Third Quarter 2026
Filed Oct 27, 2026Pentair Reports Third Quarter 2026 Results
Third-quarter sales, GAAP operating income, GAAP EPS, adjusted operating income and adjusted EPS declined from the prior-year quarter, while Flow and Water Solutions delivered sales and segment-income growth. Pool sales and segment income fell sharply, although the company said channel inventory realignment was completed and reaffirmed its full-year adjusted EPS midpoint.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, third quarter 2026GAAP | $976.4M | – | (4.5) % |
| Core net sales growth, third quarter 2026other | (5.5) % | – | (5.5) % |
| Gross profit, third quarter 2026GAAP | $395.2M | – | – |
| Gross profit as a percentage of net sales, third quarter 2026GAAP | 40.5 % | – | – |
| Selling, general and administrative expense, third quarter 2026GAAP | $175.9M | – | – |
| Selling, general and administrative expense as a percentage of net sales, third quarter 2026GAAP | 18.0 % | – | – |
| Research and development expense, third quarter 2026GAAP | $23.4M | – | – |
| Operating income, third quarter 2026GAAP | $195.9M | – | down 15 percent |
| Return on sales, third quarter 2026GAAP | 20.1 % | – | a decrease of 260 basis points |
| Adjusted operating income, third quarter 2026non-GAAP | $242M | – | down 8 percent |
| Adjusted return on sales, third quarter 2026non-GAAP | 24.8 % | – | a decrease of 90 basis points |
| Net interest expense, third quarter 2026GAAP | $21.7M | – | – |
| Income from continuing operations before income taxes, third quarter 2026GAAP | $173.3M | – | – |
| Provision for income taxes, third quarter 2026GAAP | $28.2M | – | – |
| Effective tax rate, third quarter 2026GAAP | 16.3 % | – | – |
| Net income from continuing operations, third quarter 2026GAAP | $145.1M | – | – |
| Net income, third quarter 2026GAAP | $145.1M | – | – |
| Diluted EPS from continuing operations, third quarter 2026GAAP | $0.91 | – | a 19 percent decrease |
| Adjusted diluted EPS from continuing operations, third quarter 2026non-GAAP | $1.18 | – | a 5 percent decrease |
| Weighted average diluted ordinary shares outstanding, third quarter 2026GAAP | 160.3M | – | – |
| Net cash provided by operating activities, third quarter 2026GAAP | $169.3M | – | – |
| Free cash flow, third quarter 2026non-GAAP | $152.7M | – | – |
| Net sales, nine months ended September 30, 2026GAAP | $2.95B | – | – |
| Gross profit, nine months ended September 30, 2026GAAP | $1.22B | – | – |
| Gross profit as a percentage of net sales, nine months ended September 30, 2026GAAP | 41.5 % | – | – |
| Operating income, nine months ended September 30, 2026GAAP | $572.4M | – | – |
| Adjusted operating income, nine months ended September 30, 2026non-GAAP | $737.7M | – | – |
| Net income from continuing operations, nine months ended September 30, 2026GAAP | $434.5M | – | – |
| Net income, nine months ended September 30, 2026GAAP | $446.1M | – | – |
| Diluted earnings per ordinary share, nine months ended September 30, 2026GAAP | $2.76 | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $673.7M | – | – |
| Free cash flow, nine months ended September 30, 2026non-GAAP | $619.9M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Flow, third quarter 2026Core sales grew 1 percent in the third quarter. Reportable segment income was $69 million, up 15 percent, and ROS was 26.2 percent, an increase of 250 basis points. | $262.5M | – | 4.4 % |
| Water Solutions, third quarter 2026Core sales grew 1 percent in the third quarter. Reportable segment income was $121 million, up 16 percent, and ROS was 28.7 percent, an increase of 370 basis points. | $421.9M | – | 1.4 % |
| Pool, third quarter 2026Core sales declined 18 percent in the third quarter. Reportable segment income was $72 million, down 38 percent, and ROS was 24.6 percent, a decrease of 820 basis points. Third quarter performance reflected the completion of inventory realignment with major channel partners. | $291.5M | – | (17.7) % |
| Corporate and other, third quarter 2026Corporate and other loss was $(19.4) million. | $500K | – | – |
Full year 2026 and fourth quarter 2026 outlook
- RevenueFull year 2026 sales: down approximately 3 percent on a reported basis. Fourth quarter 2026 sales: up approximately 7 percent to 9 percent on a reported basis compared to the fourth quarter of 2025.
- NoteFull year 2026 GAAP EPS from continuing operations: approximately $3.76.
- NoteFull year 2026 adjusted EPS: approximately $4.70.
- NoteFourth quarter 2026 GAAP EPS from continuing operations: approximately $1.07.
- NoteFourth quarter 2026 adjusted EPS: approximately $1.15.
- NoteFourth quarter operating income: approx Up 16%.
- NoteFull year operating income: approx Down 6%.
- NoteFourth quarter adjusted operating income: approx Up 1%.
- NoteFull year adjusted operating income: approx Down 6%.
- NoteFourth quarter restructuring and other adjustments: approx $ —; full year: approx $ 69.
- NoteFourth quarter Transformation costs: approx —; full year: approx 45.
- NoteFourth quarter intangible amortization: approx 15; full year: approx 62.
- NoteFourth quarter deal-related costs and expenses: approx —; full year: approx 3.
- NoteFourth quarter equity income of unconsolidated subsidiaries: approx 1; full year: approx 2.
- NoteFourth quarter net income from continuing operations as reported: approx $ 171; full year: approx $ 605.
- NoteFourth quarter adjusted net income from continuing operations: approx $ 184; full year: approx $ 757.
Capital returns
- Pentair paid a regular cash dividend of $0.27 per share in the third quarter of 2026.
- Pentair will pay a regular quarterly cash dividend of $0.27 per share on November 6, 2026 to shareholders of record at the close of business on October 23, 2026.
- Cash dividends paid per ordinary share were $0.81 for the nine months ended September 30, 2026, compared with $0.75 for the nine months ended September 30, 2025.
- Repurchases of ordinary shares were $(350.0) million for the nine months ended September 30, 2026, compared with $(175.0) million for the nine months ended September 30, 2025.
- Dividends paid were $(130.8) million for the nine months ended September 30, 2026, compared with $(123.3) million for the nine months ended September 30, 2025.
What drove it
- The third-quarter results include approximately $8 million of International Emergency Economic Powers Act refunds.
- Flow reported total sales growth of 4.4 percent, including 3.9 percent from acquisitions and divestitures.
- Water Solutions reported total sales growth of 1.4 percent.
- The company completed the inventory realignment with major Pool channel partners.
- Effective January 1, 2026, Pentair reorganized Flow and Water Solutions, moving its legacy residential and irrigation flow business from Flow into Water Solutions. Prior-period amounts were retrospectively reclassified.
Concerns
- Total Pentair core sales declined 5.5 percent and total sales declined 4.5 percent in the third quarter.
- Pool total sales declined 17.7 percent, reportable segment income declined 38 percent, and ROS declined 820 basis points.
- GAAP operating income declined 15 percent, adjusted operating income declined 8 percent, GAAP EPS declined 19 percent and adjusted EPS declined 5 percent.
- Third-quarter GAAP ROS was 20.1 percent versus 22.7 percent in the prior-year quarter, while adjusted ROS was 24.8 percent versus 25.7 percent.
- Net interest expense was $21.7 million versus $14.4 million in the prior-year quarter.
What to watch
- Fourth-quarter reported sales guidance of up approximately 7 percent to 9 percent compared to the fourth quarter of 2025.
- Fourth-quarter GAAP EPS guidance of approximately $1.07 and adjusted EPS guidance of approximately $1.15.
- Full-year 2026 reported sales guidance of down approximately 3 percent and adjusted EPS guidance of approximately $4.70.
- The acquisition of Taco Group Holdings and the incomplete initial accounting and preliminary purchase price allocation cited in the forecasted intangible amortization disclosure.
- Pool channel inventory preparation for the 2027 pool season and the company's stated positioning for significant growth in 2027.
Balance sheet and cash flow
- Cash and cash equivalents were $74.0 million at September 30, 2026, compared with $101.6 million at December 31, 2025.
- Long-term debt was $1,484.1 million at September 30, 2026, compared with $1,638.6 million at December 31, 2025.
- Inventories were $655.0 million at September 30, 2026, compared with $632.6 million at December 31, 2025.
- Accounts receivable, net were $500.6 million at September 30, 2026, compared with $673.2 million at December 31, 2025.
- Capital expenditures were $(54.2) million for the nine months ended September 30, 2026, compared with $(45.1) million for the nine months ended September 30, 2025.
- Net cash used for investing activities was $(55.3) million for the nine months ended September 30, 2026, compared with $(354.3) million for the nine months ended September 30, 2025.
- Net cash used for financing activities was $(654.5) million for the nine months ended September 30, 2026, compared with $(370.8) million for the nine months ended September 30, 2025.
Analysis
Pentair reported third-quarter net sales of $976.4 million, down 4.5 percent from $1,022.0 million in the prior-year quarter, while core sales declined 5.5 percent. GAAP operating income was $195.9 million and GAAP ROS was 20.1 percent, compared with $231.7 million and 22.7 percent a year earlier. Adjusted operating income was $242.0 million and adjusted ROS was 24.8 percent, below $262.6 million and 25.7 percent in the prior-year quarter. GAAP diluted EPS from continuing operations was $0.91 and adjusted EPS was $1.18, versus $1.12 and $1.24, respectively.
The segment picture was uneven. Flow sales were $262.5 million and Water Solutions sales were $421.9 million, with total sales growth of 4.4 percent and 1.4 percent, respectively. Flow segment income rose 15 percent to $69 million and Water Solutions segment income rose 16 percent to $121 million. Pool sales were $291.5 million, down 17.7 percent, while Pool segment income fell 38 percent to $72 million and ROS declined 820 basis points to 24.6 percent. Management attributed Pool performance to completion of inventory realignment with major channel partners.
Cash generation declined year over year in the quarter, with net cash provided by operating activities of $169.3 million compared with $196.3 million and non-GAAP free cash flow of $152.7 million compared with $178.9 million. For the nine months, operating cash flow was $673.7 million and free cash flow was $619.9 million. Cash and cash equivalents were $74.0 million at September 30, 2026, and long-term debt was $1,484.1 million. The company repurchased $(350.0) million of ordinary shares and paid $(130.8) million of dividends in the nine-month period.
The company updated full-year 2026 GAAP EPS guidance to approximately $3.76, reaffirmed adjusted EPS of approximately $4.70, and updated reported sales guidance to down approximately 3 percent. It introduced fourth-quarter GAAP EPS guidance of approximately $1.07 and adjusted EPS guidance of approximately $1.15, with reported sales expected to be up approximately 7 percent to 9 percent from the fourth quarter of 2025. The outlook includes channel inventory right-sizing for the 2027 pool season and the Taco acquisition.
The release also identified approximately $8 million of IEEPA refunds in third-quarter results. Management reorganized the Flow and Water Solutions reporting segments effective January 1, 2026, with prior periods retrospectively reclassified, which makes the current segment comparisons conform to the new composition. The main reported operating pressure remains Pool, while Flow and Water Solutions delivered positive sales growth and higher segment income.
Management, verbatim
We delivered solid third-quarter results across sales, income and EPS. Our teams executed well during the quarter and responded with focus and urgency following a challenging second quarter in our Pool segment. We continue to make progress across our key priorities, while maintaining our commitment to serving customers, driving productivity and managing the business with discipline. We are encouraged by our performance and believe the actions we are taking are strengthening Pentair and positioning us for significant growth in 2027. We remain focused on finishing the year strong, delivering on our commitments and creating long-term value for our shareholders.
John L. Stauch, President and Chief Executive Officer
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. We remain focused on disciplined execution and building on this momentum as we deliver a strong finish to the year and position ourselves for robust growth in 2027.
John L. Stauch, President and Chief Executive Officer
Not in the filing
stated, not guessed- Prior outlook section was not provided, so no comparison of actual results with prior guidance is available.
- Quarterly share-repurchase amount was not provided.
- Fourth-quarter and full-year 2026 gross-margin guidance was not provided.
- Fourth-quarter and full-year 2026 operating-expense guidance was not provided.
- Fourth-quarter and full-year 2026 tax-rate guidance was not provided.
- Quarterly balance-sheet cash and debt comparisons with the immediately preceding quarter were not provided.
- Third-quarter 2026 gross-margin sequential comparison was not provided.
- Third-quarter 2026 selling, general and administrative expense sequential comparison was not provided.
- Third-quarter 2026 research and development expense sequential comparison was not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.