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Dec 31, 2023

Pentair Q4 2023 Earnings Report

Pentair reported strong Q4 and full year results, driven by a balanced portfolio and focused growth strategy.

Key Takeaways

Pentair reported Q4 2023 sales of $985 million. EPS was $1.25, and adjusted EPS was $0.87. Operating income increased by 50% to $167 million, reflecting a ROS of 17.0%. The company introduces 2024 GAAP EPS guidance of $3.82 to $3.92 and adjusted EPS guidance of $4.15 to $4.25.

Fourth quarter sales were $985 million; full year 2023 sales were $4.1 billion.

Operating income in the fourth quarter increased 50 percent to $167 million with a ROS of 17.0 percent.

Fourth quarter GAAP EPS was $1.25 and adjusted EPS was $0.87.

Full year net cash provided by operating activities of continuing operations was $621 million and free cash flow was $550 million.

Total Revenue
$985M
Previous year: $1B
-1.8%
EPS
$0.87
Previous year: $0.82
+6.1%
Gross Profit
$366M
Previous year: $325M
+12.7%
Cash and Equivalents
$170M
Previous year: $109M
+56.4%
Free Cash Flow
$549M
Previous year: $282M
+94.5%
Total Assets
$6.56B
Previous year: $6.45B
+1.8%

Pentair

Pentair

Pentair Revenue by Segment

Forward Guidance

The Company is introducing 2024 GAAP EPS guidance of approximately $3.82 to $3.92 and on an adjusted basis of approximately $4.15 to $4.25. The Company anticipates full year 2024 sales to increase 2 percent to 3 percent on a reported basis.

Positive Outlook

  • Committed to driving growth, profitability and returns
  • Focusing on mission to help the world sustainably move, improve, and enjoy water
  • Investing in key areas to drive long-term growth
  • Optimizing sourcing and operational footprint
  • Expect to continue to drive further margin expansion in 2024

Challenges Ahead

  • Includes a $0.07 negative impact, primarily driven by changes in global tax standards.
  • Expects first quarter sales to be down approximately 2 percent to 3 percent on a reported basis compared to first quarter 2023.
  • Overall global economic and business conditions impacting our business, including the strength of housing and related markets and conditions relating to international hostilities
  • Supply, demand, logistics, competition and pricing pressures related to and in the markets we serve
  • Volatility in currency exchange rates and interest rates