Pentair (PNR) Q3 2026 Earnings Call: Pool Destocking Ends, Taco Supports 2027 Growth
Source Tradingkey
Key Takeaways
- Pentair reported Q3 2026 sales of $976 million, adjusted operating income of $242 million and adjusted EPS of $1.18, above its own guidance range of approximately $1.05 to $1.08.
- Core sales declined 5% year over year as an 18% drop in Pool offset 1% core growth in both Flow and Water Solutions.
- Pool channel destocking is complete. Management said approximately $280 million of inventory was removed during Q2 and Q3, positioning sell-in to more closely match sell-through in 2027.
- The company reaffirmed full-year adjusted EPS guidance of approximately $4.70 and expects fiscal 2026 sales to decline approximately 3%.
- Pentair completed the Taco Group Holdings acquisition on October 1. Management expects Taco to generate more than $620 million in 2027 sales and over $105 million in EBITDA, while becoming accretive to adjusted EPS.
- Free cash flow totaled $153 million in Q3 and $620 million for the first nine months. Pro forma net leverage rose to approximately 2.5x following the Taco acquisition, with management targeting a return to 1.5x–2.0x within 24 months.
Core Financial Data
| Metric | Q3 2026 result | Year-over-year change or context |
|---|---|---|
| Sales | $976 million | Core sales down 5% |
| Adjusted operating income | $242 million | Included approximately $8 million of tariff refunds |
| Adjusted operating margin | 24.8% | Pool volume decline was the primary headwind |
| Adjusted EPS | $1.18 | Above company guidance of approximately $1.05–$1.08 |
| Free cash flow | $153 million | $620 million generated through the first nine months |
| Net debt leverage | 1.4x | Q3-end level before Taco acquisition financing |
| Productivity savings | $15 million | Price offset inflation during the quarter |
Business and Operating Performance
Pool
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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