Pentair (NYSE:PNR) Issues Earnings Results

Key Points

• Pentair exceeded third-quarter expectations, reporting adjusted EPS of $1.18 versus the $1.07 consensus and revenue of $976.4 million versus $963.7 million expected. However, revenue fell 4.5% year over year and EPS declined from $1.24.
• The company highlighted positive operating developments, including the Taco acquisition performing ahead of expectations and completion of approximately $280 million in Pool-channel inventory destocking. Management expects the acquisition to be EPS-accretive in 2027.
• Challenges remain, including residential housing weakness, delayed food-and-beverage spending and the loss of approximately $43 million in nonrecurring tariff recoveries in 2027. Pentair also declared a quarterly dividend of $0.27 per share, yielding about 1.8% annually.

Pentair (NYSE:PNR - Get Free Report) released its earnings results on Tuesday. The industrial products company reported $1.18 earnings per share for the quarter, beating the consensus estimate of $1.07 by $0.11, FiscalAI reports. The business had revenue of $976.40 million for the quarter, compared to the consensus estimate of $963.71 million. Pentair had a return on equity of 20.62% and a net margin of 16.24%. The business's quarterly revenue was down 4.5% compared to the same quarter last year. During the same quarter last year, the business posted $1.24 earnings per share.

Here are the key takeaways from Pentair's conference call:

• Third-quarter results exceeded expectations, with adjusted EPS of $1.18 versus guidance of $1.05–$1.08, supported by strong execution in Flow and Water Solutions and $153 million of free cash flow.
• The Taco acquisition closed on October 1 and is performing ahead of expectations, with projected 2027 sales above $620 million and EBITDA above $105 million; management expects it to be adjusted-EPS accretive in 2027 and plans to delever from roughly 2.5x net leverage.
• Pentair said the Pool channel inventory destocking is complete, with roughly $280 million removed across the second and third quarters. Management expects 2027 Pool sales to rise approximately 14% as shipments align with estimated $1.45 billion sell-through, even without an end-market recovery.
• Flow and Water Solutions delivered sales growth and significant margin expansion, although Flow was constrained by delayed food-and-beverage spending and Water Solutions continues to face residential housing headwinds.
• The company expects approximately $43 million of 2026 tariff recoveries to be nonrecurring, creating a year-over-year earnings headwind in 2027; Pool also remains in a recovery phase, with 2026 sales expected to decline 18%–19% and ongoing investments pressuring margins.

Pentair Stock Performance

NYSE PNR traded up $6.05 during midday trading on Tuesday, hitting $61.27. The company had a trading volume of 633,251 shares, compared to its average volume of 2,452,523. The firm has a fifty day simple moving average of $56.72 and a two-hundred day simple moving average of $77.20. The company has a quick ratio of 0.76, a current ratio of 1.45 and a debt-to-equity ratio of 0.43. The stock has a market cap of $9.78 billion, a price-to-earnings ratio of 15.36, a P/E/G ratio of 1.41 and a beta of 1.04. Pentair has a fifty-two week low of $51.13 and a fifty-two week high of $110.12.

Pentair Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, November 6th. Stockholders of record on Friday, October 23rd will be given a $0.27 dividend. The ex-dividend date of this dividend is Friday, October 23rd. This represents a $1.08 dividend on an annualized basis and a dividend yield of 1.8%. Pentair's dividend payout ratio (DPR) is currently 27.14%.

Pentair News Roundup

Here are the key news stories impacting Pentair this week:

• Positive Sentiment: Adjusted earnings and revenue beat expectations: Pentair reported third-quarter adjusted EPS of $1.18, exceeding the $1.07 analyst consensus by $0.11. Revenue of $976.4 million also surpassed expectations of $963.7 million. Pentair Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: Analysts raised 2027 earnings forecasts: Zacks Research increased its estimates for first-quarter, second-quarter and fourth-quarter 2027 EPS, while lifting its full-year 2027 forecast to $5.12 from $5.05. The revisions suggest somewhat better anticipated earnings momentum, although the firm maintained a “Hold” rating.
• Positive Sentiment: Profitability remained solid: Pentair posted a 16.24% net margin and a 20.62% return on equity, supporting the investment case despite softer sales.
• Neutral Sentiment: Fourth-quarter outlook provides a near-term benchmark: The company expects fourth-quarter adjusted EPS of approximately $1.15, giving investors a framework for evaluating whether earnings can remain resilient. Pentair Fourth-Quarter Adjusted EPS Outlook
• Negative Sentiment: Sales and earnings remain below last year: Third-quarter sales declined roughly 4% to 5% year over year, while adjusted EPS fell from $1.24 in the prior-year quarter. The results indicate that the earnings beat was driven more by execution and cost control than by underlying growth. Pentair Reports Third Quarter 2026 Results

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on PNR shares. Wolfe Research raised Pentair from a "peer perform" rating to an "outperform" rating and set a $91.00 price objective for the company in a research report on Tuesday, September 15th. Royal Bank Of Canada dropped their price target on Pentair from $73.00 to $61.00 and set a "sector perform" rating for the company in a research report on Wednesday, October 14th. The Goldman Sachs Group lowered their price objective on Pentair from $73.00 to $60.00 and set a "neutral" rating for the company in a research report on Friday, October 9th. William Blair set a $50.00 price objective on Pentair in a research note on Wednesday, October 14th. Finally, Zacks Research raised shares of Pentair from a "strong sell" rating to a "hold" rating in a research report on Wednesday, October 7th. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, six have issued a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $76.19.

About Pentair

Pentair plc NYSE: PNR is a water treatment and management company that designs and manufactures products and systems for residential, commercial, industrial, and recreational applications. Its offerings include water filtration, softening, and purification systems; pumps, valves, controls, and related equipment; and solutions that help customers manage water quality, flow, and conservation.

The company also serves the swimming pool and spa market through equipment such as pumps, filters, heaters, lighting, automation systems, and water-treatment products.

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