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PNR Cuts Q226 & FY26 Outlook on Pool Weakness, Shares Dip 15%
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Key Takeaways
Pentair expects Q2 sales of about $930 million as the Pool channel destocking sharply reduced segment results.
PNR cuts full-year 2026 sales, operating income and EPS guidance as inventory corrections continue.
Pentair launched a CFO search after Nicholas Brazis departed, with Bob Fishman named interim CFO.
Shares of Pentair plc (PNR - Free Report) dipped 15% in a day as it released preliminary second-quarter 2026 results and lowered its full-year guidance, citing weaker-than-expected performance in its Pool business. This was attributed to a sharper-than-anticipated inventory correction by major channel partners, along with softer end-market demand amid elevated interest rates and persistent inflation. Management expects inventory destocking and channel right-sizing to continue through the remainder of 2026 as distributors prepare for the 2027 pool season.
Despite the near-term pressure, Pentair believes the headwinds are temporary. The company is taking steps to align its operations with current demand while positioning the Pool business for a return to normalized performance in 2027. Its strategy includes strengthening relationships with dealers and distribution partners, accelerating product innovation and enhancing technical support to support long-term growth.
Pentair also announced the launch of a search for its next chief financial officer(CFO). Bob Fishman, Pentair’s former executive vice president and CFO, has been appointed interim executive vice president and CFO with immediate effect, following the departure of Nicholas Brazis on July 10, 2026, to pursue another opportunity.
Pentair’s Q2 Results Hit by Pool Channel Destocking
Second-quarter sales are now expected to be approximately $930 million, representing a 17% decline year over year in contrast to the prior outlook of 1% growth.
The company estimates that Pool channel destocking reduced the segment's sales by approximately $170 million and operating income by about $105 million. In contrast, the Flow and Water Solutions segments are expected to perform broadly in line with previous guidance.
Adjusted operating income is expected to be approximately $235 million, suggesting a 21% year-over-year decline reflecting the impact of the inventory corrections, somewhat offset by the recoveries of tariffs collected under the International Emergency Economic Powers Act (IEEPA). Pentair’s previous guidance had factored in 5-6% year-over-year growth.
Adjusted earnings per share are now expected to be around $1.12, which reflects a year-over-year plunge of 19%, compared with the earlier guidance of $1.47-$1.50. The second-quarter results are expected to include approximately $35 million of IEEPA refunds.
Pentair also stated that it has repurchased approximately 2 million shares for $150 million during the April to June 2026 period.
PNR Cuts FY26 Guidance, Sees Recovery in 2027
Pentair now expects full-year 2026 sales to decline 4-7% compared with its previous forecast of 2-4% growth, reflecting continued Pool channel destocking and inventory right-sizing ahead of the 2027 pool season.
The company estimates that these inventory actions will reduce Pool segment sales by approximately $250 million and segment income by around $155 million for the year. Guidance for the Flow and Water Solutions segments remains unchanged.
Adjusted operating income is now expected to decline 5-9% against the earlier expectation of 6-8% growth, as inventory-related headwinds are only partially offset by IEEPA refunds. EBITDA for the year is expected to be approximately $1.05 billion and adjusted earnings per share are expected to be in the range of $4.60-$4.80 compared with the previous outlook of $5.30-$5.40. Results are expected to include approximately $35-$50 million of IEEPA refunds.
Management remains optimistic about the long-term outlook for its Pool business. Pentair believes its initiatives to deepen relationships with channel partners, expand its portfolio of innovative products and leverage its strong market position will help restore growth and improve performance in 2027.
Pentair Stock’s Price Performance
The stock has declined 39.7% over the past year against the industry’s 9.3% growth.
The Zacks Consensus Estimate for Concrete Pumping Holdings’ fiscal 2026 earnings is pegged at 17 cents per share, indicating a year-over-year increase of 54.6%. It delivered an average trailing four-quarter earnings surprise of 20.8%. Concrete Pumping Holdings’ shares have gained 49.8% in a year.
The consensus estimate for Dave Inc.’s 2026 earnings is pinned at $16.62 per share, which indicates a year-over-year rise of 26.10%. The company delivered an average trailing four-quarter earnings surprise of 45.8%. DAVE shares have grown 114.8% in a year.
V2X, Inc. delivered an average trailing four-quarter earnings surprise of 22.8%. The Zacks Consensus Estimate for V2X’s 2026 earnings is pinned at $6.16 per share, which indicates year-over-year growth of 17.6%. V2X shares have gained 59% in a year.
View the Zacks #1 Rank List
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PNR Cuts Q226 & FY26 Outlook on Pool Weakness, Shares Dip 15%
Key Takeaways
Shares of Pentair plc (PNR - Free Report) dipped 15% in a day as it released preliminary second-quarter 2026 results and lowered its full-year guidance, citing weaker-than-expected performance in its Pool business. This was attributed to a sharper-than-anticipated inventory correction by major channel partners, along with softer end-market demand amid elevated interest rates and persistent inflation. Management expects inventory destocking and channel right-sizing to continue through the remainder of 2026 as distributors prepare for the 2027 pool season.
Despite the near-term pressure, Pentair believes the headwinds are temporary. The company is taking steps to align its operations with current demand while positioning the Pool business for a return to normalized performance in 2027. Its strategy includes strengthening relationships with dealers and distribution partners, accelerating product innovation and enhancing technical support to support long-term growth.
Pentair also announced the launch of a search for its next chief financial officer(CFO). Bob Fishman, Pentair’s former executive vice president and CFO, has been appointed interim executive vice president and CFO with immediate effect, following the departure of Nicholas Brazis on July 10, 2026, to pursue another opportunity.
Pentair’s Q2 Results Hit by Pool Channel Destocking
Second-quarter sales are now expected to be approximately $930 million, representing a 17% decline year over year in contrast to the prior outlook of 1% growth.
The company estimates that Pool channel destocking reduced the segment's sales by approximately $170 million and operating income by about $105 million. In contrast, the Flow and Water Solutions segments are expected to perform broadly in line with previous guidance.
Adjusted operating income is expected to be approximately $235 million, suggesting a 21% year-over-year decline reflecting the impact of the inventory corrections, somewhat offset by the recoveries of tariffs collected under the International Emergency Economic Powers Act (IEEPA). Pentair’s previous guidance had factored in 5-6% year-over-year growth.
Adjusted earnings per share are now expected to be around $1.12, which reflects a year-over-year plunge of 19%, compared with the earlier guidance of $1.47-$1.50. The second-quarter results are expected to include approximately $35 million of IEEPA refunds.
Pentair also stated that it has repurchased approximately 2 million shares for $150 million during the April to June 2026 period.
PNR Cuts FY26 Guidance, Sees Recovery in 2027
Pentair now expects full-year 2026 sales to decline 4-7% compared with its previous forecast of 2-4% growth, reflecting continued Pool channel destocking and inventory right-sizing ahead of the 2027 pool season.
The company estimates that these inventory actions will reduce Pool segment sales by approximately $250 million and segment income by around $155 million for the year. Guidance for the Flow and Water Solutions segments remains unchanged.
Adjusted operating income is now expected to decline 5-9% against the earlier expectation of 6-8% growth, as inventory-related headwinds are only partially offset by IEEPA refunds. EBITDA for the year is expected to be approximately $1.05 billion and adjusted earnings per share are expected to be in the range of $4.60-$4.80 compared with the previous outlook of $5.30-$5.40. Results are expected to include approximately $35-$50 million of IEEPA refunds.
Management remains optimistic about the long-term outlook for its Pool business. Pentair believes its initiatives to deepen relationships with channel partners, expand its portfolio of innovative products and leverage its strong market position will help restore growth and improve performance in 2027.
Pentair Stock’s Price Performance
The stock has declined 39.7% over the past year against the industry’s 9.3% growth.
Image Source: Zacks Investment Research
PNR’s Zacks Rank & Stocks to Consider
Pentair currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Business Services sector are Concrete Pumping Holdings (BBCP - Free Report) , Dave Inc. (DAVE - Free Report) and V2X, Inc. (VVX - Free Report) . Each of these stocks sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Concrete Pumping Holdings’ fiscal 2026 earnings is pegged at 17 cents per share, indicating a year-over-year increase of 54.6%. It delivered an average trailing four-quarter earnings surprise of 20.8%. Concrete Pumping Holdings’ shares have gained 49.8% in a year.
The consensus estimate for Dave Inc.’s 2026 earnings is pinned at $16.62 per share, which indicates a year-over-year rise of 26.10%. The company delivered an average trailing four-quarter earnings surprise of 45.8%. DAVE shares have grown 114.8% in a year.
V2X, Inc. delivered an average trailing four-quarter earnings surprise of 22.8%. The Zacks Consensus Estimate for V2X’s 2026 earnings is pinned at $6.16 per share, which indicates year-over-year growth of 17.6%. V2X shares have gained 59% in a year.