Pentair (NYSE:PNR) FY Conference February 19, 2026 09:50 AM ET Company ParticipantsBob Fishman - CFODe'Mon Wiggins - EVP and PresidentNick Brazis - Incoming-CFOConference Call ParticipantsJulian Mitchell - Equity Research AnalystJulian MitchellThanks everyone for being here. It's my pleasure to have up next, Pentair. You know, we've got Bob Fishman that many of you know, who'll be retiring soon. Nick Brazis, the new CFO, so congratulations.Nick BrazisThank you.Julian MitchellLook forward to working with you ...

Core Viewpoint - Pentair plc is a leading industrial company focused on sustainable water and fluid solutions, with a market capitalization of $17.3 billion, offering a wide range of products for various markets [1] Financial Performance - Analysts anticipate that Pentair will report non-GAAP earnings of $1.17 per share for the fourth quarter, reflecting an 8.3% increase from $1.08 per share in the same quarter last year [2] - For FY2025, earnings are projected to reach $4.91 per share, a 13.4% increase from $4.33 per share reported in the previous year, with further growth expected in FY2026 to $5.41 per share, representing a 10.2% annual rise [3] Stock Performance - Over the past 52 weeks, Pentair's stock has increased by 1.6%, underperforming compared to the S&P 500 Index's 16.2% rise and the Industrial Select Sector SPDR Fund's 20.4% increase [4] Analyst Ratings - Despite a recent downgrade to "Sell" from "Hold" by TD Cowen, which set a price target of $90 due to concerns about near-term growth and valuation, the overall consensus remains positive with a "Moderate Buy" rating [5][6] - Among 21 analysts covering the stock, there are 12 "Strong Buys," 2 "Moderate Buys," 6 "Holds," and 1 "Moderate Sell," with a mean price target of $123.31 indicating a potential upside of 20.1% from current levels [6]

Core Viewpoint - Shares of Pool Corp are currently trading at a lower price than what Berkshire Hathaway paid, presenting a potential investment opportunity, but caution is advised due to market conditions and company performance [1][2]. Company Overview - Pool Corp is the world's largest wholesaler of pools, pool equipment, parts, and supplies, with a significant portion of its revenue derived from servicing and maintaining existing pools [8][10]. - Approximately 64% of Pool's revenue comes from servicing existing pools, while only 14% is from new pool installations [10]. Investment Activity - Berkshire Hathaway began acquiring shares of Pool Corp in Q3 2024, initially purchasing 404,057 shares valued at $152.2 million, and increased its stake to over $1 billion by Q2 2025 [3][4]. - The total stake held by Berkshire in Pool Corp reached 9.2% of the company [4]. Share Price Analysis - The lowest price Berkshire could have paid for Pool shares was $296.17 in Q3 2024, with prices fluctuating in subsequent quarters, reaching a low of $285 in Q2 2025 [5][6]. - Current trading price of Pool shares is $267.06, which is lower than any price Berkshire paid [7]. Market Conditions - Pool Corp's stock price surged during the pandemic due to increased demand for home leisure options, but has since declined due to rising mortgage rates and falling home construction starts [8][9]. - The market for new pool installations remains soft, which is expected to continue until the housing market improves [10]. Valuation and Investment Considerations - Pool Corp is currently trading at a below-average valuation of 26 times trailing earnings and offers a dividend yield of 1.73% [11]. - Long-term investors may find Pool Corp appealing despite near-term volatility, but it may be prudent to wait for signs of recovery in the housing market before investing [11].

Core Insights - Pentair plc is a global leader in water treatment and sustainable fluid management solutions, with a market cap of $18.1 billion [1] - The company is expected to report non-GAAP earnings of $1.18 per share for Q3, reflecting an 8.3% increase from the previous year [2] - Pentair's earnings for the current year are projected to be $4.84 per share, up 11.8% from $4.33 per share reported last year [3] Financial Performance - Pentair's stock has increased by 16% over the past 52 weeks, outperforming the Industrial Select Sector SPDR Fund's 14.8% increase but lagging behind the S&P 500 Index's 17.4% rise [4] - In Q2 2025, the company reported adjusted EPS of $1.39, a 14% year-over-year increase, with net sales rising 2% to $1.123 billion [5] - Management has raised the full-year adjusted EPS guidance to a range of $4.75–$4.85, with projected sales growth of 1%–2% for 2025 [5] Analyst Ratings - The consensus opinion on Pentair is a "Moderate Buy," with 12 "Strong Buys," one "Moderate Buy," six "Holds," and one "Moderate Sell" among 20 analysts [6] - The mean price target for Pentair is $116.28, indicating a 4% upside potential from current price levels [6]