- Operating income of $180 million with ROS of 18.1 percent, an
increase of 20 basis points compared to the prior year period; on
an adjusted basis, ROS expanded 310 basis points to 24.1
percent
- GAAP EPS increased 6 percent to $0.84 when compared to the
prior year period and adjusted EPS rose 16 percent to $1.09
- Net cash provided by operating activities of continuing
operations was $249 million, an increase of $86 million compared to
the same period last year, and free cash flow provided by
continuing operations for the quarter was $234 million, an increase
of $90 million compared to the same period last year.
- The company updates its full year 2024 GAAP EPS guidance to
approximately $3.70 and increases EPS guidance on an adjusted basis
to approximately $4.27
Reconciliations of GAAP to Non-GAAP measures are in the attached
financial tables.
Pentair plc (NYSE: PNR), a leader in helping the world
sustainably move, improve and enjoy water, life’s most essential
resource, today announced third quarter 2024 sales of $993 million.
Sales were down 2 percent compared to sales for the same period
last year. Excluding currency translation, acquisitions and
divestitures, core sales declined 1 percent in the third quarter.
Third quarter 2024 earnings per diluted share from continuing
operations (“EPS”) were $0.84 compared to $0.79 in the third
quarter of 2023, a 6 percent increase. On an adjusted basis, the
company reported third quarter 2024 EPS of $1.09 compared to $0.94
in the third quarter of 2023 reflecting a 16 percent increase.
Adjusted operating income, reportable segment income, adjusted net
income, free cash flow and adjusted EPS are described in the
attached schedules.
John L. Stauch, Pentair’s President and Chief Executive Officer
commented, “Our relentless dedication to strong execution,
Transformation, and delivering value to our customers has driven
yet another quarter of significant free cash flow and outstanding
results, surpassing our expectations. Our balanced approach across
our water portfolio continues to validate the effectiveness of our
strategy. We have made substantial progress on 80/20 with the
completion of training on a majority of our total revenue. As a
result, we are now implementing actions to drive more focused and
profitable growth. Our disciplined and balanced capital allocation
strategy included strengthening our balance sheet, continuing our
share repurchase program, and paying a dividend. We are proud of
our dividend aristocrat status with 48 consecutive years of
increased dividends. I want to thank our employees for their
unwavering commitment to delivering exceptional value to our
customers and shareholders. We also want to express our heartfelt
sympathies to those impacted by the recent hurricanes.”
Third quarter 2024 operating income was $180 million, flat
compared to operating income for the third quarter of 2023, and
return on sales (“ROS”) was 18.1 percent, an increase of 20 basis
points when compared to the third quarter of 2023. On an adjusted
basis, the company had adjusted operating income of $239 million
for the third quarter of 2024, up 13 percent compared to adjusted
operating income for the third quarter of 2023, and ROS was 24.1
percent, an increase of 310 basis points when compared to the third
quarter of 2023.
Flow sales were down 7 percent compared to sales for the same
period last year. Excluding currency translation, acquisitions and
divestitures, core sales declined 7 percent in the third quarter.
Reportable segment income of $83 million was up 7 percent compared
to the third quarter of 2023, and ROS was 22.2 percent, an increase
of 280 basis points when compared to the third quarter of 2023.
Water Solutions sales were down 3 percent compared to sales for
the same period last year. Excluding currency translation,
acquisitions and divestitures, core sales declined 3 percent in the
third quarter. Reportable segment income of $64 million was down 6
percent compared to the third quarter of 2023, and ROS was 22.2
percent, a decrease of 80 basis points when compared to the third
quarter of 2023.
Pool sales were up 7 percent compared to sales for the same
period last year. Excluding currency translation, acquisitions and
divestitures, core sales grew 8 percent in the third quarter.
Reportable segment income of $113 million was up 24 percent
compared to the third quarter of 2023, and ROS was 34.0 percent, an
increase of 470 basis points when compared to the third quarter of
2023.
Net cash provided by operating activities of continuing
operations was $249 million for the quarter compared to $162
million in the third quarter of 2023. Free cash flow provided by
continuing operations for the quarter was $234 million compared to
$143 million in the third quarter of 2023.
Pentair paid a regular cash dividend of $0.23 per share in the
third quarter of 2024. Pentair previously announced on September
23, 2024 that it will pay a regular quarterly cash dividend of
$0.23 per share on November 1, 2024 to shareholders of record at
the close of business on October 18, 2024. This year marks the 48th
consecutive year that Pentair has increased its dividend.
During the third quarter, the company repurchased 0.6 million of
ordinary shares for $50 million. As of September 30, 2024, we had
$500 million available for share repurchases under our share
repurchase authorization.
OUTLOOK
Mr. Stauch concluded, “We are introducing fourth quarter
guidance and increasing our full year adjusted earnings guidance
driven by strong execution. While we continue to monitor the
macroeconomic landscape, we remain confident in our Transformation
initiatives and 80/20 and expect them to continue to drive
strategic decisions and operational efficiencies across our
balanced water portfolio. With a strong balance sheet and
significant free cash flow generation, we remain focused on
investing in the long-term growth of Pentair and confident in our
resilient strategy and capital allocation priorities to drive
long-term value creation. As a leader in helping the world
sustainably move, improve and enjoy water, life’s most essential
resource, we believe we are well positioned to capture
opportunities from favorable secular trends such as water
availability, increased awareness of water challenges, aging
commercial, public and municipal infrastructure, outdoor healthy
living and favorable housing migration.”
The company updates its estimated 2024 GAAP EPS from continuing
operations to approximately $3.70 and increases estimated EPS on an
adjusted basis to approximately $4.27, up approximately 14 percent
compared to 2023. The Company maintains its full year 2024 sales of
roughly flat to down 1 percent, or $4,075 million to $4,085
million, on a reported basis.
In addition, the company introduces fourth quarter 2024 GAAP EPS
from continuing operations guidance of approximately $0.95 and on
an adjusted EPS basis of approximately $1.02, up approximately 17
percent compared to the prior year period. The company expects
fourth quarter sales to be approximately $965 million to $975
million, down 1 percent to 2 percent on a reported basis compared
to the fourth quarter of 2023.
EARNINGS CONFERENCE CALL
Pentair President and Chief Executive Officer John L. Stauch and
Chief Financial Officer Robert P. Fishman will discuss the
company’s third quarter 2024 results on a conference call with
investors at 9:00 a.m. Eastern today. A live audio webcast of the
call, along with the related presentation, can be accessed in the
Investor Relations section of the Company’s website,
www.pentair.com, shortly before the call begins.
Reconciliations of non-GAAP financial measures are set forth in
the attachments to this release and in the presentations, each of
which can be found on Pentair’s website. The webcast and
presentations will be archived at the Company’s website following
the conclusion of the event.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This release contains statements that we believe to be
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. All statements, other
than statements of historical fact, are forward-looking statements.
Without limitation, any statements preceded or followed by or that
include the words “targets,” “plans,” “believes,” “expects,”
“intends,” “will,” “likely,” “may,” “anticipates,” “estimates,”
“projects,” “should,” “would,” “could,” “positioned,” “strategy,”
or “future” or words, phrases, or terms of similar substance or the
negative thereof are forward-looking statements. These
forward-looking statements are not guarantees of future performance
and are subject to risks, uncertainties, assumptions and other
factors, some of which are beyond our control, which could cause
actual results to differ materially from those expressed or implied
by such forward-looking statements. These factors include the
overall global economic and business conditions impacting our
business, including the strength of housing and related markets and
conditions relating to international hostilities; supply, demand,
logistics, competition and pricing pressures related to and in the
markets we serve; the ability to achieve the benefits of our
restructuring plans, cost reduction initiatives and Transformation
Program; the impact of raw material, logistics and labor costs and
other inflation; volatility in currency exchange rates and interest
rates; failure of markets to accept new product introductions and
enhancements; the ability to successfully identify, finance,
complete and integrate acquisitions; risks associated with
operating foreign businesses; the impact of seasonality of sales
and weather conditions; our ability to comply with laws and
regulations; the impact of changes in laws, regulations and
administrative policy, including those that limit U.S. tax benefits
or impact trade agreements and tariffs; the outcome of litigation
and governmental proceedings; and the ability to achieve our
long-term strategic operating and environmental, social and
governance (“ESG”) goals and targets. Additional information
concerning these and other factors is contained in our filings with
the U.S. Securities and Exchange Commission, including our Annual
Report on Form 10-K for the year ended December 31, 2023. All
forward-looking statements, including all financial forecasts,
speak only as of the date of this release. Pentair assumes no
obligation, and disclaims any obligation, to update the information
contained in this release.
ABOUT PENTAIR PLC
At Pentair, we help the world sustainably move, improve and
enjoy water, life’s most essential resource. From our residential
and commercial water solutions, to industrial water management and
everything in between, Pentair is a core large cap value equity
stock focused on smart, sustainable water solutions that help our
planet and people thrive.
Pentair had revenue in 2023 of approximately $4.1 billion, and
trades under the ticker symbol PNR. With approximately 10,500
global employees serving customers in more than 150 countries, we
work to help improve lives and the environment around the world. To
learn more, visit www.pentair.com.
Pentair plc and
Subsidiaries
Condensed Consolidated
Statements of Operations (Unaudited)
Three months ended
Nine months ended
In millions, except per-share data
September 30,
2024
September 30,
2023
September 30,
2024
September 30,
2023
Net sales
$
993.4
$
1,008.8
$
3,109.9
$
3,119.9
Cost of goods sold
600.2
637.0
1,888.7
1,966.8
Gross profit
393.2
371.8
1,221.2
1,153.1
% of net sales
39.6
%
36.9
%
39.3
%
37.0
%
Selling, general and administrative
expenses
190.4
166.2
540.7
504.6
% of net sales
19.2
%
16.5
%
17.4
%
16.2
%
Research and development expenses
22.9
25.5
71.8
76.3
% of net sales
2.3
%
2.5
%
2.3
%
2.4
%
Operating income
179.9
180.1
608.7
572.2
% of net sales
18.1
%
17.9
%
19.6
%
18.3
%
Other expense (income)
Other (income) expense
(0.1
)
(0.3
)
0.8
(4.4
)
Net interest expense
19.8
27.5
73.4
91.7
% of net sales
2.0
%
2.7
%
2.4
%
2.9
%
Income from continuing operations before
income taxes
160.2
152.9
534.5
484.9
Provision for income taxes
20.6
20.8
75.3
70.1
Effective tax rate
12.9
%
13.6
%
14.1
%
14.5
%
Net income from continuing
operations
139.6
132.1
459.2
414.8
Loss from discontinued operations, net of
tax
—
—
(0.2
)
(0.1
)
Net income
$
139.6
$
132.1
$
459.0
$
414.7
Earnings per ordinary share
Basic
Continuing operations
$
0.84
$
0.80
$
2.77
$
2.51
Discontinued operations
—
—
—
—
Basic earnings per ordinary share
$
0.84
$
0.80
$
2.77
$
2.51
Diluted
Continuing operations
$
0.84
$
0.79
$
2.75
$
2.50
Discontinued operations
—
—
—
—
Diluted earnings per ordinary share
$
0.84
$
0.79
$
2.75
$
2.50
Weighted average ordinary shares
outstanding
Basic
165.6
165.2
165.7
165.0
Diluted
167.0
166.6
167.2
166.2
Cash dividends paid per ordinary
share
$
0.23
$
0.22
$
0.69
$
0.66
Pentair plc and
Subsidiaries
Condensed Consolidated Balance
Sheets (Unaudited)
September 30,
2024
December 31,
2023
In millions
Assets
Current assets
Cash and cash equivalents
$
218.1
$
170.3
Accounts receivable, net
497.1
561.7
Inventories
645.9
677.7
Other current assets
128.0
159.3
Total current assets
1,489.1
1,569.0
Property, plant and equipment,
net
358.5
362.0
Other assets
Goodwill
3,280.8
3,274.6
Intangibles, net
1,002.8
1,042.4
Other non-current assets
341.4
315.3
Total other assets
4,625.0
4,632.3
Total assets
$
6,472.6
$
6,563.3
Liabilities and Equity
Current liabilities
Accounts payable
$
286.4
$
278.9
Employee compensation and benefits
116.7
125.4
Other current liabilities
525.7
545.3
Total current liabilities
928.8
949.6
Other liabilities
Long-term debt
1,628.4
1,988.3
Pension and other post-retirement
compensation and benefits
70.9
73.6
Deferred tax liabilities
40.3
40.0
Other non-current liabilities
305.4
294.7
Total liabilities
2,973.8
3,346.2
Equity
3,498.8
3,217.1
Total liabilities and equity
$
6,472.6
$
6,563.3
Pentair plc and
Subsidiaries
Condensed Consolidated
Statements of Cash Flows (Unaudited)
Nine months ended
In millions
September 30,
2024
September 30,
2023
Operating activities
Net income
$
459.0
$
414.7
Loss from discontinued operations, net of
tax
0.2
0.1
Adjustments to reconcile net income
from continuing operations to net cash provided by (used for)
operating activities
Equity income of unconsolidated
subsidiaries
(1.7
)
(2.1
)
Depreciation
45.3
44.3
Amortization
40.4
41.5
Deferred income taxes
3.6
(45.0
)
Share-based compensation
26.3
21.3
Asset impairment and write-offs
9.3
6.2
Gain on sale of assets
—
(3.4
)
Changes in assets and liabilities, net
of effects of business acquisitions
Accounts receivable
66.2
23.9
Inventories
30.1
67.8
Other current assets
5.0
(14.7
)
Accounts payable
7.3
(63.8
)
Employee compensation and benefits
(8.0
)
11.7
Other current liabilities
(19.7
)
(0.2
)
Other non-current assets and
liabilities
17.1
—
Net cash provided by operating activities
of continuing operations
680.4
502.3
Net cash used for operating activities of
discontinued operations
(0.2
)
(1.6
)
Net cash provided by operating
activities
680.2
500.7
Investing activities
Capital expenditures
(51.7
)
(54.8
)
Proceeds from sale of property and
equipment
0.4
5.4
Payments upon the settlement of net
investment hedges
(16.4
)
—
Acquisitions, net of cash acquired
—
(0.6
)
Other
(0.5
)
4.1
Net cash used for investing activities
(68.2
)
(45.9
)
Financing activities
Net repayments of revolving long-term
debt
—
(320.0
)
Repayments of long-term debt
(362.5
)
(6.3
)
Shares issued to employees, net of shares
withheld
16.8
9.0
Repurchases of ordinary shares
(100.0
)
—
Dividends paid
(114.3
)
(108.9
)
Net cash used for financing activities
(560.0
)
(426.2
)
Effect of exchange rate changes on cash
and cash equivalents
(4.2
)
(0.5
)
Change in cash and cash
equivalents
47.8
28.1
Cash and cash equivalents, beginning of
period
170.3
108.9
Cash and cash equivalents, end of
period
$
218.1
$
137.0
Pentair plc and
Subsidiaries
Reconciliation of the GAAP
Operating Activities Cash Flow to the Non-GAAP Free Cash Flow
(Unaudited)
Three months ended
Three months ended
Three months ended
Nine months ended
In millions
March 31, 2024
June 30, 2024
September 30,
2024
September 30,
2024
Net cash (used for) provided by operating
activities of continuing operations
$
(107.4
)
$
539.2
$
248.6
$
680.4
Capital expenditures
(19.3
)
(17.0
)
(15.4
)
(51.7
)
Proceeds from sale of property and
equipment
—
—
0.4
0.4
Free cash flow from continuing
operations
(126.7
)
522.2
233.6
629.1
Net cash used for operating activities of
discontinued operations
(0.2
)
—
—
(0.2
)
Free cash flow
$
(126.9
)
$
522.2
$
233.6
$
628.9
Three months ended
Three months ended
Three months ended
Nine months ended
In millions
March 31, 2023
June 30, 2023
September 30,
2023
September 30,
2023
Net cash (used for) provided by operating
activities of continuing operations
$
(106.6
)
$
446.7
$
162.2
$
502.3
Capital expenditures
(16.6
)
(18.8
)
(19.4
)
(54.8
)
Proceeds from sale of property and
equipment
0.2
4.8
0.4
5.4
Free cash flow from continuing
operations
(123.0
)
432.7
143.2
452.9
Net cash used for operating activities of
discontinued operations
—
(1.6
)
—
(1.6
)
Free cash flow
$
(123.0
)
$
431.1
$
143.2
$
451.3
Pentair plc and
Subsidiaries
Supplemental Financial
Information by Reportable Segment (Unaudited)
2024
2023
In millions
First Quarter
Second Quarter
Third Quarter
Nine Months
First Quarter
Second Quarter
Third Quarter
Nine Months
Net sales
Flow
$
384.3
$
396.8
$
372.2
$
1,153.3
$
391.8
$
411.6
$
400.2
$
1,203.6
Water Solutions
273.1
310.5
289.5
873.1
272.0
336.2
299.4
907.6
Pool
359.5
391.5
331.4
1,082.4
364.3
334.3
308.8
1,007.4
Reportable segment net sales
1,016.9
1,098.8
993.1
3,108.8
1,028.1
1,082.1
1,008.4
3,118.6
Corporate and other
0.3
0.5
0.3
1.1
0.5
0.4
0.4
1.3
Net sales
$
1,017.2
$
1,099.3
$
993.4
$
3,109.9
$
1,028.6
$
1,082.5
$
1,008.8
$
3,119.9
Reportable segment income
(loss)
Flow
$
77.3
$
84.4
$
82.8
$
244.5
$
65.0
$
74.8
$
77.5
$
217.3
Water Solutions
55.6
72.9
64.4
192.9
52.4
74.8
68.8
196.0
Pool
110.8
133.6
112.7
357.1
116.2
105.1
90.6
311.9
Reportable segment income
243.7
290.9
259.9
794.5
233.6
254.7
236.9
725.2
Corporate and other
(26.4
)
(19.5
)
(20.7
)
(66.6
)
(22.6
)
(20.5
)
(24.8
)
(67.9
)
Adjusted operating income
$
217.3
$
271.4
$
239.2
$
727.9
$
211.0
$
234.2
$
212.1
$
657.3
Return on sales
Flow
20.1
%
21.3
%
22.2
%
21.2
%
16.6
%
18.2
%
19.4
%
18.1
%
Water Solutions
20.4
%
23.5
%
22.2
%
22.1
%
19.3
%
22.2
%
23.0
%
21.6
%
Pool
30.8
%
34.1
%
34.0
%
33.0
%
31.9
%
31.4
%
29.3
%
31.0
%
Adjusted return on sales
21.4
%
24.7
%
24.1
%
23.4
%
20.5
%
21.6
%
21.0
%
21.1
%
Pentair plc and
Subsidiaries
Reconciliation of GAAP to
Non-GAAP Financial Measures for the Year Ending December 31,
2024
Excluding the Effect of
Adjustments (Unaudited)
Actual
Forecast
In millions, except per-share data
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
Full Year
Net sales
$
1,017.2
$
1,099.3
$
993.4
approx
Down 1% - 2%
approx
Down 1% to flat
Operating income
180.8
248.0
179.9
approx
Up 25%
approx
Up 10%
Return on sales
17.8
%
22.6
%
18.1
%
Adjustments:
Restructuring and other
4.6
5.9
23.4
approx
$
—
approx
$
34
Transformation costs
17.0
11.8
12.6
approx
—
approx
41
Intangible amortization
13.5
13.4
13.5
approx
14
approx
55
Legal accrual adjustments and
settlements
(0.3
)
(7.9
)
0.7
approx
—
approx
(8
)
Asset impairment and write-offs
0.8
—
8.5
approx
—
approx
9
Equity income of unconsolidated
subsidiaries
0.9
0.2
0.6
approx
1
approx
3
Adjusted operating income
217.3
271.4
239.2
approx
Up 13%
approx
Up 11%
Adjusted return on sales
21.4
%
24.7
%
24.1
%
Net income from continuing operations—as
reported
133.5
186.1
139.6
approx
$
158
approx
$
617
Other income
—
—
(0.5
)
approx
—
approx
(1
)
Adjustments to operating income
35.6
23.2
58.7
approx
14
approx
131
Income tax adjustments
(11.3
)
(5.4
)
(15.4
)
approx
(2
)
approx
(34
)
Net income from continuing operations—as
adjusted
$
157.8
$
203.9
$
182.4
approx
$
170
approx
$
713
Continuing earnings per ordinary
share—diluted
Diluted earnings per ordinary share—as
reported
$
0.80
$
1.11
$
0.84
approx
$
0.95
approx
$
3.70
Adjustments
0.14
0.11
0.25
approx
0.07
approx
0.57
Diluted earnings per ordinary share—as
adjusted
$
0.94
$
1.22
$
1.09
approx
$
1.02
approx
$
4.27
Pentair plc and
Subsidiaries
Reconciliation of GAAP to
Non-GAAP Financial Measures for the Year Ended December 31,
2023
Excluding the Effect of
Adjustments (Unaudited)
In millions, except per-share data
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
Full Year
Net sales
$
1,028.6
$
1,082.5
$
1,008.8
$
984.6
$
4,104.5
Operating income
183.6
208.5
180.1
167.0
739.2
Return on sales
17.8
%
19.3
%
17.9
%
17.0
%
18.0
%
Adjustments:
Restructuring and other
2.9
0.6
1.6
(1.7
)
3.4
Transformation costs
8.5
6.0
13.5
16.3
44.3
Intangible amortization
13.8
13.9
13.8
13.8
55.3
Legal accrual adjustments and
settlements
(1.9
)
4.1
—
—
2.2
Asset impairment and write-offs
3.9
0.5
1.8
1.7
7.9
Equity income of unconsolidated
subsidiaries
0.2
0.6
1.3
0.7
2.8
Adjusted operating income
211.0
234.2
212.1
197.8
855.1
Adjusted return on sales
20.5
%
21.6
%
21.0
%
20.1
%
20.8
%
Net income from continuing operations—as
reported
128.5
154.2
132.1
208.1
622.9
Pension and other post retirement mark to
market loss
—
—
—
6.1
6.1
Other income
—
(5.1
)
—
—
(5.1
)
Adjustments to operating income
27.2
25.1
30.7
30.1
113.1
Income tax adjustments (1)
(4.6
)
(3.1
)
(6.6
)
(98.5
)
(112.8
)
Net income from continuing operations—as
adjusted
$
151.1
$
171.1
$
156.2
$
145.8
$
624.2
Continuing earnings per ordinary
share—diluted
Diluted earnings per ordinary share—as
reported
$
0.78
$
0.93
$
0.79
$
1.25
$
3.75
Adjustments
0.13
0.10
0.15
(0.38
)
—
Diluted earnings per ordinary share—as
adjusted
$
0.91
$
1.03
$
0.94
$
0.87
$
3.75
(1)
Income tax adjustments in the fourth
quarter include $74.3 million resulting from favorable impacts of
worthless stock deductions related to exiting certain businesses in
our Water Solutions segment and favorable discrete items primarily
related to the recognition of deferred tax assets.
Pentair plc and
Subsidiaries
Reconciliation of Net Sales
Growth to Core Net Sales Growth by Segment
For the Quarter Ended
September 30, 2024 (Unaudited)
Q3 Net Sales Growth
Core
Currency
Acq. / Div.
Total
Total Pentair
(1.5) %
0.2 %
(0.2) %
(1.5) %
Flow
(7.3) %
0.3 %
— %
(7.0) %
Water Solutions
(3.5) %
0.2 %
— %
(3.3) %
Pool
8.0 %
— %
(0.7) %
7.3 %
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241022252534/en/
Shelly Hubbard Vice President, Investor Relations Direct:
612-812-0148 Email: shelly.hubbard@pentair.com
Rebecca Osborn Sr. Director, External Communications Direct:
763-656-5589 Email: rebecca.osborn@pentair.com
Grafico Azioni Pentair (NYSE:PNR)
Storico
Da Gen 2025 a Feb 2025
Grafico Azioni Pentair (NYSE:PNR)
Storico
Da Feb 2024 a Feb 2025
