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Pentair's Q1 Earnings Surpass Estimates, Revenues Dip Y/Y

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Pentair plc (PNR - Free Report) posted adjusted earnings per share (EPS) of $1.11 for the first quarter of 2025, which beat the Zacks Consensus Estimate of $1.01 by a margin of 10%. The bottom line also topped its guidance of $1.00-$1.02 and marked an 18% improvement from the prior-year quarter.

Including one-time items, the EPS was 93 cents compared with the prior-year quarter’s 80 cents. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Pentair plc Price, Consensus and EPS Surprise

Pentair plc Price, Consensus and EPS Surprise

Pentair plc price-consensus-eps-surprise-chart | Pentair plc Quote

Pentair Delivers Margin Expansion Despite Lower Sales

Net sales declined 1% year over year to $1.01 billion. The top line surpassed the Zacks Consensus Estimate of $984 million. Excluding the impacts of acquisitions, divestitures and currency translation, core sales declined 1%.

The cost of sales declined 3% year over year to $607 million. The gross profit was $403 million, up 3% from the prior-year quarter. The gross margin was 39.9% compared with the year-ago quarter’s 38.4%.

SG&A expenses totaled $177 million, down 5% from the prior-year quarter’s $185 million. Research and development expenses declined 2% year over year to $24 million.

The operating income, including one-time items, was $203 million, up 12% from the year-ago quarter. Operating margin was 20.1% compared with 17.8% in the year-ago quarter.

The adjusted segmental operating income increased 12% year over year to $242.5 million. The adjusted segmental margin was 24%, a 260-basis point expansion from the year-ago quarter.

PNR’s Segment Performances in Q1

Net sales in the Flow segment totaled $368 million, down 4.3% from the prior-year quarter. Our estimate for the segment’s net sales was $360 million. Adjusted operating earnings for the segment rose 8% year over year to $84 million. Our estimate for the segment’s operating profit was $79 million.

Net sales in the Water Solutions segment were down 5.5% year over year to $258 million. The segment’s earnings were $61 million compared with $56 million in the year-ago quarter. Both the sales and earnings figures met our estimates. 

Net sales in the Pool segment totaled $384 million, up 7% year over year. Our estimate for the segment’s net sales was $365 million. Operating earnings for the segment grew 13.7% year over year to $126 million. Our estimate for the segment’s operating income was $113.7 million.

Pentair’s Cash Flow & Balance Sheet Updates at Q1-End

Pentair had cash and cash equivalents of around $141 million at the end of the first quarter of 2025 compared with $119 million at 2024-end. Net cash generated from operating activities was $39 million in the first quarter of 2025 compared with $107 million in the prior-year quarter. 
The company had a long-term debt of $1.84 billion as of March 31, 2025, up from $1.64 billion as of Dec. 31, 2024.

Pentair had hiked its dividend by 9% to 25 cents per share in February. This marks the 49th consecutive year that the company has increased its dividend. 
Pentair repurchased 0.6 million of its shares for $50 million in the first quarter of 2025. As of March 31, 2025, the company had $400 million available under its share repurchase authorization.

PNR’s Guidance for Q2 & 2025

The company expects adjusted EPS to be in the range of $4.65-$4.80 for 2025. The mid-point of the range indicates year-over-year growth of 9%. Sales are expected to be flat to increase 2% on a reported basis from the 2024 level.

For the second quarter, the company expects an adjusted EPS between $1.31 and $1.35, implying a 9% rise at the midpoint. Pentair anticipates the quarter’s sales to mark a 1-2% increase from the year-ago quarter’s figure.

Pentair Stock’s Price Performance

Pentair stock has dipped 0.3% over the past year against the industry’s 6.3% growth.

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PNR’s Zacks Rank

Pentair currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Pentair’s Peers Awaiting Results

Pool Corp. (POOL - Free Report) is expected to release first-quarter 2025 results on April 24, 2025. The Zacks Consensus Estimate for POOL’s earnings is pegged at $1.09 per share, indicating a year-over-year decline of 23.24%.

The estimate for Pool Corp.’s top line is pegged at $1.09 billion, implying a decrease of 2.4% from the prior year’s figure. POOL has a trailing four-quarter average earnings surprise of 2.66%.

Xylem (XYL - Free Report) , scheduled to release first-quarter 2024 results on April 29, has a trailing four-quarter average earnings surprise of 3.83%. The Zacks Consensus Estimate for Xylem’s earnings for the quarter is pegged at 95 cents per share, implying year-over-year growth of 5.6%.

The consensus estimate for Xylem’s top line is pegged at $1.67 billion, indicating a rise of 1.9% from the prior-year figure.

A. O. Smith (AOS - Free Report) is scheduled to report first-quarter 2025 results on April 29. The Zacks Consensus Estimate for earnings is pegged at 90 cents per share, implying a 10% decline from the prior-year level.

The estimate for A. O. Smith’s revenues for the quarter is $949 million, indicating a 3% decline from the year-ago quarter. The company has average earnings surprise of a negative 1.10% in the past four quarters.


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