We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Pentair beat Q1 EPS estimates with $1.22 and delivered 10% year-over-year earnings growth.
PNR expanded margins as productivity gains offset higher SG&A and R&D spending.
Pentair raised full-year EPS outlook and guided Q2 earnings to $1.47-$1.50 per share.
Pentair plc (PNR - Free Report) delivered adjusted earnings of $1.22 per share for the first quarter of 2026, topping the Zacks Consensus Estimate of $1.17 by 4.3%. The bottom line also surpassed the company’s guidance of $1.15-$1.18 and improved 10% from earnings of $1.11 per share in the prior-year quarter. Including one-time items, EPS was 98 cents compared with the prior-year quarter’s 93 cents.
Performance was supported by core sales growth of 1% and improved profitability, as productivity initiatives helped expand margins even as the company navigated a mixed demand backdrop across end markets.
Revenues rose 2.6% year over year to $1.04 billion and came in ahead of the expected $1.03 billion, a 0.7% surprise. Excluding the impacts of acquisitions, divestitures and currency translation, core sales increased 1%.
The cost of sales dipped 0.6% year over year to $603 million. Gross profit rose 7.5% year over year to $433.4 million, lifting gross margin to 41.8% from 39.9% a year ago.
Selling, general and administrative expense increased 12.6% year over year to $198.9 million, while research and development spending edged up 3.8% to $24.5 million.
PNR posted operating income of $210.0 million, which reflected a 3.4% year-over-year increase. This translated to a return on sales of 20.3%, up 20 basis points from the year-ago quarter.
On an adjusted basis, operating income advanced 6.8% year over year to $259.1 million. That translated into adjusted return on sales of 25%, up 100 basis points from the year-ago quarter, reflecting better operating leverage.
PNR’s Flow Unit Reports Double-Digit Sales & Profit Growth
The company made a segment reorganization effective Jan. 1, 2026, moving its legacy residential and irrigation flow business from Flow into Water Solutions, with prior periods reclassified to conform to the new structure.
Pentair’s Flow segment led the quarter, with sales increasing 11.0% year over year to $258.1 million. Segment operating earnings rose 22% year over year to $61.2 million. Our estimate for the segment’s operating profit was $93.8 million. Return on sales improved 210 basis points to 23.7%.
Pentair’s Pool Segment Stays Resilient With Strong Returns
Net sales in the Pool segment totaled $387.1 million, up 0.8% year over year. Our estimate for the segment’s net sales was $384 million. Operating earnings for the segment grew 1.7% year over year to $128 million. Our estimate for the segment’s operating income was $126.9 million. Return on sales ticked up 30 basis points to 33.1%, remaining the highest among the company’s reportable segments.
PNR’s Water Solutions Sees a Dip in Sales, Gains in Profit
Net sales in the Water Solutions segment dipped 0.6% year over year to $391 million. Our estimate for the segment’s net sales was $249.7 million. Segment income, however, increased 6.2% to $99.9 million. Our estimate was at $62.4 million. Return on sales improved 160 basis points to 25.5%.
PNR’s Cash Flow & Balance Sheet Updates
Pentair ended the quarter with cash and cash equivalents of $67.7 million compared with $101.6 million at year-end 2025. Net cash used in operating activities was $67.4 million compared with usage of $38.9 million in the prior-year quarter. Free cash flow was negative $85.7 million for the quarter. Long-term debt rose to $1.944 billion as of March 31, 2026, from $1.64 billion at 2025-end.
PNR repurchased 2 million of its shares for $200 million in the first quarter. The company had $800 million remaining under its share repurchase authorization.
PNR Raises Full-Year View and Introduces Q2 Guidance
PNR updated its full-year adjusted earnings outlook to approximately $5.30-$5.40 per share from the earlier expected $5.25-$5.40. The midpoint of the range suggests year-over-year growth of 8.7%. The company also updated its full-year sales expectation to growth of about 2-4% on a reported basis. Pentair had earlier provided sales guidance of 3-4% on a reported basis from the 2025 level.
For the second quarter of 2026, Pentair introduced adjusted earnings guidance of approximately $1.47-$1.50 per share, alongside expectations for second-quarter sales to be up approximately 1% on a reported basis. The company had reported earnings of $1.39 in the year-ago quarter.
PNR Stock's Price Performance
Pentair stock has gained 2.5% over the past year against the industry’s 8.4% decline.
Pool Corp. (POOL - Free Report) reported adjusted earnings of $1.43 per share, beating the Zacks Consensus Estimate of $1.34 per share. This marks an 8% increase from the earnings of $1.32 per share reported a year ago.
Pool Corp. posted revenues of $1,138 million for the quarter, surpassing the Zacks Consensus Estimate of $1, 099 million. This marks a 6% year-over-year increase, driven by strong maintenance product sales and improvement in discretionary categories.
Xylem Inc. (XYL - Free Report) reported adjusted earnings per share of $1.12, surpassing the Zacks Consensus Estimate of $1.09. The company reported earnings of $1.03 in the year-ago quarter.
Xylem reported revenues of $2.125 billion in the quarter, beating the Zacks Consensus Estimate of $2.106 billion. Revenues were up 3% year over year.
Pentair’s Peer Awaiting Results
Clean Harbors, Inc. (CLH - Free Report) , scheduled to release first-quarter 2026 results on May 6, has a trailing four-quarter average earnings surprise of 0.8%. The Zacks Consensus Estimate for Clean Harbors’ earnings for the quarter is pegged at $1.15 per share, implying year-over-year growth of 5.5%.
The consensus estimate for Clean Harbors’ top line is pegged at $1.47 million, indicating a rise of 2.3% from the prior-year figure. Clean Harbors currently carries a Zacks Rank #2 (Buy).
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Zacks
Pentair's Q1 Earnings Surpass Estimates, Margins Expand Y/Y
Key Takeaways
Pentair plc (PNR - Free Report) delivered adjusted earnings of $1.22 per share for the first quarter of 2026, topping the Zacks Consensus Estimate of $1.17 by 4.3%. The bottom line also surpassed the company’s guidance of $1.15-$1.18 and improved 10% from earnings of $1.11 per share in the prior-year quarter. Including one-time items, EPS was 98 cents compared with the prior-year quarter’s 93 cents.
Performance was supported by core sales growth of 1% and improved profitability, as productivity initiatives helped expand margins even as the company navigated a mixed demand backdrop across end markets.
Revenues rose 2.6% year over year to $1.04 billion and came in ahead of the expected $1.03 billion, a 0.7% surprise. Excluding the impacts of acquisitions, divestitures and currency translation, core sales increased 1%.
Pentair plc Price, Consensus and EPS Surprise
Pentair plc price-consensus-eps-surprise-chart | Pentair plc Quote
Pentair Expands Profitability Despite Higher Spending
The cost of sales dipped 0.6% year over year to $603 million. Gross profit rose 7.5% year over year to $433.4 million, lifting gross margin to 41.8% from 39.9% a year ago.
Selling, general and administrative expense increased 12.6% year over year to $198.9 million, while research and development spending edged up 3.8% to $24.5 million.
PNR posted operating income of $210.0 million, which reflected a 3.4% year-over-year increase. This translated to a return on sales of 20.3%, up 20 basis points from the year-ago quarter.
On an adjusted basis, operating income advanced 6.8% year over year to $259.1 million. That translated into adjusted return on sales of 25%, up 100 basis points from the year-ago quarter, reflecting better operating leverage.
PNR’s Flow Unit Reports Double-Digit Sales & Profit Growth
The company made a segment reorganization effective Jan. 1, 2026, moving its legacy residential and irrigation flow business from Flow into Water Solutions, with prior periods reclassified to conform to the new structure.
Pentair’s Flow segment led the quarter, with sales increasing 11.0% year over year to $258.1 million. Segment operating earnings rose 22% year over year to $61.2 million. Our estimate for the segment’s operating profit was $93.8 million. Return on sales improved 210 basis points to 23.7%.
Pentair’s Pool Segment Stays Resilient With Strong Returns
Net sales in the Pool segment totaled $387.1 million, up 0.8% year over year. Our estimate for the segment’s net sales was $384 million. Operating earnings for the segment grew 1.7% year over year to $128 million. Our estimate for the segment’s operating income was $126.9 million. Return on sales ticked up 30 basis points to 33.1%, remaining the highest among the company’s reportable segments.
PNR’s Water Solutions Sees a Dip in Sales, Gains in Profit
Net sales in the Water Solutions segment dipped 0.6% year over year to $391 million. Our estimate for the segment’s net sales was $249.7 million. Segment income, however, increased 6.2% to $99.9 million. Our estimate was at $62.4 million. Return on sales improved 160 basis points to 25.5%.
PNR’s Cash Flow & Balance Sheet Updates
Pentair ended the quarter with cash and cash equivalents of $67.7 million compared with $101.6 million at year-end 2025. Net cash used in operating activities was $67.4 million compared with usage of $38.9 million in the prior-year quarter. Free cash flow was negative $85.7 million for the quarter. Long-term debt rose to $1.944 billion as of March 31, 2026, from $1.64 billion at 2025-end.
PNR repurchased 2 million of its shares for $200 million in the first quarter. The company had $800 million remaining under its share repurchase authorization.
PNR Raises Full-Year View and Introduces Q2 Guidance
PNR updated its full-year adjusted earnings outlook to approximately $5.30-$5.40 per share from the earlier expected $5.25-$5.40. The midpoint of the range suggests year-over-year growth of 8.7%. The company also updated its full-year sales expectation to growth of about 2-4% on a reported basis. Pentair had earlier provided sales guidance of 3-4% on a reported basis from the 2025 level.
For the second quarter of 2026, Pentair introduced adjusted earnings guidance of approximately $1.47-$1.50 per share, alongside expectations for second-quarter sales to be up approximately 1% on a reported basis. The company had reported earnings of $1.39 in the year-ago quarter.
PNR Stock's Price Performance
Pentair stock has gained 2.5% over the past year against the industry’s 8.4% decline.
Image Source: Zacks Investment Research
Pentair’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.
A Quick Look at How PNR’s Peers Fared in Q1
Pool Corp. (POOL - Free Report) reported adjusted earnings of $1.43 per share, beating the Zacks Consensus Estimate of $1.34 per share. This marks an 8% increase from the earnings of $1.32 per share reported a year ago.
Pool Corp. posted revenues of $1,138 million for the quarter, surpassing the Zacks Consensus Estimate of $1, 099 million. This marks a 6% year-over-year increase, driven by strong maintenance product sales and improvement in discretionary categories.
Xylem Inc. (XYL - Free Report) reported adjusted earnings per share of $1.12, surpassing the Zacks Consensus Estimate of $1.09. The company reported earnings of $1.03 in the year-ago quarter.
Xylem reported revenues of $2.125 billion in the quarter, beating the Zacks Consensus Estimate of $2.106 billion. Revenues were up 3% year over year.
Pentair’s Peer Awaiting Results
Clean Harbors, Inc. (CLH - Free Report) , scheduled to release first-quarter 2026 results on May 6, has a trailing four-quarter average earnings surprise of 0.8%. The Zacks Consensus Estimate for Clean Harbors’ earnings for the quarter is pegged at $1.15 per share, implying year-over-year growth of 5.5%.
The consensus estimate for Clean Harbors’ top line is pegged at $1.47 million, indicating a rise of 2.3% from the prior-year figure. Clean Harbors currently carries a Zacks Rank #2 (Buy).