Research · Sep 3, 2026
[PNR] Pentair Thesis 2026: Fifteen Consecutive Years of Margin Expansion Continues Into FY26
Pentair plc FY25 revenue $4.18B (+2%); op income $858M (+7%); NI $654M (+5%); GAAP EPS $3.96 (+6%); adjusted EPS $5.25 (record). FCF $746M (+8%, record). Q4 2025: 5% sales growth, 15th consecutive quarter of margin expansion; adjusted operating profit +9%; ROS +90bp to 24.7%; adjusted EPS $1.18 (+9%). Segment performance — Flow: Q4 sales +9% to $394M; reportable segment income +22%; ROS 22.8%. Full-year sales +3% to $1.55B; segment income +14%; ROS 23.3%. Water Solutions: Q4 sales -10% to $232M; segment income -12%; ROS 23.5%. Full-year sales -6%; segment income flat; ROS 23.9%. Pool: Q4 sales +11% to $393M; segment income +11%; ROS 33.6%. Full-year sales +9%; segment income +11%; ROS 33.8%. Strategic: residential flow + residential water solutions consolidated starting 2026 (channel growth + operational scale + efficiency). 60th anniversary; approach Dividend King status. PFAS Everpure Filtration + Manitowoc ICE Neo launches. Total debt $1.64B (-7%); buyback $225M (+50%); dividend $164M (+8%). FY26 guide: adjusted EPS $5.25-$5.40 (+8% midpoint); sales growth 3-4%; adjusted operating income growth 5-8%; FCF ~100% of net income; Q1 adj EPS $1.15-$1.18. Risks: Pool / residential cycle, foodservice cycle, competitive landscape (Watts Water, Xylem, Rexnord, IDEX, Mueller Water, A.O. Smith, Whirlpool, Generac, Hayward), commodity costs, FX, brand dynamics.