Shelly Hubbard | Rebecca Osborn | ||||
Vice President, Investor Relations | Vice President, Communications | ||||
Direct: 763-656-5575 | Direct: 763-656-5589 | ||||
Email: shelly.hubbard@pentair.com | Email: rebecca.osborn@pentair.com |
Pentair plc and Subsidiaries | |||||||||||||||||
Condensed Consolidated Statements of Operations (Unaudited) | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
In millions, except per-share data | September 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 | |||||||||||||
Net sales | $ | 1,022.0 | $ | 993.4 | $ | 3,155.5 | $ | 3,109.9 | |||||||||
Cost of goods sold | 603.4 | 600.2 | 1,877.0 | 1,888.7 | |||||||||||||
Gross profit | 418.6 | 393.2 | 1,278.5 | 1,221.2 | |||||||||||||
% of net sales | 41.0 | % | 39.6 | % | 40.5 | % | 39.3 | % | |||||||||
Selling, general and administrative expenses | 162.2 | 190.4 | 552.6 | 540.7 | |||||||||||||
% of net sales | 15.9 | % | 19.2 | % | 17.5 | % | 17.4 | % | |||||||||
Research and development expenses | 24.7 | 22.9 | 73.4 | 71.8 | |||||||||||||
% of net sales | 2.4 | % | 2.3 | % | 2.3 | % | 2.3 | % | |||||||||
Operating income | 231.7 | 179.9 | 652.5 | 608.7 | |||||||||||||
% of net sales | 22.7 | % | 18.1 | % | 20.7 | % | 19.6 | % | |||||||||
Other expense (income) | |||||||||||||||||
Loss on sale of business | — | — | 26.3 | — | |||||||||||||
Other expense (income) | 0.6 | (0.1) | 2.1 | 0.8 | |||||||||||||
Net interest expense | 14.4 | 19.8 | 52.0 | 73.4 | |||||||||||||
% of net sales | 1.4 | % | 2.0 | % | 1.6 | % | 2.4 | % | |||||||||
Income from continuing operations before income taxes | 216.7 | 160.2 | 572.1 | 534.5 | |||||||||||||
Provision for income taxes | 32.4 | 20.6 | 84.4 | 75.3 | |||||||||||||
Effective tax rate | 15.0 | % | 12.9 | % | 14.8 | % | 14.1 | % | |||||||||
Net income from continuing operations | 184.3 | 139.6 | 487.7 | 459.2 | |||||||||||||
Loss from discontinued operations, net of tax | — | — | — | (0.2) | |||||||||||||
Net income | $ | 184.3 | $ | 139.6 | $ | 487.7 | $ | 459.0 | |||||||||
Earnings per ordinary share | |||||||||||||||||
Basic | |||||||||||||||||
Continuing operations | $ | 1.13 | $ | 0.84 | $ | 2.97 | $ | 2.77 | |||||||||
Discontinued operations | — | — | — | — | |||||||||||||
Basic earnings per ordinary share | $ | 1.13 | $ | 0.84 | $ | 2.97 | $ | 2.77 | |||||||||
Diluted | |||||||||||||||||
Continuing operations | $ | 1.12 | $ | 0.84 | $ | 2.94 | $ | 2.75 | |||||||||
Discontinued operations | — | — | — | — | |||||||||||||
Diluted earnings per ordinary share | $ | 1.12 | $ | 0.84 | $ | 2.94 | $ | 2.75 | |||||||||
Weighted average ordinary shares outstanding | |||||||||||||||||
Basic | 163.8 | 165.6 | 164.4 | 165.7 | |||||||||||||
Diluted | 165.1 | 167.0 | 165.7 | 167.2 | |||||||||||||
Cash dividends paid per ordinary share | $ | 0.25 | $ | 0.23 | $ | 0.75 | $ | 0.69 | |||||||||
Pentair plc and Subsidiaries | ||||||||
Condensed Consolidated Balance Sheets (Unaudited) | ||||||||
September 30, 2025 | December 31, 2024 | |||||||
In millions | ||||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 128.4 | $ | 118.7 | ||||
Accounts receivable, net | 521.6 | 565.2 | ||||||
Inventories | 639.7 | 610.9 | ||||||
Other current assets | 155.4 | 141.3 | ||||||
Total current assets | 1,445.1 | 1,436.1 | ||||||
Property, plant and equipment, net | 367.1 | 358.8 | ||||||
Other assets | ||||||||
Goodwill | 3,528.8 | 3,286.6 | ||||||
Intangibles, net | 1,088.0 | 1,033.8 | ||||||
Other non-current assets | 330.6 | 331.2 | ||||||
Total other assets | 4,947.4 | 4,651.6 | ||||||
Total assets | $ | 6,759.6 | $ | 6,446.5 | ||||
Liabilities and Equity | ||||||||
Current liabilities | ||||||||
Current maturities of short-term borrowings | $ | — | $ | 9.3 | ||||
Accounts payable | 308.8 | 272.8 | ||||||
Employee compensation and benefits | 111.9 | 116.2 | ||||||
Other current liabilities | 567.5 | 496.8 | ||||||
Total current liabilities | 988.2 | 895.1 | ||||||
Other liabilities | ||||||||
Long-term debt | 1,580.1 | 1,638.7 | ||||||
Pension and other post-retirement compensation and benefits | 56.5 | 61.6 | ||||||
Deferred tax liabilities | 41.3 | 44.4 | ||||||
Other non-current liabilities | 311.1 | 243.8 | ||||||
Total liabilities | 2,977.2 | 2,883.6 | ||||||
Equity | 3,782.4 | 3,562.9 | ||||||
Total liabilities and equity | $ | 6,759.6 | $ | 6,446.5 | ||||
Pentair plc and Subsidiaries | ||||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||||||
Nine months ended | ||||||||
In millions | September 30, 2025 | September 30, 2024 | ||||||
Operating activities | ||||||||
Net income | $ | 487.7 | $ | 459.0 | ||||
Loss from discontinued operations, net of tax | — | 0.2 | ||||||
Adjustments to reconcile net income from continuing operations to net cash provided by (used for) operating activities of continuing operations | ||||||||
Equity income of unconsolidated subsidiaries | (0.8) | (1.7) | ||||||
Depreciation | 44.7 | 45.3 | ||||||
Amortization | 42.4 | 40.4 | ||||||
Deferred income taxes | 20.8 | 3.6 | ||||||
Loss on sale of business | 26.3 | — | ||||||
Share-based compensation | 27.3 | 26.3 | ||||||
Asset impairment and write-offs | 48.5 | 9.3 | ||||||
Changes in assets and liabilities, net of effects of business acquisitions | ||||||||
Accounts receivable | 56.7 | 66.2 | ||||||
Inventories | (45.7) | 30.1 | ||||||
Other current assets | (35.8) | 5.0 | ||||||
Accounts payable | 31.2 | 7.3 | ||||||
Employee compensation and benefits | (9.4) | (8.0) | ||||||
Other current liabilities | 60.8 | (19.7) | ||||||
Other non-current assets and liabilities | 9.3 | 17.1 | ||||||
Net cash provided by operating activities of continuing operations | 764.0 | 680.4 | ||||||
Net cash used for operating activities of discontinued operations | — | (0.2) | ||||||
Net cash provided by operating activities | 764.0 | 680.2 | ||||||
Investing activities | ||||||||
Capital expenditures | (45.1) | (51.7) | ||||||
Purchase of investments | (18.0) | — | ||||||
Proceeds from sale of property and equipment | 0.1 | 0.4 | ||||||
Payments upon the settlement of net investment hedges | — | (16.4) | ||||||
Acquisitions, net of cash acquired | (292.2) | — | ||||||
Other | 0.9 | (0.5) | ||||||
Net cash used for investing activities | (354.3) | (68.2) | ||||||
Financing activities | ||||||||
Net repayments of short-term borrowings | (9.3) | — | ||||||
Net borrowings of revolving long-term debt | 210.5 | — | ||||||
Repayments of long-term debt | (269.3) | (362.5) | ||||||
Debt issuance costs | (2.2) | — | ||||||
Shares issued to employees, net of shares withheld | (2.2) | 16.8 | ||||||
Repurchases of ordinary shares | (175.0) | (100.0) | ||||||
Dividends paid | (123.3) | (114.3) | ||||||
Net cash used for financing activities | (370.8) | (560.0) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (29.2) | (4.2) | ||||||
Change in cash and cash equivalents | 9.7 | 47.8 | ||||||
Cash and cash equivalents, beginning of period | 118.7 | 170.3 | ||||||
Cash and cash equivalents, end of period | $ | 128.4 | $ | 218.1 | ||||
Pentair plc and Subsidiaries | ||||||||||||||
Reconciliation of the GAAP Operating Activities Cash Flow to the Non-GAAP Free Cash Flow (Unaudited) | ||||||||||||||
Three months ended | Three months ended | Three months ended | Nine months ended | |||||||||||
In millions | March 31, 2025 | June 30, 2025 | September 30, 2025 | September 30, 2025 | ||||||||||
Net cash (used for) provided by operating activities of continuing operations | $ | (38.9) | $ | 606.6 | $ | 196.3 | $ | 764.0 | ||||||
Capital expenditures | (16.8) | (10.9) | (17.4) | (45.1) | ||||||||||
Proceeds from sale of property and equipment | — | 0.1 | — | 0.1 | ||||||||||
Free cash flow | $ | (55.7) | $ | 595.8 | $ | 178.9 | $ | 719.0 | ||||||
Three months ended | Three months ended | Three months ended | Nine months ended | |||||||||||
In millions | March 31, 2024 | June 30, 2024 | September 30, 2024 | September 30, 2024 | ||||||||||
Net cash (used for) provided by operating activities of continuing operations | $ | (107.4) | $ | 539.2 | $ | 248.6 | $ | 680.4 | ||||||
Capital expenditures | (19.3) | (17.0) | (15.4) | (51.7) | ||||||||||
Proceeds from sale of property and equipment | — | — | 0.4 | 0.4 | ||||||||||
Free cash flow from continuing operations | (126.7) | 522.2 | 233.6 | 629.1 | ||||||||||
Net cash used for operating activities of discontinued operations | (0.2) | — | — | (0.2) | ||||||||||
Free cash flow | $ | (126.9) | $ | 522.2 | $ | 233.6 | $ | 628.9 | ||||||
Pentair plc and Subsidiaries | |||||||||||||||||||||||||||||
Supplemental Financial Information by Reportable Segment (Unaudited) | |||||||||||||||||||||||||||||
2025 | 2024 | ||||||||||||||||||||||||||||
In millions | First Quarter | Second Quarter | Third Quarter | Nine Months | First Quarter | Second Quarter | Third Quarter | Nine Months | |||||||||||||||||||||
Net sales | |||||||||||||||||||||||||||||
Flow | $ | 367.9 | $ | 397.3 | $ | 394.0 | $ | 1,159.2 | $ | 384.3 | $ | 396.8 | $ | 372.2 | $ | 1,153.3 | |||||||||||||
Water Solutions | 258.2 | 298.3 | 273.3 | 829.8 | 273.1 | 310.5 | 289.5 | 873.1 | |||||||||||||||||||||
Pool | 383.9 | 427.2 | 354.3 | 1,165.4 | 359.5 | 391.5 | 331.4 | 1,082.4 | |||||||||||||||||||||
Reportable segment net sales | 1,010.0 | 1,122.8 | 1,021.6 | 3,154.4 | 1,016.9 | 1,098.8 | 993.1 | 3,108.8 | |||||||||||||||||||||
Corporate and other | 0.4 | 0.3 | 0.4 | 1.1 | 0.3 | 0.5 | 0.3 | 1.1 | |||||||||||||||||||||
Net sales | $ | 1,010.4 | $ | 1,123.1 | $ | 1,022.0 | $ | 3,155.5 | $ | 1,017.2 | $ | 1,099.3 | $ | 993.4 | $ | 3,109.9 | |||||||||||||
Reportable segment income (loss) | |||||||||||||||||||||||||||||
Flow | $ | 83.6 | $ | 93.1 | $ | 95.3 | $ | 272.0 | $ | 77.3 | $ | 84.4 | $ | 82.8 | $ | 244.5 | |||||||||||||
Water Solutions | 60.7 | 70.2 | 68.4 | 199.3 | 55.6 | 72.9 | 64.4 | 192.9 | |||||||||||||||||||||
Pool | 126.0 | 152.7 | 116.2 | 394.9 | 110.8 | 133.6 | 112.7 | 357.1 | |||||||||||||||||||||
Reportable segment income | 270.3 | 316.0 | 279.9 | 866.2 | 243.7 | 290.9 | 259.9 | 794.5 | |||||||||||||||||||||
Corporate and other | (27.8) | (19.3) | (17.3) | (64.4) | (26.4) | (19.5) | (20.7) | (66.6) | |||||||||||||||||||||
Adjusted operating income | $ | 242.5 | $ | 296.7 | $ | 262.6 | $ | 801.8 | $ | 217.3 | $ | 271.4 | $ | 239.2 | $ | 727.9 | |||||||||||||
Return on sales | |||||||||||||||||||||||||||||
Flow | 22.7 | % | 23.4 | % | 24.2 | % | 23.5 | % | 20.1 | % | 21.3 | % | 22.2 | % | 21.2 | % | |||||||||||||
Water Solutions | 23.5 | % | 23.5 | % | 25.0 | % | 24.0 | % | 20.4 | % | 23.5 | % | 22.2 | % | 22.1 | % | |||||||||||||
Pool | 32.8 | % | 35.7 | % | 32.8 | % | 33.9 | % | 30.8 | % | 34.1 | % | 34.0 | % | 33.0 | % | |||||||||||||
Adjusted return on sales | 24.0 | % | 26.4 | % | 25.7 | % | 25.4 | % | 21.4 | % | 24.7 | % | 24.1 | % | 23.4 | % | |||||||||||||
Pentair plc and Subsidiaries | ||||||||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures for the Year Ending December 31, 2025 | ||||||||||||||||||||||||||
Excluding the Effect of Adjustments (Unaudited) | ||||||||||||||||||||||||||
Actual | Forecast | |||||||||||||||||||||||||
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 | approx | Up 3% - 4% | approx | Up 2% | ||||||||||||||||
Operating income | 203.1 | 217.7 | 231.7 | approx | Up 15% - 19% | approx | Up 9% - 11% | |||||||||||||||||||
Return on sales | 20.1 | % | 19.4 | % | 22.7 | % | ||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||
Restructuring and other | 10.5 | 10.4 | 0.2 | approx | $ | — | approx | $ | 21 | |||||||||||||||||
Transformation costs | 9.1 | 12.5 | 10.8 | approx | — | approx | 32 | |||||||||||||||||||
Intangible amortization | 14.2 | 14.3 | 13.9 | approx | 16 | approx | 58 | |||||||||||||||||||
Asset impairment and write-offs | 5.2 | 41.8 | 1.5 | approx | — | approx | 49 | |||||||||||||||||||
Deal-related costs and expenses | — | — | 4.1 | approx | — | approx | 4 | |||||||||||||||||||
Equity income of unconsolidated subsidiaries | 0.4 | — | 0.4 | approx | 1 | approx | 2 | |||||||||||||||||||
Adjusted operating income | 242.5 | 296.7 | 262.6 | approx | Up 4% - 8% | approx | Up 9% - 10% | |||||||||||||||||||
Adjusted return on sales | 24.0 | % | 26.4 | % | 25.7 | % | ||||||||||||||||||||
Net income from continuing operations—as reported | 154.9 | 148.5 | 184.3 | approx | $170 - $178 | approx | $660 - $668 | |||||||||||||||||||
Loss on sale of business | — | 26.3 | — | approx | — | approx | 26 | |||||||||||||||||||
Adjustments to operating income | 39.0 | 79.0 | 30.5 | approx | 16 | approx | 164 | |||||||||||||||||||
Income tax adjustments | (9.7) | (23.3) | (9.5) | approx | (3) | approx | (45) | |||||||||||||||||||
Net income from continuing operations—as adjusted | $ | 184.2 | $ | 230.5 | $ | 205.3 | approx | $183 - $191 | approx | $805 - $813 | ||||||||||||||||
Continuing earnings per ordinary share—diluted | ||||||||||||||||||||||||||
Diluted earnings per ordinary share—as reported | $ | 0.93 | $ | 0.90 | $ | 1.12 | approx | $1.03 - $1.08 | approx | $3.98 - $4.03 | ||||||||||||||||
Adjustments | 0.18 | 0.49 | 0.12 | approx | 0.08 | approx | 0.87 | |||||||||||||||||||
Diluted earnings per ordinary share—as adjusted | $ | 1.11 | $ | 1.39 | $ | 1.24 | approx | $1.11 - $1.16 | approx | $4.85 - $4.90 |
Pentair plc and Subsidiaries | |||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures for the Year Ending 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 |
Pentair plc and Subsidiaries | ||||||||||||||
Reconciliation of Net Sales Growth to Core Net Sales Growth by Reportable Segment | ||||||||||||||
For the Quarter Ended September 30, 2025 (Unaudited) | ||||||||||||||
Q3 Net Sales Growth | ||||||||||||||
Core | Currency | Acq. / Div. | Total | |||||||||||
Total Pentair | 3.3 | % | 1.0 | % | (1.4) | % | 2.9 | % | ||||||
Flow | 3.6 | % | 1.9 | % | 0.4 | % | 5.9 | % | ||||||
Water Solutions | 0.5 | % | 0.7 | % | (6.8) | % | (5.6) | % | ||||||
Pool | 5.6 | % | — | % | 1.3 | % | 6.9 | % | ||||||