Pentair (NYSE:PNR) Posts Earnings Results, Beats Expectations By $0.01 EPS

Pentair (NYSE:PNR) issued its earnings results on Tuesday. The industrial products company reported $1.18 earnings per share for the quarter, beating the consensus estimate of $1.17 by $0.01, Briefing.com reports. Pentair had a net margin of 15.84% and a return on equity of 21.83%. The firm had revenue of $1.02 billion for the quarter, compared to analysts’ expectations of $1.01 billion. During the same quarter last year, the company earned $1.08 earnings per share. The firm’s revenue was up 4.9% compared to the same quarter last year. Pentair updated its FY 2026 guidance to 5.250-5.400 EPS and its Q1 2026 guidance to 1.150-1.180 EPS.

Here are the key takeaways from Pentair’s conference call:

• Delivered record 2025 results with 5% Q4 sales growth, the 15th consecutive quarter of margin expansion, Q4 adjusted EPS up 9% to $1.18 and full-year adjusted EPS a record $4.92 while ROS expanded to a record 25.2%.
• Set full-year 2026 guidance of adjusted EPS $5.25–$5.40 (≈+7–10%), sales growth ~3–4%, adjusted operating income +5–8% and ~100 bps ROS expansion to ~26%, supported by ~$70M of transformation savings.
• Announced a strategic realignment combining residential flow with Water Solutions (about 25% of factories) to drive channel growth, operational scale and long‑term margin improvement, effective Q1 2026 with historical segment restatements provided.
• Flagged macro headwinds: roughly $70M of tariff impact in 2025 and an expected incremental $30M in tariffs in 2026 (primarily Q1), plus higher-than-expected metal inflation in Q4 that could pressure margins if persistent.
• Reinforced a strong balance sheet and shareholder returns with record free cash flow of $748M, leverage ~1.4x, ROIC 16.7%, $225M of 2025 buybacks and a new share repurchase authorization up to $1B while maintaining dividend growth.

Pentair Stock Down 10.2%

PNR stock opened at $94.78 on Wednesday. The company has a market cap of $15.51 billion, a price-to-earnings ratio of 24.06, a price-to-earnings-growth ratio of 1.85 and a beta of 1.22. The company has a fifty day moving average price of $104.89 and a 200 day moving average price of $106.51. The company has a debt-to-equity ratio of 0.42, a current ratio of 1.46 and a quick ratio of 0.82. Pentair has a 12 month low of $74.25 and a 12 month high of $113.95.

Pentair Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, February 6th. Investors of record on Friday, January 23rd will be given a $0.27 dividend. This is a positive change from Pentair’s previous quarterly dividend of $0.25. The ex-dividend date is Friday, January 23rd. This represents a $1.08 annualized dividend and a yield of 1.1%. Pentair’s payout ratio is currently 27.41%.

More Pentair News

Here are the key news stories impacting Pentair this week:

• Positive Sentiment: Pentair posted an adjusted Q4 EPS beat and revenue beat: adjusted EPS $1.18 vs. consensus $1.17 and sales $1.021B (up ~5% YoY). The quarter showed underlying growth and solid margins, giving some fundamental support. Pentair Reports Strong Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Management announced executive leadership changes intended to accelerate growth and customer focus — a structural move that could improve execution if it accelerates innovation and go-to-market effectiveness. Pentair Announces New Executive Leadership Roles to Accelerate Growth and Enhance Customer Focus
• Neutral Sentiment: Full Q4 earnings call transcript and slide deck are available for investors reviewing segment details, cost action plans and assumptions behind guidance (useful for assessing whether weaknesses are cyclical or structural). Pentair (PNR) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Water segment sales declined and Pentair is restructuring parts of its residential business, triggering investor concern about near-term growth and execution; this weakness is a primary driver of the share decline. Pentair shares slide on water segment sales drop and residential restructuring
• Negative Sentiment: Management set Q1 2026 EPS guidance of $1.150–1.180 and FY 2026 guidance of $5.250–5.400, with the Q1 range notably below consensus (~$1.23) — the softer near-term outlook wiped out enthusiasm from the small beat. Pentair’s Soft 2026 Outlook Wipes Out A Solid Earnings Beat
• Negative Sentiment: Market commentary notes that while Q4 results beat, the beat was small and failed to lift sentiment because the outlook and segment weakness raise execution risk — driving the intraday decline. Pentair dips as Q4 profit beat fails to lift sentiment

Insider Transactions at Pentair

In related news, CFO Robert P. Fishman sold 7,786 shares of the business’s stock in a transaction dated Friday, November 14th. The stock was sold at an average price of $105.42, for a total value of $820,800.12. Following the transaction, the chief financial officer owned 63,164 shares in the company, valued at $6,658,748.88. The trade was a 10.97% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director T Michael Glenn sold 6,558 shares of the company’s stock in a transaction that occurred on Monday, December 1st. The shares were sold at an average price of $104.33, for a total value of $684,196.14. Following the sale, the director directly owned 31,192 shares of the company’s stock, valued at approximately $3,254,261.36. This represents a 17.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.45% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of PNR. Wexford Capital LP acquired a new stake in shares of Pentair during the third quarter worth $26,000. MUFG Securities EMEA plc purchased a new position in Pentair during the 2nd quarter worth $50,000. Smartleaf Asset Management LLC lifted its stake in shares of Pentair by 106.3% in the 2nd quarter. Smartleaf Asset Management LLC now owns 1,859 shares of the industrial products company’s stock worth $193,000 after acquiring an additional 958 shares during the period. Algert Global LLC purchased a new stake in shares of Pentair in the third quarter valued at about $206,000. Finally, Sivia Capital Partners LLC acquired a new position in shares of Pentair during the second quarter worth about $222,000. Institutional investors and hedge funds own 92.37% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the stock. Weiss Ratings restated a “buy (b-)” rating on shares of Pentair in a report on Thursday, January 22nd. Barclays lowered Pentair from an “overweight” rating to an “equal weight” rating and dropped their target price for the company from $127.00 to $115.00 in a report on Thursday, December 4th. Oppenheimer lifted their price target on Pentair from $124.00 to $128.00 and gave the stock an “outperform” rating in a report on Thursday, November 20th. TD Cowen cut Pentair from a “buy” rating to a “market perform” rating in a research report on Monday, January 5th. Finally, Wolfe Research reissued an “outperform” rating and set a $135.00 target price on shares of Pentair in a research report on Tuesday, December 9th. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, two have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $116.60.

About Pentair

Pentair plc (NYSE: PNR) is a global provider of water treatment and fluid management solutions. The company designs, manufactures and sells a broad range of products that move, treat, monitor and control the flow of water and other fluids across residential, commercial, industrial and municipal markets. Pentair’s offerings are focused on improving water quality, conserving resources and enabling efficient fluid handling in applications from household water systems and pools to large-scale industrial and municipal installations.

Product lines include pumps and pumping systems, water filtration and purification equipment, valves and controls, heat exchangers, pool and spa systems, and a range of aftermarket parts and services.