Pentair Reports Strong Fourth Quarter and Full Year 2025 Results

LONDON--( BUSINESS WIRE)--Pentair plc (NYSE: PNR) today announced fourth quarter 2025 sales of $1,021 million. Sales were up 5 percent compared to sales for the same period last year. Excluding currency translation, acquisitions and divestitures, core sales grew 4 percent in the fourth quarter. Fourth quarter 2025 earnings per diluted share from continuing operations (“EPS”) were $0.98 compared to $0.99 in the fourth quarter of 2024. On an adjusted basis, the Company reported EPS of $1.18 in the fourth quarter compared to $1.08 in the fourth quarter of 2024. Adjusted operating income, reportable segment income, adjusted net income, free cash flow, and adjusted EPS are described in the attached schedules.

Fourth quarter 2025 operating income was $205 million, up 5 percent compared to operating income for the fourth quarter of 2024, and return on sales (“ROS”) was 20.1 percent, flat compared to the fourth quarter of 2024. On an adjusted basis, the Company reported adjusted operating income of $252 million, up 9 percent for the fourth quarter of 2025 compared to adjusted operating income for the fourth quarter of 2024, and ROS was 24.7 percent, an increase of 90 basis points when compared to the fourth quarter of 2024.

“2025 was another remarkable year of performance at Pentair which was led by our mission to help the world sustainably move, improve and enjoy water, life’s most essential resource,” said John L. Stauch, Pentair’s President and Chief Executive Officer. “Our teams continued to execute with clarity and agility to deliver value to our customers and shareholders. We delivered strong cash flow, invested in growth initiatives across our balanced water portfolio and maintained a solid balance sheet. In 2026, we are celebrating our 60th anniversary as a company and 50 consecutive years of rising dividends. This morning we announced two new executive leadership roles at the company to help further accelerate our growth strategy, better align our residential Flow and Water Solutions businesses with our distribution channels, improve customer experiences, enhance operational efficiencies and deliver more comprehensive solutions. I am excited about what is ahead. Our future is bright.”

Full year 2025 sales were $4.2 billion. Sales were up 2 percent compared to sales last year. Excluding currency translation, acquisitions and divestitures, core sales grew 2 percent in 2025. Full year 2025 EPS from continuing operations was $3.93 compared to $3.74 in 2024. On an adjusted basis, the Company reported EPS of $4.92 for 2024 compared to $4.33 in 2024.

Full year 2025 operating income was $858 million, up 7 percent compared to operating income in 2024, and ROS was 20.5 percent, an increase of 80 basis points when compared to 2024. On an adjusted basis, the Company reported adjusted operating income of $1,054 million, up 10 percent in 2025, compared to adjusted operating income in 2024, and ROS was 25.2 percent, an increase of 170 basis points when compared to 2024.

Flow sales were up 9 percent in the fourth quarter of 2025 compared to sales for the same period last year. Excluding currency translation, acquisitions and divestitures, core sales grew 4 percent in the fourth quarter. Reportable segment income of $90 million was up 22 percent compared to the fourth quarter of 2024, and ROS was 22.8 percent, an increase of 240 basis points when compared to the fourth quarter of 2024.

Flow sales were up 3 percent for the full year of 2025 compared to sales for 2024. Excluding currency translation, acquisitions and divestitures, core sales grew 1 percent in 2025. Reportable segment income of $362 million was up 14 percent compared to 2024, and ROS was 23.3 percent, an increase of 230 basis points when compared to 2024.

Water Solutions sales were down 10 percent in the fourth quarter of 2025 compared to sales for the same period last year. Excluding currency translation, acquisitions and divestitures, core sales declined 4 percent in the fourth quarter. Reportable segment income of $55 million was down 12 percent compared to the fourth quarter of 2024, and ROS was 23.5 percent, a decrease of 60 basis points when compared to the fourth quarter of 2024.

Water Solutions sales were down 6 percent for the full year of 2025 compared to sales for 2024. Excluding currency translation, acquisitions and divestitures, core sales declined 3 percent in 2025. Reportable segment income of $254 million was flat compared to 2024, and ROS was 23.9 percent, an increase of 130 basis points when compared to 2024.

Pool sales were up 11 percent in the fourth quarter of 2025 compared to sales for the same period last year. Excluding currency translation, acquisitions and divestitures, core sales grew 9 percent in the fourth quarter. Reportable segment income of $132 million was up 11 percent compared to the fourth quarter of 2024, and ROS was 33.6 percent, a decrease of 20 basis points when compared to the fourth quarter of 2024.

Pool sales were up 9 percent for the full year of 2025 compared to sales for 2024. Excluding currency translation, acquisitions and divestitures, core sales grew 7 percent in 2025. Reportable segment income of $527 million was up 11 percent compared to 2024, and ROS was 33.8 percent, an increase of 60 basis points when compared to 2024.

Full year net cash provided by operating activities of continuing operations was $815 million and free cash flow from continuing operations was $748 million.

Pentair paid a regular cash dividend of $0.25 per share in the fourth quarter of 2025. Pentair previously announced on December 15, 2025 that it will pay a regular quarterly cash dividend of $0.27 per share on February 6, 2026 to shareholders of record at the close of business on January 23, 2026. This $0.27 per share quarterly cash dividend reflects an approximate 8 percent increase in the Company’s regular cash dividend rate as compared to $0.25 per share per quarter in 2025 and marks the 50 th consecutive year that Pentair has increased its dividend.

During the fourth quarter, the company repurchased 0.5 million shares for $50 million. During the year ended December 31, 2025, the company repurchased 2.3 million shares for $225.0 million. As of December 31, 2025, we had $1.0 billion available for share repurchases under our share repurchase authorization.

OUTLOOK

Mr. Stauch concluded, “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. We believe we are in a solid financial position and expect to continue our disciplined capital allocation strategy as we invest in future growth across our businesses. We look forward to providing an update on our long-term outlook at our upcoming Investor Day on March 4th where you will hear more about our growth initiatives, the Pentair Business System, award-winning product launches and innovation.”

The Company is introducing 2026 GAAP EPS guidance of approximately $4.94 to $5.09, up 26 percent to 30 percent; and on an adjusted basis of approximately $5.25 to $5.40. This is an increase of 7 percent to 10 percent compared to 2025 adjusted EPS. The Company anticipates full year 2026 sales to be up approximately 3 percent to 4 percent on a reported basis.

In addition, the Company introduces first quarter 2026 GAAP EPS of approximately $1.07 to $1.10 and on an adjusted EPS basis of approximately $1.15 to $1.18. The Company expects first quarter sales to be up approximately 1 percent to 2 percent on a reported basis compared to first quarter 2025.

EARNINGS CONFERENCE CALL

Pentair President and Chief Executive Officer John L. Stauch, outgoing Chief Financial Officer Robert P. Fishman and incoming Chief Financial Officer Nick Brazis will discuss the Company’s fourth quarter and full year 2025 results on a conference call with investors at 9:00 a.m. Eastern today. A live audio webcast of the call, along with the related presentation, can be accessed in the Investor Relations section of the Company’s website, www.pentair.com, shortly before the call begins.

Reconciliations of non-GAAP financial measures are set forth in the attachments to this release and in the presentations, each of which can be found on Pentair’s website. The webcast and presentations will be archived at the Company’s website following the conclusion of the event.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

This release contains statements that we believe to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, are forward-looking statements. Without limitation, any statements preceded or followed by or that include the words “targets,” “plans,” “believes,” “expects,” “intends,” “will,” “likely,” “may,” “anticipates,” “estimates,” “projects,” “should,” “would,” “could,” “positioned,” “strategy,” or “future” or words, phrases, or terms of similar substance or the negative thereof are forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond our control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include the overall global economic and business conditions impacting our business, including the strength of housing and related markets and conditions relating to international hostilities; supply, demand, logistics, competition and pricing pressures related to and in the markets we serve; the ability to achieve the benefits of our restructuring plans, cost reduction initiatives and Transformation Program; the impact of raw material, logistics and labor costs and other inflation; volatility in currency exchange rates and interest rates; failure of markets to accept new product introductions and enhancements; the ability to successfully identify, finance, complete and integrate acquisitions; risks associated with operating foreign businesses; the impact of seasonality of sales and weather conditions; our ability to comply with laws and regulations; the impact of changes in laws, regulations and administrative policy, including those that limit U.S. tax benefits or impact trade agreements and tariffs; the outcome of litigation and governmental proceedings; and the ability to achieve our long-term strategic operating and sustainability goals and targets. Additional information concerning these and other factors is contained in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2024. All forward-looking statements, including all financial forecasts, speak only as of the date of this release. Pentair assumes no obligation, and disclaims any obligation, to update the information contained in this release.

ABOUT PENTAIR PLC

At Pentair, we help the world sustainably move, improve, and enjoy water, life’s most essential resource. From our residential and commercial water solutions, to industrial water management and everything in between, Pentair is a core large cap value S&P 500 equity stock focused on smart, sustainable water solutions that help our planet and people thrive.

Pentair had revenue in 2025 of approximately $4.2 billion, and trades under the ticker symbol PNR. With approximately 9,000 global employees serving customers in more than 150 countries, we work to help improve lives and the environment around the world. To learn more, visit www.pentair.com.

Pentair plc and Subsidiaries

Condensed Consolidated Statements of Operations (Unaudited)

Three months ended

Twelve months ended

In millions, except per-share data

December 31,

2025

December 31,

2024

December 31,

2025

December 31,

2024

Net sales

1,020.5

972.9

4,176.0

4,082.8

Cost of goods sold

608.7

595.3

2,485.7

2,484.0

Gross profit

411.8

377.6

1,690.3

1,598.8

% of net sales

40.4

38.8

40.5

39.2

Selling, general and administrative

184.3

160.7

736.9

701.4

% of net sales

18.1

16.5

17.6

17.2

Research and development

22.5

21.8

95.9

93.6

% of net sales

2.2

2.3

Operating income

205.0

195.1

857.5

803.8

% of net sales

20.1

20.5

19.7

Other expense (income)

Loss on sale of business

—

26.3

—

Other expense (income)

3.2

(4.5

)

5.3

(3.7

)

Net interest expense

17.4

15.2

69.4

88.6

% of net sales

1.7

1.6

1.7

2.2

Income from continuing operations before income taxes

184.4

756.5

718.9

Provision for income taxes

22.6

18.0

107.0

93.3

Effective tax rate

12.3

9.8

14.1

13.0

Net income from continuing operations

161.8

166.4

649.5

625.6

Income (loss) from discontinued operations, net of tax

4.3

—

4.3

(0.2

)

Net income

166.1

166.4

653.8

625.4

Earnings per ordinary share

Basic

Continuing operations

0.99

1.01

3.96

3.78

Discontinued operations

0.03

—

0.03

—

Basic earnings per ordinary share

1.02

1.01

3.99

3.78

Diluted

Continuing operations

0.98

0.99

3.93

3.74

Discontinued operations

0.03

—

0.03

—

Diluted earnings per ordinary share

1.01

0.99

3.96

3.74

Weighted average ordinary shares outstanding

Basic

163.4

165.2

164.1

165.6

Diluted

164.7

166.8

165.5

167.1

Cash dividends paid per ordinary share

0.25

0.23

1.00

0.92

Pentair plc and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

December 31,

2025

December 31,

2024

In millions

Assets

Current assets

Cash and cash equivalents

101.6

118.7

Accounts receivable, net

673.2

565.2

Inventories

632.6

610.9

Other current assets

134.4

141.3

Total current assets

1,541.8

1,436.1

Property, plant and equipment, net

376.8

358.8

Other assets

Goodwill

3,538.1

3,286.6

Intangibles, net

1,073.3

1,033.8

Other non-current assets

338.8

331.2

Total other assets

4,950.2

4,651.6

Total assets

6,868.8

6,446.5

Liabilities and Equity

Current liabilities

Current maturities of short-term borrowings

—

9.3

Accounts payable

301.5

272.8

Employee compensation and benefits

120.1

116.2

Other current liabilities

537.7

496.8

Total current liabilities

959.3

895.1

Other liabilities

Long-term debt

1,638.6

1,638.7

Pension and other post-retirement compensation and benefits

58.8

61.6

Deferred tax liabilities

47.5

44.4

Other non-current liabilities

295.4

243.8

Total liabilities

2,999.6

2,883.6

Equity

3,869.2

3,562.9

Total liabilities and equity

6,868.8

6,446.5

Pentair plc and Subsidiaries

Condensed Consolidated Statements of Cash Flows (Unaudited)

Years ended December 31

In millions

2025

2024

Operating activities

Net income

653.8

625.4

(Income) loss from discontinued operations, net of tax

(4.3

)

0.2

Adjustments to reconcile net income from continuing operations to net cash provided by operating activities of continuing operations

Equity income of unconsolidated subsidiaries

(1.0

)

(1.9

)

Depreciation

59.6

60.3

Amortization

58.1

54.3

Deferred income taxes

(4.3

)

(11.4

)

Loss on sale of business

26.3

—

Share-based compensation

37.0

39.7

Asset impairment and write-offs

49.1

17.6

Pension and other post-retirement expense

6.9

0.1

Pension and other post-retirement contributions

(10.6

)

(12.0

)

Changes in assets and liabilities, net of effects of business acquisitions

Accounts receivable

(93.1

)

(11.2

)

Inventories

(36.9

)

53.6

Other current assets

(0.7

)

14.1

Accounts payable

20.5

(3.7

)

Employee compensation and benefits

(3.7

)

(5.0

)

Other current liabilities

26.1

(48.7

)

Other non-current assets and liabilities

32.0

(4.5

)

Net cash provided by operating activities of continuing operations

814.8

766.9

Net cash used for operating activities of discontinued operations

—

(0.2

)

Net cash provided by operating activities

814.8

766.7

Investing activities

Capital expenditures

(68.8

)

(74.4

)

Purchase of investments

(18.0

)

—

Proceeds from sale of property and equipment

2.4

0.6

Payments upon the settlement of net investment hedges

(28.9

)

(5.8

)

Acquisitions, net of cash acquired

(292.1

)

(108.0

)

Other

0.9

—

Net cash used for investing activities

(404.5

)

(187.6

)

Financing activities

Net (repayments) receipts of short-term borrowings

(9.3

)

9.3

Net borrowings of revolving long-term debt

268.2

9.5

Repayments of long-term debt

(269.3

)

(362.5

)

Debt issuance costs

(2.2

)

—

Shares issued to employees, net of shares withheld

(0.6

)

18.4

Repurchases of ordinary shares

(225.0

)

(150.0

)

Dividends paid

(164.3

)

(152.3

)

Payments upon the settlement of cross currency swaps

—

(9.1

)

Net cash used for financing activities

(402.5

)

(636.7

)

Effect of exchange rate changes on cash and cash equivalents

(24.9

)

6.0

Change in cash and cash equivalents

(17.1

)

(51.6

)

Cash and cash equivalents, beginning of year

118.7

170.3

Cash and cash equivalents, end of year

101.6

118.7

Pentair plc and Subsidiaries

Reconciliation of the GAAP Operating Activities Cash Flow to the Non-GAAP Free Cash Flow (Unaudited)

Years ended December 31

In millions

2025

2024

Net cash provided by operating activities of continuing operations

814.8

766.9

Capital expenditures

(68.8

)

(74.4

)

Proceeds from sale of property and equipment

2.4

0.6

Free cash flow from continuing operations

748.4

693.1

Net cash used for operating activities of discontinued operations

—

(0.2

)

Free cash flow

748.4

692.9

Pentair plc and Subsidiaries

Supplemental Financial Information by Reportable Segment (Unaudited)

2025

In millions

First

Quarter

Second

Quarter

Third

Quarter

Fourth

Quarter

Full

Year

Net sales

Flow

367.9

397.3

394.0

394.4

1,553.6

Water Solutions

258.2

298.3

273.3

232.3

1,062.1

Pool

383.9

427.2

354.3

393.4

1,558.8

Reportable segment net sales

1,010.0

1,122.8

1,021.6

1,020.1

4,174.5

Corporate and other

0.4

0.3

0.4

1.5

Net Sales

1,010.4

1,123.1

1,022.0

1,020.5

4,176.0

Reportable segment income (loss)

Flow

83.6

93.1

95.3

90.1

362.1

Water Solutions

60.7

70.2

68.4

54.6

253.9

Pool

126.0

152.7

116.2

132.2

527.1

Reportable segment income

270.3

316.0

279.9

276.9

1,143.1

Corporate and other

(27.8

)

(19.3

)

(17.3

)

(25.2

)

(89.6

)

Adjusted operating income

242.5

296.7

262.6

251.7

1,053.5

Return on sales

Flow

22.7

23.4

24.2

22.8

23.3

Water Solutions

23.5

25.0

23.5

23.9

Pool

32.8

35.7

32.8

33.6

33.8

Adjusted return on sales

24.0

26.4

25.7

24.7

25.2

2024

In millions

First

Quarter

Second

Quarter

Third

Quarter

Fourth

Quarter

Full

Year

Net sales

Flow

384.3

396.8

372.2

360.7

1,514.0

Water Solutions

273.1

310.5

289.5

257.9

1,131.0

Pool

359.5

391.5

331.4

353.7

1,436.1

Reportable segment net sales

1,016.9

1,098.8

993.1

972.3

4,081.1

Corporate and other

0.3

0.5

0.3

0.6

1.7

Net Sales

1,017.2

1,099.3

993.4

972.9

4,082.8

Reportable segment income (loss)

Flow

77.3

84.4

82.8

73.6

318.1

Water Solutions

55.6

72.9

64.4

62.2

255.1

Pool

110.8

133.6

112.7

119.4

476.5

Reportable segment income

243.7

290.9

259.9

255.2

1,049.7

Corporate and other

(26.4

)

(19.5

)

(20.7

)

(23.9

)

(90.5

)

Adjusted operating income

217.3

271.4

239.2

231.3

959.2

Return on sales

Flow

20.1

21.3

22.2

20.4

21.0

Water Solutions

20.4

23.5

22.2

24.1

22.6

Pool

30.8

34.1

34.0

33.8

33.2

Adjusted return on sales

21.4

24.7

24.1

23.8

23.5

Pentair plc and Subsidiaries

Reconciliation of GAAP to Non-GAAP Financial Measures for the Year Ended December 31, 2025

Excluding the Effect of Adjustments (Unaudited)

In millions, except per-share data

First

Quarter

Second

Quarter

Third

Quarter

Fourth

Quarter

Full

Year

Net sales

1,010.4

1,123.1

1,022.0

1,020.5

4,176.0

Operating income

203.1

217.7

231.7

205.0

857.5

Return on sales

20.1

19.4

22.7

20.1

20.5

Adjustments:

Restructuring and other

10.5

10.4

0.2

10.2

31.3

Transformation costs

9.1

12.5

10.8

8.4

40.8

Intangible amortization

14.2

14.3

13.9

15.7

58.1

Legal accrual adjustments and settlements

—

11.6

Asset impairment and write-offs

5.2

41.8

1.5

0.6

49.1

Deal-related costs and expenses

—

4.1

—

4.1

Equity income of unconsolidated subsidiaries

0.4

—

0.4

0.2

1.0

Adjusted operating income

242.5

296.7

262.6

251.7

1,053.5

Adjusted return on sales

24.0

26.4

25.7

24.7

25.2

Net income from continuing operations—as reported

154.9

148.5

184.3

161.8

649.5

Loss on sale of business

—

26.3

—

26.3

Pension and other post-retirement mark-to-market loss

—

2.4

Adjustments to operating income

39.0

79.0

30.5

46.5

195.0

Income tax adjustments

(9.7

)

(23.3

)

(9.5

)

(16.0

)

(58.5

)

Net income from continuing operations—as adjusted

184.2

230.5

205.3

194.7

814.7

Continuing earnings per ordinary share—diluted

Diluted earnings per ordinary share—as reported

0.93

0.90

1.12

0.98

3.93

Adjustments

0.18

0.49

0.12

0.20

0.99

Diluted earnings per ordinary share—as adjusted

1.11

1.39

1.24

1.18

4.92

Pentair plc and Subsidiaries

Reconciliation of GAAP to Non-GAAP Financial Measures for the Year Ending December 31, 2026

Excluding the Effect of Adjustments (Unaudited)

Forecast

In millions, except per-share data

First

Quarter

Full

Year

Net sales

approx

Up 1% - 2%

approx

Up 3% - 4%

Operating income

approx

Up 13% - 17%

approx

Up 21% - 25%

Adjustments:

Intangible amortization

approx

$ 16

approx

$ 62

Equity income of unconsolidated subsidiaries

approx

Adjusted operating income

approx

Up 2% - 5%

approx

Up 5% - 8%

Net income from continuing operations—as reported

approx

$177 - $182

approx

$815 - $840

Adjustments to operating income

approx

Income tax adjustments

approx

)

approx

(11

)

Net income from continuing operations—as adjusted

approx

$190 - $195

approx

$866 - $891

Continuing earnings per ordinary share—diluted

Diluted earnings per ordinary share—as reported

approx

$1.07 - $1.10

approx

$4.94 - $5.09

Adjustments

approx

0.08

approx

0.31

Diluted earnings per ordinary share—as adjusted

approx

$1.15- $1.18

approx

$5.25 - $5.40

Pentair plc and Subsidiaries

Reconciliation of Net Sales Growth to Core Net Sales Growth by Reportable Segment

For the Quarter and Year Ended December 31, 2025 (Unaudited)

Q4 Net Sales Growth

Full Year Net Sales Growth

Core

Currency

Acq. / Div.

Total

Core

Currency

Acq. / Div.

Total

Total Pentair

3.7

1.4

(0.2

4.9

1.9

0.5

(0.1

2.3

Flow

4.0

2.9

2.4

9.3

0.8

1.1

0.7

2.6

Water Solutions

(3.7

1.1

(7.3

(9.9

(2.6

0.5

(4.0

(6.1

Pool

8.9

0.1

2.2

11.2

6.5

—

2.0

8.5

Pentair plc and Subsidiaries

Reconciliation of GAAP to Non-GAAP Financial Measures for the Year Ended December 31, 2024

Excluding the Effect of Adjustments (Unaudited)

In millions, except per-share data

First

Quarter

Second

Quarter

Third

Quarter

Fourth

Quarter

Full

Year

Net sales

1,017.2

1,099.3

993.4

972.9

4,082.8

Operating income

180.8

248.0

179.9

195.1

803.8

Return on sales

17.8

22.6

18.1

20.1

19.7

Adjustments:

Restructuring and other

4.6

5.9

23.4

3.1

37.0

Transformation costs

17.0

11.8

12.6

10.7

52.1

Intangible amortization

13.5

13.4

13.5

13.9

54.3

Legal accrual adjustments and settlements

(0.3

)

(7.9

)

0.7

—

(7.5

)

Asset impairment and write-offs

0.8

—

8.5

8.3

17.6

Equity income of unconsolidated subsidiaries

0.9

0.2

0.6

0.2

1.9

Adjusted operating income

217.3

271.4

239.2

231.3

959.2

Adjusted return on sales

21.4

24.7

24.1

23.8

23.5

Net income from continuing operations—as reported

133.5

186.1

139.6

166.4

625.6

Pension and other post-retirement mark-to-market gain

—

(5.3

)

(5.3

)

Other (income) expense

—

(0.5

)

0.1

(0.4

)

Adjustments to operating income

35.6

23.2

58.7

36.0

153.5

Income tax adjustments

(11.3

)

(5.4

)

(15.4

)

(17.6

)

(49.7

)

Net income from continuing operations—as adjusted

157.8

203.9

182.4

179.6

723.7

Continuing earnings per ordinary share—diluted

Diluted earnings per ordinary share—as reported

0.80

1.11

0.84

0.99

3.74

Adjustments

0.14

0.11

0.25

0.09

0.59

Diluted earnings per ordinary share—as adjusted

0.94

1.22

1.09

1.08

4.33