Slide 1: Q4 2024 Earnings Release
- Picture to be updated Q4 2024 EARNINGS RELEASE FEBRUARY 4, 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains statements that we believe to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, are forward-looking statements. Without limitation
Slide 3: Key Definitions
Key Definitions • Except as otherwise noted, our results represent continuing operations for the period indicated, are presented on an adjusted basis • Core sales refers to GAAP net sales from continuing operations excluding: (1) the impact of currency translation and (2) the impact of net sales fro
Slide 4: Executive Summary – Q4'24
Executive Summary – Q4’24 Our Balanced Water Portfolio Delivered Record* Q4 Adjusted Operating Income and ROS Adjusted Operating Sales ROS Adjusted EPS ✓ Q4’24 Performance: Income $1.08 $231M − Sales down 1% $985M $973M 23.8% $0.87 $198M − Adjusted Operating Income up 17% 17% 20.1% 370 bps 24% (1%)
Slide 5: Executive Summary – FY'24
Executive Summary – FY’24 Resilient Water Portfolio Led to Record* Adjusted Operating Income, ROS and Adjusted EPS Adjusted Operating Sales ROS Adjusted EPS ✓ FY’24 Performance: Income 23.5% $4.33 $959M − Sales down 1% $4.1B $4.1B − Adjusted Operating Income up 12% $855M 20.8% $3.75 12% 270 bps 15%
Slide 6: Pentair's Multi-Year Performance
Pentair’s Multi-Year Performance A Leader in Helping the World Sustainably Move, Improve and Enjoy Water, Life’s Most Essential Resource Smart, Sustainable, Water Solutions MOVE Water IMPROVE Water ENJOY Water $1,572 $1,633 $4,122 $4,105 $4,083 $1,177 $1,131 $1,436 $3,765 $1,501 $1,582 $1,514 $1,344
Slide 7: Balanced & Resilient Water Portfolio
Balanced & Resilient Water Portfolio $1.5B in Sales $1.1B in Sales $1.4B in Sales ~21% ROS ~23% ROS ~33% ROS MOVE Water IMPROVE Water ENJOY Water Helping the World Sustainably Move, Improve and Enjoy Water, Life’s Most Essential Resource Note: Sales and ROS reflect 2024 performance. 7 Q4 2024 Earnin
Slide 8: Transformation and 80/20 Update
Transformation and 80/20 Update Pentair Business System 80/20 ACCELERATING TRANSFORMATION • Focus on reducing complexity, streamlining operational efficiencies xity Reductio omple n and driving core growth with key customers and products C • Quad 1 and Quad 4 actions started in 2024 across all segme
Slide 9: Key Takeaways
Key Takeaways Transformation and solid execution delivered record* Adjusted Operating Income, ROS 1 and adjusted EPS in 2024 2 Record* Free Cash Flow of $693 million and balanced capital deployment 3 80/20 expected to be an accelerator to more focused, profitable growth in FY’25 4 Introducing FY’25
Slide 10: Q4'24 Pentair Performance
Q4’24 Pentair Performance Sales Adjusted Operating Income $985M $1M Flat $973M $37M $231M $17M $21M Flat ($30M) $198M (1%) ($25M) 17% YoY YoY ROS ROS (3 pts) 2 pts 0 pts 0 pts (1 pt) 20.1% 2.5% 0.0% (2.5%) 3.7% 23.8% (1 pt) Vol/Price Q4’23 Volume Price Acq./Div. FX Q4’24 Q4’23 FX Inflation Prod. Q4’
Slide 11: FY'24 Pentair Performance
FY’24 Pentair Performance Sales Adjusted Operating Income $4.1B $79M $4.1B $91M $107M $959M ($94M) ($4M) ($3M) $855M ($1M) (1%) ($93M) 12% YoY YoY ROS ROS (2 pts) 2 pts (1 pt) 0 pts (1 pt) 20.8% 2.4% 0.0% (2.3%) 2.6% 23.5% (1 pt) Vol/Price FY’23 Volume Price Acq./Div. FX FY’24 FY’23 FX Inflation Pro
Slide 12: Q4'24 Flow Performance
Move Water Q4’24 Flow Performance Sales Segment Income $379M $14M $74M $6M Flat $5M Flat $361M $65M ($23M) ($1M) (5%) ($10M) 13% YoY YoY ROS ROS (7 pts) 2 pts 0 pts 0 pts (5 pts) 17.2% 2.4% 0.0% (2.8%) 3.6% 20.4% (1 pt) Vol/Price Q4’23 Volume Price Acq./Div. FX Q4’24 Q4’23 FX Inflation Prod. Q4’24 A
Slide 13: FY'24 Flow Performance
Move Water FY’24 Flow Performance Sales Segment Income $1.58B $47M $318M $27M Flat $1.51B $26M Flat $282M ($94M) ($1M) ($37M) 13% (4%) YoY YoY ROS ROS (6 pts) 2 pts 0 pts 0 pts (4 pts) 17.8% 2.5% 0.0% (2.3%) 3.0% 21.0% (1 pt) Vol/Price FY’23 Volume Price Acq./Div. FX FY’24 FY’23 FX Inflation Prod. F
Slide 14: Q4'24 Water Solutions Performance
Improve Water Q4’24 Water Solutions Performance Sales Segment Income $18M $62M $270M $2M Flat $258M $52M $2M ($12M) ($2M) ($1M) (4%) 21% ($9M) YoY YoY ROS ROS (5 pts) 1 pt (1 pt) 1 pt (4 pts) 19.1% 1.0% 0.7% (3.2%) 6.5% 24.1% (1 pt) Vol/Price Q4’23 Volume Price Acq./Div. FX Q4’24 Q4’23 FX Inflation
Slide 15: FY'24 Water Solutions Performance
Improve Water FY’24 Water Solutions Performance Sales Segment Income $1.18B $14M $1.13B $248M $3M $1M $32M $255M ($56M) ($2M) ($2M) ($29M) 3% (4%) YoY YoY ROS ROS (5 pts) 1 pt 0 pts 0 pts (4 pts) 21.0% 1.3% 0.1% (2.5%) 2.7% 22.6% (1 pt) Vol/Price FY’23 Volume Price Acq./Div. FX FY’24 FY’23 FX Inflat
Slide 16: Q4'24 Pool Performance
Enjoy Water Q4’24 Pool Performance Sales Segment Income $8M $2M Flat $354M $15M Flat $4M $119M $336M $8M $105M ($5M) 5% 14% YoY YoY ROS ROS 2 pts 2 pts 1 pt 0 pts 5 pts 31.3% 2.7% 0.0% (1.5%) 1.3% 33.8% (1 pt) Vol/Price Q4’23 Volume Price Acq./Div. FX Q4’24 Q4’23 FX Inflation Prod. Q4’24 Acq./Div. P
Slide 17: FY'24 Pool Performance
Enjoy Water FY’24 Pool Performance Sales Segment Income $39M Flat $1.44B $55M $59M Flat $23M $476M $1.34B ($2M) $417M ($23M) 7% 14% YoY YoY ROS ROS 4 pts 3 pts 0 pts 0 pts 7 pts 31.0% 2.2% 0.0% (1.7%) 1.7% 33.2% (1 pt) Vol/Price FY’23 Volume Price Acq./Div. FX FY’24 FY’23 FX Inflation Prod. FY’24 Ac
Slide 18: Transformation Initiatives and 80/20
Transformation Initiatives and 80/20 Expect ~26% ROS by 2026 vs. 24%; Expect to Protect Income Despite Deferred Residential Recovery 2022 Investor Day 2026T Updated 2026T Sales Pricing Excellence Sales Sales Material Material Strategic Sourcing Material Costs Costs Costs Operations Excellence OCOGS
Slide 19: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Debt Summary Cash Flow ($M) $1,648M* Maturity FY 2024 FY 2023 Net Income – Continuing Ops $626 $623 Amortization 54 55 $1,104M** 67% Fixed 2025 – 2032 Subtotal $680 $678 Depreciation 60 60 Capital Expenditures (74) (76) $544M 33% Variable 2023 – 2027 Asset Sales 1 6 Worki
Slide 20: Q1 and Full Year 2025 Pentair Outlook & Expectations
Q1 and Full Year 2025 Pentair Outlook & Expectations • Balanced water portfolio and focused growth strategy Q1’25 FY’25 • Introducing FY’25 adjusted EPS guidance range of ~$4.65 to $4.80, • Total Sales down ~3% to 4% • Total Sales flat to up ~2% (inc. FX headwinds) Sales Sales ($975M to $985M) (Flow
Slide 21: FY'25 Guidance at Midpoint
FY’25 Guidance at Midpoint* Sales Adjusted Operating Income ~Up ~1.5 to 2% ~0% ~$4.125B $959M $4.1B Slightly (~1%) ~1% ~8% YoY YoY ROS ROS ROS ~24.5% 23.5% to 25% (1 pt) Vol/Price FY’24 Volume Price Acq./Div. FX FY’25 FY’24 FX Inflation Prod. FY’25 Acq./Div. Total Pentair growth flat to up ~2% Adjus
Slide 22: 2024 Reflection
2024 Reflection Delivered Record* Earnings in FY’24 Driven by Solid Execution and Transformation Solid execution across our balanced water portfolio and Transformation drove 1 significant margin expansion despite continued macroeconomic headwinds 2 Performance accountability across the organization
Slide 23: We Believe Pentair Is a Compelling Investment Opportunity
We Believe Pentair Is a Compelling Investment Opportunity An industry leader with a balanced, innovative water portfolio Transformation initiatives to drive operational efficiencies and margin expansion Sustainability focus on People, Planet and Governance to provide smart, sustainable water solutio
Slide 24: Appendix
Appendix GAAP TO NON-GAAP MEASUREMENTS & RECONCILIATIONS
Slide 25: Reported To Adjusted 2024 Reconciliation
Reported To Adjusted 2024 Reconciliation Pentair plc and Subsidiaries Reconciliation of GAAP to Non-GAAP Financial Measures for the Year Ended December 31, 2024 Excluding the Effect of 2024 Adjustments (Unaudited) First Second Third Fourth Full In millions, except per-share data Quarter Quarter Quar
Slide 26: Reported To Adjusted 2023 Reconciliation
Reported To Adjusted 2023 Reconciliation Pentair plc and Subsidiaries Reconciliation of GAAP to Non-GAAP Financial Measures for the Year Ended December 31, 2023 Excluding the Effect of 2023 Adjustments (Unaudited) First Second Third Fourth Full In millions, except per-share data Quarter Quarter Quar
Slide 27: Reported To Adjusted 2022 Reconciliation
Reported To Adjusted 2022 Reconciliation Pentair plc and Subsidiaries Reconciliation of GAAP to Non-GAAP Financial Measures for the Year Ended December 31, 2022 Excluding the Effect of 2022 Adjustments (Unaudited) First Second Third Fourth Full In millions, except per-share data Quarter Quarter Quar
Slide 28: Reported To Adjusted 2021 Reconciliation
Reported To Adjusted 2021 Reconciliation Pentair plc and Subsidiaries Reconciliation of GAAP to Non-GAAP Financial Measures for the Year Ended December 31, 2021 Excluding the Effect of 2021 Adjustments (Unaudited) First Second Third Fourth Full In millions, except per-share data Quarter Quarter Quar
Slide 29: Reported To Adjusted 2019-2020 Reconciliations
Reported To Adjusted 2019-2020 Reconciliations Pentair plc and Subsidiaries Reconciliation of GAAP to Non-GAAP Financial Measures for the Years Ended December 31, 2019 and 2020 Excluding the Effect of 2019 and 2020 Adjustments (Unaudited) In millions, except per-share data 2019 2020 Net sales $ 2,95
Slide 30: Segment Information
Segment Information Pentair plc and Subsidiaries Supplemental Financial Information by Reportable Segment (Unaudited) 2024 2023 First Second Third Fourth Full First Second Third Fourth Full In millions Quarter Quarter Quarter Quarter Year Quarter Quarter Quarter Quarter Year Net sales Flow $ 384.3 $
Slide 31: Core Sales Growth Reconciliation
Core Sales Growth Reconciliation Pentair plc and Subsidiaries Reconciliation of Net Sales Growth to Core Net Sales Growth by Segment For the Quarter and Year Ended December 31, 2024 (Unaudited) Q4 Net Sales Growth Full Year Net Sales Growth Core Currency Acq. / Div. Total Core Currency Acq. / Div. T
Slide 32: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation Pentair plc and Subsidiaries Reconciliation of the GAAP Operating Activities Cash Flow to the Non-GAAP Free Cash Flow (Unaudited) Years ended December 31 In millions 2024 2023 Net cash provided by operating activities of continuing operations $ 766.9 $ 620.8 Capital exp
Slide 33: ROIC Reconciliation
ROIC Reconciliation Pentair plc and Subsidiaries Return on Invested Capital (ROIC) (Unaudited) Fourth First Second Third Fourth Quarter Quarter Quarter Quarter Quarter Dollars in millions 2023 2024 2024 2024 2024 Adjusted operating income $ 197.8 $ 217.3 $ 271.4 $ 239.2 $ 231.3 Reported effective ta
Slide 34: 2024 EBITDA Reconciliation
2024 EBITDA Reconciliation Pentair plc and Subsidiaries Reconciliation of Net Income from Continuing Operations to EBITDA for the Year Ended December 31, 2024 (Unaudited) In millions FY 2024 Net income from continuing operations $ 625.6 Adjustments: Restructuring and other 37.0 Transformation costs
Slide 35: Reported To Adjusted 2025 Reconciliation
Reported To Adjusted 2025 Reconciliation Pentair plc and Subsidiaries Reconciliation of the GAAP Year Ending December 31, 2025 to the Non-GAAP Excluding the Effect of 2025 Adjustments (Unaudited) Forecast First Full In millions, except per-share data Quarter Year Net sales approx Down 3% - 4% approx
Slide 36: 2025 EBITDA Reconciliation
2025 EBITDA Reconciliation Pentair plc and Subsidiaries Reconciliation of Net Income from Continuing Operations to EBITDA for the Year Ending December 31, 2025 (Unaudited) Full Year at Midpoint of In millions Outlook Net income from continuing operations approx $ 739 Adjustments: Intangible amortiza