PNR · Pentair plc

Pentair plc delivered strong Q1 2026 results with sales of $1,037 million, up 3% reported and 1% core, driven by Flow segment growth of 11% reported and 2% core, offsetting slight declines in Water Solutions. Margin expansion was notable, with GAAP ROS at 20.3% (up 20 bps) and adjusted ROS at 25.0% (up 100 bps), reflecting productivity gains from Pentair Business System initiatives. Adjusted operating income rose 7% to $259 million. GAAP EPS from continuing operations increased 5% to $0.98, while adjusted EPS grew 10% to $1.22. Segment performance showed Flow ROS up 210 bps to 23.7%, Water Solutions up 160 bps to 25.5%, and Pool steady at 33.1% with 1% core growth. CEO John L. Stauch highlighted execution across Move, Improve, and Enjoy Water portfolios, structural business model changes for resilience, and Investor Day growth algorithm. Cash flow was pressured with operating cash use of $67 million due to working capital, particularly receivables up $243 million. Shareholder returns remained robust: $0.27 dividend paid (50th year of increases), $200 million share repurchases (2.0 million shares), $800 million authorization remaining. Guidance raised significantly: FY2026 GAAP EPS to $4.83-$4.93 (23-25% growth), adjusted $5.30-$5.40 (8-10%), sales up 2-4%; Q2 sales up 1%, adjusted EPS $1.47-$1.50 (6-8% growth), assuming limited residential recovery but commercial/industrial/municipal strength. Segment reorganization effective Jan 1, 2026, moved residential/irrigation flow to Water Solutions with prior periods recast, no P&L impact.