Pentair plc (NYSE:PNR) reported second-quarter results on Tuesday that exceeded earnings expectations, but weaker-than-expected revenue and a soft near-term outlook weighed on investor sentiment, sending the company’s shares lower in pre-market trading.
Shares of the water treatment and flow solutions company fell 5.03% following the earnings release.
Adjusted earnings per share came in at $1.14, ahead of the analyst consensus estimate of $1.12. Revenue, however, declined 17% year over year to $933 million, missing Wall Street expectations of $956 million.
Pool Inventory Correction Weighs on Sales
Pentair said the revenue shortfall was largely the result of an inventory reduction within its Pool distribution channel, which impacted sales by approximately $170 million. The company had previously disclosed the issue in its July 14 preannouncement.
“As shared in the July 14th preannouncement, our results were below expectations due primarily to a larger-than-anticipated inventory correction in the Pool channel,” said John L. Stauch, Pentair’s President and Chief Executive Officer.
The Pool business recorded the sharpest decline during the quarter, with sales falling 42% from a year earlier to $247 million. The weakness reflected inventory realignment among major distribution partners, as well as softer market conditions driven by elevated interest rates and inflation.
Elsewhere, the Flow segment delivered 5% year-over-year sales growth, while Water Solutions revenue declined 5%.
Third-Quarter Guidance Signals Continued Pressure
For the third quarter of 2026, Pentair expects adjusted earnings per share to range between $1.05 and $1.08.
The forecast represents a year-over-year decline of between 13% and 15%, with the midpoint of $1.07 indicating a weaker sequential performance than many analysts had anticipated.
Full-Year Outlook Reaffirmed
Despite near-term challenges, Pentair reaffirmed its full-year 2026 adjusted earnings per share guidance of $4.60 to $4.80. The midpoint of $4.70 remains slightly above the analyst consensus estimate of $4.68.
The company continues to expect full-year sales to decline between 4% and 7%.
During the quarter, Pentair repurchased $150 million of its ordinary shares and paid a quarterly dividend of $0.27 per share, extending its record of annual dividend increases to 50 consecutive years.
Pentair stock price
