Pentair(NYSE) PNR

Pentair plc makes systems that move and clean water. These products help people get high-quality water for homes and businesses. They also provide equipment to keep swimming pools running smoothly.

Moving and Improving Every Drop

• Water Solutions: Filtration systems and ice machines for homes and restaurants; accounted for 41% of net sales in the first six months of 2026.
• Pool: Energy-efficient pumps, filters, and heaters for residential pools; accounted for 32% of net sales in the first half of 2026.
• Flow: Industrial pumps and wastewater treatment systems for commercial markets; accounted for 27% of net sales in the first half of 2026.

Acquisitions and Business Shifts

• Acquired Hydra-Stop in September 2025 for $292.1 million to add specialty valves and installation equipment to the flow business.
• Entered a definitive agreement on July 27, 2026, to buy Taco Group Holdings for $1.425 billion.
• Reorganized business segments on Jan. 1, 2026, to move residential and irrigation flow products into the Water Solutions segment.
• Continued a Transformation Program to improve profit margins through better pricing and simpler business processes.

A Focus on Efficiency

Pentair applies 80/20 guiding principles to focus its resources on its most profitable products and customers. This strategy aims to reduce complexity by removing low-margin items while improving service for its highest-value clients.

Key Numbers and Results

• Net sales were $932.6 million in the second quarter of 2026, down 17.0% year over year.
• Operating income was $166.5 million in the second quarter of 2026, down 23.5% year over year.
• Free cash flow reached $467.2 million for the six-month period ended June 30, 2026.
• Total net sales were $1.97 billion in the first six months of 2026, down 7.7% year over year.
• Dividends paid in the first half of 2026 were $87.5 million, up from $82.4 million in the prior year period.

The Bottom Line

Pentair has transitioned from a broad industrial group into a specialized provider of sustainable water solutions. Its focus on operational efficiency and strategic acquisitions helps it manage changing demand in the global pool and residential markets.