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Why Is Pentair (PNR) Up 1.4% Since Last Earnings Report?
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It has been about a month since the last earnings report for Pentair plc (PNR - Free Report) . Shares have added about 1.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Pentair due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Pentair posted adjusted earnings per share (EPS) of $1.39 for the second quarter of 2025, which beat the Zacks Consensus Estimate of $1.33 by a margin of 4.5%. The bottom line also topped its guidance of $1.31-$1.35 and marked a 14% improvement from the prior-year quarter.
Including one-time items, EPS was 90 cents compared with the prior-year quarter’s $1.11.
Net sales rose 2% year over year to $1.123 billion. The top line surpassed the Zacks Consensus Estimate of $1.115 billion. Excluding the impacts of acquisitions, divestitures and currency translation, core sales were up 1%.
The cost of sales inched up 0.8% year over year to $667 million. The gross profit was $457 million, up 4.3% from the prior-year quarter. The gross margin was 40.7% compared with the year-ago quarter’s 39.8%.
SG&A expenses totaled $214 million, up 29.5% from the prior-year quarter’s $165 million. Research and development expenses were up 1% year over year to $25 million.
The operating income, including one-time items, was $217.7 million, down 12% from the year-ago quarter. Operating margin was 19.4% compared with 22.6% in the year-ago quarter.
The adjusted segment operating income increased 9% year over year to $296.7 million. The adjusted segment operating margin was 26.4%, a 170-basis point expansion from the year-ago quarter.
PNR’s Segment Performances in Q2
Net sales in the Flow segment totaled $397 million, flat compared with the prior-year quarter. Operating earnings for the segment rose 10% year over year to $93 million.
Net sales in the Water Solutions segment were down 4% year over year to $298 million. The segment’s earnings declined 3% to $70 million and missed our projection of $73 million.
Net sales in the Pool segment totaled $427 million, up 9% year over year. Operating earnings for the segment grew 14.3% year over year to $152.7 million.
Pentair’s Cash Flow & Balance Sheet Updates at Q2-End
Pentair had cash and cash equivalents of around $143 million at the end of the second quarter of 2025 compared with $119 million at 2024-end. Net cash generated from operating activities was $568 million in the first half of 2025 compared with $432 million in the prior-year comparable period.
The company had a long-term debt of $1.39 billion as of June 30, 2025, down from $1.64 billion as of Dec. 31, 2024.
Pentair had hiked its dividend by 9% to 25 cents per share earlier this year. This marked the 49th consecutive year that the company has increased its dividend.
Pentair has repurchased 1.3 million of its shares for $125 million so far in 2025. As of June 30, 2025, the company had $325 million available under its share repurchase authorization.
PNR’s Guidance for Q3 & 2025
Backed by the upbeat performance so far this year, Pentair expects adjusted EPS to be in the range of $4.75- $4.85 for 2025, higher than its previous guidance of $4.65-$4.80. The mid-point of the range indicates year-over-year growth of 9.1%.
The company has also raised its year-over-year reported sales growth guidance to 1-2% for 2025. Earlier, sales were expected to be flat or increase 2% on a reported basis from the 2024 level.
For the third quarter, the company expects an adjusted EPS between $1.16 and $1.20, implying an 8% rise at the midpoint. Pentair anticipates the quarter’s sales to be flat to up 1% from the year-ago quarter’s figure.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in estimates review.
VGM Scores
Currently, Pentair has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Pentair has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Pentair (PNR) Up 1.4% Since Last Earnings Report?
It has been about a month since the last earnings report for Pentair plc (PNR - Free Report) . Shares have added about 1.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Pentair due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Pentair Surpasses Q2 Earnings Estimates, Raises 2025 Guidance
Pentair posted adjusted earnings per share (EPS) of $1.39 for the second quarter of 2025, which beat the Zacks Consensus Estimate of $1.33 by a margin of 4.5%. The bottom line also topped its guidance of $1.31-$1.35 and marked a 14% improvement from the prior-year quarter.
Including one-time items, EPS was 90 cents compared with the prior-year quarter’s $1.11.
Pentair Delivers Higher Sales & Adjusted Operating Margin
Net sales rose 2% year over year to $1.123 billion. The top line surpassed the Zacks Consensus Estimate of $1.115 billion. Excluding the impacts of acquisitions, divestitures and currency translation, core sales were up 1%.
The cost of sales inched up 0.8% year over year to $667 million. The gross profit was $457 million, up 4.3% from the prior-year quarter. The gross margin was 40.7% compared with the year-ago quarter’s 39.8%.
SG&A expenses totaled $214 million, up 29.5% from the prior-year quarter’s $165 million. Research and development expenses were up 1% year over year to $25 million.
The operating income, including one-time items, was $217.7 million, down 12% from the year-ago quarter. Operating margin was 19.4% compared with 22.6% in the year-ago quarter.
The adjusted segment operating income increased 9% year over year to $296.7 million. The adjusted segment operating margin was 26.4%, a 170-basis point expansion from the year-ago quarter.
PNR’s Segment Performances in Q2
Net sales in the Flow segment totaled $397 million, flat compared with the prior-year quarter. Operating earnings for the segment rose 10% year over year to $93 million.
Net sales in the Water Solutions segment were down 4% year over year to $298 million. The segment’s earnings declined 3% to $70 million and missed our projection of $73 million.
Net sales in the Pool segment totaled $427 million, up 9% year over year. Operating earnings for the segment grew 14.3% year over year to $152.7 million.
Pentair’s Cash Flow & Balance Sheet Updates at Q2-End
Pentair had cash and cash equivalents of around $143 million at the end of the second quarter of 2025 compared with $119 million at 2024-end. Net cash generated from operating activities was $568 million in the first half of 2025 compared with $432 million in the prior-year comparable period.
The company had a long-term debt of $1.39 billion as of June 30, 2025, down from $1.64 billion as of Dec. 31, 2024.
Pentair had hiked its dividend by 9% to 25 cents per share earlier this year. This marked the 49th consecutive year that the company has increased its dividend.
Pentair has repurchased 1.3 million of its shares for $125 million so far in 2025. As of June 30, 2025, the company had $325 million available under its share repurchase authorization.
PNR’s Guidance for Q3 & 2025
Backed by the upbeat performance so far this year, Pentair expects adjusted EPS to be in the range of $4.75- $4.85 for 2025, higher than its previous guidance of $4.65-$4.80. The mid-point of the range indicates year-over-year growth of 9.1%.
The company has also raised its year-over-year reported sales growth guidance to 1-2% for 2025. Earlier, sales were expected to be flat or increase 2% on a reported basis from the 2024 level.
For the third quarter, the company expects an adjusted EPS between $1.16 and $1.20, implying an 8% rise at the midpoint. Pentair anticipates the quarter’s sales to be flat to up 1% from the year-ago quarter’s figure.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in estimates review.
VGM Scores
Currently, Pentair has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Pentair has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.