Key Takeaways:
Pentair reported preliminary Q2 sales of about $930 million, down 17% from its prior forecast, as pool channel inventory destocking deepened.
"These headwinds are temporary and we are taking decisive actions to adapt the business to current demand levels while positioning it to return to normalized performance in 2027," John L. Stauch, President and Chief Executive Officer of Pentair, said.
The company now expects full-year 2026 adjusted earnings per share of $4.60 to $4.80, down from a prior range of $5.30 to $5.40. The Pool segment's inventory realignment with major channel partners was more pronounced than previously estimated, the company said, with worsening business conditions including higher interest rates and inflation.
Shares of the S&P 500 company, which had revenue of about $4.2 billion in 2025, face pressure from the dual shock of a CFO departure and a guidance cut. The company will report full Q2 results on July 28.
CFO Transition
Pentair said it has initiated a search for a permanent chief financial officer after Nicholas Brazis departed on July 10 to pursue an opportunity at a private company. Bob Fishman, who served as Pentair's CFO for six years before retiring, has returned as interim executive vice president and CFO effective immediately.
"During Bob's six year tenure at Pentair, he helped to strengthen our financial foundation and enhance our operating discipline," Stauch said. Fishman said he is "optimistic about the opportunities ahead" and looks forward to supporting disciplined execution.
Preliminary Q2 Results
Adjusted operating income for the second quarter came in at about $235 million, while adjusted EPS was about $1.12, compared with prior guidance of $1.47 to $1.50. The company estimates that destocking in the Pool channel negatively impacted segment sales by about $170 million and segment income by about $105 million.
Pentair's results included about $35 million of refunds tied to tariffs previously collected under the International Emergency Economic Powers Act, which partially offset the pool-related shortfall.
The company's Flow and Water Solutions segments performed roughly in line with prior guidance for the quarter.
Revised Full-Year Outlook
For the full year, Pentair now expects sales to decline 4% to 7%, compared with prior guidance for growth of 2% to 4%. The company estimates the Pool channel destocking will reduce full-year segment sales by about $250 million and segment income by about $155 million.
GAAP EPS is expected to be about $3.90 to $4.10, down from a prior range of $4.83 to $4.93. EBITDA for the year is expected to be about $1.05 billion.
Pentair repurchased about 2 million shares for $150 million during the second quarter.
The guidance revision signals that management expects pool demand to remain subdued through the remainder of the year as channel partners right-size inventory ahead of the 2027 pool season. Investors will watch the full Q2 earnings call on July 28 for details on the pace of the recovery and any additional cost actions.
This article is for informational purposes only and does not constitute investment advice.
