Pentair (PNT) AI Stock Analysis

Company Guidance

Pentair reaffirmed full-year 2026 adjusted EPS of approximately $4.70, with total sales down approximately 3%, Flow sales up approximately mid single digits, Water Solutions sales up approximately high single digits including the impact of TACO, with core sales approximately flat, pool sales down approximately 18% to 19%, adjusted operating income down approximately 6%, and productivity of approximately $55 million net of volume deleverage and pool growth investments; it does not expect further tariff refunds in the fourth quarter after receiving $43 million year to date. Fourth-quarter sales are expected to be up approximately 7% to 9% inclusive of TACO, core sales down 2% to 3%, Flow sales up approximately low single digits, Water Solutions sales up approximately 40% with core growth of low single digits, pool sales down approximately 12% to 15%, adjusted operating income up approximately 1%, and adjusted EPS of $1.15. TACO’s estimated 2026 sales are approximately $560 million, representing growth of roughly 23%, while 2027 sales are expected to be greater than $620 million or growth of more than 10%, with EBITDA approximately $90 million in 2026 and greater than $105 million in 2027, representing mid teens growth; the acquisition is expected to be accretive to adjusted EPS in 2027. Pool 2026 sell through is estimated at $1.45 billion, up 2% to 3%, while next year sell through is expected to remain about flat at about $1.45 billion, with approximately $180 million of year over year sales growth or about 14% and approximately 30% return on sales for full year 2027; Pentair expects to delever over the next 24 months back into its more normal range of 1.5 to 2x.