The quarter was already substantially known before this filing. Pentair preannounced the Pool-driven shortfall on July 14, so the July 28 release mainly confirms the reset rather than delivers a fresh surprise. Actual adjusted EPS was modestly above the preannouncement’s roughly $1.12 indication, while sales landed around the expected $930 million level; the market had already absorbed the much larger-than-expected inventory correction.
| Metric | Q2 2026 | Q2 2025 / prior reference | Read |
|---|---|---|---|
| Net sales | $932.6M | $1,123.1M | Down 17% (Income Statement) |
| Adjusted EPS | $1.14 | $1.39 | Down 18% (Non-GAAP reconciliation) |
| GAAP diluted EPS from continuing operations | $0.80 | $0.90 | Down 11% (Income Statement) |
| Pool sales | $246.6M | $427.2M | Down 42% (Segment results — Pool) |
| Pool segment income | $57.6M | $152.7M | Down 62% (Segment results — Pool) |
| Flow sales | $263.7M | $250.9M | Up 5% (Segment results — Flow) |
| Water Solutions sales | $422.0M | $444.7M | Down 5% (Segment results — Water Solutions) |
| Free cash flow | $552.9M | $595.8M | Down 7% (Free cash flow reconciliation) |
Pool is the clear damage center, not a broad-based collapse. Pool revenue fell 42% and segment profit dropped 62%, with margin falling 1,230 basis points to 23.4% as channel partners reduced inventory more aggressively than expected. Flow’s 26.5% margin and Water Solutions’ 30.0% margin improved sharply, partly offsetting the Pool weakness, but not enough to prevent adjusted operating income from falling 20% to $236.6 million (Segment results; Non-GAAP reconciliation).
The forward picture is unchanged from the July 14 reset, not repaired by the small EPS cushion. Management reaffirmed full-year adjusted EPS of $4.60-$4.80 and sales down 4%-7%, while introducing Q3 adjusted EPS guidance of $1.05-$1.08 and sales down 4%-6%. That keeps the near-term outlook weak and makes the investment case dependent on the claimed temporary nature of the Pool inventory correction and a recovery heading into 2027 (2026 outlook reconciliation).
Net read: confirmation of a known disappointment, with mixed operating details. The filing does not add another guidance cut, and the modest adjusted-EPS result above the preannouncement is a small offset. However, the severe Pool contraction, lower consolidated margins and weaker year-to-date free cash flow outweigh the stronger Flow and Water Solutions performance. Relative to the market’s post-preannouncement expectation, this is broadly in line rather than a new beat or miss.
Read the original 8-K on SEC EDGAR ↗