Pentair plc (PNR)
Description
Pentair plc is an Ireland-incorporated, NYSE-listed provider of water and fluid management solutions serving residential, commercial and industrial markets worldwide.
Historical Reports
Financial Information
- Report Date
- 2025-04-30
- Report Period
- Q1 2025
- Debt
- $18,357 million as of March 31, 2025
- Debt History
- Debt increased from $16,387 million at December 31, 2024 to $18,357 million at March 31, 2025, a 12.0% increase.
- Debt Trend
- Increasing
Profit Information
- Profit
- $1,549 million net income in Q1 2025
- Profit History
- Net income rose from $1,335 million in Q1 2024 to $1,549 million in Q1 2025, a 16.1% increase.
- Profit Trend
- Increasing
Detailed Report
Pentair plc Q1 2025 Financial Analysis
Report Date: 2025-04-30
Period Covered: Q1 2025 (Quarter ended March 31, 2025)
Executive Summary
Pentair delivered solid top-line and bottom-line growth in Q1 2025, driven by disciplined pricing, transformation initiatives and contributions from recent acquisitions. Net sales of $10.10 billion were flat year-on-year, while net income climbed 16.1% to $1.55 billion. The company’s debt balance rose to $18.36 billion, reflecting borrowing to fund strategic investments and share repurchases.
Profit & Loss Overview
- Net sales: $10,104 million vs. $10,172 million in Q1 2024 (-0.7%)
- Gross profit: $4,033 million (+3.3%) with gross margin up 132 bps to 39.9%
- SG&A expense: $1,766 million (-4.6%) with SG&A ratio improving 175 bps to 17.5%
- Net interest expense: $197 million vs. $273 million in Q1 2024
- Net income: $1,549 million vs. $1,335 million in Q1 2024 (+16.1%)
- Effective tax rate: 15.3% vs. 13.0% in prior year
Drivers of Profit Change
- Pricing & Productivity: Pricing actions and productivity gains offset inflationary headwinds in raw materials and labor.
- Cost Control: SG&A efficiency from transformation program and lower compensation costs.
- Interest Savings: Lower average debt levels and optimized capital structure reduced interest costs.
Debt & Capital Structure
- Total debt at March 31, 2025: $18,357 million (vs. $16,387 million at 12/31/2024)
- Debt/EBITDA remains within covenant thresholds after financing recent acquisitions.
- Liquidity: $6.94 billion available under revolving credit facility plus cash balance of $1.41 billion.
Segment Performance
| Segment | Q1 2025 Net Sales | YoY % | Segment Income | YoY % |
|---|---|---|---|---|
| Flow Water | $3,679 M | –4.3% | $836 M | +8.1% |
| Water Solution | $2,582 M | –5.4% | $607 M | +9.1% |
| Pool | $3,839 M | +6.8% | $1,260 M | +13.6% |
Future Outlook & Risks
Pros:
- Strong free cash flow generation to support debt paydown, dividends and buybacks.
- Ongoing transformation program targeting further margin expansion.
- Diversified global footprint with market-leading positions.
Cons:
- Inflationary and tariff pressures on input costs and supply chain.
- Seasonality and weather dependence in Pool and Flow segments.
- Elevated leverage from recent acquisitions increases interest-rate exposure.
Conclusion: Pentair’s Q1 2025 results reflect robust execution of strategic initiatives, healthy margin improvement and a clear path to earnings growth, albeit against a backdrop of inflation, cyclical demand and higher leverage.
Statistics Breakdown
Net sales by segment (Q1 2025 vs. Q1 2024): Flow Water $3,679 M (–4.3%), Water Solution $2,582 M (–5.4%), Pool $3,839 M (+6.8%). Segment income: Flow Water $836 M (+8.1%), Water Solution $607 M (+9.1%), Pool $1,260 M (+13.6%).
Company Direction Insights
Pentair is on a steady growth trajectory, leveraging pricing power, transformation initiatives and targeted M&A to drive margin expansion. Financial health remains solid, with strong cash flow generation and ample liquidity, though leverage has risen. Future challenges include mitigating input cost inflation, managing cyclicality in end markets and ensuring accretive integration of new acquisitions. The company’s diversified portfolio and disciplined capital allocation provide opportunities for continued value creation amid external uncertainties.