Pentair plc (NYSE: PNR) delivered a robust financial performance in the second quarter of 2025, showcasing resilience amid tariff pressures and economic uncertainties. The company reported net sales of $1.1 billion, marking a 2.2% increase compared to the same period last year, driven by core sales growth of 1.3% excluding currency translation, acquisitions, and divestitures. This growth underscores Pentair’s strong market positioning in sustainable water solutions, a sector benefiting from increasing global water challenges and infrastructure needs.
Operating income for Q2 2025 was \(218 million, representing a 12% decline from the previous year, with a return on sales (ROS) of 19.4%, down 320 basis points. However, on an adjusted basis, operating income rose 9% to \)297 million, with an improved ROS of 26.4%, up 170 basis points, reflecting effective cost management and operational efficiencies. Adjusted earnings per share (EPS) increased 14% to \(1.39, compared to \)1.22 in Q2 2024, while GAAP EPS was \(0.90, down 19% from \)1.11.
Segment performance varied, with the Pool segment leading growth with a 9.1% sales increase and a 14% rise in segment income to \(153 million, achieving a strong ROS of 35.7%. The Flow segment's sales were flat, with a slight core sales decline of 1.3%, but segment income grew 10% to \)93 million. Water Solutions faced a 3.9% sales decline and a 4% drop in segment income to $70 million, maintaining a steady ROS of 23.5%.
Pentair’s cash flow generation remained strong, with net cash provided by operating activities increasing by \(68 million to \)607 million, and free cash flow rising \(74 million to \)596 million compared to Q2 2024. The company repurchased \(75 million of shares during the quarter and declared a quarterly dividend of \)0.25 per share, marking the 49th consecutive year of dividend increases.
Looking ahead, Pentair raised its full-year 2025 guidance, projecting GAAP EPS of \(3.95 to \)4.05, up 6% to 8%, and adjusted EPS of \(4.75 to \)4.85, up 10% to 12%. Sales growth is expected to be between 1% and 2%. The company also provided Q3 guidance with GAAP EPS of \(1.09 to \)1.13 and adjusted EPS of \(1.16 to \)1.20, anticipating flat to 1% sales growth.
CEO John L. Stauch emphasized the company’s strategic focus on innovation and growth initiatives across its Move, Improve, and Enjoy Water segments, positioning Pentair to capitalize on favorable secular trends such as water scarcity, aging infrastructure, and healthy outdoor living.
This 8-K report aligns with themes from previous earnings calls, where Pentair highlighted tariff impacts and economic uncertainty as key challenges, while emphasizing operational discipline and transformation initiatives to drive margin expansion and shareholder value.
For investors and analysts, Pentair’s strong free cash flow, disciplined capital allocation, and positive outlook signal a resilient business model well-positioned for sustainable growth in the water solutions industry.
Source document: Pentair Q2 2025 8-K Report