Pentair grows earnings despite sales dip, showcases resilient strategy in Q1 2025

Pentair, a global leader in sustainable water solutions, reported robust financial results for the first quarter of 2025, highlighted by double-digit earnings growth, improved profitability, and a continued commitment to shareholder returns.

The company posted first quarter sales of $1.0 billion, a slight decrease of 1% from the same period last year. Core sales, which exclude currency impacts, acquisitions, and divestitures, also declined 1%.

Despite the dip in sales, Pentair’s operating income rose 12% to $203 million. Return on sales (ROS) improved by 230 basis points to 20.1%. On an adjusted basis, operating income reached $243 million, also up 12%, with ROS expanding to 24.0%, a 260 basis point increase year-over-year.

Earnings per diluted share (EPS) from continuing operations came in at $0.93, a 16% increase from $0.80 in the first quarter of 2024. Adjusted EPS climbed 18% to $1.11.

“We delivered another strong quarter of earnings growth driven by continued execution and agility from our businesses and functional teams across our balanced water portfolio, inclusive of Transformation initiatives and 80/20 actions,” said John L. Stauch, Pentair’s President and CEO. “We stayed resilient and moved with speed during the first quarter to mitigate tariff impacts including implementing price increases, pre-buying inventory and capping orders to manage our supply chain. I am very grateful for how our teams continue to rise to the challenge and deliver for customers while creating value for shareholders. We have strong cash flow, a solid balance sheet and a balanced capital allocation strategy. We continue to help our customers move, improve and enjoy water, life’s most essential resource, while also working to enhance shareholder returns.”

Segment results were mixed:

• Flow sales fell 4% year-over-year, with core sales down 3%. However, segment income increased 8% to $84 million, with ROS up 260 basis points to 22.7%.
• Water Solutions sales dropped 5%, with core sales down 4%. Segment income rose 9% to $61 million, and ROS climbed 310 basis points to 23.5%.
• Pool sales rose 7%, driven by a 4% increase in core sales. Segment income jumped 14% to $126 million, with ROS improving by 200 basis points to 32.8%.

Net cash used in operating activities for continuing operations totaled $39 million, compared to $107 million in the prior year. Free cash flow usage was $56 million, an improvement from $127 million in Q1 2024.

Pentair maintained its tradition of rewarding shareholders, paying a quarterly cash dividend of $0.25 per share and marking its 49th consecutive year of dividend increases. The company also repurchased $50 million worth of shares during the quarter, with $400 million remaining under its current share repurchase authorization.

Looking ahead, the company updated its full-year 2025 GAAP EPS guidance to a range of $4.27 to $4.42 and reaffirmed its adjusted EPS forecast of $4.65 to $4.80.