Q2 2024 Pentair PLC Earnings Call Transcript
Key Points
- Pentair PLC (PNR) achieved record sales, adjusted operating income, return on sales (ROS), adjusted EPS, and free cash flow in Q2 2024.
- Sales increased by 2%, adjusted operating income rose by 16%, and adjusted EPS grew by 18% year-over-year.
- Free cash flow exceeded $500 million, and the company repurchased $50 million worth of stock in the second quarter.
- Pentair PLC (PNR) increased its dividend for the 48th consecutive year, maintaining its status as a dividend aristocrat.
- The company raised its full-year adjusted EPS guidance to approximately $4.25, reflecting strong performance and confidence in future execution.
- The residential segment within the flow business experienced a 10% decline year-over-year, impacted by higher interest rates and a slow housing market.
- Water solutions sales declined by 8% due to economic pressures, particularly in international markets.
- The pool segment faced challenges with new in-ground pool builds expected to decline to around 60,000 in 2024 from 72,000 in 2023.
- Higher interest rates and a sluggish economy led to a reduction in revenue expectations for the second half of 2024 by about $120 million.
- Inflationary pressures, particularly in commodities and labor, continued to impact the company's cost structure, with inflation running slightly higher than anticipated.
Good morning, everyone, and welcome to the Pentair second-quarter 2024 earnings conference call. (Operator Instructions) Please also note that today's event is being recorded.
At this time, I'd like to turn the floor over to Shelly Hubbard, Vice President, Investor Relations. Ma'am, please go ahead.
Thank you, and welcome to Pentair's second-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 second-quarter performance as outlined in this 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
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