- Sales of $1.1 billion, up 2 percent compared to sales for the
same period last year
- Operating income increased 19 percent to $248 million when
compared to the second quarter of 2023 reflecting ROS of 22.6
percent, an increase of 330 basis points; on an adjusted basis, ROS
expanded 310 basis points to 24.7 percent
- GAAP EPS increased 19 percent to $1.11 when compared to the
prior year period and adjusted EPS rose 18 percent to $1.22
- Net cash provided by operating activities of continuing
operations was $539 million, an increase of $93 million compared to
the same period last year, and free cash flow provided by
continuing operations for the quarter was $522 million, an increase
of $90 million compared to the same period last year.
- The company updates its full year 2024 GAAP EPS guidance to
approximately $3.81 and on an adjusted basis to approximately
$4.25
Reconciliations of GAAP to Non-GAAP measures are in the attached
financial tables.
Pentair plc (NYSE: PNR), a leader in helping the world
sustainably move, improve and enjoy water, life’s most essential
resource, today announced second quarter 2024 sales of $1.1
billion. Sales were up 2 percent compared to sales for the same
period last year. Excluding currency translation, acquisitions and
divestitures, core sales grew 2 percent in the second quarter.
Second quarter 2024 earnings per diluted share from continuing
operations (“EPS”) were $1.11 compared to $0.93 in the second
quarter of 2023. On an adjusted basis, the company reported second
quarter 2024 EPS of $1.22 compared to $1.03 in the second quarter
of 2023. Adjusted operating income, reportable segment income,
adjusted net income, free cash flow and adjusted EPS are described
in the attached schedules.
John L. Stauch, Pentair’s President and Chief Executive Officer
commented, “We delivered a strong second quarter driven by
continued execution across our balanced water portfolio. Our pool
segment returned to sales growth and all three of our segments
drove significant margin expansion due primarily to strong
productivity in Transformation. I’m equally excited about the early
stages of our 80/20 analysis which provides further confidence in
our long-term growth and margin targets that we introduced at our
March Investor Day. During the quarter, we delivered strong free
cash flow which we deployed to further strengthen our balance
sheet, restart our share repurchases and pay a dividend. As a
dividend aristocrat, we have increased our dividend for 48
consecutive years. I want to thank all of our employees for their
continued commitment towards delivering for our customers and
creating value for our shareholders.”
Second quarter 2024 operating income was $248 million, up 19
percent compared to operating income for the second quarter of
2023, and return on sales (“ROS”) was 22.6 percent, an increase of
330 basis points when compared to the second quarter of 2023. On an
adjusted basis, the company had adjusted operating income of $271
million for the second quarter of 2024, up 16 percent compared to
adjusted operating income for the second quarter of 2023, and ROS
was 24.7 percent, an increase of 310 basis points when compared to
the second quarter of 2023.
Flow sales were down 4 percent compared to sales for the same
period last year. Excluding currency translation, acquisitions and
divestitures, core sales declined 3 percent in the second quarter.
Reportable segment income of $84 million was up 13 percent compared
to the second quarter of 2023, and ROS was 21.3 percent, an
increase of 310 basis points when compared to the second quarter of
2023.
Water Solutions sales were down 8 percent compared to sales for
the same period last year. Excluding currency translation,
acquisitions and divestitures, core sales declined 7 percent in the
second quarter. Reportable segment income of $73 million was down 3
percent compared to the second quarter of 2023, and ROS was 23.5
percent, an increase of 130 basis points when compared to the
second quarter of 2023.
Pool sales were up 17 percent compared to sales for the same
period last year. Excluding currency translation, acquisitions and
divestitures, core sales grew 18 percent in the second quarter.
Reportable segment income of $134 million was up 27 percent
compared to the second quarter of 2023, and ROS was 34.1 percent,
an increase of 270 basis points when compared to the second quarter
of 2023.
Net cash provided by operating activities of continuing
operations was $539 million for the quarter compared to $447
million in the second quarter of 2023. Free cash flow provided by
continuing operations for the quarter was $522 million compared to
$433 million in the second quarter of 2023.
Pentair paid a regular cash dividend of $0.23 per share in the
second quarter of 2024. Pentair previously announced on May 6, 2024
that it will pay a regular quarterly cash dividend of $0.23 per
share on August 2, 2024 to shareholders of record at the close of
business on July 19, 2024. This year marks the 48th consecutive
year that Pentair has increased its dividend.
During the second quarter, we repurchased 0.6 million of our
ordinary shares for $50 million. As of June 30, 2024, we had $550
million available for share repurchases under our share repurchase
authorization.
OUTLOOK
Mr. Stauch concluded, “We are introducing third quarter guidance
and updating our full year outlook. We expect stronger margin
expansion than we previously guided despite continued global
macroeconomic and geopolitical uncertainty which is pressuring
sales in the second half of 2024. We are confident in our
Transformation and 80/20 initiatives and expect them to drive
strategic decisions and operational efficiencies across our
balanced water portfolio. We continue to focus on investing in the
long-term growth of Pentair and remain confident in our resilient
strategy and capital allocation priorities to drive long-term value
creation. As a leader in helping the world sustainably move,
improve and enjoy water, life’s most essential resource, we are
well positioned to capture opportunities from favorable secular
trends such as water availability, increased awareness of water
challenges, aging commercial, public and municipal infrastructure,
outdoor healthy living and favorable housing migration.”
The company updates its estimated 2024 GAAP EPS from continuing
operations to approximately $3.81 and updates its guidance on an
adjusted EPS basis to approximately $4.25. This is an increase of
approximately 13 percent compared to 2023. The Company anticipates
full year 2024 sales to be roughly flat to down 1 percent on a
reported basis.
In addition, the company introduces third quarter 2024 GAAP EPS
from continuing operations guidance of approximately $0.99 to $1.01
and on an adjusted EPS basis of approximately $1.06 to $1.08. This
is an increase of approximately 13 percent to 15 percent compared
to the prior year period. The company expects third quarter sales
to be down approximately 2 percent to 3 percent on a reported basis
compared to the third quarter of 2023.
EARNINGS CONFERENCE CALL
Pentair President and Chief Executive Officer John L. Stauch and
Chief Financial Officer Robert P. Fishman will discuss the
company’s second quarter 2024 results on a conference call with
investors at 9:00 a.m. Eastern today. A live audio webcast of the
call, along with the related presentation, can be accessed in the
Investor Relations section of the Company’s website,
www.pentair.com, shortly before the call begins.
Reconciliations of non-GAAP financial measures are set forth in
the attachments to this release and in the presentations, each of
which can be found on Pentair’s website. The webcast and
presentations will be archived at the Company’s website following
the conclusion of the event.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This release contains statements that we believe to be
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. All statements, other
than statements of historical fact, are forward-looking statements.
Without limitation, any statements preceded or followed by or that
include the words “targets,” “plans,” “believes,” “expects,”
“intends,” “will,” “likely,” “may,” “anticipates,” “estimates,”
“projects,” “should,” “would,” “could,” “positioned,” “strategy,”
or “future” or words, phrases, or terms of similar substance or the
negative thereof are forward-looking statements. These
forward-looking statements are not guarantees of future performance
and are subject to risks, uncertainties, assumptions and other
factors, some of which are beyond our control, which could cause
actual results to differ materially from those expressed or implied
by such forward-looking statements. These factors include the
overall global economic and business conditions impacting our
business, including the strength of housing and related markets and
conditions relating to international hostilities; supply, demand,
logistics, competition and pricing pressures related to and in the
markets we serve; the ability to achieve the benefits of our
restructuring plans, cost reduction initiatives and Transformation
Program; the impact of raw material, logistics and labor costs and
other inflation; volatility in currency exchange rates and interest
rates; failure of markets to accept new product introductions and
enhancements; the ability to successfully identify, finance,
complete and integrate acquisitions; risks associated with
operating foreign businesses; the impact of seasonality of sales
and weather conditions; our ability to comply with laws and
regulations; the impact of changes in laws, regulations and
administrative policy, including those that limit U.S. tax benefits
or impact trade agreements and tariffs; the outcome of litigation
and governmental proceedings; and the ability to achieve our
long-term strategic operating and environmental, social and
governance (“ESG”) goals and targets. Additional information
concerning these and other factors is contained in our filings with
the U.S. Securities and Exchange Commission, including our Annual
Report on Form 10-K for the year ended December 31, 2023. All
forward-looking statements, including all financial forecasts,
speak only as of the date of this release. Pentair assumes no
obligation, and disclaims any obligation, to update the information
contained in this release.
ABOUT PENTAIR PLC
At Pentair, we help the world sustainably move, improve and
enjoy water, life’s most essential resource. From our residential
and commercial water solutions, to industrial water management and
everything in between, Pentair is a core large cap value equity
stock focused on smart, sustainable water solutions that help our
planet and people thrive.
Pentair had revenue in 2023 of approximately $4.1 billion, and
trades under the ticker symbol PNR. With approximately 10,500
global employees serving customers in more than 150 countries, we
work to help improve lives and the environment around the world. To
learn more, visit www.pentair.com.
Pentair plc and
Subsidiaries
Condensed Consolidated
Statements of Operations (Unaudited)
Three months ended
Six months ended
In millions, except per-share data
June 30, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Net sales
$
1,099.3
$
1,082.5
$
2,116.5
$
2,111.1
Cost of goods sold
661.4
683.0
1,288.5
1,329.8
Gross profit
437.9
399.5
828.0
781.3
% of net sales
39.8
%
36.9
%
39.1
%
37.0
%
Selling, general and administrative
expenses
165.1
165.1
350.3
338.4
% of net sales
15.0
%
15.3
%
16.6
%
16.0
%
Research and development expenses
24.8
25.9
48.9
50.8
% of net sales
2.3
%
2.4
%
2.3
%
2.4
%
Operating income
248.0
208.5
428.8
392.1
% of net sales
22.6
%
19.3
%
20.3
%
18.6
%
Other expense (income)
Other expense (income)
0.8
(4.8
)
0.9
(4.1
)
Net interest expense
26.3
31.8
53.6
64.2
% of net sales
2.4
%
2.9
%
2.5
%
3.0
%
Income from continuing operations before
income taxes
220.9
181.5
374.3
332.0
Provision for income taxes
34.8
27.3
54.7
49.3
Effective tax rate
15.8
%
15.0
%
14.6
%
14.8
%
Net income from continuing
operations
186.1
154.2
319.6
282.7
Loss from discontinued operations, net of
tax
—
(1.3
)
(0.2
)
(0.1
)
Net income
$
186.1
$
152.9
$
319.4
$
282.6
Earnings (loss) per ordinary
share
Basic
Continuing operations
$
1.12
$
0.94
$
1.93
$
1.71
Discontinued operations
—
(0.01
)
—
—
Basic earnings per ordinary share
$
1.12
$
0.93
$
1.93
$
1.71
Diluted
Continuing operations
$
1.11
$
0.93
$
1.91
$
1.70
Discontinued operations
—
(0.01
)
—
—
Diluted earnings per ordinary share
$
1.11
$
0.92
$
1.91
$
1.70
Weighted average ordinary shares
outstanding
Basic
165.9
165.0
165.8
164.9
Diluted
167.3
166.1
167.3
165.9
Cash dividends paid per ordinary
share
$
0.23
$
0.22
$
0.46
$
0.44
Pentair plc and
Subsidiaries
Condensed Consolidated Balance
Sheets (Unaudited)
June 30, 2024
December 31,
2023
In millions
Assets
Current assets
Cash and cash equivalents
$
214.3
$
170.3
Accounts receivable, net
567.8
561.7
Inventories
647.5
677.7
Other current assets
133.9
159.3
Total current assets
1,563.5
1,569.0
Property, plant and equipment,
net
361.4
362.0
Other assets
Goodwill
3,250.6
3,274.6
Intangibles, net
1,012.4
1,042.4
Other non-current assets
360.1
315.3
Total other assets
4,623.1
4,632.3
Total assets
$
6,548.0
$
6,563.3
Liabilities and Equity
Current liabilities
Current maturities of short-term
borrowings
$
3.3
$
—
Accounts payable
295.0
278.9
Employee compensation and benefits
104.0
125.4
Other current liabilities
548.1
545.3
Total current liabilities
950.4
949.6
Other liabilities
Long-term debt
1,752.6
1,988.3
Pension and other post-retirement
compensation and benefits
71.8
73.6
Deferred tax liabilities
38.7
40.0
Other non-current liabilities
301.6
294.7
Total liabilities
3,115.1
3,346.2
Equity
3,432.9
3,217.1
Total liabilities and equity
$
6,548.0
$
6,563.3
Pentair plc and
Subsidiaries
Condensed Consolidated
Statements of Cash Flows (Unaudited)
Six months ended
In millions
June 30, 2024
June 30, 2023
Operating activities
Net income
$
319.4
$
282.6
Loss from discontinued operations, net of
tax
0.2
0.1
Adjustments to reconcile net income
from continuing operations to net cash provided by (used for)
operating activities
Equity income of unconsolidated
subsidiaries
(1.1
)
(0.8
)
Depreciation
30.4
29.4
Amortization
26.9
27.7
Deferred income taxes
12.6
(31.9
)
Share-based compensation
16.3
14.1
Asset impairment and write-offs
0.8
4.4
Gain on sale of assets
—
(3.4
)
Changes in assets and liabilities, net
of effects of business acquisitions
Accounts receivable
(10.7
)
7.4
Inventories
23.5
33.6
Other current assets
(4.0
)
(16.7
)
Accounts payable
19.4
(25.8
)
Employee compensation and benefits
(19.4
)
(1.2
)
Other current liabilities
6.6
22.1
Other non-current assets and
liabilities
10.9
(1.5
)
Net cash provided by operating activities
of continuing operations
431.8
340.1
Net cash used for operating activities of
discontinued operations
(0.2
)
(1.6
)
Net cash provided by operating
activities
431.6
338.5
Investing activities
Capital expenditures
(36.3
)
(35.4
)
Proceeds from sale of property and
equipment
—
5.0
Acquisitions, net of cash acquired
—
0.2
Other
(0.5
)
4.1
Net cash used for investing activities
(36.8
)
(26.1
)
Financing activities
Net receipts of short-term borrowings
3.3
—
Net repayments of revolving long-term
debt
—
(204.3
)
Repayments of long-term debt
(237.5
)
—
Shares issued to employees, net of shares
withheld
9.3
0.8
Repurchases of ordinary shares
(50.0
)
—
Dividends paid
(76.2
)
(72.5
)
Net cash used for financing activities
(351.1
)
(276.0
)
Effect of exchange rate changes on cash
and cash equivalents
0.3
(3.7
)
Change in cash and cash
equivalents
44.0
32.7
Cash and cash equivalents, beginning of
period
170.3
108.9
Cash and cash equivalents, end of
period
$
214.3
$
141.6
Pentair plc and
Subsidiaries
Reconciliation of the GAAP
Operating Activities Cash Flow to the Non-GAAP Free Cash Flow
(Unaudited)
Three months ended
Three months ended
Six months ended
In millions
March 31, 2024
June 30, 2024
June 30, 2024
Net cash (used for) provided by operating
activities of continuing operations
$
(107.4
)
$
539.2
$
431.8
Capital expenditures
(19.3
)
(17.0
)
(36.3
)
Free cash flow from continuing
operations
(126.7
)
522.2
395.5
Net cash used for operating activities of
discontinued operations
(0.2
)
—
(0.2
)
Free cash flow
$
(126.9
)
$
522.2
$
395.3
Three months ended
Three months ended
Six months ended
In millions
March 31, 2023
June 30, 2023
June 30, 2023
Net cash (used for) provided by operating
activities of continuing operations
$
(106.6
)
$
446.7
$
340.1
Capital expenditures
(16.6
)
(18.8
)
(35.4
)
Proceeds from sale of property and
equipment
0.2
4.8
5.0
Free cash flow from continuing
operations
(123.0
)
432.7
309.7
Net cash used for operating activities of
discontinued operations
—
(1.6
)
(1.6
)
Free cash flow
$
(123.0
)
$
431.1
$
308.1
Pentair plc and
Subsidiaries
Supplemental Financial
Information by Reportable Segment (Unaudited)
2024
2023
In millions
First
Quarter
Second
Quarter
Six
Months
First
Quarter
Second
Quarter
Six
Months
Net sales
Flow
$
384.3
$
396.8
$
781.1
$
391.8
$
411.6
$
803.4
Water Solutions
273.1
310.5
583.6
272.0
336.2
608.2
Pool
359.5
391.5
751.0
364.3
334.3
698.6
Reportable segment net sales
1,016.9
1,098.8
2,115.7
1,028.1
1,082.1
2,110.2
Corporate and other
0.3
0.5
0.8
0.5
0.4
0.9
Net sales
$
1,017.2
$
1,099.3
$
2,116.5
$
1,028.6
$
1,082.5
$
2,111.1
Reportable segment income
(loss)
Flow
$
77.3
$
84.4
$
161.7
$
65.0
$
74.8
$
139.8
Water Solutions
55.6
72.9
128.5
52.4
74.8
127.2
Pool
110.8
133.6
244.4
116.2
105.1
221.3
Reportable segment income
243.7
290.9
534.6
233.6
254.7
488.3
Corporate and other
(26.4
)
(19.5
)
(45.9
)
(22.6
)
(20.5
)
(43.1
)
Adjusted operating income
$
217.3
$
271.4
$
488.7
$
211.0
$
234.2
$
445.2
Return on sales
Flow
20.1
%
21.3
%
20.7
%
16.6
%
18.2
%
17.4
%
Water Solutions
20.4
%
23.5
%
22.0
%
19.3
%
22.2
%
20.9
%
Pool
30.8
%
34.1
%
32.5
%
31.9
%
31.4
%
31.7
%
Adjusted return on sales
21.4
%
24.7
%
23.1
%
20.5
%
21.6
%
21.1
%
Pentair plc and
Subsidiaries
Reconciliation of GAAP to
Non-GAAP Financial Measures for the Year Ending December 31,
2024
Excluding the Effect of
Adjustments (Unaudited)
Actual
Forecast
In millions, except per-share data
First
Quarter
Second Quarter
Third
Quarter
Full
Year
Net sales
$
1,017.2
$
1,099.3
approx
Down 2% - 3%
approx
Down 1% to flat
Operating income
180.8
248.0
approx
Up 21% - 24%
approx
Up 15% - 16%
Return on sales
17.8
%
22.6
%
Adjustments:
Restructuring and other
4.6
5.9
approx
$
—
approx
$
11
Transformation costs
17.0
11.8
approx
—
approx
29
Intangible amortization
13.5
13.4
approx
14
approx
55
Legal accrual adjustments and
settlements
(0.3
)
(7.9
)
approx
—
approx
(8
)
Asset impairment and write-offs
0.8
—
approx
—
approx
1
Equity income of unconsolidated
subsidiaries
0.9
0.2
approx
1
approx
3
Adjusted operating income
217.3
271.4
approx
Up 10% - 12%
approx
Up 10% - 11%
Adjusted return on sales
21.4
%
24.7
%
Net income from continuing operations—as
reported
133.5
186.1
approx
$165 - $168
approx
$
641
Adjustments to operating income
35.6
23.2
approx
14
approx
88
Income tax adjustments
(11.3
)
(5.4
)
approx
(2)
approx
(21
)
Net income from continuing operations—as
adjusted
$
157.8
$
203.9
approx
$177 - $180
approx
$
708
Continuing earnings per ordinary
share—diluted
Diluted earnings per ordinary share—as
reported
$
0.80
$
1.11
approx
$0.99 - $1.01
approx
$
3.85
Adjustments
0.14
0.11
approx
0.07
approx
0.40
Diluted earnings per ordinary share—as
adjusted
$
0.94
$
1.22
approx
$1.06 - $1.08
approx
$
4.25
Pentair plc and
Subsidiaries
Reconciliation of GAAP to
Non-GAAP Financial Measures for the Year Ended December 31,
2023
Excluding the Effect of
Adjustments (Unaudited)
In millions, except per-share data
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Full
Year
Net sales
$
1,028.6
$
1,082.5
$
1,008.8
$
984.6
$
4,104.5
Operating income
183.6
208.5
180.1
167.0
739.2
Return on sales
17.8
%
19.3
%
17.9
%
17.0
%
18.0
%
Adjustments:
Restructuring and other
2.9
0.6
1.6
(1.7
)
3.4
Transformation costs
8.5
6.0
13.5
16.3
44.3
Intangible amortization
13.8
13.9
13.8
13.8
55.3
Legal accrual adjustments and
settlements
(1.9
)
4.1
—
—
2.2
Asset impairment and write-offs
3.9
0.5
1.8
1.7
7.9
Equity income of unconsolidated
subsidiaries
0.2
0.6
1.3
0.7
2.8
Adjusted operating income
211.0
234.2
212.1
197.8
855.1
Adjusted return on sales
20.5
%
21.6
%
21.0
%
20.1
%
20.8
%
Net income from continuing operations—as
reported
128.5
154.2
132.1
208.1
622.9
Pension and other post retirement mark to
market loss
—
—
—
6.1
6.1
Other income
—
(5.1
)
—
—
(5.1
)
Adjustments to operating income
27.2
25.1
30.7
30.1
113.1
Income tax adjustments (1)
(4.6
)
(3.1
)
(6.6
)
(98.5
)
(112.8
)
Net income from continuing operations—as
adjusted
$
151.1
$
171.1
$
156.2
$
145.8
$
624.2
Continuing earnings per ordinary
share—diluted
Diluted earnings per ordinary share—as
reported
$
0.78
$
0.93
$
0.79
$
1.25
$
3.75
Adjustments
0.13
0.10
0.15
(0.38
)
—
Diluted earnings per ordinary share—as
adjusted
$
0.91
$
1.03
$
0.94
$
0.87
$
3.75
(1)
Income tax adjustments in the fourth
quarter include $74.3 million resulting from favorable impacts of
worthless stock deductions related to exiting certain businesses in
our Water Solutions segment and favorable discrete items primarily
related to the recognition of deferred tax assets.
Pentair plc and
Subsidiaries
Reconciliation of Net Sales
Growth to Core Net Sales Growth by Segment
For the Quarter Ended June 30,
2024 (Unaudited)
Q2 Net Sales Growth
Core
Currency
Acq. / Div.
Total
Total Pentair
2.2
%
(0.4
)%
(0.2
)%
1.6
%
Flow
(3.1
)%
(0.5
)%
—
%
(3.6
)%
Water Solutions
(7.0
)%
(0.6
)%
—
%
(7.6
)%
Pool
17.9
%
(0.1
)%
(0.7
)%
17.1
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240723805328/en/
PENTAIR CONTACTS Shelly Hubbard Vice President, Investor
Relations Direct: 612-812-0148 Email:
shelly.hubbard@pentair.com
Rebecca Osborn Sr. Director, External Communications Direct:
763-656-5589 Email: rebecca.osborn@pentair.com
Pentair (NYSE:PNR)
Gráfica de Acción Histórica
De Dic 2024 a Ene 2025
Pentair (NYSE:PNR)
Gráfica de Acción Histórica
De Ene 2024 a Ene 2025
