PNR US S&P 500Russell 1000 Earnings call · transcribed from the recording
Pentair (PNR) · Q3 2026 results and valuation
Share price: $69.33 · 2026-11-11
Results Q3 2026 vs Q2 2026 · previous quarter · published 27 Oct 2026 and 28 Jul 2026
Net income up 12.8% on the previous quarter. Management sounded upbeat, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+12.8%
Net income vs Q2 2026
Outlook given
Net income 145.1M vs 128.6M
Revenue +4.7%
Against the same quarter last year (Q3 2025) it is −21.3%, so the move on last quarter looks seasonal or timing-related rather than a trend.
2 · How management spoke
Upbeat
More upbeat than 75% of company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
Guidance
Pentair expects the acquisition to be accretive to adjusted EPS in 2027 and to accelerate Pentair's sales and EBITDA growth.
Valuation
Is Pentair undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 0.4% growth a year (3-year revenue growth), the model's fair value is $47.64 a share — the stock trades 46% above it. Today's price assumes 5.6% growth a year.
Current price
$69.33
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+5.6% for 10 yrs
Fair value / share
$47.64
Buy below
$35.73
Price vs fair value
Overvalued 46%
Price vs buy-below price
Overvalued 94%
Read between the lines
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Key theme
It was really about Pentair was focused on new pool builds, and it werens't as focused on where those existing pads…
Source quote
“It was really about we were focused on new pool builds, and we weren't as focused on where those existing pads... ...out and making sure that our products are understood and that they are like-for-like replacements to products we've had and reminding consumers of the great experience they've had under the Pentair brand, that we can continue to compete effectively for that. And a big part of this regional structure and the investment we're making state by state with our dealers is to align our opportunities to where the long-term growth resides.”
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Guidance
Pentair is going to continue to compete for growth, and with the strength of its brand, the efforts it is investing in, Josh's leadership, and new product innovations...
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Figure
Keiko's estimated 2026 sales are approximately 560 million, representing growth of roughly 23% from 2025.
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Tayco is a high-growth platform with a strong brand, differentiated technology, attractive customer relationships, and meaningful opportunities for continued growth and margin improvement.”
“Josh brings 25 years of leadership experience, deep industry expertise, and a proven track record of driving growth, strengthening organizations, and improving business performance.”
“We also expect to maintain our strong profitability, with Poole delivering approximately 30% return on sales for full year 2027, while continuing to invest in innovation, our brand, and our...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)
| Metric | Q3 2026period end 2026-09-30 | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 976.4M | 932.6M | +4.7% | 1.02B | −4.5% |
| Gross profit | 395.2M | 395.0M | +0.1% | 418.6M | −5.6% |
| Operating income | 195.9M | 166.5M | +17.7% | 231.7M | −15.5% |
| Net income | 145.1M | 128.6M | +12.8% | 184.3M | −21.3% |
| EPS | 0.91 | 0.80 | +13.7% | 1.12 | −18.8% |
| P/E today 12.9 | — | 21.4 | — | 28.0 | — |
Topics
Most discussed now
- New You have markets like Florida that are very heavy heat pump orientation with no natural gas.
- Even when you exclude the tariff refunds for the water solutions business, the Ross margin expansion was significant.
- Segment income grew 15%, and return on sales increased 250 basis points to 26%, driven by strong productivity performance and...
- Core water solution sales grew 1% as commercial sales increased 4%, offsetting an anticipated reduction in residential due to end...
- When Pentair talks about potential share loss, it's a onesie and twosie product on an existing pad that it feels...
Faded since Q2 2026
- Dropped They are included as additional clarifying items to aid investors in further understanding the company's performance.
- Fading Just as important, it will enhance the resiliency of Water Solutions as Pentair expands Taco's installed base and accelerate the...
- Fading Despite the recent challenges in pool, Pentair continues to invest in growth initiatives...
- Fading It is also about making sure that Pentair is understanding that the various regions that it participates in all have...
Latest announcements
Official filings, newest first.
- Director or officer change · SEC 8-K
- Director or officer change · SEC 8-K
- New financial obligation · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations; Director or officer change · SEC 8-K
- Shareholder vote results · SEC 8-K
- New financial obligation · SEC 8-K
- Director or officer change · SEC 8-K