The Pool destock is the primary driver of the miss, but management frames it as temporary. The reaffirmed adjusted EPS guidance and Taco acquisition provide some offset. Monitor Q3 for signs of inventory normalization and the acquisition's impact on leverage and growth. The stock likely already priced in the preannouncement, so further downside may be limited unless guidance is cut again.
Price Chart
Executive Summary
Pentair reported Q2 2026 results with sales of $933M, down 17% YoY, and GAAP EPS of $0.80, down 11% YoY, driven by a $170M Pool channel inventory destock. Adjusted EPS of $1.14 missed consensus of $1.12 but was in line with the July 14 preannouncement. The company reaffirmed full-year adjusted EPS guidance of $4.60-$4.80 and announced a definitive agreement to acquire Taco Group Holdings.
Key Financial Metrics
Key Facts
- Q2 2026 sales of $933M, down 17% YoY (core sales -17%)
- GAAP EPS $0.80 vs $0.90 in Q2 2025 (-11% YoY)
- Adjusted EPS $1.14 vs $1.39 in Q2 2025 (-18% YoY), vs consensus $1.12 (slight beat)
- Pool segment sales down 42% YoY due to channel inventory destock of ~$170M
- Full-year 2026 GAAP EPS guidance lowered to $3.86-$4.06 (from $4.83-$4.93)
- Full-year adjusted EPS guidance reaffirmed at $4.60-$4.80
- Full-year sales guidance reaffirmed down 4%-7%
- Q2 included ~$35M of IEEPA refunds
- Repurchased $150M of shares in Q2
- Announced definitive agreement to acquire Taco Group Holdings (separate press release)
Financial Impact
Q2 sales declined $190.5M YoY (-17%), GAAP operating income down 24% to $167M, adjusted EPS down 18% to $1.14. Full-year GAAP EPS guidance cut by ~$0.90 at midpoint.
Risk Factors
- Pool channel inventory destock may extend beyond Q2, pressuring H2 results
- Taco acquisition integration and funding could increase leverage
- Higher interest rates and inflation continue to weigh on pool and housing markets
- Full-year GAAP guidance lowered, suggesting potential for further adjusted guidance cuts
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000077360-26-000042 |
| Document: pnr-20260728.htm | 0000077360-26-000042 |
| Document: 0000077360-26-000042-index-headers.html | 0000077360-26-000042 |
| Document: 0000077360-26-000042-index.html | 0000077360-26-000042 |
| Document: 0000077360-26-000042.txt | 0000077360-26-000042 |
| 8-K Data (Synthetic) | 0000077360-26-000042 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 11, 2026 20d ago | Press Release | $56.18 $55.78 | ▲ +0.71% | ▲ +0.82% | $53.03 (+5.61%) |
Aug 26, 2026 5w ago | Press Release | $62.86 $59.84 | ▲ +4.80% | ▲ +4.68% | $53.03 (+15.64%) |
Aug 24, 2026 5w ago | Press Release | $63.31 $60.46 | ▲ +4.50% | ▲ +4.97% | $53.03 (+16.24%) |
Aug 7, 2026 8w ago | Press Release | $68.64 $66.16 | ▲ +3.61% | ▲ +4.01% | $53.03 (+22.74%) |
Jul 28, 2026 9w ago | 8-K | $66.77 $67.07 | ▼ −0.45% | ▲ +1.82% | $53.03 (+20.58%) |
Jul 16, 2026 11w ago | Press Release | $62.45 $62.07 | ▼ −0.61% | ▲ +0.08% | $53.03 (−15.08%) |
Apr 28, 2026 22w ago | 8-K | $82.83 $77.77 | ▼ −6.11% | ▼ −7.80% | $53.03 (−35.97%) |
Mar 20, 2026 28w ago | DEFA14A | $88.39 $83.93 | ▼ −5.05% | ▼ −1.48% | $53.03 (−40.00%) |
Feb 25, 2026 31w ago | 8-K/A | $100.73 $96.90 | ▼ −3.80% | ▼ −2.70% | $53.03 (−47.35%) |
US Market Status
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