A fixed rule set over this filing's XBRL figures and the number of high-severity risks found in it — no model judgement.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Pentair’s 2026-Q2 net sales fell 17.0% year over year to $932.6M, driven principally by Pool-channel destocking, while gross margin expanded 170 basis points to 42.4% and the company announced a planned $1.425B Taco acquisition that is expected to increase leverage. Source: 10-Q Item 2 MD&A, pp.24, 26, 31, 34.
PNR’s 2026-Q2 sales dropped 17.0% to $932.6M amid severe Pool destocking, while gross margin improved and the planned $1.425B Taco acquisition introduces meaningful integration and leverage risk. Source: 10-Q Item 2 MD&A, pp.24, 26, 31, 34.
Last 4 quarters: 3 beats, 1 miss
Reported EPS of $1.14 versus the $1.21 analyst consensus — a -5.6% miss for Jun 2026.
2026-Q2 net sales declined 17.0% year over year to $932.6M, including a 20.6% volume decline partly offset by 3.3% pricing. Management attributed the decline primarily to Pool-channel inventory destocking; Pool sales fell 42.3% to $246.6M, and management expects channel destocking to reduce 2026 net sales by approximately $250M, with the timing and pace of normalization uncertain.
Source: 10-Q Item 2 MD&A, pp.24, 26-27, 31
Gross margin increased to 42.4% in 2026-Q2 from 40.7% a year earlier, helped by pricing, productivity, the absence of prior-year asset impairments/write-offs, and $34.9M of IEEPA tariff refunds. However, operating margin decreased to 17.9% from 19.4% because SG&A rose to 22.0% of sales, including $34.6M of restructuring costs and $17.5M of transformation costs.
Source: 10-Q Item 2 MD&A, pp.26-28
Flow sales increased 5.1% to $263.7M and its segment-income margin expanded 470 basis points to 26.5%, supported by the Hydra-Stop acquisition, pricing and productivity. Water Solutions sales decreased 5.1% to $422.0M but its segment-income margin rose 560 basis points to 30.0%; in contrast, Pool segment income fell 62.3% to $57.6M and its margin dropped 1,230 basis points to 23.4%.
Source: 10-Q Item 2 MD&A, pp.28-31
On July 27, 2026, Pentair agreed to acquire Taco Group Holdings for $1.425B, subject to customary adjustments, closing conditions and regulatory approvals, with closing expected in the fourth quarter of 2026. The company expects to use cash on hand and committed bridge financing, then refinance through a permanent debt issuance anticipated to be investment grade.
Source: 10-Q Item 2 MD&A, p.24
For the first six months of 2026, operating cash flow was $504.4M and free cash flow was $467.2M, versus $567.7M and $540.1M, respectively, in the prior-year period. The company cited a $138.0M working-capital cash inflow, including lower receivables and higher inventory associated with lower Pool sales, while capital expenditures were $37.4M.
Source: 10-Q Item 2 MD&A, pp.32-33
Pentair will need to devote significant management attention and resources to integrating Taco’s operations. Delays or unexpected integration difficulties could adversely affect results, and expected revenue synergies, cost savings and operating efficiencies may not be realized fully, on time, or at all.
Source: 10-Q Item 1A Risk Factors, p.37
The acquisition could require material spending to review, upgrade and integrate Taco’s systems, including internal control over financial reporting, increasing compliance costs. Pentair also may face liabilities—including litigation or regulatory matters—that were not discovered or quantified in due diligence and may not be covered by indemnification or insurance.
Source: 10-Q Item 1A Risk Factors, p.37
Pentair had $1.606B of consolidated debt at June 30, 2026 and expects indebtedness to increase materially in connection with Taco. The company may use approximately $1.4B of new bridge-facility debt, along with cash and/or revolver borrowings, which could raise interest-payment requirements, reduce financing flexibility and increase sensitivity to adverse economic or industry conditions.
Source: 10-Q Item 1A Risk Factors, pp.37-38
This analysis does not extract a guidance section. Companies issue revenue and EPS outlook in the 8-K press release and on the earnings call rather than in the 10-Q itself — though the filing's management discussion can contain forward-looking statements, which appear in the highlights above where they were material.
Pentair (PNR) is next expected to report on , when the following quarter's results and any updated outlook will be available.
See the PNR earnings preview — expected date, analyst estimates and what to watch →
Pentair reported 2026-Q2 net sales of $932.6M, down 17.0% year over year, primarily due to Pool-channel inventory destocking. Gross margin improved 170 basis points to 42.4%, but operating income fell 23.5% to $166.5M as restructuring and transformation costs increased. Source: 10-Q Item 2 MD&A, pp.26-28.
Pentair’s sales decline reflected a 20.6% decline in volume, partially offset by 3.3% pricing growth. The principal issue was Pool-channel destocking: Pool sales declined 42.3% to $246.6M, and management estimates destocking will reduce full-year 2026 sales by about $250M. Source: 10-Q Item 2 MD&A, pp.24, 27, 31.
Flow sales rose 5.1% to $263.7M, while Water Solutions sales declined 5.1% to $422.0M and Pool sales fell 42.3% to $246.6M. Segment-income margins were 26.5% for Flow, 30.0% for Water Solutions, and 23.4% for Pool. Source: 10-Q Item 2 MD&A, pp.28-31.
Pentair signed an agreement on July 27, 2026 to acquire Taco Group Holdings for $1.425B, subject to customary adjustments, approvals and closing conditions, with closing expected in the fourth quarter of 2026. The company expects to finance the transaction with cash and bridge financing that it intends to refinance with permanent, anticipated investment-grade debt. Source: 10-Q Item 2 MD&A, p.24.
Pentair highlighted the risk that Taco integration may be delayed or fail to achieve expected synergies, as well as potential undisclosed liabilities and added compliance costs from the acquisition. It also warned that debt could rise materially from $1.606B at June 30, 2026 due to acquisition financing, increasing interest obligations and reducing financial flexibility. Source: 10-Q Item 1A Risk Factors, pp.37-38.
Pentair (PNR) is next expected to report earnings on Oct 19, 2026. The date comes from the analyst earnings calendar and can shift until the company confirms it.
Expected release date, analyst estimates & what to watch
PNR delivered solid Q1 FY2026 results with revenue up 2.6% YoY to $1.04B, net income surging 11.3% to $172.4M, and gross margin expanding ~190 bps to 41.8%, though operating cash flow remained negative at -$67.4M.
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.
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