Pentair Expands Flow Business Portfolio With Hydra-Stop Buyout

Pentair plc PNR informed that it closed its previously announced acquisition of Hydra-Stop LLC from Madison Industries. This move boosts PNR’s portfolio and is in sync with the company’s goal to address critical water issues for growing cities.

Details of Pentair’s Acquisition of Hydra-Stop

Hydra-Stop is an insertion valve and line stop manufacturer that operates in Burr Ridge, Ill. It employs 50 members. Hydra-Stop will become part of Pentair Flow’s business segment and operate within the company’s Commercial and Infrastructure business unit. Hydra-Stop is projected to report $50 million in revenues in 2025, with a return on sales of 30%.

The addition of Hydra-Stop expands Pentair’s product offerings in the municipal water supply space. It will further help municipalities deal with critical water issues through various solutions that help maintain the flow of water in essential applications while preventing water loss. 

The transaction is valued at $290 million. After accounting for $50 million in tax benefits, the net value is approximately $240 million.

PNR’s Q2 Performance

Pentair posted adjusted earnings per share of $1.39 for the second quarter of 2025, which beat the Zacks Consensus Estimate of $1.33 by a 4.5% margin. The bottom line also topped its guidance of $1.31-$1.35 and marked a 14% improvement from the prior-year quarter.

Net sales rose 2% year over year to $1.123 billion. The top line surpassed the Zacks Consensus Estimate of $1.115 billion. Excluding the impacts of acquisitions, divestitures and currency translation, core sales rose 1%.

Net sales in the Flow segment totaled $397 million, flat with the prior-year quarter. Operating earnings for the segment rose 10% year over year to $93 million.

Pentair Stock’s Price Performance

The stock has gained 18.2% over the past year compared with the industry’s 4.8% growth.

PNR’s Zacks Rank & Other Stocks to Consider

Pentair currently carries a Zacks Rank #2 (Buy). 

Some other top-ranked stocks from the Industrial Products sector are Zurn Elkay Water Solutions Corporation ZWS, Deluxe Corporation DLX and Xylem Inc. XYL. ZWS sports a Zacks Rank #1 (Strong Buy), and DLX and XYL have a Zacks Rank #2 at present. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Zurn Elkay Water Solutions’ 2025 earnings is pegged at $1.44 per share, indicating a year-over-year increase of 12.5%. It delivered an average trailing four-quarter earnings surprise of 10%. Zurn Elkay Water Solutions’ shares have gained 38.4% in a year.

Deluxe delivered an average trailing four-quarter earnings surprise of 12.5%. The Zacks Consensus Estimate for Deluxe’s 2025 earnings is pinned at $3.49 per share, which indicates a year-over-year rise of 6.1%. DLX’s shares have grown 6.2% in a year.

Xylem delivered an average trailing four-quarter earnings surprise of 6.1%. The Zacks Consensus Estimate for Xylem’s 2025 earnings is pinned at $4.82 per share, which indicates a year-over-year rally of 12.9%. The company’s shares have gained 5.5% in a year.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research