Pentair PLC (PNR.N): Negative Pre-Announcement; Pool Inventory Destocking Impacts Results

Research evidence excerpt

Pentair PLC (PNR.N): Negative Pre-Announcement; Pool Inventory Destocking Impacts Results

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14 Jul 2026 21:01:05 ET │ 10 pages

Pentair PLC (PNR.N)

Negative Pre-Announcement; Pool Inventory Destocking Impacts

Results

CITI'S TAKE Buy

Price (14 Jul 26 16:00) US$75.68 In a negative pre-announcement with a meaningful 2Q26 revenue miss -

Target price US$106.00 17% y/y (vs. Street/Citi at +1.5%/+1%), PNR primarily cited adverse impact

of Pool channel inventory (~$170mn sales/ ~$105mn adj. op income) as Expected share price return 40.1%

well as modest Water Solutions/Flow impacts (2% y/y decline vs. prior Expected dividend yield 1.4%

guidance), partially offset by ~$35mn of IEEPA refunds. With that, overall Expected total return 41.5%

2Q26 adj. EPS is expected to be ~$1.12 (vs. prior $1.47-$1.50 guidance, Market Cap US$12,230M

explained by $0.55 Pool headwind, $0.18 IEEPA refunds, and ~flat

WS/Flow/Other; Street/Citi at $1.48). While we think company actions to

right-size channel inventory and recent Pool leadership changes could

ultimately position PNR for more “normalized” Pool performance in 2027, Andrew KaplowitzAC

supported by improved/more tailored innovation, we acknowledge that +1-212-816-0642

remaining 3Q destocking actions and investor concern around PNR’s Pool andrew.kaplowitz@citi.com

market share could keep shares pressured in the near-term. Jose Sulca Flores

jose.alonso.sulcaflores@citi.com

Additional Thoughts: For the full-year, PNR expects pool destocking to impact sales

by ~$250mn and adj. op income by ~$155mn, partially offset by ~$35mn-$50mn

IEEPA refunds. Water Solutions and Flow are expected to perform relatively in-line

with prior 2Q26/FY26 guidance, and PNR announced ~2mn share repurchases in

the quarter for ~$150mn (vs.