Pentair Pool Sales Fall 18% as Channel Reset Completes

The Tip Desk · November 8, 2026 · 3 min read

Third-quarter sales were $976 million, down 4% after a 17% year-over-year drop in the second quarter, and the company reaffirmed full-year adjusted EPS of about $4.70.

Pentair plc (PNR), a water-equipment and systems company, reported third-quarter 2026 sales of $976 million, down 4% from a year earlier after a 17% year-over-year decline in the second quarter. Core sales, excluding currency, acquisitions and divestitures, fell 5%.

The sequential improvement in the sales decline followed the completion of a Pool channel inventory realignment. Pool sales were $291.5 million, down 18% on both a reported and core basis. Pool segment income was $72 million, down 38%, with return on sales of 24.6%. The company said third-quarter Pool performance reflected the completion of the inventory realignment with major channel partners.

In the second quarter, Pentair had estimated the Pool channel destock reduced Pool sales by about $170 million. Full-year 2026 guidance still includes right-sizing of channel inventory in preparation for the 2027 pool season and the October 1 acquisition of Taco Group Holdings.

GAAP diluted earnings from continuing operations were $0.91 a share, down 19% from $1.12 a year earlier. Adjusted EPS was $1.18, down 5% from $1.24. Operating income was $196 million, with return on sales of 20.1%. Adjusted operating income was $242 million, with adjusted return on sales of 24.8%. Results included about $8 million of International Emergency Economic Powers Act refunds, versus about $35 million in the second quarter.

Flow sales were $262.5 million, up 4% year over year, with core growth of 1%. Flow segment income was $69 million, up 15%, and return on sales was 26.2%. Water Solutions sales were $421.9 million, up 1% reported and 1% on a core basis. Water Solutions segment income was $121 million, up 16%, with return on sales of 28.7%. Effective January 1, 2026, Pentair moved its legacy residential and irrigation flow business from Flow into Water Solutions and restated prior periods; Pool was unchanged.

Net cash from operations was $169 million. Free cash flow was $153 million. Pentair paid a regular cash dividend of $0.27 a share and said it will pay the same dividend on November 6. The company said 2026 marks the 50th consecutive year of dividend increases.

President and Chief Executive Officer John L. Stauch said the company delivered solid third-quarter results and that teams responded following a challenging second quarter in Pool. He said Pentair is positioning for significant growth in 2027 and remains focused on finishing the year.

The company updated full-year 2026 GAAP EPS from continuing operations to approximately $3.76, from a $3.86 to $4.06 range issued after the second quarter, and reaffirmed the midpoint of its previous adjusted EPS guide at approximately $4.70. It updated full-year sales guidance to be down approximately 3% on a reported basis.

Pentair introduced fourth-quarter 2026 GAAP EPS guidance of approximately $1.07 and adjusted EPS of approximately $1.15. It expects fourth-quarter sales to be up approximately 7% to 9% versus the fourth quarter of 2025. Stauch said the third-quarter performance increases confidence in the full-year outlook.