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Feb 3, 2026 12:01 PM

Pentair's Soft 2026 Outlook Wipes Out A Solid Earnings Beat

Pentair plc (NYSE:PNR) stock fell after the company reported fourth-quarter 2025 results on Tuesday.

The company reported 5% year-over-year (Y/Y) sales increase to $1.021 billion, surpassing the consensus estimate of $1.009 billion.

Also, core sales rose 4% Y/Y in the fourth quarter, excluding currency translation, acquisitions, and divestitures.

Gross margin expanded to 40.4% from 38.8% a year ago in the quarter. Adjusted operating margin expanded 90 basis points Y/Y to 24.7% in the quarter.

Pentair reported fourth-quarter adjusted earnings of $1.18 a share, topping analysts’ expectations of $1.16.

Free cash flow from continuing operations came in at $748 million in the year.

The company held $101.6 million in cash and equivalents as of December 31, 2025.

Segment Details

Flow segment sales rose 9% Y/Y to $394.4 million in the quarter. Segment income was $90.1 million (+22% Y/Y), and the operating margin was 22.8%, an increase of 240 bps Y/Y in the quarter.

Water Solutions segment sales were $232.3 million (-10% Y/Y), Segment income was $55 million (-12% Y/Y), and ROS was 23.5%, down 60 bps Y/Y.

Pool segment sales were $393.4 million (+11% Y/Y), Segment income was $132 million (+11% Y/Y), and ROS was 33.6%, down 20 bps Y/Y.

Dividend & ...