Q2 2025 Pentair PLC Earnings Call Transcript
Key Points
- Pentair PLC (PNR) delivered a record quarter across all four metrics: sales, adjusted operating income, return on sales, and adjusted EPS.
- Sales increased by 2% with pool sales growing by 9%, and adjusted operating income increased by 9%.
- Return on sales expanded by 170 basis points to 26.4%, and adjusted EPS rose 14% to $1.39.
- The company generated record free cash flow and repurchased $75 million of shares in Q2.
- Pentair PLC (PNR) increased its full-year 2025 guidance, expecting sales growth of approximately 1% to 2% and adjusted EPS to be approximately $4.75 to $4.85, up 11% at the midpoint versus full-year 2024.
- The residential end market remains soft, impacting sales in the Flow and Water Solutions segments.
- Water Solutions sales declined 4% due to lower volume and a sluggish US housing market.
- The company strategically divested its small commercial services business, resulting in a $20 million quarterly revenue loss.
- Tariff impacts remain a concern, with an updated 2025 tariff impact estimated at $75 million for the full year.
- Pentair PLC (PNR) faces challenges in the pool segment with modestly down new pool builds and deferred remodels due to higher interest rates.
Good morning, everyone, and welcome to the Pentair second-quarter 2025 earnings conference call. (Operator Instructions) Please also note, today's event is being recorded.
At this time, I would like to turn the floor over to Shelly Hubbard, Vice President of Investor Relations. Ma'am, you may begin.
Thank you, operator, and welcome to Pentair's second-quarter 2025 earnings conference call. On the call with me are John Stauch, our President and Chief Executive Officer; and Bob Fishman, our Chief Financial Officer. On today's call, we will provide details on our second-quarter performance as outlined in this morning's press release.
On the Pentair Investor Relations website, you can find our earnings release and slide deck, which is intended to supplement our prepared remarks during today's call and provide a reconciliation of differences between GAAP and non-GAAP financial measures that we will reference. The non-GAAP financial measures provided should not be considered as a
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