Pentair reported Q4 2025 revenue of $1.021 billion, a 5% year-over-year increase versus consensus of $1.009 billion. Adjusted EPS came in at $1.18, topping the $1.16 estimate. Gross margin expanded to 40.4% from 38.8% a year earlier, while adjusted operating margin widened by 90 basis points to 24.7%. Free cash flow from continuing operations reached $748 million for the full year, underlining strong cash generation capabilities.

In the Flow segment, Q4 sales rose 9% to $394.4 million and segment income climbed 22% to $90.1 million, driving a 240 bp margin improvement to 22.8%. Pool segment sales increased 11% to $393.4 million with income of $132 million, though return on sales dipped 20 bp to 33.6%. Water Solutions sales declined 10% to $232.3 million, with income down 12% to $55 million and a 60 bp margin contraction to 23.5%, reflecting softer demand in commercial water treatment.

During Q4, Pentair repurchased 0.5 million shares for $50 million, leaving $1.0 billion available under its authorization. The company paid a 25-cent dividend in the quarter and raised the quarterly payout to 27 cents on December 15, marking an 8% year-over-year increase and the 50th consecutive annual raise. As of December 31, 2025, Pentair held $101.6 million in cash and equivalents, supporting continued capital return and potential reinvestment.

Management guided 2026 adjusted EPS of $5.25–$5.40 versus consensus of $5.38, and Q1 EPS of $1.15–$1.18 compared to the street’s $1.23 forecast, driving an approximately 5% share decline post-announcement. The company expects full-year sales growth of 3–4% and Q1 growth of 1–2%. Executive shifts include expanding De’Mon Wiggins’s remit to lead both Flow and Water Solutions, and the elimination of two C-suite roles, reassigning supply chain and innovation responsibilities to streamline operations and support margin expansion.