NYSE:PNR
PENTAIR plc
A diversified global provider of fluid control and water technology solutions driving efficiency in automotive, industrial, and marine markets.
Key Metrics
Investment Thesis
Bull Case
PNR offers a compelling value play with a consistent history of returning capital to shareholders through dividends and buybacks while maintaining a diversified revenue base that mitigates sector-specific downturns. The recent acquisition activity suggests strategic growth initiatives aimed at expanding market share in high-margin fluid control niches, supported by strong cash conversion ratios.
Bear Case
Investors should be cautious regarding the stagnation in revenue growth over the last three years and the substantial cash outflows from investing activities that have reduced the company's cash reserves significantly. High levels of goodwill ($3.54B) and accumulated other comprehensive losses indicate potential integration risks from past acquisitions that could erode future profitability if synergies are not fully realized.
About PENTAIR plc
Pentair plc (PNR) is a global leader in fluid control technologies and water treatment solutions serving diverse markets including automotive, industrial, marine, and commercial applications. The company leverages its extensive portfolio of pumps, filtration systems, and climate control components to deliver efficiency and reliability across heavy-duty transportation and infrastructure sectors.
Analysis
Management Discussion
Pentair demonstrated resilient financial performance in 2025 with revenue growing to $4.18B and net income reaching $653.8M, reflecting strong operational execution despite a flat revenue trend over the prior three years. The company generated robust operating cash flow of $814.8M, which was heavily utilized for share repurchases of $225M and significant investing outflows of $404.5M related to acquisitions totaling $292.1M.
Industry Overview
The fluid control industry is highly competitive but essential for modern transportation, manufacturing, and infrastructure development where efficiency and environmental compliance are paramount. Pentair competes against specialized engineering firms and large industrial conglomerates, relying on innovation in pump technology and sustainable water solutions to maintain its market leadership.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $4.12B | $4.10B | $4.08B | $4.18B |
| Cost of Revenue | $2.76B | $2.59B | $2.48B | $2.49B |
| Gross Profit | $1.36B | $1.52B | $1.60B | $1.69B |
| Operating Expenses | $769.3M | $780.0M | $795.0M | $832.8M |
| Operating Income | $595.3M | $739.2M | $803.8M | $857.5M |
| R&D | $92.2M | $99.8M | $93.6M | $95.9M |
| G&A | $677.1M | $680.2M | $701.4M | $736.9M |
| Stock-Based Comp | $24.9M | $29.1M | $39.7M | $37.0M |
| Depreciation | $54.1M | $59.5M | $60.3M | $59.6M |
| Amortization | $52.5M | $55.3M | $54.3M | $58.1M |
| Other OpEx | $0 | $0 | $0 | $0 |
| Non-Operating Income | $-44.7M | $-120.3M | $-84.9M | $-101.0M |
| Pre-Tax Income | $550.6M | $618.9M | $718.9M | $756.5M |
| Income Tax | $67.4M | $-4.0M | $93.3M | $107.0M |
| Continuing Ops | $483.2M | $622.9M | $625.6M | $649.5M |
| Discontinued Ops | $-2.3M | $-200.0K | $-200.0K | $4.3M |
| Net Income | $480.9M | $622.7M | $625.4M | $653.8M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $480.9M | $622.7M | $625.4M | $653.8M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $1.56B | $1.57B | $1.44B | $1.54B |
| Inventory | $790.0M | $677.7M | $610.9M | $632.6M |
| Other Current Assets | $768.5M | $891.3M | $825.2M | $909.2M |
| Long-Term Assets | $4.89B | $4.99B | $5.01B | $5.33B |
| PP&E (Net) | $344.5M | $362.0M | $358.8M | $376.8M |
| Intangibles | $1.09B | $1.04B | $1.03B | $1.07B |
| Goodwill | $3.25B | $3.27B | $3.29B | $3.54B |
| Operating Leases | $78.6M | $102.0M | $116.1M | $115.3M |
| Other LT Assets | $118.7M | $213.3M | $215.1M | $223.5M |
| Total Assets | $6.45B | $6.56B | $6.45B | $6.87B |
| Current Liabilities | $1.06B | $949.6M | $895.1M | $959.3M |
| Accounts Payable | $355.0M | $278.9M | $272.8M | $301.5M |
| Current Leases | $29.3M | $26.2M | $26.3M | $28.5M |
| Deferred Revenue | $43.8M | $46.9M | $33.8M | $37.4M |
| Other Current Liab | $598.8M | $559.6M | $521.0M | $547.8M |
| Long-Term Liabilities | $2.68B | $2.40B | $1.99B | $2.04B |
| Long-Term Debt | $2.32B | $1.99B | $1.64B | $1.64B |
| LT Operating Leases | $52.4M | $79.1M | $92.8M | $98.8M |
| Other LT Liab | $271.5M | $293.6M | $248.9M | $294.4M |
| Total Liabilities | $3.74B | $3.35B | $2.88B | $3.00B |
| Shareholders' Equity | $2.71B | $3.22B | $3.56B | $3.87B |
| Paid-In Capital | $1.55B | $1.59B | $1.50B | $1.31B |
| Retained Earnings | $1.39B | $1.87B | $2.34B | $2.82B |
| AOCI | $-239.0M | $-244.4M | $-276.6M | $-268.2M |
| Total L&E | $6.45B | $6.56B | $6.45B | $6.87B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $480.9M | $622.7M | $625.4M | $653.8M |
| Non-Cash Adjustments | $-241.3M | $172.7M | $250.7M | $19.4M |
| Working Capital Changes | $123.7M | $-176.2M | $-109.4M | $141.6M |
| Cash from Operations | $363.3M | $619.2M | $766.7M | $814.8M |
| Capital Expenditures | $85.2M | $76.0M | $74.4M | $68.8M |
| Cash from Investing | $-1.58B | $-85.4M | $-187.6M | $-404.5M |
| Debt Issuances | $1.39B | $0 | $0 | — |
| Debt Repayments | $88.3M | $12.5M | $362.5M | $269.3M |
| Share Buybacks | $50.0M | $0 | $150.0M | $225.0M |
| Dividends Paid | $138.6M | $145.2M | $152.3M | $164.3M |
| Cash from Financing | $1.23B | $-468.1M | $-636.7M | $-402.5M |
| FX Effect | $1.2M | $-4.3M | $6.0M | $-24.9M |
| Net Change in Cash | $14.4M | $61.4M | $-51.6M | $-17.1M |
| Beginning Cash | $94.5M | $108.9M | $170.3M | $118.7M |
| Ending Cash | $108.9M | $170.3M | $118.7M | $101.6M |
Frequently Asked Questions
How does PENTAIR plc make money?
The company operates through four primary segments: Commercial (HVAC for commercial buildings), Industrial (filtration and process control), Water (water treatment and recycling technologies), and Vehicle Systems (thermal management systems for heavy-duty trucks and light vehicles).
What are the main risks for PNR?
Fluctuations in global raw material costs impacting margins, exposure to cyclical automotive demand cycles, potential supply chain disruptions affecting production continuity, and currency exchange rate volatility affecting international earnings.
What is PNR's competitive advantage?
Pentair's moat is built on a global footprint with localized manufacturing capabilities, a vast installed base of proprietary products ensuring recurring revenue from aftermarket services, and specialized engineering expertise in complex fluid control applications.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.