Pentair: Pentair Stock Gains After Q1 Earnings Beat, Implements Price Increases To Offset Tariff Impact

Shares of water treatment company Pentair plc PNR are trading higher after the company reported a first-quarter 2025 sales decline of 1% at $1.01 billion. The beating the analyst consensus estimate of $988.9 million. Also, core sales declined by 1% Y/Y in the first quarter, excluding currency translation, acquisitions, and divestitures. Gross margin expanded to 39.9% from 38.4% a year ago in the quarter. Adjusted operating margin expanded 260 basis points Y/Y to 24% in the quarter. Flow segment sales decreased by 4% Y/Y to $367.9 million, Segment income was $84 million (+8% Y/Y), and the operating margin was 22.7%, an increase of 260 bps Y/Y in the quarter. Water Solutions segment sales were $258.2 million (-5% Y/Y), Segment income was $61 million (+9% Y/Y), and ROS was 23.5%, up 310 bps Y/Y. Pool segment sales were $383.9 million (+7% Y/Y), Segment income was $126 million (+14% Y/Y), and ROS was 32.8%, up 200 bps Y/Y. Also Read : Chipotle To Open First Mexico Restaurant By 2026 Adjusted EPS came in at $1.11, surpassing $1.01 analyst estimate. The company held $140.6 million in cash and equivalents as of March 31, 2025. Net cash used for operating activities of continuing operations was $39 million for the quarter and free cash flow used for continuing operations for the quarter was $56 million. Dividend : Pentair paid a regular cash dividend of 25 cents per share in the first quarter of 2025. On Feb. 24, the company announced a quarterly cash dividend of 25 cents per share, payable on May 2, to shareholders of record at the close of business on April 18, 2025. Buyback : In the quarter, Pentair repurchased 0.6 million shares for $50 million. As of March 31, $400 million remained available under its share repurchase authorization. "During the first quarter, we began implementing price increases to offset the impact of enacted tariffs. We are ready to take additional actions should the tariff impact change. We are applying our prior inflationary learnings to manage our channel and maximize performance," said President and CEO, John L. Stauch . Outlook: Pentair expects FY25 adjusted EPS of $4.65 - $4.80 with an estimate of $4.72. The company sees FY25 sales sales of flat to up approximately 2%. For the second-quarter, Pentair anticipates adjusted EPS of $1.31 - $1.35 versus an estimate of $1.33 and a sales growth of 1% - 2%. Price Action : PNR shares traded higher by 9.23% at $86.25 at last check Tuesday. PNR Pentair PLC $86.12 9.07 % Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full Score Edge Rankings Momentum 41.93 Growth 30.09 Quality 85.98 Value 22.80 Price Trend Short Medium Long Overview Market News and Data brought to you by Benzinga APIs