Record Quarterly Sales and Adjusted Operating Income
Reported sales of over $1.0 billion, up 3% year-over-year, and adjusted operating income of $259 million, up 7% year-over-year; company stated these were first-quarter records.
Margin Expansion and EPS Growth
Return on sales expanded 100 basis points to 25% (sixteenth consecutive quarter of margin expansion). Adjusted EPS was $1.22, up roughly 10%-11% year-over-year.
Strong Flow Segment Performance
Flow sales increased 11% to $258 million (partly reflecting the HydroStop acquisition), segment income grew 22%, and return on sales expanded 210 basis points to 23.7%.
Water Solutions and Pool Contributed to Core Growth and Margins
Water Solutions core growth and Pool both contributed to margin expansion: Water Solutions segment income rose 6% to $100 million with ROS up 160 bps to 25.5%; Pool sales rose 1% to $387 million and segment income rose 2% with ROS ~33% (up ~30 bps).
Productivity Execution and 2026 Productivity Target
Delivered net productivity of $21 million in Q1 (net of investments) and reaffirmed full-year Pentair Business System productivity target of approximately $70 million net of investment.
Capital Allocation and Shareholder Returns
Repurchased $200 million of shares in Q1, plan for additional repurchases during 2026 (not included in guidance). Increased dividend by 8% and achieved 50th consecutive year of dividend increases (Dividend King).
Balance Sheet and Returns
Return on invested capital increased to 16.6% from 15.8% year-over-year; net debt leverage ratio at 1.7x, supporting disciplined capital deployment.
Raised and Narrowed EPS Guidance
Full-year adjusted EPS guidance narrowed to $5.30–$5.40 (midpoint ~$5.35), representing roughly 8%–10% year-over-year growth; adjusted operating income expected to increase ~6%–8% with ~100 bps ROS expansion to ~26%.