Core Insights - Pentair plc reported revenue of $1.02 billion for Q4 2025, marking a year-over-year increase of 4.9% and exceeding the Zacks Consensus Estimate by 1.6% [1] - The earnings per share (EPS) for the same quarter was $1.18, up from $1.08 a year ago, with an EPS surprise of 1.14% over the consensus estimate of $1.17 [1] Revenue Growth Metrics - Core revenue growth for Pentair was 3.7%, surpassing the average estimate of 3.3% from five analysts [4] - Core revenue growth in the Pool segment was 8.9%, significantly higher than the 4% estimated by four analysts [4] - Core revenue growth in the Flow segment was 4%, slightly above the 3.9% average estimate from four analysts [4] - Core revenue growth in the Water Solutions segment declined by 3.7%, contrasting with the 1.3% average estimate from four analysts [4] Net Sales Performance - Net sales in the Pool segment reached $393.4 million, exceeding the average estimate of $372.66 million and reflecting a year-over-year increase of 11.2% [4] - Net sales in the Flow segment were $394.4 million, slightly above the estimated $389.44 million, representing a 9.3% year-over-year increase [4] - Net sales in the Corporate and other segment were $0.4 million, below the estimated $0.57 million, showing a decline of 33.3% year-over-year [4] - Net sales in the Water Solutions segment totaled $232.3 million, falling short of the $240.66 million estimate, with a year-over-year decrease of 9.9% [4] Segment Income Analysis - Segment income for the Flow segment was $90.1 million, exceeding the average estimate of $84.65 million [4] - Segment loss for Corporate and other was $-25.2 million, worse than the estimated $-20.03 million [4] - Segment income for the Pool segment was $132.2 million, above the average estimate of $126.69 million [4] - Segment income for Water Solutions was $54.6 million, slightly below the average estimate of $59.46 million [4] Stock Performance - Pentair's shares have returned +2.8% over the past month, outperforming the Zacks S&P 500 composite's +1.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - In Q4 2025, the company achieved 5% sales growth and marked the 15th consecutive quarter of margin expansion, with adjusted operating profit increasing by 9% to $252 million and adjusted EPS rising by 9% to $1.18 [10][17] - For the full year 2025, sales reached $4.18 billion, a 2% increase, with adjusted operating income growing by 10% and adjusted EPS increasing to a record $4.92, up 14% year-over-year [11][18] Business Line Data and Key Metrics Changes - Flow sales in Q4 increased by 9% to $394 million, with commercial and industrial sales up 12% and residential sales rising 4% [18] - Water Solutions sales decreased by 10% to $232 million in Q4, with commercial sales down 15% due to the impact of the sale of the commercial services business [20] - Pool sales grew by 11% to $393 million in Q4, driven primarily by price increases [21] Market Data and Key Metrics Changes - The North American market for Water Solutions remained relatively strong, although international and China sales experienced volatility [36] - The company expects total sales growth of approximately 3% to 4% in 2026, with flow sales projected to increase by mid-single digits to high single digits [24] Company Strategy and Development Direction - The company has strategically combined its Flow residential business with its Water Solutions residential business to enhance operational efficiencies and customer experiences [8][9] - The focus remains on innovation, sustainability, and operational excellence, with plans to invest in digital and AI-driven solutions [12][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model and resilience of end markets, projecting adjusted EPS guidance for 2026 in the range of $5.25 to $5.40, reflecting an 8% increase at the midpoint [12][24] - The company remains vigilant in responding to macro volatility and is taking proactive steps to mitigate risks [12][22] Other Important Information - The company generated record free cash flow of $748 million and returned $225 million to shareholders through share repurchases [11][23] - The leadership transition includes Nick Brazis as the new CFO, emphasizing a commitment to disciplined execution and financial integrity [7][15] Q&A Session Summary Question: Insights on the commercial Water Solutions business - Management indicated that both Manitowoc and Everpure are expected to return to growth in 2026, with the North American market remaining strong despite international volatility [36] Question: Incremental productivity opportunities from the combination of residential flow and water - The combined business is expected to create significant margin improvement over the next several years, leveraging better channel alignment and operational efficiencies [37][39] Question: Pool business dynamics and guidance - Management noted that the guidance reflects no residential recovery in 2026, with a focus on maintaining a pragmatic approach to sales expectations [46][48] Question: Capital allocation priorities - The company plans to continue raising dividends while actively looking for strategic acquisitions and considering share buybacks as part of its capital allocation strategy [49] Question: Impact of 80/20 strategy on organic growth - Management clarified that the 80/20 strategy is expected to drive growth by focusing on high-margin customers, with no anticipated headwinds from walking away from lower-margin revenue [60] Question: Pricing strategy amidst inflation - The company aims to offset inflation through pricing while ensuring that price increases do not exceed necessary levels to maintain competitiveness [62][63]

Financial Data and Key Metrics Changes - In Q4 2025, the company achieved 5% sales growth and marked the 15th consecutive quarter of margin expansion, with adjusted operating profit increasing by 9% to $252 million and adjusted EPS rising by 9% to $1.18 [10][17] - For the full year 2025, sales reached $4.18 billion, a 2% increase, with adjusted operating income growing by 10% and adjusted EPS increasing to a record $4.92, up 14% year-over-year [11][18] Business Line Data and Key Metrics Changes - Flow segment sales increased by 9% to $394 million in Q4, with commercial and industrial sales up 12% and residential sales rising 4% [18] - Water Solutions sales decreased by 10% to $232 million in Q4, with commercial sales down 15% due to the impact of the sale of the commercial services business [20] - Pool sales grew by 11% to $393 million in Q4, driven primarily by price increases [21] Market Data and Key Metrics Changes - The North American market for Water Solutions remained relatively strong, although international sales, particularly in China, experienced volatility [37] - The company expects total sales growth of approximately 3%-4% in 2026, with flow sales projected to increase by mid-single digits to high single digits [24] Company Strategy and Development Direction - The company is strategically combining its flow residential business with its residential water solutions business to enhance operational efficiencies and customer experiences [8][9] - The focus remains on innovation, sustainability, and operational excellence, with plans to invest in digital and AI-driven solutions [12][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model and resilience of end markets, projecting adjusted EPS guidance for 2026 in the range of $5.25-$5.40, reflecting an 8% increase at the midpoint [12][24] - The company remains vigilant in responding to macro volatility and is taking proactive steps to mitigate risks [12][22] Other Important Information - The company generated record free cash flow of $748 million in 2025 and returned $225 million to shareholders through share repurchases [11][23] - The leadership transition includes Nick Brazis as the new CFO, with a focus on maintaining financial integrity and stakeholder engagement [7][30] Q&A Session Summary Question: Insights on the commercial Water Solutions business - Management indicated expectations for growth in the commercial Water Solutions segment in 2026, despite some volatility in international markets [37] Question: Incremental productivity opportunities from the combination of residential flow and water solutions - The combined business is expected to create significant margin improvement and growth synergies over the next several years [39][40] Question: Pool business dynamics and guidance for Q1 - Management provided insights on flat guidance for pool sales, emphasizing a pragmatic approach due to current market conditions and weather impacts [46][48] Question: Capital allocation priorities - The company plans to continue raising dividends while actively looking for strategic acquisitions and share buybacks as opportunities arise [49] Question: Impact of 80/20 strategy on organic growth - Management clarified that the 80/20 strategy is expected to drive growth rather than act as a headwind, focusing on high-margin customer relationships [58] Question: Pricing strategies in light of inflation - The company aims to offset inflation through pricing while ensuring value for channel partners and customers [60][62] Question: Contribution from new products to price increases - Management confirmed that new product introductions contribute to pricing strategies, although the impact may vary based on market conditions [69]

Financial Data and Key Metrics Changes - In Q4 2025, the company achieved 5% sales growth and marked the 15th consecutive quarter of margin expansion, with adjusted operating profit increasing by 9% to $252 million and adjusted EPS rising by 9% to $1.18 [8][16] - For the full year 2025, sales reached $4.18 billion, a 2% increase, with adjusted operating income growing by 10% and adjusted EPS reaching a record $4.92, up 14% year-over-year [9][17] Business Line Data and Key Metrics Changes - Flow segment sales increased by 9% to $394 million in Q4, with commercial and industrial sales up 12% and residential sales rising 4% [17] - Water Solutions segment sales decreased by 10% to $232 million in Q4, with commercial sales down 15% due to the sale of the commercial services business [18] - Pool segment sales grew by 11% to $393 million in Q4, driven primarily by price increases [19] Market Data and Key Metrics Changes - The North American market for Water Solutions remained relatively strong, although international and China sales experienced volatility [36] - The company expects flow sales to increase by mid-single digits to high single digits in 2026, while Water Solutions sales are anticipated to be flat [23] Company Strategy and Development Direction - The company is strategically combining its flow residential business with its residential water solutions business to enhance operational efficiencies and customer experiences [6][11] - The focus remains on innovation, sustainability, and operational excellence, with plans to invest in digital and AI-driven solutions [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model and resilience of end markets, projecting adjusted EPS guidance for 2026 in the range of $5.25-$5.40, reflecting an 8% increase at the midpoint [10][23] - The company remains vigilant in responding to macro volatility and is taking proactive steps to mitigate risks [10][20] Other Important Information - The company generated record free cash flow of $748 million and returned $225 million to shareholders through share repurchases [9][22] - The leadership transition includes the appointment of Nick Brazis as the new CFO, who is expected to uphold the company's financial integrity and drive shareholder value [5][22] Q&A Session Summary Question: Insights on the commercial Water Solutions business - Management indicated expectations for growth in 2026, particularly in membrane filtration, despite some volatility in international markets [36] Question: Incremental productivity opportunities from the combination of residential flow and water solutions - The combined business is expected to create significant margin improvements and growth synergies over the next several years [37] Question: Pool business dynamics and guidance for Q1 - Management noted a pragmatic approach to guidance, reflecting no residential recovery in 2026, with expectations for a flat pool year [45][46] Question: Impact of 80/20 strategy on organic growth - Management clarified that the 80/20 strategy is expected to be a tailwind for growth, focusing on high-margin customers [60] Question: Pricing strategies in light of inflation - The company aims to offset inflation through pricing while ensuring value for channel partners and customers [62] Question: Tariff impacts and supply chain adjustments - Management confirmed that they successfully mitigated tariff impacts in 2025 and expect a manageable increase in 2026 [73][74]

Core Insights - Pentair plc (PNR) reported quarterly earnings of $1.18 per share, exceeding the Zacks Consensus Estimate of $1.17 per share, and up from $1.08 per share a year ago, representing an earnings surprise of +1.14% [1] - The company achieved revenues of $1.02 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.60%, compared to $972.9 million in the same quarter last year [2] Earnings Performance - Over the last four quarters, Pentair has consistently surpassed consensus EPS estimates [2] - The company had a previous quarter earnings surprise of +5.08%, with actual earnings of $1.24 per share against an expectation of $1.18 per share [1] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.22 on revenues of $1.05 billion, and for the current fiscal year, it is $5.38 on revenues of $4.34 billion [7] - The estimate revisions trend for Pentair was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - Pentair operates within the Zacks Waste Removal Services industry, which is currently ranked in the bottom 30% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of Pentair's stock may be influenced by the overall outlook of the waste removal industry [8]

Exhibit 99.1 News Release Pentair Reports Strong Fourth Quarter and Full Year 2025 Results Reconciliations of GAAP to Non-GAAP measures are in the attached financial tables. LONDON, United Kingdom — February 3, 2026 — Pentair plc (NYSE: PNR) today announced fourth quarter 2025 sales of $1,021 million. Sales were up 5 percent compared to sales for the same period last year. Excluding currency translation, acquisitions and divestitures, core sales grew 4 percent in the fourth quarter. Fourth quarter 2025 earn ...

Core Insights - Pentair plc announced new strategic appointments within its executive leadership team to accelerate growth, strengthen innovation, and enhance responsiveness to customer needs [1][2] Leadership Changes - Steve Pilla, EVP, Chief Supply Chain Officer and Chief Transformation Officer, will leave Pentair after over 20 years of service, with his departure effective March 1, 2026. The Chief Supply Chain Officer and Chief Transformation Officer roles will be eliminated, with the Supply Chain organization reporting to incoming EVP and Chief Financial Officer Nick Brazis [3] - Phil Rolchigo, Ph.D., EVP and Chief Technology Officer, will also depart after nearly 20 years, with the Chief Technology Officer role being eliminated. Innovation and Sustainability teams will report to Adrian Chiu [3][4] New Appointments - Adrian Chiu has been appointed as EVP and Chief Strategy, Innovation and Digital Officer, focusing on corporate strategy, innovation, and digital transformation to support long-term growth [4] - De'Mon Wiggins will expand his role as EVP and President of Pentair Flow to include oversight of Pentair Water Solutions, aiming for greater alignment and focus across key business segments [4] Company Overview - Pentair had revenue of approximately $4.2 billion in 2025 and operates with around 9,000 employees globally, serving customers in over 150 countries [8]

Core Insights - Pentair reported strong financial results for the fourth quarter and full year 2025, with a GAAP EPS of $3.93, up 5% from 2024, and an adjusted EPS of $4.92, up 14% from the previous year [1][2] - The company anticipates continued growth in 2026, projecting GAAP EPS guidance of approximately $4.94 to $5.09, representing a 26% to 30% increase [2][3] - Pentair celebrated its 50th consecutive year of dividend increases, announcing an 8% increase in its quarterly cash dividend to $0.27 per share [2][3] Financial Performance - Fourth quarter 2025 sales reached $1,021 million, a 5% increase year-over-year, while full year sales totaled $4.2 billion, up 2% from 2024 [1][2] - Operating income for the fourth quarter was $205 million, a 5% increase, with a return on sales (ROS) of 20.1%, remaining flat compared to the same quarter in 2024 [1][2] - Full year operating income increased by 7% to $858 million, with an ROS of 20.5%, an increase of 80 basis points from the prior year [1][2] Segment Performance - Flow sales increased by 9% in the fourth quarter and 3% for the full year, with reportable segment income up 22% in Q4 [2][3] - Water Solutions sales decreased by 10% in Q4 and 6% for the full year, with reportable segment income remaining flat [2][3] - Pool sales rose by 11% in Q4 and 9% for the full year, with reportable segment income also increasing by 11% [2][3] Cash Flow and Shareholder Returns - Full year net cash provided by operating activities was $815 million, an increase of $48 million compared to 2024, with free cash flow of $748 million, up $55 million [1][2] - The company repurchased 2.3 million shares for $225 million during 2025, with $1 billion available for future share repurchases [2][3] - Pentair's dividend increase marks a significant milestone, reflecting its commitment to returning value to shareholders [2][3]

Core Thesis - Badger Meter, Inc. (BMI) is positioned as a leading provider of smart water infrastructure solutions, with a strong focus on recurring software and service revenue, which is growing faster than hardware sales [2][3] Company Overview - BMI serves over 50,000 local utilities in the U.S., providing a comprehensive portfolio of hardware, connectivity, and software under the BlueEdge platform, including advanced metering infrastructure (AMI) systems [2] - Approximately 88% of BMI's revenue is derived from its Utility Water segment, with a historical revenue growth of roughly 9% and earnings growth of 17% over the past decade [3] Competitive Advantages - The company benefits from integrated hardware-software systems, technical precision, long product lifecycles, and high switching costs, although it faces robust competition and limited pricing power [4] - Profitability is supported by efficient production, low capital intensity, and disciplined R&D, resulting in a free cash flow yield that funds dividends and growth initiatives [4] Financial Position - BMI maintains a net cash position with minimal debt, providing flexibility for future development [5] - The company has a 33-year record of dividend growth and predictable long-term demand driven by regulatory requirements and infrastructure renewal [5] Market Performance - As of January 30th, BMI's share price was $146.58, with trailing and forward P/E ratios of 30.15 and 27.78 respectively [1] - The stock price has depreciated by approximately 33.13% since previous coverage, attributed to broader market adjustments and high valuation [7]

Core Insights - Pentair plc (PNR) reached an all-time high of USD 113.95 on October 3, 2025, but has shown a modest performance over the past twelve months with a growth of only 5% [1] - In comparison, major industrial peers such as Xylem and IDEX outperformed Pentair with growth rates of 18.2% and 63.9%, respectively [1] - The performance of Pentair has lagged behind the S&P index, indicating a relative underperformance in the market [1]