Why Pentair Is Spending $1.4 Billion To Ride The AI Data Center Wave
Pentair plc (NYSE: PNR ) stock rose Tuesday after the water treatment company announced a $1.4 billion acquisition of Taco Group Holdings alongside its second-quarter results. Earnings Miss Estimates Pentair reported adjusted earnings of $1.14 per share, missing the analyst consensus estimate of $1.22. Revenue declined 17% year over year to $932.6 million, below the consensus estimate of $958.1 million. The company said the decline was primarily driven by an approximately $170 million impact from inventory destocking in its Pool distribution channel. Adjusted operating income fell 20% to $236.6 million, while adjusted operating margin narrowed 100 basis points to 25.4%. Segment Results Flow segment sales increased 5% to $263.7 million. Core sales declined 1%, excluding currency, acquisitions and divestitures. Segment income rose 27% to $70 million, and margin expanded 470 basis points...
4 billion acquisition of Taco Group Holdings alongside its second-quarter results. 22. 1 million. The company said the decline was primarily driven by an approximately $170 million impact from inventory destocking in its Pool distribution channel.
4%. 7 million. Core sales declined 1%, excluding currency, acquisitions and divestitures. 5%.
Water Solutions sales declined 5% to $422 million, with core sales down 3%. Segment income increased 17% to $126 million, while margin improved 560 basis points to 30%, driven by disciplined pricing and productivity. 6 million as channel partners continued to reduce inventory and demand remained pressured by higher interest rates and inflation. 4%.
Read Also: Pentair Stock Plunges as Pool Destocking Forces Deep 2026 Guidance Cut Cash Flow And Shareholder Returns Pentair generated operating cash flow of $572 million and free cash flow of $553 million during the quarter. Pentair paid a quarterly cash dividend of 27 cents per share in the second quarter. The company also previously announced a 27-cent dividend payable Aug. 7 to shareholders of record as of July 24.
Pentair has increased its dividend for 50 consecutive years. 8 million. The company repurchased 2 million shares for $150 million during the quarter. As of June 30, Pentair had $650 million remaining under its share repurchase authorization.
4 billion. 5 times estimated 2026 EBITDA, including roughly $165 million in tax benefits and approximately $30 million of expected run-rate cost synergies. Pentair said the acquisition will expand its portfolio of smart and sustainable water solutions and strengthen its position in North American growth markets. Taco is expected to generate about $540 million in fiscal 2026 revenue, with adjusted EBITDA margins exceeding 20%, including expected synergies.
Pentair expects the acquisition to add 10 cents to 15 cents to adjusted earnings per share in fiscal 2027. 10. 69. 88.
012 billion. 20. 9 million. 23 at the time of publication on Tuesday, according to Pro data.
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