Pentair reported fourth-quarter 2025 revenue of $1.021 billion, a 5% increase year-over-year that surpassed consensus of $1.009 billion. Core sales, which strip out currency translation, acquisitions and divestitures, rose 4%. Adjusted EPS came in at $1.18, topping the $1.16 consensus, while gross margin expanded to 40.4% from 38.8% a year earlier. Adjusted operating margin widened by 90 basis points to 24.7%, reflecting disciplined cost management and pricing actions across the portfolio.

The Flow segment delivered the strongest growth, with sales up 9% to $394.4 million and operating margin up 240 basis points to 22.8%, driving segment income to $90.1 million (up 22%). Pool saw an 11% revenue gain to $393.4 million and segment income growth of 11% to $132 million, though return on sales dipped 20 basis points to 33.6%. Water Solutions faced headwinds, with sales down 10% to $232.3 million and segment income down 12% to $55 million, translating to a 23.5% margin.

Free cash flow from continuing operations reached $748 million for the full year, underpinning a solid balance sheet that held $101.6 million in cash and equivalents at year-end. In Q4, Pentair repurchased 0.5 million shares for $50 million, leaving $1.0 billion available under its authorization. The board approved a 27-cent quarterly dividend, an 8% increase over the prior year, marking 50 consecutive years of rising payouts.

Despite the Q4 beat, Pentair guided fiscal 2026 adjusted EPS of $5.25–$5.40 versus Wall Street’s $5.38 consensus and projected Q1 EPS of $1.15–$1.18 against a $1.23 street view. Full-year sales are expected to grow 3%–4%, with Q1 up 1%–2%. Leadership changes include De’Mon Wiggins assuming oversight of both Flow and Water Solutions, while the chief supply chain, transformation and technology roles are being consolidated into finance and business units as part of a restructuring designed to streamline decision-making and align resources with strategic growth initiatives.