Pentair plc (NYSE:PNR) reported third-quarter adjusted earnings and revenue above analyst expectations on Tuesday, while reaffirming its full-year 2026 adjusted earnings guidance.
The water treatment and equipment company recorded adjusted earnings per share of $1.18, exceeding the consensus estimate of $1.08. Revenue totaled $976 million, above analysts’ expectations of $965.3 million, although sales declined 4% compared with the same period of 2025.
Pentair maintained its full-year adjusted earnings per share forecast of approximately $4.70, exceeding the analyst consensus of $4.64. The company also updated its annual sales outlook and provided fourth-quarter projections.
Performance varied across its operating segments, with lower sales and income in Pool offset in part by growth in Flow and Water Solutions.
Pentair posted adjusted earnings of $1.18 per share for the third quarter of 2026, exceeding the analyst consensus estimate of $1.08 by $0.10.
Quarterly revenue reached $976 million, compared with market expectations of $965.3 million.
However, revenue declined approximately 4% from $1.02 billion in the corresponding quarter of 2025.
The results reflected differences in performance across the company’s operating divisions, particularly the decline in its Pool business.
Despite lower year-over-year revenue, adjusted earnings per share exceeded market expectations.
Pentair reported third-quarter adjusted operating income of $242 million, compared with $263 million in the prior-year period.
The decline represented approximately 8% year-over-year.
Adjusted return on sales was 24.8%, a decrease of 90 basis points compared with the third quarter of 2025.
The lower adjusted operating income and margin reflected the company’s quarterly operating performance, including the reduction in sales and income within its Pool segment.
Pentair’s Pool segment recorded an 18% decrease in sales compared with the third quarter of 2025.
Segment income declined 38% year over year.
The company linked the reduction to the completion of an inventory realignment involving major channel partners.
The inventory adjustment affected the segment’s quarterly sales and profitability.
Pool experienced the largest reported declines among Pentair’s operating segments during the quarter.
Management also referred to the segment’s performance in the preceding quarter when discussing the company’s latest results.
Pentair’s Flow segment reported a 4% increase in sales during the third quarter.
Segment income rose 15% compared with the corresponding period of 2025.
Water Solutions recorded sales growth of 1%, while segment income increased 16%.
These results contrasted with the declines reported by the Pool segment.
The growth in Flow and Water Solutions contributed to Pentair’s consolidated financial performance, although overall company revenue remained below the prior-year level.
John L. Stauch, President and Chief Executive Officer of Pentair, commented on the company’s third-quarter results and operating developments.
“We delivered solid third-quarter results across sales, income and EPS,” Stauch said.
He added:
“Our teams executed well during the quarter and responded with focus and urgency following a challenging second quarter in our Pool segment.”
The comments reflected management’s assessment of the company’s performance following the inventory-related developments affecting Pool.
The company reported adjusted earnings above expectations despite lower consolidated revenue and adjusted operating income.
Pentair reaffirmed its adjusted earnings per share guidance of approximately $4.70 for the full year 2026.
The forecast is above the analyst consensus estimate of $4.64.
The company also updated its annual sales guidance, projecting a decline of approximately 3% on a reported basis compared with 2025.
The earnings outlook remained unchanged despite the reduction in year-over-year sales and adjusted operating income reported during the third quarter.
The guidance reflects management’s current expectations for financial performance through the end of 2026.
For the fourth quarter of 2026, Pentair expects adjusted earnings per share of approximately $1.15.
The company forecasts sales growth of between 7% and 9% compared with the fourth quarter of 2025.
The outlook indicates that management expects revenue to increase year over year during the final quarter, following the 4% decline reported in the third quarter.
The fourth-quarter projections accompany Pentair’s full-year adjusted earnings forecast of approximately $4.70 per share.
Pentair reported free cash flow of $153 million for the third quarter.
The figure compared with $179 million in the corresponding period of 2025.
The decline amounted to $26 million year over year.
Free cash flow represents cash generated after capital expenditures and provides information about the company’s cash generation during the reporting period.
The lower quarterly figure accompanied the reduction in adjusted operating income and consolidated revenue.
Pentair’s third-quarter report showed adjusted earnings and revenue above analyst expectations, although revenue and adjusted operating income declined compared with the previous year.
The Pool segment recorded lower sales and income following an inventory realignment, while Flow and Water Solutions reported growth in both measures.
For 2026, Pentair expects adjusted earnings of approximately $4.70 per share and a reported sales decline of approximately 3%.
The company also forecasts fourth-quarter sales growth of 7% to 9% and adjusted earnings of approximately $1.15 per share.
Subsequent financial reports will provide further information about performance across the three operating segments, developments in Pool following the inventory adjustment, and progress against the company’s annual earnings and sales guidance.
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