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1. Company Snapshot

1.a. Company Description

Pentair plc provides various water solutions worldwide.It operates through Consumer Solutions; and Industrial & Flow Technologies segments.The Consumer Solutions segment designs, manufactures, and sells residential and commercial pool equipment and accessories, including pumps, filters, heaters, lights, automatic controls, automatic cleaners, maintenance equipment, and pool accessories for residential and commercial pool maintenance, repair, renovation, service, and construction applications; and water treatment products and systems comprising pressure tanks, control valves, activated carbon products, conventional filtration products, and point-of-entry and point-of-use systems for the use in residential whole home water filtration, drinking water filtration, and water softening solutions, as well as in commercial total water management and filtration in foodservice operations.


It offers its products under the Everpure, Ken's Beverage, Kreepy Krauly, Pentair Water Solutions, Pleatco, RainSoft, and Sta-Rite brands.The Industrial & Flow Technologies segment manufactures and sells fluid treatment products, such as advanced membrane filtration products, separation systems, and membrane bioreactors; water supply and disposal, solid handling, fluid transfer, and turbine pumps; and valves, spray nozzles, process filtration systems, and gas recovery solutions for food and beverage, fluid separation technologies, water and wastewater treatment, water wells, pressure boosting, fire suppression, flood control, agricultural irrigation, crop spray, fluid circulation and transfer, fluid delivery, ion exchange, desalination, residential and municipal wells, and wastewater solids handling applications.It offers its products under the Pentair, Aurora, Berkeley, Codeline, Fairbanks-Nijhuis, Haffmans, Hydromatic, Hypro, Jung Pumpen, Myers, Sta-Rite, Shurflo, Südmo, and X-Flow brands.


Pentair plc was founded in 1966 and is headquartered in London, the United Kingdom.

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1.b. Last Insights on PNR

Pentair plc's recent performance was driven by strong Q1 2025 earnings, beating estimates with a 9% year-over-year improvement in earnings per share. The company's transformation program and pricing actions contributed to the results, offsetting lower volumes in the Water and Flow segments. Additionally, Pentair's guidance for 2025 indicates 9% growth at the mid-point, with an adjusted EPS of $4.65-$4.80.

1.c. Company Highlights

2. Pentair's Q3 2025 Earnings: A Strong Performance

Pentair reported record third-quarter results, with sales growth of 3%, driven by the pool and flow segments. Adjusted operating income increased 10%, with a return on sales (ROS) expansion of 160 basis points to 25.7%, and adjusted EPS rose 14% to $1.24. The actual EPS came out at $1.12, slightly lower than estimates of $1.18. The company's financial performance was strong, with operating margin expansion continuing, driven by transformation savings and a focus on investing in the business to drive growth and ROS expansion.

Publication Date: Oct -21

📋 Highlights
  • Record Q3 Results: Sales grew 3%, adjusted operating income rose 10%, and adjusted EPS increased 14% to $1.24, with ROS expanding 160 bps to 25.7%.
  • HydroStop Acquisition: $292M cash purchase of HydroStop, expected to contribute $10M in Q4 and $50M in 2026, with cross-selling synergies.
  • Full-Year Guidance Raised: Sales growth revised to ~2% and adjusted EPS forecasted at $4.85–$4.90 (+12–13% YoY), with $719M in free cash flow (up 14% YoY).
  • Transformation Savings: $80M net savings target for 2025 from cost initiatives, driven by pricing, sourcing, productivity, and organizational excellence.

Segment Performance

The Flow segment reported strong performance, with price increases across residential, commercial, and industrial businesses. The industrial business saw a 10% increase, driven by improved operational performance and standardized offerings. The pool segment is expected to see a 5% price increase year-over-year, with a normal early buy season expected. The company is well-positioned to support dealers with the expected increase in remodels and new builds.

Acquisition and Growth Initiatives

In September, Pentair acquired HydroStop, a specialty valve solutions provider, for approximately $292 million in cash. The acquisition is expected to contribute $10 million in Q4 and is a baseline for $50 million in 2026. The company is focusing on cross-selling opportunities with its existing businesses and expects to accelerate growth in 2026. Pentair is also investing in focused growth initiatives and innovation through digital and product technology, with a newly elevated CIO role focused on digital transformation.

Outlook and Guidance

The company is increasing its full-year guidance, expecting sales growth of approximately 2% and adjusted EPS of $4.85 to $4.90, up 12 to 13% from 2024. For the fourth quarter, Pentair expects sales to be up approximately 3% to 4% and adjusted EPS of approximately $1.11 to $1.16, up roughly 3% to 7%. Analysts estimate next year's revenue growth at 4.1%. The company remains confident in its long-term strategy and is well-positioned to address opportunities from favorable secular trends in water.

Valuation

Pentair's current valuation metrics are as follows: P/E Ratio of 27.3, P/B Ratio of 4.72, P/S Ratio of 4.33, EV/EBITDA of 20.87, Dividend Yield of 0.9%, Free Cash Flow Yield of 4.38%, ROIC of 13.08%, and ROE of 17.86%. The company's ROIC and ROE indicate a strong ability to generate returns, and its valuation multiples suggest that the market is pricing in a certain level of growth and profitability.

3. NewsRoom

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Hsbc Holdings PLC Sells 84,316 Shares of Pentair plc $PNR

Dec -03

Source: defenseworld.net

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Creative Planning Acquires 4,543 Shares of Pentair plc $PNR

Nov -25

Source: defenseworld.net

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Bank Julius Baer & Co. Ltd Zurich Acquires 142,216 Shares of Pentair plc $PNR

Nov -21

Source: defenseworld.net

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Pentair plc (PNR) Presents at Baird 55th Annual Global Industrial Conference Transcript

Nov -12

Source: seekingalpha.com

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Pentair to Attend the Baird 2025 Global Industrial Conference

Oct -27

Source: businesswire.com

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Pentair plc $PNR Holdings Decreased by Allspring Global Investments Holdings LLC

Oct -24

Source: defenseworld.net

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Pentair: Too Dry For Me

Oct -23

Source: seekingalpha.com

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Pentair plc (PNR) Q3 2025 Earnings Call Transcript

Oct -21

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.82%)

6. Segments

Flow

Expected Growth: 3.8%

Pentair plc's 3.8% growth is driven by increasing demand for water treatment solutions, expansion in emerging markets, and strategic acquisitions. Additionally, the company's focus on innovation, operational efficiency, and cost savings initiatives have contributed to its growth. Furthermore, the rising need for sustainable and energy-efficient solutions in the industrial and residential sectors has also boosted Pentair's revenue.

Pool

Expected Growth: 3.5%

Pentair plc's Pool segment growth is driven by increasing demand for residential pool equipment and accessories, particularly in the US and Europe. Rising consumer spending on outdoor living and recreation, coupled with growing adoption of energy-efficient and automation technologies, contribute to the 3.5% growth rate.

Water Solutions

Expected Growth: 4.2%

Pentair plc's Water Solutions segment growth of 4.2% is driven by increasing demand for water treatment and filtration systems, driven by urbanization, industrialization, and stringent regulations. Additionally, the segment benefits from the growing need for efficient water management, wastewater reuse, and desalination solutions, as well as the company's strong brand presence and innovative product offerings.

Other

Expected Growth: 3.2%

Pentair plc's 'Other' segment growth of 3.2% is driven by increasing demand for sustainable water solutions, expansion in emerging markets, and strategic acquisitions. Additionally, growth in industrial and commercial markets, as well as investments in digitalization and innovation, contribute to the segment's growth.

7. Detailed Products

Water Treatment

Pentair's water treatment products provide clean water solutions for residential, commercial, and industrial applications.

Filtration Systems

Pentair's filtration systems offer a range of solutions for water, air, and gas filtration in various industries.

Valves and Actuators

Pentair's valves and actuators provide control and automation solutions for industrial processes.

Pumps and Accessories

Pentair's pumps and accessories provide solutions for fluid transfer, circulation, and boosting in various industries.

Aeration Systems

Pentair's aeration systems provide solutions for wastewater treatment, aquaculture, and industrial processes.

Pool and Spa Equipment

Pentair's pool and spa equipment provides solutions for residential and commercial pool and spa owners.

8. Pentair plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Pentair plc operates in a industry with moderate threat of substitutes. The company's products are specialized and have a high switching cost, which reduces the threat of substitutes.

Bargaining Power Of Customers

Pentair plc's customers have low bargaining power due to the company's strong brand reputation and wide range of products.

Bargaining Power Of Suppliers

Pentair plc's suppliers have moderate bargaining power due to the company's dependence on a few key suppliers for raw materials.

Threat Of New Entrants

The threat of new entrants is low in Pentair plc's industry due to high barriers to entry, including high capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry in Pentair plc's industry is high due to the presence of several established competitors and the need to constantly innovate to stay competitive.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 38.51%
Debt Cost 5.91%
Equity Weight 61.49%
Equity Cost 10.10%
WACC 8.48%
Leverage 62.62%

11. Quality Control: Pentair plc passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Burckhardt Compression

A-Score: 6.2/10

Value: 4.3

Growth: 7.8

Quality: 7.4

Yield: 5.0

Momentum: 5.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Weir

A-Score: 5.7/10

Value: 2.7

Growth: 6.1

Quality: 6.1

Yield: 2.5

Momentum: 8.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Wärtsilä

A-Score: 5.5/10

Value: 2.9

Growth: 6.3

Quality: 7.6

Yield: 3.8

Momentum: 7.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Krones

A-Score: 5.5/10

Value: 5.7

Growth: 6.9

Quality: 6.1

Yield: 3.1

Momentum: 4.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Pentair

A-Score: 4.9/10

Value: 1.8

Growth: 4.8

Quality: 7.2

Yield: 1.9

Momentum: 6.5

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Rational

A-Score: 4.7/10

Value: 1.4

Growth: 6.4

Quality: 8.8

Yield: 2.5

Momentum: 1.5

Volatility: 7.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

104.25$

Current Price

104.25$

Potential

-0.00%

Expected Cash-Flows