Pentair cut Q2 sales and full-year guidance sharply after distributor destocking crushed revenue, sending shares to a 52-week low.
Pentair pre-announced a steep second-quarter miss, forecasting sales of $930 million, down 17% from its prior guidance of 1% growth. Adjusted earnings per share landed at $1.12, well below the expected $1.47 to $1.50 range. The company also slashed its full-year outlook, now expecting a 4% to 7% sales decline versus prior growth projections of 2% to 4%, with earnings guidance cut to $4.60-$4.80 from $5.30-$5.40.
The downturn stems from distributor destocking, where excess inventory of pumps and filters has reduced new orders despite stable homeowner demand. Pentair’s revenue depends on distributor reorders, not direct consumer sales. The company’s CFO departed days before the warning, adding to investor concerns. Full results will be released on July 28.
Shares plunged 15% following the announcement, hitting a fresh 52-week low as markets questioned whether the issue is industry-wide or specific to Pentair.