Pentair Q3 Sales Fall 4% to $976 Million as Pool Segment Drops 18%

Pentair plc (PNR ) reported third-quarter 2026 sales of $976 million on October 27, 2026, down 4 percent from the same period last year, with core sales down 5 percent excluding currency translation, acquisitions and divestitures. In its third-quarter 2026 results release, the water technology company reported earnings per diluted share from continuing operations of $0.91, compared with $1.12 in the third quarter of 2025, a 19 percent decrease, and adjusted EPS of $1.18, compared with $1.24 a year earlier, a 5 percent decrease. The quarter’s results include approximately $8 million of International Emergency Economic Powers Act (IEEPA) refunds.

Third-quarter operating income was $196 million, down 15 percent from the third quarter of 2025, and return on sales was 20.1 percent, a decrease of 260 basis points. On an adjusted basis, operating income was $242 million, down 8 percent, and return on sales was 24.8 percent, down 90 basis points. The release’s condensed consolidated statements show net income from continuing operations of $145.1 million, compared with $184.3 million a year earlier, on net sales of $976.4 million versus $1,022.0 million, with an effective tax rate of 16.3 percent, compared with 15.0 percent.

“We delivered solid third-quarter results across sales, income and EPS,” said John L. Stauch, Pentair’s president and chief executive officer. Stauch said the company’s teams responded with focus and urgency following a challenging second quarter in the Pool segment, and that he believes the actions the company is taking are strengthening Pentair and positioning it for significant growth in 2027.

Segment Results

Flow segment sales were up 4 percent from the same period last year, with core sales up 1 percent, on net sales of $262.5 million. Reportable segment income was $69 million, up 15 percent, and return on sales was 26.2 percent, an increase of 250 basis points.

Water Solutions sales were up 1 percent, with core sales also up 1 percent, on net sales of $421.9 million. Segment income was $121 million, up 16 percent, and return on sales was 28.7 percent, up 370 basis points.

Pool segment sales fell 18 percent, with core sales down 18 percent, on net sales of $291.5 million. Segment income was $72 million, down 38 percent, and return on sales was 24.6 percent, a decrease of 820 basis points. Pentair said third-quarter Pool performance reflected the completion of the inventory realignment with its major channel partners.

The release’s reconciliation of net sales growth to core net sales growth shows total company net sales down 4.5 percent for the quarter, comprising a 5.5 percent core decline, no currency effect and a 1.0 percent contribution from acquisitions and divestitures.

Net cash provided by operating activities was $169 million for the quarter, compared with $196 million in the third quarter of 2025, and free cash flow was $153 million, compared with $179 million. For the first nine months of 2026, operating cash flow was $673.7 million, versus $764.0 million in the prior-year period, and free cash flow was $619.9 million, versus $719.0 million.

The balance sheet shows cash and cash equivalents of $74.0 million at September 30, 2026, versus $101.6 million at December 31, 2025, and long-term debt of $1,484.1 million, versus $1,638.6 million. Nine-month financing activity included $500 million of proceeds from long-term debt, $575 million of long-term debt repayments, $350 million of ordinary share repurchases and $130.8 million of dividends paid.

Pentair paid a regular cash dividend of $0.27 per share in the third quarter. The company previously announced on September 21, 2026 that it will pay a regular quarterly dividend of $0.27 per share on November 6, 2026 to shareholders of record at the close of business on October 23, 2026, and said 2026 marks the 50th consecutive year it has increased its dividend.

Full-Year and Fourth-Quarter Outlook

Pentair updated its estimated full-year 2026 GAAP EPS from continuing operations to approximately $3.76 and reaffirmed the midpoint of its previous guidance with full-year adjusted EPS of approximately $4.70. The company updated its estimated full-year 2026 sales to down approximately 3 percent on a reported basis, and said the guidance includes the right-sizing of channel inventory in preparation for the 2027 pool season and the acquisition of Taco Group Holdings.

For the fourth quarter of 2026, the company introduced guidance of approximately $1.07 in GAAP EPS and approximately $1.15 in adjusted EPS, with sales expected to be up approximately 7 percent to 9 percent on a reported basis compared with the fourth quarter of 2025. “Our solid third-quarter performance increases our confidence in the full-year outlook and enables us to reaffirm the midpoint of our previous guidance range,” Stauch said.

Third-quarter adjustments to GAAP results included $11.4 million of restructuring and other, $16.1 million of transformation costs, $15.1 million of intangible amortization, $3.4 million of deal-related costs and expenses, and $4.9 million of amortization of bridge financing fees. A footnote to the reconciliation tables states that forecast intangible amortization does not include the impact of the Taco acquisition on October 1, 2026 because the initial accounting and preliminary purchase price allocation for the acquisition are incomplete.

Pentair completed its acquisition of Taco Group Holdings on October 1, 2026 for $1.4 billion, subject to customary adjustments. Taco, which Pentair described as a leader in hydronic and water-based solutions, became part of Pentair’s Water Solutions reporting segment, continues to go to market under the Taco brand and maintains a significant presence in Cranston, Rhode Island.

Effective January 1, 2026, Pentair reorganized its Flow and Water Solutions reportable segments, moving its legacy residential and irrigation flow business from Flow into Water Solutions. The Pool segment was unchanged, prior-period amounts were retrospectively reclassified to conform to the new composition, and the company said the changes have no impact on its historical consolidated financial performance or results of operations.

Stauch, outgoing Interim Executive Vice President and Chief Financial Officer Robert P. Fishman and incoming Executive Vice President and Chief Financial Officer Robert W. Hau were scheduled to discuss the results on a conference call with investors at 9:00 a.m. Eastern on October 27, 2026.