Pentair plc (NYSE:PNR) stock fell after the company reported fourth-quarter 2025 results on Tuesday.
The company reported 5% year-over-year (Y/Y) sales increase to $1.021 billion, surpassing the consensus estimate of $1.009 billion.
Also, core sales rose 4% Y/Y in the fourth quarter, excluding currency translation, acquisitions, and divestitures.
Gross margin expanded to 40.4% from 38.8% a year ago in the quarter. Adjusted operating margin expanded 90 basis points Y/Y to 24.7% in the quarter.
Pentair reported fourth-quarter adjusted earnings of $1.18 a share, topping analysts’ expectations of $1.16.
Free cash flow from continuing operations came in at $748 million in the year.
The company held $101.6 million in cash and equivalents as of December 31, 2025.
Segment Details
Flow segment sales rose 9% Y/Y to $394.4 million in the quarter. Segment income was $90.1 million (+22% Y/Y), and the operating margin was 22.8%, an increase of 240 bps Y/Y in the quarter.
Water Solutions segment sales were $232.3 million (-10% Y/Y), Segment income was $55 million (-12% Y/Y), and ROS was 23.5%, down 60 bps Y/Y.
Pool segment sales were $393.4 million (+11% Y/Y), Segment income was $132 million (+11% Y/Y), and ROS was 33.6%, down 20 bps Y/Y.
Dividend & Buyback
Pentair paid a regular cash dividend of 25 cents per share in the fourth quarter of 2025.
On December 15, the company announced a quarterly cash dividend of 27 cents per share, up 8% Y/Y, payable on February 6, to shareholders of record at the close of business on January 23, 2026.
In the quarter, Pentair repurchased 0.5 million shares for $50 million. As of December 31, $1.0 billion remained available under its share repurchase authorization.
President and CEO John L. Stauch stated, “We expect 2026 to deliver another year of sales and earnings growth and margin expansion as we leverage our Pentair Business System tools, including Transformation and 80/20, and continue to actively manage our balanced and resilient water portfolio.”
Outlook
Pentair expects fiscal 2026 adjusted EPS of $5.25-$5.40 versus consensus of $5.38 and projects first quarter adjusted EPS $1.15-$1.18 versus street view of $1.23.
The company anticipates first-quarter sales to be up approximately 1%-2% percent on a reported basis, Y/Y, and fiscal 2026 sales to be up about 3%-4% on a reported basis.
Leadership Update
Pentair said it is reshaping its executive team to accelerate growth and sharpen customer focus, effective March 1, 2026. Adrian Chiu was named executive vice president and chief strategy, innovation and digital officer, a newly created role overseeing corporate strategy, AI-driven innovation and digital transformation.
De’Mon Wiggins will expand his remit as EVP and president to also lead Pentair Water Solutions, bringing Commercial Water Solutions, Water Quality Management and Flow under one leadership umbrella.
The company also announced the departures of longtime executives Steve Pilla and Phil Rolchigo, with Pentair eliminating the chief supply chain, transformation and technology officer roles and folding those responsibilities into finance, business units and Chiu’s new organization.
“These steps will help us unlock new opportunities for growth and deepen our impact across the industries we serve,” said Stauch.
PNR Price Action: Pentair shares were trading 4.86% lower at $100.38 at the time of publication on Tuesday, according to Benzinga Pro data.
Photo by JHVEPhoto via Shutterstock
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