Pentair plc Reports Q3 Earnings Beat

LONDON – Pentair plc (NYSE:PNR) reported third quarter earnings that surpassed analyst expectations, with shares rising 1.5% in premarket trading on Tuesday.

The water treatment solutions provider posted adjusted earnings per share (EPS) of $1.09 for Q3, exceeding the analyst consensus of $1.07. Revenue reached $993 million, slightly above estimates of $988.54 million, although it marked a 2% year-over-year decline. Excluding impacts from currency fluctuations, acquisitions, and divestitures, core sales fell 1%.

Pentair's President and CEO, John L. Stauch, stated, "Our relentless dedication to strong execution, Transformation, and delivering value to our customers has driven yet another quarter of significant free cash flow and outstanding results, surpassing our expectations."

The company raised its full-year 2024 adjusted EPS guidance to approximately $4.27, up from its previous outlook. However, Pentair's Q4 revenue forecast of $965-975 million was below the anticipated $989.4 million forecasted by analysts.

Pentair experienced strong margin expansion in Q3, with adjusted return on sales increasing 310 basis points to 24.1%. Free cash flow surged to $234 million, marking a $90 million increase from the same period last year.

The company's Pool segment was a highlight, with sales growing 7% year-over-year and segment income jumping 24%. Conversely, this growth was offset by declines in the Flow and Water Solutions segments.

Pentair continued its commitment to shareholder returns, repurchasing 0.6 million shares for $50 million in Q3 and declaring its 48th consecutive annual dividend increase.

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