were down 6% compared to 2024[10][11] - Pool sales rose by 11% in Q4 2025; full year Pool sales increased by 9% compared to 2024[12][13] - The Flow segment achieved a net sales growth of 9.3% for the full year 2025, while the Pool segment grew by 11.2%[36] - The Water Solutions segment experienced a decline in net sales growth of (9.9)% for the full year 2025[36] Guidance and Projections - The company expects 2026 GAAP EPS guidance of approximately $4.94 to $5.09, representing a 26% to 30% increase; adjusted EPS guidance is approximately $5.25 to $5.40, a 7% to 10% increase compared to 2025[15] - For 2026, net sales are forecasted to increase by approximately 3% to 4% year-over-year, with Q1 expected to grow by 1% to 2%[35] - Operating income for 2026 is projected to rise by approximately 21% to 25% for the full year, with a Q1 increase of 13% to 17%[35] Balance Sheet and Assets - Total assets increased to $6,868.8 million as of December 31, 2025, from $6,446.5 million in 2024[26] - Long-term debt remained stable at $1,638.6 million in 2025, compared to $1,638.7 million in 2024[26] Operating Metrics - Gross profit margin improved to 40.4% in Q4 2025, up from 38.8% in Q4 2024[24] - The company reported a return on sales of 20.5% for the full year 2025, with quarterly returns of 20.1% in Q1, 19.4% in Q2, 22.7% in Q3, and 20.1% in Q4[34] - The adjusted return on sales for 2025 was 25.2%, with quarterly figures of 24.0% in Q1, 26.4% in Q2, 25.7% in Q3, and 24.7% in Q4[34] - The return on sales for the year was 19.7%, with quarterly returns of 17.8%, 22.6%, 18.1%, and 20.1%[37] Expenses and Costs - Research and development expenses were $95.9 million for the year ended December 31, 2025, slightly up from $93.6 million in 2024[24] - The effective tax rate for 2025 was 14.1%, compared to 13.0% in 2024[24] - Restructuring and other costs amounted to $37.0 million for the year, with quarterly costs of $4.6 million, $5.9 million, $23.4 million, and $3.1 million[37] - Transformation costs totaled $52.1 million for the year, with quarterly costs of $17.0 million, $11.8 million, $12.6 million, and $10.7 million[37] - Intangible amortization for the year was $54.3 million, with quarterly figures of $13.5 million, $13.4 million, $13.5 million, and $13.9 million[37]