Pentair Plc. · NYSE:PNR
Pentair — Q1 2025 Earnings Presentation
35 slides from Pentair's earnings presentation, Apr 22, 2025
Slide 1: Q1 2025 Earnings Release
- Picture to be updated Q1 2025 EARNINGS RELEASE APRIL 22, 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, 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 from ac
Slide 4: Pentair Snapshot (NYSE: PNR)
Pentair Snapshot (NYSE: PNR) 2024 Sales: ~$4.1B Helping the World Sustainably Move, Improve and Enjoy Water – Life’s Most Essential Resource OEM, Direct, Other 25% End Markets Focus on Dividend Aristocrat Profitability 49 YEARS Trade / Channel Partners ~23.5% Annual Dividend Increase 75% ROS (2024)
Slide 5: 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 6: 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. 6 Q1 2025 Earnin
Slide 7: Executive Summary
Executive Summary Continued to Deliver Strong Margin Expansion Amidst a Dynamic Global Macroeconomic Landscape Adjusted Operating Sales ROS Adjusted EPS Income ✓ Q1’25 Performance: $1.11 $243M $1,017M $1,010M 24.0% − Sales down 1% $217M $0.94 − Adjusted Operating Income up 12% 12% 21.4% 260 bps 18%
Slide 8: Tariff & Inflation Update
Tariff & Inflation Update Remaining Agile in a Rapidly Changing Macroeconomic & Geopolitical Environment 1 Our initial 2025 guidance provided on February 4, 2025, included enacted and potential tariff impacts; Our current guidance is inclusive of tariffs that are in place as of April 21, 2025 2 We a
Slide 9: Transformation & 80/20 Continues to Expand Margins
Transformation & 80/20 Continues to Expand Margins Pentair Business System 1 Drove $174M in Transformation Savings (2023-2024, net of investments) xity Reduct omple ion C 80/20 Approach 2 Expect to Deliver ~$80M in Transformation and 80/20 Savings in 2025 (net of investments) Sourcing Operational Ex
Slide 10: Key Takeaways
Key Takeaways Solid execution and Transformation continued to drive strong margin and earnings growth 1 in Q1; Pool sales grew 7% and all segments delivered triple-digit margin expansion 2 Transformation initiatives delivered better-than-expected productivity savings Maintained FY’25 Sales and Adjus
Slide 11: Q1'25 Pentair Performance
Q1’25 Pentair Performance Sales Adjusted Operating Income $1,017M $20M $8M $1,010M $23M $1M $24M $243M ($7M) $217M ($28M) ($22M) (1%) 12% YoY YoY ROS ROS (3 pts) 2 pts 1 pt (1 pt) (1 pt) 21.4% 2.1% 0.3% (2.2%) 2.4% 24.0% (1 pt) Vol/Price Q1’24 Volume Price Acq./Div. FX Q1’25 Q1’24 FX Inflation Prod.
Slide 12: Q1'25 Flow Performance
Move Water Q1’25 Flow Performance Sales Segment Income $384M $8M $8M $84M $7M Flat $368M $77M ($1M) ($18M) ($5M) ($8M) (4%) 8% YoY YoY ROS ROS (5 pts) 2 pts 0 pts (1 pt) (4 pts) 20.1% 2.6% 0.1% (2.1%) 2.0% 22.7% (1 pt) Vol/Price Q1’24 Volume Price Acq./Div. FX Q1’25 Q1’24 FX Inflation Prod. Q1’25 Ac
Slide 13: Q1'25 Water Solutions Performance
Improve Water Q1’25 Water Solutions Performance Sales Segment Income $273M $11M $61M $3M $258M $56M $2M ($15M) ($2M) ($1M) ($1M) ($7M) (5%) 9% YoY YoY ROS ROS (5 pts) 1 pt (1 pt) 0 pts (5 pts) 20.4% 0.6% 0.9% (2.5%) 4.1% 23.5% (1 pt) Vol/Price Q1’24 Volume Price Acq./Div. FX Q1’25 Q1’24 FX Inflation
Slide 14: Q1'25 Pool Performance
Enjoy Water Q1’25 Pool Performance Sales Segment Income $10M $384M $15M Flat $6M $126M $10M $359M $6M ($1M) $111M ($6M) 7% 14% YoY YoY ROS ROS 1 pt 3 pts 3 pts 0 pts 7 pts 30.8% 2.0% 0.1% (1.7%) 1.6% 32.8% (1 pt) Vol/Price Q1’24 Volume Price Acq./Div. FX Q1’25 Q1’24 FX Inflation Prod. Q1’25 Acq./Div
Slide 15: Transformation Initiatives
Transformation Initiatives Targeting 26% ROS by FY’26*, Expansion of Over 700 Basis Points from 2022 2026T 2022 Sales Pricing Excellence Sales Material Strategic Sourcing Material Costs Costs Operations Excellence OCOGS OCOGS Other Expenses Other Organizational Effectiveness Expenses ROS ~26% FY’24
Slide 16: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Debt Summary Cash Flow ($M) $1,836M* Maturity Q1 2025 Q1 2024 Net Income – Continuing Ops $155 $133 Amortization 14 13 $1,105M** 60% Fixed 2025 – 2032 Subtotal $169 $146 Depreciation 15 15 Capital Expenditures (17) (19) $731M 40% Variable 2023 – 2027 Asset Sales - - Worki
Slide 17: Q2 and Full Year 2025 Pentair Outlook & Expectations
Q2 and Full Year 2025 Pentair Outlook & Expectations • Balanced water portfolio and focused growth strategy Q2’25 FY’25 • Maintained FY’25 sales and Adjusted • Total Sales up ~1% to 2% • Total Sales flat to up ~2% ($4,085M to $4,165M) EPS guidance range; incorporates Sales Sales ($1,110M to $1,120M)
Slide 18: Tariff Impact & Actions Taken to Mitigate Risk
Tariff Impact & Actions Taken to Mitigate Risk PENTAIR ESTIMATED TARIFF IMPACT INCLUDED IN 4/22/25 GUIDANCE ACTIONS TAKEN TO ADDRESS TARIFFS* 145% Tariff: ~$100 million CHINA ❑ Implemented price increases beginning April 1st China retaliatory @ 125%: ~$15 million across our two-step distribution cha
Slide 19: Pentair Is Well-Positioned with a Capital-Lite Model
Pentair Is Well-Positioned with a Capital-Lite Model Solid execution across our balanced water portfolio drove strong margin expansion for the 1 12th consecutive quarter as well as double-digit earnings growth; Pool sales rose 7% and all segments delivered triple-digit margin expansion Maintained fu
Slide 20: 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 21: Pentair
> PENTAIR
Slide 22: Appendix: GAAP to Non-GAAP Measurements & Reconciliations
Appendix GAAP TO NON-GAAP MEASUREMENTS & RECONCILIATIONS
Slide 23: Reported To Adjusted 2025 Reconciliation
Reported To Adjusted 2025 Reconciliation Pentair plc and Subsidiaries Reconciliation of GAAP to Non-GAAP Financial Measures for the Year Ending December 31, 2025 Excluding the Effect of 2025 Adjustments (Unaudited) Actual Forecast First Second Full In millions, except per-share data Quarter Quarter
Slide 24: 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 25: 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 26: 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 27: 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 28: 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 29: Segment Information
Segment Information Pentair plc and Subsidiaries Supplemental Financial Information by Reportable Segment (Unaudited) 2025 2024 First First In millions Quarter Quarter Net sales Flow $ 367.9 $ 384.3 Water Solutions 258.2 273.1 Pool 383.9 359.5 Reportable segment net sales 1,010.0 1,016.9 Corporate a
Slide 30: Core Sales Growth Reconciliation
Core Sales Growth Reconciliation Pentair plc and Subsidiaries Reconciliation of Net Sales Growth to Core Net Sales Growth by Reportable Segment For the Quarter Ended March 31, 2025 (Unaudited) Q1 Net Sales Growth Core Currency Acq. / Div. Total Total Pentair (0.8) % (0.7) % 0.8 % (0.7) % Flow (2.9)
Slide 31: 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) Three months Three months ended ended March 31, March 31, In millions 2025 2024 Net cash used for operating activities of continuing operati
Slide 32: ROIC Reconciliation
ROIC Reconciliation Pentair plc and Subsidiaries Return on Invested Capital (ROIC) (Unaudited) First Second Third Fourth First Quarter Quarter Quarter Quarter Quarter Dollars in millions 2024 2024 2024 2024 2025 Adjusted operating income $ 217.3 $ 271.4 $ 239.2 $ 231.3 $ 242.5 Reported effective tax
Slide 33: Last Twelve Months EBITDA Reconciliation
Last Twelve Months EBITDA Reconciliation Pentair plc and Subsidiaries Reconciliation of Net Income from Continuing Operations to EBITDA (Unaudited) Second Third Fourth First Last Quarter Quarter Quarter Quarter Twelve In millions 2024 2024 2024 2025 Months Net income from continuing operations $ 186
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: 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 $ 721 Adjustments: Intangible amortiza