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.
Recommended Articles
Nasdaq rises 0.82% as Anthropic files for IPO, gold reclaims $4,000 and oil falls. Explore Australia's market outlook ahead of the Fed decision.
CNBC host Jim Cramer says he would buy Goldman Sachs shares after Anthropic filed its initial public offering (IPO) prospectus on Monday, a deal that earns the bank fees as a lead underwriter.Goldman’
Bitcoin is fighting to hold $80,000 after three consecutive weeks of losses. The broader crypto market remains under pressure as weak investor confidence and volatility in global stocks weigh on price
Gold has lost nearly a quarter of its value since the US-Iran war began. On Friday, it briefly fell to $3,975 an ounce before recovering to around $4,020 on Monday.Yet investors have been pouring bill
South Korea’s KOSPI rose 4.53% from Monday’s close to 5,717.30 on Tuesday morning. The jump made the Korea Exchange pause program buying for five minutes, its second brake in six days.The first brake,
