Pentair (PNR) Q2 2026 earnings summary

Executive summary

• Q2 2026 sales were $933 million, down 17% year-over-year, primarily due to a $170 million Pool channel inventory destock, while Flow and Water Solutions delivered record margins and resilience.

• Operating income was $166.5 million (down 23.5% YoY); adjusted operating income was $237 million (down 20% YoY); GAAP EPS was $0.80, adjusted EPS $1.14 (down 18% YoY).

• Announced definitive agreement to acquire Taco Group Holdings for $1.425 billion, expected to close in Q4 2026, creating a new growth platform in Water Solutions.

• Pool segment is expected to return to robust growth in 2027, with inventory actions underway to optimize channel levels.

• $35 million in tariff/IEEPA refunds recognized; $150 million in share repurchases completed in Q2.

Financial highlights

• Q2 2026 sales were $933 million, adjusted operating income $237 million, ROS 25.4%, and adjusted EPS $1.14.

• Gross margin improved to 42.4% from 40.7% YoY; operating margin was 17.9% (down 1.5 pts YoY).

• Core sales declined 17% YoY, mainly due to $170 million Pool channel inventory destocking.

• Flow sales up 5% to $264 million; segment income up 27%, ROS up 470 bps to 26.5%.

• Water Solutions sales down 5% to $422 million; segment income up 17%, ROS up 560 bps to 30%.

• Pool sales down 42% to $247 million; segment income down 62%, ROS at 23.4%.

• Free cash flow for Q2 2026 was $467 million; $553 million for the quarter in another source.

Outlook and guidance

• Full-year 2026 adjusted EPS guidance reaffirmed at $4.60–$4.80; GAAP EPS guidance $3.86–$4.06.

• Total 2026 sales expected to decline 4%–7% YoY, midpoint $3.95 billion.

• Flow sales projected up mid- to high-single digits; Water Solutions flat to low single-digit growth; Pool sales down 18%–22%.

• Q3 2026 adjusted EPS guidance $1.05–$1.08 (down 13%–15% YoY); Q3 sales expected down 4%–6%, midpoint $970 million.

• Guidance excludes anticipated Taco Group Holdings acquisition, expected to close in Q4 2026.