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Sep 30, 2024
Pentair Q3 2024 Earnings Report
Pentair's Q3 2024 earnings surpassed expectations, driven by strong execution and value delivery to customers.
Key Takeaways
Pentair reported Q3 2024 sales of $993 million, a decrease of 2% compared to the same period last year. GAAP EPS increased by 6% to $0.84, while adjusted EPS rose by 16% to $1.09. The company updated its full year 2024 GAAP EPS guidance to approximately $3.70 and increased adjusted EPS guidance to approximately $4.27.
Sales reached $993 million, a 2% decrease year-over-year.
Operating income was $180 million, with a ROS of 18.1%.
GAAP EPS increased 6% to $0.84, and adjusted EPS increased 16% to $1.09.
Free cash flow was $234 million, an increase of $90 million compared to the same period last year.
Pentair
Pentair
Pentair Revenue by Segment
Revenue by Segment
Water Solutions Revenue
CapyFin.comPool Revenue
CapyFin.com Forward Guidance
The company introduces fourth quarter guidance and increases its full year adjusted earnings guidance driven by strong execution. The company expects fourth quarter sales to be approximately $965 million to $975 million, down 1 percent to 2 percent on a reported basis compared to the fourth quarter of 2023.
Positive Outlook
- The company updates its estimated 2024 GAAP EPS from continuing operations to approximately $3.70 and increases estimated EPS on an adjusted basis to approximately $4.27, up approximately 14 percent compared to 2023.
- The Company maintains its full year 2024 sales of roughly flat to down 1 percent, or $4,075 million to $4,085 million, on a reported basis.
- The company introduces fourth quarter 2024 GAAP EPS from continuing operations guidance of approximately $0.95 and on an adjusted EPS basis of approximately $1.02, up approximately 17 percent compared to the prior year period.
- Transformation initiatives and 80/20 are expected to continue to drive strategic decisions and operational efficiencies across the balanced water portfolio.
- Strong balance sheet and significant free cash flow generation.
Challenges Ahead
- The company expects fourth quarter sales to be approximately $965 million to $975 million, down 1 percent to 2 percent on a reported basis compared to the fourth quarter of 2023.
- Monitoring the macroeconomic landscape.
- Sales were down 2 percent compared to sales for the same period last year.
- Excluding currency translation, acquisitions and divestitures, core sales declined 1 percent in the third quarter.
- Flow sales were down 7 percent compared to sales for the same period last year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income