Pool Destock Worse; 2Q Miss and Lower 2026 Guide; CFO Departure

Research evidence excerpt

Pool Destock Worse; 2Q Miss and Lower 2026 Guide; CFO Departure

USA | Multi-Industrials

Pentair Ltd EquityJulyResearch15, 2026

TARGET | ESTIMATE CHANGEPool Destock Worse; 2Q Miss and Lower 2026

RATING BUYGuide; CFO Departure

PRICE $75.68^

PNR pre-announced lower than expected 2Q results and a reduction to the

2026 outlook. Channel destock within the Pool business is the main culprit for PRICE TARGET | % TO PT $90.00 ($115.00) | +19%

the lower-than-expected 2Q result, with full-year guidance bridge suggesting 52W HIGH-LOW $113.95 - $69.93

a weaker pool environment outside of inventory issues. We are updating FLOAT (%) | ADV MM (USD) 98.1% | 170.45

our model to reflect the negative pre-announcement and revised guidance. MARKET CAP $12.4B

Company will report full 2Q results on July 28th. TICKER PNR ^Prior trading day's closing price unless otherwise

noted.

Preliminary Release. PNR negatively pre-announced 2Q26 results, now expecting adj. EPS of ~

$1.12/share versus prior guidance of $1.47-1.50 (Consensus: $1.48). The shortfall reflects Pool

FY (Dec) CHANGE TO JEFe JEF vs CONS

channel inventory destocking, partly offset by IEEPA refunds. 2Q Pool destocking reduced segment

2026 2027 2026 2027

sales by ~$170m and segment income by ~$105m, implying a ~$0.55/share earnings impact per

management's bridge. IEEPA refunds contributed ~$35m, or ~$0.18/share. Water Solutions/Flow/ REV -8% -9% -8% -8%

Other were roughly in line with prior EPS expectations, though Water Solutions/Flow remained a EPS -12% -15% -12% -16%

headwind to sales and adj. operating income.

2026 ($) Q1A Q2 Q3 Q4 FY

Our Reaction. PNR had indicated in the 1Q that it expected some destock in the pool end market, but EPS 1.22 1.12 1.16 1.21 4.70

the impact has clearly been worse than expected.