Q3 2024 Pentair PLC Earnings Call Transcript
Key Points
- Pentair PLC (PNR) delivered double-digit adjusted operating income and EPS growth year-over-year, with a 13% increase in adjusted operating income and a 16% increase in adjusted EPS.
- The company achieved record free cash flow totaling $629 million so far this year, marking a post-invent spin-off record.
- Pentair PLC (PNR) raised its full-year adjusted EPS guidance to approximately $4.27, representing a 14% increase year-over-year.
- The pool segment saw a 7% sales growth in Q3, with a significant margin expansion of 470 basis points to 34%.
- Transformation initiatives have resulted in $70 million of savings year-to-date, with a target of $100 million for the full year, contributing to strong margin expansion.
- Sales declined by 2% in Q3, with core sales down 1% year-over-year, driven by a 7% decline in flow and a 3% decline in water solutions.
- Higher interest rates and a slow housing market continue to impact the residential vertical, affecting both flow and water solutions segments.
- The industrial vertical experienced the effects of delayed CapEx spend from customers, impacting sales.
- Despite strong performance in some areas, the company faces global economic pressures affecting international business.
- The pool segment, while growing, is still impacted by sustained higher interest rates and a slower housing market, particularly in new and remodeled pools.
Welcome to the Pentair Third Quarter 2024 Earnings Conference Call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Shelly Hubbard, Vice President, Investor Relations. Please go ahead.
Thank you, operator, and welcome to Pentair's Third Quarter 2024 Earnings Conference Call. On the call with me are John Stauch, our President and Chief Executive Officer; and Bob Fishman, our Chief Financial Officer. On today's call, we will provide details on our third quarter performance as outlined in the morning's press release.
On the Pentair Investor Relations website, you can find our earnings release and slide deck, which is intended to supplement our prepared remarks during today's call and provide a reconciliation of differences between GAAP and non-GAAP financial measures that we will reference. The non-GAAP financial measures provided should not be considered as a substitute for or superior to the measures of financial
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