Pentair's Q2 EPS beats expectations

Overview

• Adjusted EPS for Q2 beats consensus, reflecting a 14% increase yr/yr

• Pentair Q2 sales rise 2% yr/yr, beating analyst expectations, per LSEG data

• Co repurchased $75 mln of ordinary shares in Q2

Outlook

• Pentair updates 2025 GAAP EPS to $3.95-$4.05, up 6%-8%

• Pentair raises 2025 adjusted EPS to $4.75-$4.85, up 10%-12%

• Company expects Q3 2025 GAAP EPS of $1.09-$1.13, up 29%-35%

• Pentair sees 2025 sales up 1%-2% on a reported basis

Result Drivers

• POOL SEGMENT - Pool sales grew 9% in Q2, with core sales up 7%, driven by strong demand

• WATER SOLUTIONS DECLINE - Water Solutions sales fell 4%, with core sales down 3%, impacted by market conditions

• FLOW SALES STAGNATION - Flow sales remained flat, with core sales declining 1%

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

• Wall Street's median 12-month price target for Pentair PLC is $115.50, about 9.2% above its July 21 closing price of $104.86

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nBw2m2C0da