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what it is
Pentair sells pool gear, water filtration, and industrial water treatment equipment that people replace when the old stuff fails.
how it gets paid
Last year Pentair made $4.2B in revenue.
why it's growing
Revenue grew 2.3% last year. The latest quarter beat by 1.72%, and the earlier September-period report was also ahead of expectations with $1.022 billion in sales, about $20 million above.
what just happened
Pentair just posted a small beat, with EPS of $1.18 versus the $1.16 consensus.
At a glance
A balance sheet — strong enough to weather a downturn
80/100 earnings predictability — you can trust these numbers
21.5x trailing p/e — priced about right
1.0% dividend yield — cash in your pocket every quarter
20.5% return on capital — every dollar works hard here
xvary composite: 80/100 — above average
What they do
Pentair sells pool gear, water filtration, and industrial water treatment equipment that people replace when the old stuff fails.
Pentair wins where replacement demand does the selling for it. Its pool business leads in North America replacements, which means your pump or filter breaks and you buy another one, not a new habit. That steady demand helps support a 26.4% operating margin (operating margin → profit after running the business → so what: Pentair keeps about $0.26 from each $1 of sales before interest and taxes).
How they make money
$4.2B
annual revenue · their business grew +2.3% last year
total revenue
$4.2B
+2.3%
The products that matter
manufactures pool equipment
Pool Equipment
7% recent sales growth
pool receipts grew 7% in the latest company update. right now, this is the segment carrying the story.
key driver
treats and filters water
Water Solutions
lagging segment
management said this arm continues to struggle even as company-wide quarterly sales reached $1.022B. you need stabilization here for the next leg up.
needs work
moves water in industrial systems
Flow Technology
6% recent sales growth
flow revenues rose 6% in the latest update. it is not the whole story, but it helps offset weakness elsewhere.
supporting role
Key numbers
26.4%
operating margin
Operating margin → profit after running the business → so what: Pentair turns roughly $0.26 of every sales dollar into operating profit, which is rich for a $4.2 billion industrial.
20.5%
return on capital
Return on capital → profit earned on money invested in the business → so what: Pentair is getting about $0.21 back for every $1 it puts to work.
$130
18-month target
Target price → a research estimate of fair value → so what: the published 18-month target implies about 23% upside from $105.27.
$1.6B
long-term debt
Long-term debt → money owed over many years → so what: debt is just 8% of capital, which gives Pentair room if demand gets weird.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 2 — safer than 80% of stocks
- price stability 80 / 100
- long-term debt $1.6B (8% of capital)
- net profit margin 24.4% — keeps 24 cents of every dollar in revenue
- return on equity 24% — $0.24 profit for every $1 investors have put in
A with balance sheet grade and risk rank standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in PNR 3 years ago → it's now worth $24,680.
The index would have given you $13,920.
source: institutional data · total return
What just happened
beat estimates
Pentair just posted a small beat, with EPS of $1.18 versus the $1.16 consensus.
The latest quarter beat by 1.72%, and the earlier September-period report was also ahead of expectations with $1.022 billion in sales, about $20 million above consensus. Pool sales rose 7% and flow revenue rose 6%, which did the heavy lifting.
$3.2B
revenue
$2.94
eps
40.5%
gross margin
the number that mattered
Gross margin was 40.5%, and that matters because margin strength is why a 2.3% revenue grower can still produce a 24.4% net profit margin.
-
pentair’s september-period financials were better than expected.
-
sales of $1.022 billion represented a 3% annual gain and were roughly $20 million above consensus.
-
pool receipts led the way with a 7% top-line increase, while flow revenues were up 6%.the company is not firing on all cylinders though, as the water solutions arm continues to struggle. the higher sales base pushed adjusted earnings up to $1.24 a share, which was $0.06 better than the average call on the street.
-
earnings for 2025 are anticipated in a spread from $4.85 to $4.90 a share on an adjusted basis.
-
for our part, we have raised our call by a nickel to the zenith of the provided range.
source: company earnings report, 2026
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What could go wrong
the #1 risk is pool demand cooling after a 7% growth burst.
high
pool momentum fades
pool receipts were up 7% in the latest update. If that cools, the cleanest growth engine on the page slows with it.
this matters because the market is already paying 21.5x trailing earnings for steady execution
med
water solutions stays stuck
management called water solutions the arm that continues to struggle. One weak segment can cancel out a lot of decent company-wide headlines.
with quarterly sales at $1.022B, mix matters more than the headline top line
med
margin has to do the heavy lifting
the street is looking for about $4B of revenue next year versus $4.2B last year, yet EPS is expected at $5.40. That only works if profitability stays strong.
if revenue stalls and margins slip, the earnings story gets thinner fast
low
the stock stops getting paid for consistency
a 1.0% dividend yield does not cushion much if investors decide this should trade like a plain industrial rather than a premium one.
multiple compression can hurt even when the business is still decent
with $4.2B in annual revenue and $5.40 of expected FY2026 EPS, this is a stock where a few points of segment mix can matter more than the headline sales number.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
water solutions stabilization
this is the weak spot management already flagged. If it stops dragging, the story gets broader than just pools.
trend
pool growth after the 7% jump
one strong quarter is nice. You want to know whether that 7% pace is durable or just a good stretch.
calendar
the next earnings guidepost
the last guide framed 2025 adjusted EPS at $4.85–$4.90. The next update tells you whether pentair is still inching higher or flattening out.
risk
revenue vs. EPS divergence
if revenue sits near the $4B FY2026 estimate while EPS still aims for $5.40, margins are carrying the thesis. That is efficient. It is also less forgiving.
Analyst rankings
short-term outlook
top 20%
momentum score 2 — analysts expect above-average price performance in the year ahead. in human-speak: they like the setup.
risk profile
above average
stability score 2 — safer than roughly 80% of stocks. this is not a rollercoaster name.
chart momentum
top 20%
technical score 2 — the chart has been working. analysts see better-than-average momentum here.
earnings predictability
80 / 100
management has been fairly reliable. You usually get a steady industrial quarter, not a quarterly plot twist.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 374 buyers vs. 306 sellers in 3q2025. total institutional holdings: 0.2B shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$87
$173
$105
current price
$130
target midpoint · +23% from current · 3-5yr high: $165 (+55% · 13% ann'l return)
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