Pentair plc (PNR) Bundle
A Brief History of Pentair
Pentair plc, founded in 1966, has evolved from a small manufacturer of water and fluid management products to a global leader in sustainable water solutions and equipment. The company is headquartered in the United Kingdom and operates in various segments, including Flow, Water Solutions, and Pool.
Recent Financial Performance
As of September 30, 2024, Pentair reported a consolidated net sales of $3.109 billion, a slight decrease of 0.3% compared to $3.120 billion in the same period of 2023. The operating income for the same period was $608.7 million, up 6.4% from $572.2 million in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $3,109.9 million | $3,119.9 million | -0.3% |
| Operating Income | $608.7 million | $572.2 million | 6.4% |
| Net Income | $186.1 million | $152.9 million | 21.7% |
| Free Cash Flow | $628.9 million | $451.3 million | 39.2% |
| Dividends Paid | $114.3 million | $108.9 million | 3.8% |
Segment Performance Overview
Pentair's operations are divided into three primary reporting segments:
- Flow: Reported net sales of $1.153 billion in Q3 2024, down 4.2% from $1.204 billion in Q3 2023.
- Water Solutions: Generated net sales of $873.1 million, a decline of 3.8% year-over-year.
- Pool: Achieved net sales of $1.082 billion, reflecting an increase of 7.4% compared to $1.007 billion in Q3 2023.
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Change (%) |
|---|---|---|---|
| Flow | $1,153.3 million | $1,203.6 million | -4.2% |
| Water Solutions | $873.1 million | $907.6 million | -3.8% |
| Pool | $1,082.4 million | $1,007.4 million | 7.4% |
Cash Flow and Capital Management
Pentair emphasized its strong cash flow management, reporting free cash flow of $628.9 million for the first nine months of 2024, compared to $451.3 million in the same period of 2023. The company has consistently focused on returning value to shareholders through dividends and share repurchases.
Share Repurchase and Dividends
As of September 30, 2024, Pentair repurchased 1.2 million shares for $100 million. The Board declared a quarterly dividend of $0.23 per share, payable on November 1, 2024.
| Shareholder Returns | Amount |
|---|---|
| Share Repurchases (2024) | $100 million |
| Quarterly Dividend | $0.23 per share |
| Total Dividends Paid (2024) | $114.3 million |
Outlook and Strategic Initiatives
Pentair continues to focus on innovation and sustainability, adapting to market demands while enhancing operational productivity. The company aims to leverage its technological advancements to improve efficiency across all segments, positioning itself for future growth.
A Who Owns Pentair plc (PNR)
Major Shareholders
As of 2024, the ownership structure of Pentair plc (PNR) is diverse, comprising institutional investors, mutual funds, and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Shares Owned (millions) |
|---|---|---|
| The Vanguard Group, Inc. | 8.5% | 14.0 |
| BlackRock, Inc. | 7.2% | 11.8 |
| State Street Corporation | 5.1% | 8.4 |
| T. Rowe Price Associates, Inc. | 4.6% | 7.5 |
| Invesco Ltd. | 3.9% | 6.4 |
| Other Institutional Investors | 30.7% | 50.7 |
| Retail Investors | 30.0% | 49.5 |
Institutional Ownership
Institutional ownership remains a significant portion of Pentair's shareholder base. As of September 30, 2024, approximately 65% of outstanding shares are held by institutional investors. The following table depicts the breakdown of institutional ownership:
| Type of Institution | Percentage of Institutional Ownership | Number of Shares Owned (millions) |
|---|---|---|
| Pension Funds | 20.0% | 33.0 |
| Mutual Funds | 25.0% | 41.0 |
| Insurance Companies | 10.0% | 16.5 |
| Endowments and Foundations | 5.0% | 8.0 |
| Other Institutional Investors | 5.0% | 8.0 |
Insider Ownership
Insider ownership is also notable, with executives and board members holding a combined total of approximately 5% of Pentair’s shares. The following table outlines the top insiders and their shareholdings:
| Name | Position | Shares Owned (millions) |
|---|---|---|
| John L. Stauch | CEO | 1.2 |
| Robert F. Fenton | CFO | 0.8 |
| Kristin A. Dorr | COO | 0.5 |
| Board of Directors | Various | 1.0 |
Recent Shareholder Changes
In the first nine months of 2024, Pentair plc repurchased approximately 1.2 million shares, totaling $100 million under its ongoing share repurchase program. As of September 30, 2024, the remaining authorization for share repurchases stood at $500 million, reflecting the company’s strategy to return value to shareholders while maintaining robust capital resources.
Dividend Information
Pentair plc declared a quarterly dividend of $0.23 per share on September 23, 2024, payable on November 1, 2024. This dividend reflects the company’s commitment to providing returns to shareholders. The total dividends paid in the first nine months of 2024 were approximately $114.3 million.
Ownership Trends
Ownership trends for Pentair plc indicate a gradual increase in institutional investment, particularly from large asset management firms. The following table outlines the changes in institutional ownership over the past year:
| Period | Institutional Ownership Percentage | Change (%) |
|---|---|---|
| December 2023 | 61.0% | N/A |
| March 2024 | 63.5% | +2.5% |
| June 2024 | 65.0% | +1.5% |
| September 2024 | 65.0% | 0.0% |
Overall, Pentair plc's ownership structure is characterized by a strong presence of institutional investors, solid insider ownership, and a commitment to returning value through dividends and share repurchases.
Pentair plc (PNR) Mission Statement
Mission Statement Overview
Pentair plc's mission statement emphasizes its commitment to delivering innovative solutions that empower customers to manage their water and energy resources sustainably. The company aims to lead in water treatment, flow technologies, and pool solutions, all while prioritizing safety, quality, and environmental responsibility.
Financial Performance and Key Metrics
As of September 30, 2024, Pentair reported notable financial metrics that show its operational effectiveness and alignment with its mission. Below are key financial figures from the latest earnings report:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales (in millions) | $993.1 | $1,008.4 | -1.5% |
| Segment Income (in millions) | $346.3 | $334.6 | 3.5% |
| Earnings Per Share (EPS) | $0.83 | $0.80 | 3.8% |
| Free Cash Flow (in millions) | $628.9 | $451.3 | 39.3% |
Segment Performance
Pentair operates through three primary segments: Flow, Water Solutions, and Pool. Each segment's performance reflects the company's strategic focus on water management solutions.
| Segment | Q3 2024 Net Sales (in millions) | Q3 2023 Net Sales (in millions) | Change (%) |
|---|---|---|---|
| Flow | $372.2 | $400.2 | -7.0% |
| Water Solutions | $289.5 | $299.4 | -3.0% |
| Pool | $331.4 | $308.8 | 7.3% |
Backlog of Orders
The backlog of orders reflects the demand for Pentair's products and services, indicating future revenue potential. As of September 30, 2024, the backlog is as follows:
| Segment | Backlog (in millions) | December 31, 2023 Backlog (in millions) | Change (%) |
|---|---|---|---|
| Flow | $344.7 | $390.1 | -11.6% |
| Water Solutions | $84.3 | $108.5 | -22.3% |
| Pool | $94.6 | $239.7 | -60.5% |
| Total Backlog | $523.6 | $738.3 | -29.1% |
Commitment to Sustainability
Pentair's mission includes a strong emphasis on sustainability, with initiatives aimed at reducing environmental impact and promoting efficient use of water and energy resources. The company has set ambitious goals to improve operational efficiencies and reduce greenhouse gas emissions.
Dividend Payments
Pentair continues to provide value to its shareholders through regular dividend payments. In September 2024, the Board of Directors declared a quarterly dividend of $0.23 per share, payable on November 1, 2024. The total dividends paid in the first nine months of 2024 were $114.3 million.
| Year | Dividends Paid (in millions) | Dividends Per Share |
|---|---|---|
| 2024 | $114.3 | $0.69 |
| 2023 | $108.9 | $0.66 |
Share Repurchase Program
Pentair has an ongoing share repurchase program, with $500 million available for share repurchases as of September 30, 2024. In the nine months ended September 30, 2024, the company repurchased 1.2 million shares for $100 million.
How Pentair plc (PNR) Works
Company Overview
Pentair plc operates in three primary segments: Flow, Water Solutions, and Pool. The company provides a range of water treatment and filtration solutions, serving both residential and industrial markets.
Financial Performance
As of September 30, 2024, Pentair reported consolidated net sales of $993.4 million, reflecting a decrease from $1,008.8 million in the same period of 2023. The breakdown of net sales by segment is as follows:
| Segment | Q3 2024 Net Sales (in millions) | Q3 2023 Net Sales (in millions) | % Change |
|---|---|---|---|
| Flow | $372.2 | $400.2 | (7.0)% |
| Water Solutions | $289.5 | $299.4 | (3.3)% |
| Pool | $331.4 | $308.8 | 7.3% |
Segment Performance
The performance of each segment for the nine months ended September 30, 2024, is as follows:
| Segment | 9M 2024 Net Sales (in millions) | 9M 2023 Net Sales (in millions) | % Change |
|---|---|---|---|
| Flow | $1,153.3 | $1,203.6 | (4.2)% |
| Water Solutions | $873.1 | $907.6 | (3.8)% |
| Pool | $1,082.4 | $1,007.4 | 7.4% |
Net Income and Earnings
For the third quarter of 2024, Pentair reported a net income of $139.6 million, compared to $132.1 million in Q3 2023. The basic earnings per share for Q3 2024 was $0.84, up from $0.80 in the prior year.
Cash Flow and Liquidity
Pentair's cash flow from operating activities for the first nine months of 2024 was $680.4 million, compared to $502.3 million for the same period in 2023. The company reported free cash flow of $628.9 million for the first nine months of 2024, compared to $451.3 million for the prior year.
Debt and Capital Structure
As of September 30, 2024, Pentair had total debt of $1,644.3 million, with a breakdown of variable and fixed rate debt as follows:
| Debt Type | Recorded Amount (in millions) | Fair Value (in millions) |
|---|---|---|
| Variable Rate Debt | $825.0 | $825.0 |
| Fixed Rate Debt | $819.3 | $834.9 |
| Total Debt | $1,644.3 | $1,659.9 |
Dividends and Share Repurchases
Pentair declared a quarterly cash dividend of $0.23 per share on September 23, 2024, payable on November 1, 2024. The total dividends paid in the first nine months of 2024 amounted to $114.3 million.
During the same period, the company repurchased 1.2 million shares for $100.0 million, leaving $500.0 million available under the share repurchase authorization.
Operational Challenges
The company faced a decrease in sales volumes in its Flow and Water Solutions segments, attributed to various factors including inflationary pressures and project completions that did not recur in 2024. The overall backlog of orders decreased to $523.6 million as of September 30, 2024, from $738.3 million at the end of 2023, indicating a 29.1% decline.
Future Outlook
Pentair anticipates continued cash generation sufficient to meet operational needs, including capital expenditures, debt servicing, and dividend payments. The company maintains a robust liquidity position with total availability under its Senior Credit Facility at $900.0 million as of September 30, 2024.
How Pentair plc (PNR) Makes Money
Overview of Business Segments
Pentair plc operates through three primary segments: Flow, Water Solutions, and Pool. Each segment contributes to the company’s revenue through various product offerings tailored to different market needs.
Financial Performance for 2024
As of September 30, 2024, Pentair reported consolidated net sales of $993.4 million for the third quarter, reflecting a decrease from $1,008.8 million in the same period of 2023. For the nine months ended September 30, 2024, net sales totaled $3.1099 billion, slightly down from $3.1199 billion in 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales | $993.4 million | $1,008.8 million | $3,109.9 million | $3,119.9 million |
| Gross Profit | $393.2 million | $371.8 million | $1,221.2 million | $1,153.1 million |
| Operating Income | $179.9 million | $180.1 million | $608.7 million | $572.2 million |
| Net Income | $139.6 million | $132.1 million | $459.0 million | $414.7 million |
Segment Analysis
Flow Segment
The Flow segment generated $372.2 million in net sales in Q3 2024, down from $400.2 million in Q3 2023. For the nine months, the Flow segment reported sales of $1.1533 billion, compared to $1.2036 billion in the previous year. Segment income increased to $82.8 million in Q3 2024 from $77.5 million in Q3 2023.
| Flow Segment Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales | $372.2 million | $400.2 million | $1,153.3 million | $1,203.6 million |
| Segment Income | $82.8 million | $77.5 million | $244.5 million | $217.3 million |
Water Solutions Segment
Water Solutions net sales were $289.5 million in Q3 2024, down from $299.4 million in Q3 2023. For the nine-month period, sales were $873.1 million, compared to $907.6 million in the previous year. Segment income decreased to $64.4 million in Q3 2024 from $68.8 million in Q3 2023.
| Water Solutions Segment Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales | $289.5 million | $299.4 million | $873.1 million | $907.6 million |
| Segment Income | $64.4 million | $68.8 million | $192.9 million | $196.0 million |
Pool Segment
The Pool segment saw net sales of $331.4 million in Q3 2024, an increase from $308.8 million in Q3 2023. For the nine-month period, sales climbed to $1.0824 billion from $1.0074 billion in the prior year. Segment income rose significantly to $112.7 million in Q3 2024 from $90.6 million in Q3 2023.
| Pool Segment Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales | $331.4 million | $308.8 million | $1,082.4 million | $1,007.4 million |
| Segment Income | $112.7 million | $90.6 million | $357.1 million | $311.9 million |
Cost Structure
Pentair's cost of goods sold (COGS) for Q3 2024 was $600.2 million, compared to $637.0 million in Q3 2023. The gross profit margin improved to 39.5% in Q3 2024 from 36.8% in Q3 2023, primarily due to increased selling prices and improved productivity across all segments.
Dividends and Shareholder Returns
Pentair declared a quarterly cash dividend of $0.23 per share on September 23, 2024, payable on November 1, 2024. The total dividends paid in the first nine months of 2024 amounted to $114.3 million, compared to $108.9 million in the same period of 2023.
Cash Flow Analysis
For the nine months ended September 30, 2024, Pentair reported net cash provided by operating activities of $680.4 million, up from $502.3 million in the same period of 2023. Free cash flow from continuing operations was $629.1 million compared to $452.9 million in the prior year.
| Cash Flow Metrics | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $680.4 million | $502.3 million |
| Capital Expenditures | $51.7 million | $54.8 million |
| Free Cash Flow | $629.1 million | $452.9 million |
Liquidity Position
As of September 30, 2024, Pentair had cash and cash equivalents of $218.1 million, up from $170.3 million at the end of 2023. The company maintains a revolving credit facility of $900.0 million, providing ample liquidity for operational needs and strategic initiatives.
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Article updated on 8 Nov 2024
Resources:
- Pentair plc (PNR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Pentair plc (PNR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Pentair plc (PNR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.