Pentair (NYSE:PNR) Announces Earnings Results

Pentair (NYSE:PNR) posted its earnings results on Tuesday. The industrial products company reported $1.14 earnings per share for the quarter, beating the consensus estimate of $1.12 by $0.02, FiscalAI reports. Pentair had a return on equity of 21.92% and a net margin of 15.98%.The company had revenue of $932.60 million for the quarter, compared to analyst estimates of $943.24 million. During the same quarter in the prior year, the company earned $1.39 earnings per share. Pentair’s revenue was down 17.0% compared to the same quarter last year. Pentair updated its Q3 2026 guidance to 1.050-1.080 EPS.

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

• Pentair reported a challenging second quarter, with sales down 17% year over year to $933 million and adjusted EPS of $1.14. Results were primarily affected by a roughly $170 million Pool channel inventory destocking.
• Pool sales fell 42% and segment income declined 62%, prompting full-year Pool sales guidance of down 18%-22% and third-quarter sales guidance of down 23%-25%. Management expects channel inventories to be normalized by the end of Q3, but acknowledged that rebuilding dealer relationships and recapturing aftermarket share could take 6-18 months.
• Flow and Water Solutions performed strongly, delivering record return on sales even excluding tariff refunds; Flow sales rose 5% and Water Solutions segment income increased 17%. Management expects improved revenue growth in both businesses during the second half of 2026, supported by productivity initiatives and demand in data centers, commercial buildings, desalination, and pro-channel markets.
• Pentair agreed to acquire Taco Group Holdings for $1.4 billion, expanding its hydronics, HVAC, plumbing, and data-center infrastructure offerings. The deal is expected to add $30 million in run-rate cost synergies, contribute $0.10-$0.15 of adjusted EPS accretion in 2027, and increase exposure to recurring aftermarket demand, although leverage is expected to rise to approximately 2.4 times at closing.
• The company reaffirmed full-year adjusted EPS guidance of $4.60-$4.80 and total sales guidance of down 4%-7%. Pentair also repurchased $150 million of shares, increased its dividend 8%, and said it expects robust Pool growth in 2027 as inventory and commercial execution improve.

Pentair Stock Up 0.0%

Shares of NYSE PNR opened at $66.78 on Wednesday. The firm has a market cap of $10.79 billion, a P/E ratio of 16.20, a price-to-earnings-growth ratio of 1.34 and a beta of 1.03. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.19 and a current ratio of 1.88. Pentair has a 1 year low of $57.60 and a 1 year high of $113.95. The firm’s 50 day moving average price is $72.05 and its 200 day moving average price is $85.56.

Pentair Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, August 7th. Investors of record on Friday, July 24th will be given a dividend of $0.27 per share. The ex-dividend date is Friday, July 24th. This represents a $1.08 dividend on an annualized basis and a yield of 1.6%. Pentair’s dividend payout ratio (DPR) is 26.47%.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on PNR. Citigroup cut their target price on shares of Pentair from $112.00 to $106.00 and set a “buy” rating for the company in a research report on Wednesday, April 29th. BNP Paribas Exane reissued an “underperform” rating and set a $64.00 price objective (down from $75.00) on shares of Pentair in a research note on Thursday, July 16th. TD Cowen reduced their target price on Pentair from $90.00 to $75.00 and set a “sell” rating on the stock in a research note on Wednesday, April 29th. The Goldman Sachs Group dropped their price target on Pentair from $91.00 to $72.00 and set a “neutral” rating for the company in a research report on Wednesday, July 15th. Finally, Oppenheimer cut their price target on Pentair from $115.00 to $94.00 and set an “outperform” rating for the company in a report on Thursday, July 16th. Eight investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $90.56.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Invesco Ltd. grew its position in shares of Pentair by 3.1% in the fourth quarter. Invesco Ltd. now owns 3,414,386 shares of the industrial products company’s stock valued at $355,574,000 after purchasing an additional 101,650 shares during the period. Morgan Stanley lifted its position in Pentair by 21.7% during the fourth quarter. Morgan Stanley now owns 2,474,549 shares of the industrial products company’s stock worth $257,700,000 after buying an additional 441,878 shares during the period. Northern Trust Corp boosted its stake in Pentair by 0.9% in the 3rd quarter. Northern Trust Corp now owns 2,149,531 shares of the industrial products company’s stock worth $238,082,000 after buying an additional 18,716 shares during the last quarter. Deutsche Bank AG grew its holdings in Pentair by 5.5% in the 4th quarter. Deutsche Bank AG now owns 1,665,522 shares of the industrial products company’s stock valued at $173,447,000 after buying an additional 87,203 shares during the period. Finally, Ameriprise Financial Inc. grew its holdings in Pentair by 37.6% in the 2nd quarter. Ameriprise Financial Inc. now owns 1,565,882 shares of the industrial products company’s stock valued at $160,751,000 after buying an additional 428,200 shares during the period. Hedge funds and other institutional investors own 92.37% of the company’s stock.

Key Stories Impacting Pentair

Here are the key news stories impacting Pentair this week:

• Positive Sentiment: Robert W. Baird maintained an “outperform” rating on Pentair (PNR) while lowering its price target from $83 to $80. The new target still implies approximately 20% upside from the referenced $66.72 share price. Benzinga
• Positive Sentiment: Pentair agreed to acquire Taco Group Holdings for approximately $1.4 billion, expanding its hydronic and water-based solutions businesses and increasing exposure to HVAC, data centers and other potentially faster-growing markets. The transaction is valued at about 10.5 times Taco’s estimated 2026 EBITDA, including expected synergies. Pentair to Acquire Taco Group Holdings
• Neutral Sentiment: Pentair reaffirmed its broader outlook while reporting mixed second-quarter results. Adjusted EPS was $1.14, slightly above the $1.12 consensus estimate, and the company repurchased $150 million of shares. Pentair Reports Second Quarter 2026 Results
• Negative Sentiment: Second-quarter sales fell 17% year over year to $932.6 million, missing the $943.2 million consensus estimate. Pool sales plunged 42% as channel partners continued to destock inventory by roughly $170 million; Flow sales rose 5%, while Water Solutions declined 5%. GAAP EPS from continuing operations fell to $0.80 from $0.90 a year earlier. PNR Q2 Earnings Beat Estimates, Revenues Miss on Pool Weakness
• Negative Sentiment: Third-quarter adjusted EPS guidance of $1.05–$1.08 is well below the $1.33 analyst consensus, while reported GAAP guidance was approximately $0.97–$1.00. Full-year 2026 GAAP EPS guidance was reduced to approximately $3.86–$4.06, reinforcing concerns about weak near-term demand.
• Negative Sentiment: Several law firms, including Bleichmar Fonti & Auld, Robbins, Johnson Fistel, Pomerantz and Berger Montague, announced investigations into potential securities-law violations related to Pool-segment destocking, prior disclosures and the CFO departure. These announcements may add legal and reputational overhang, although no wrongdoing has been established.

About Pentair

Pentair plc (NYSE: PNR) is a global provider of water treatment and fluid management solutions. The company designs, manufactures and sells a broad range of products that move, treat, monitor and control the flow of water and other fluids across residential, commercial, industrial and municipal markets. Pentair’s offerings are focused on improving water quality, conserving resources and enabling efficient fluid handling in applications from household water systems and pools to large-scale industrial and municipal installations.

Product lines include pumps and pumping systems, water filtration and purification equipment, valves and controls, heat exchangers, pool and spa systems, and a range of aftermarket parts and services.