Pentair(US:PNR) ZACKSยท2025-10-21 17:56Core Insights - Pentair plc (PNR) reported adjusted earnings per share (EPS) of $1.24 for Q3 2025, exceeding the Zacks Consensus Estimate of $1.18 by 5% and marking a 14% increase from the previous year [1][10] - The company raised its 2025 EPS guidance to $4.85-$4.90, indicating a year-over-year growth of 12.6% [11] Financial Performance - Net sales increased by 3% year over year to $1.022 billion, surpassing the Zacks Consensus Estimate of $1.005 billion [2][10] - Gross profit rose by 6.5% to $418.6 million, with a gross margin of 41%, up from 39.6% in the prior year [2][10] - Operating income, including one-time items, was $231.7 million, reflecting a 28.8% increase from the previous year [3] Segment Performance - Flow segment net sales reached $394 million, a 6% increase year over year, with operating earnings rising 15% to $95 million [5] - Water Solutions segment net sales decreased by 6% to $273 million, but earnings increased by 6% to $68 million [6] - Pool segment net sales totaled $354 million, up 7% year over year, with operating earnings growing 3% to $128 million [6] Cost Management - Selling, General and Administrative (SG&A) expenses decreased by 14.8% to $162 million [3] - Research and development expenses increased by 8% year over year to $24.7 million [3] Cash Flow and Balance Sheet - Cash and cash equivalents at the end of Q3 2025 were approximately $128 million, up from $119 million at the end of 2024 [7] - Net cash generated from operating activities was $764 million for the nine-month period ending September 30, 2025, compared to $680 million in the prior year [7] - Long-term debt decreased to $1.58 billion as of September 30, 2025, down from $1.64 billion at the end of 2024 [7] Share Repurchase - Pentair repurchased 1.8 million shares for $175 million in 2025, with $275 million remaining under its share repurchase authorization as of June 30, 2025 [8] Future Guidance - For Q4 2025, Pentair expects adjusted EPS between $1.11 and $1.16, indicating a 5% rise at the midpoint [12] - The company anticipates Q4 sales to increase by 3-4% compared to the same quarter last year [12] Stock Performance - Pentair's stock has appreciated by 11.2% over the past year, outperforming the industry growth of 1.1% [13]