AI Takeaway
Pentair (PNR) delivered solid FY2025 results with revenue growing 2.3% to $4.18B, gross margin expanding 130bps to 40.5%, and net income rising 4.5% to $653.8M, reflecting disciplined cost management and operational efficiency.
Revenue
$4.18B
++2.28% YoY
EPS (Basic)
$3.99
++5.56% YoY
Gross Margin
40.5%
++1.32% YoY
Operating Income
$857.5M
++6.68% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
PNR grew total revenue by 2.3% year-over-year to $4.18B in FY2025, up from $4.08B in the prior year, suggesting steady end-market demand across its water treatment and flow control segments despite a modest macroeconomic backdrop.
Source: Source: 10-K Income Statement
Gross margin improved by approximately 130 basis points to 40.5% in FY2025 from 39.2% in FY2024, as cost of revenue grew only 0.1% while revenue expanded 2.3%, indicating effective pricing actions and operational leverage.
Source: Source: 10-K Income Statement
Operating income increased 6.7% to $857.5M in FY2025, with operating margin expanding roughly 85bps to 20.5%, demonstrating that SG&A investments of $736.9M (up 5.1%) are being more than offset by gross profit gains of $1.69B.
Source: Source: 10-K Income Statement
2 more insights available
Upgrade to unlockSG&A expenses grew 5.1% to $736.9M in FY2025, outpacing revenue growth of 2.3%. If this trend continues without corresponding revenue acceleration, it could compress operating margins over time. Management will need to demonstrate that these investments translate into measurable top-line returns.
Source: Source: 10-K Income Statement
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.18 versus the $1.17 analyst consensus — a +0.8% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $4.18B | $4.08B | +2.28% |
Cost of Revenue | $2.49B | $2.48B | +0.07% |
Gross Profit | $1.69B | $1.6B | +5.72% |
Operating Income | $857.5M | $803.8M | +6.68% |
Net Income | $653.8M | $625.4M | +4.54% |
EPS (Basic) | $3.99 | $3.78 | +5.56% |
EPS (Diluted) | $3.96 | $3.74 | +5.88% |
R&D Expense | $95.9M | $93.6M | +2.46% |
SG&A Expense | $736.9M | $701.4M | +5.06% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $6.87B | $6.45B | +6.55% |
Current Assets | $1.54B | $1.44B | +7.36% |
Total Liabilities | $3B | $2.88B | +4.02% |
Current Liabilities | $959.3M | $895.1M | +7.17% |
Long-Term Debt | $1.64B | $1.64B | -0.01% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $814.8M | $766.7M | +6.27% |
Investing Cash Flow | $-404.5M | $-187.6M | -115.62% |
Financing Cash Flow | $-402.5M | $-636.7M | +36.78% |
Share Buybacks | $225M | $150M | +50.00% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 40.5% | 39.2% | +1.32% |
Operating Margin | 20.5% | 19.7% | +0.85% |
Net Margin | 15.7% | — | — |
ROA | 9.5% | — | — |
Current Ratio | $1.607 | — | — |
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Pentair delivered solid FY2025 results with revenue growing 2.3% to $4.18B and net income rising 4.5% to $653.8M. Gross margin expanded to 40.5% from 39.2%, and diluted EPS increased 5.9% to $3.96, reflecting disciplined cost management and operational efficiency.
The key highlights from PNR's FY2025 report include gross margin expansion of ~130bps to 40.5%, operating income growth of 6.7% to $857.5M, and strong operating cash flow of $814.8M. The company also accelerated share buybacks by 50% to $225M, signaling confidence in its financial position.
Yes, Pentair grew revenue by 2.3% year-over-year to $4.18B in FY2025, up from $4.08B in FY2024. While the growth rate is modest, it was accompanied by meaningful margin expansion, with gross profit growing at a faster rate of 5.7% to $1.69B.
Based on the financial data, key risks include SG&A expenses growing faster than revenue (5.1% vs. 2.3%), a sharp increase in investing cash outflows to -$404.5M suggesting large capital commitments, and long-term debt of $1.64B that could become more costly in a higher interest rate environment. R&D spending at only ~2.3% of revenue also raises questions about long-term innovation competitiveness.
Pentair's financial health appears solid: the current ratio of 1.61 indicates adequate short-term liquidity, operating cash flow of $814.8M comfortably covers capital needs, and ROA of 9.5% reflects efficient asset utilization. Long-term debt of $1.64B is manageable relative to the company's earnings power and equity base.