4. Pentair plc (NYSE:PNR)
Number of Hedge Fund Holders: 49
Pentair plc (NYSE:PNR) is a global leader in water treatment and sustainable solutions, specializing in filtration, purification and fluid management technologies. Headquartered in the UK with operational leadership in the US, the company serves residential, commercial, industrial, and agricultural markets worldwide. PNR’s portfolio includes water filtration systems, pool equipment, pumps and smart water management solutions, helping customers optimize water quality and efficiency. The company’s focus on innovation and sustainability drives its efforts to address global water challenges, from providing clean drinking water to enhancing water conservation. With a strong presence in both consumer and industrial segments, PNR continues to expand its impact in the water sector through advanced technology and strategic growth initiatives.
Pentair plc (NYSE:PNR) is returning to growth after experiencing relatively flat top-line performance in recent years. The company operates across three segments focused on moving, improving, and enjoying water, positioning itself as one of the largest pure-play water companies. For 2025, the Pool segment is guided to grow 4-5% YoY, with growth coming from a small acquisition and a mix of price and volume improvements. The company maintains strong profitability, with the Pool business achieving a 33% return on sales. PNR has demonstrated pricing power with approximately 75% of revenue flowing through distribution, expecting price to contribute 1.5% to 2% growth in 2025 and offset inflation. The company is well-positioned to handle upcoming tariffs through inventory management, pre-buys, and pricing power.
Looking ahead, Pentair plc (NYSE:PNR) sees sustainable runway for margin expansion over the next 3-5 years through transformation initiatives in sourcing, operational footprint, and organizational excellence. The company maintains financial strength as an investment-grade company and dividend aristocrat, having raised dividends for 49 consecutive years, with the most recent increase being 9%.
