Fourth quarter 2024 earnings per diluted share from continuing operations (“EPS”) were $0.99 compared to $1.25 in the fourth quarter of 2023. On an adjusted basis, the Company reported EPS of $1.08 in the fourth quarter compared to $0.87 in the fourth quarter of 2023. Adjusted operating income, reportable segment income, adjusted net income, free cash flow, and adjusted EPS are described in the attached schedules.
Fourth quarter 2024 operating income was $195 million, up 17 percent compared to operating income for the fourth quarter of 2023, and return on sales (“ROS”) was 20.1 percent, an increase of 310 basis points when compared to the fourth quarter of 2023. On an adjusted basis, the Company reported adjusted operating income of $231 million, up 17 percent for the fourth quarter of 2024 compared to adjusted operating income for the fourth quarter of 2023, and ROS was 23.8 percent, an increase of 370 basis points when compared to the fourth quarter of 2023.
“We delivered another transformative year in 2024 and drove strong margin expansion across our entire portfolio despite a challenging global macroeconomic and geopolitical environment. By leveraging our Transformation initiatives and 80/20, our teams produced another solid year of operational and financial performance which mitigated risk to the topline while expanding profitability. This was a direct reflection of the power of our balanced and resilient water portfolio, our focused growth strategy and strong execution,” said John L. Stauch, Pentair’s President and Chief Executive Officer. “Each of our Move, Improve and Enjoy Water segments drove record margins for another consecutive year post the nVent separation in 2018. In Flow, we continued to grow our Commercial business while evolving our go-to-market strategy within Industrial. In Water Solutions, our filtration sales delivered another year of growth, and in Pool, we returned to sales growth driven by a strong aftermarket. We ended the year with strong cash flow and a solid balance sheet. We increased our dividend by approximately 9 percent for 2025 marking the 49th consecutive year of dividend increases and reaffirming our dividend aristocrat status. I’m proud of our accomplishments across the company and how our teams have delivered for customers and shareholders in 2024.”
Full year 2024 sales were $4.1 billion. Sales were down 1 percent compared to sales last year. Excluding currency translation, acquisitions and divestitures, core sales were flat in 2024. Full year 2024 EPS from continuing operations was $3.74 compared to $3.75 in 2023. On an adjusted basis, the Company reported EPS of $4.33 for 2024 compared to $3.75 in 2023.
Full year 2024 operating income was $804 million, up 9 percent compared to operating income in 2023, and ROS was 19.7 percent, an increase of 170 basis points when compared to 2023. On an adjusted basis, the Company reported adjusted operating income of $959 million, up 12 percent in 2024, compared to adjusted operating income in 2023, and ROS was 23.5 percent, an increase of 270 basis points when compared to 2023.
Flow sales were down 5 percent in the fourth quarter of 2024 compared to sales for the same period last year. Excluding currency translation, acquisitions and divestitures, core sales declined 5 percent in the fourth quarter. Reportable segment income of $74 million was up 13 percent compared to the fourth quarter of 2023, and ROS was 20.4 percent, an increase of 320 basis points when compared to the fourth quarter of 2023.
Flow sales were down 4 percent for the full year of 2024 compared to sales for 2023. Excluding currency translation, acquisitions and divestitures, core sales declined 4 percent in 2024. Reportable segment income of $318 million was up 13 percent compared to 2023, and ROS was 21.0 percent, an increase of 320 basis points when compared to 2023.
Water Solutions sales were down 4 percent in the fourth quarter of 2024 compared to sales for the same period last year. Excluding currency translation, acquisitions and divestitures, core sales declined 4 percent in the fourth quarter. Reportable segment income of $62 million was up 21 percent compared to the fourth quarter of 2023, and ROS was 24.1 percent, an increase of 500 basis points when compared to the fourth quarter of 2023.
Water Solutions sales were down 4 percent for the full year of 2024 compared to sales for 2023. Excluding currency translation, acquisitions and divestitures, core sales declined 4 percent in 2024. Reportable segment income of $255 million was up 3 percent compared to 2023, and ROS was 22.6 percent, an increase of 160 basis points when compared to 2023.
Pool sales were up 5 percent in the fourth quarter of 2024 compared to sales for the same period last year. Excluding currency translation, acquisitions and divestitures, core sales grew 4 percent in the fourth quarter. Reportable segment income of $119 million was up 14 percent compared to the fourth quarter of 2023, and ROS was 33.8 percent, an increase of 250 basis points when compared to the fourth quarter of 2023.
Pool sales were up 7 percent for the full year of 2024 compared to sales for 2023. Excluding currency translation, acquisitions and divestitures, core sales grew 7 percent in 2024. Reportable segment income of $476 million was up 14 percent compared to 2023, and ROS was 33.2 percent, an increase of 220 basis points when compared to 2023.
Full year net cash provided by operating activities of continuing operations was $767 million and free cash flow from continuing operations was $693 million.
Pentair paid a regular cash dividend of $0.23 per share in the fourth quarter of 2024. Pentair previously announced on December 16, 2024 that it will pay a regular quarterly cash dividend of $0.25 per share on February 7, 2025 to shareholders of record at the close of business on January 24, 2025. This $0.25 per share quarterly cash dividend reflects an approximate 9 percent increase in the Company’s regular cash dividend rate as compared to $0.23 per share per quarter in 2024 and marks the 49th consecutive year that Pentair has increased its dividend.
During the fourth quarter, the company repurchased 0.4 million shares for $50 million. During the year ended December 31, 2024, the company repurchased 1.6 million shares for $150 million. As of December 31, 2024, we had $450 million available for share repurchases under our share repurchase authorization.
OUTLOOK
Mr. Stauch concluded, “As we look to 2025, we are focused on our mission to help the world sustainably move, improve, and enjoy water, life’s most essential resource. We expect to continue to invest in key areas across the company and execute on our Transformation initiatives and 80/20 to drive long-term growth, profitability and returns. We believe our balanced water portfolio is proving its resilience as Pool is expected to grow offsetting our Flow and Water Solutions residential end markets that remain pressured by higher interest rates. We are confident in our strategy and our ability to control what we can internally while mitigating risk from an uncertain macroeconomic and geopolitical environment near-term.”
The Company is introducing 2025 GAAP EPS guidance of approximately $4.37 to $4.52, up 17 percent to 21 percent; and on an adjusted basis of approximately $4.65 to $4.80. This is an increase of 7 percent to 11 percent compared to 2024 adjusted EPS. The Company anticipates full year 2025 sales to be approximately flat to up 2 percent on a reported basis.
In addition, the Company introduces first quarter 2025 GAAP EPS of approximately $0.93 to $0.95 and on an adjusted EPS basis of approximately $1.00 to $1.02. The Company expects first quarter sales to be down approximately 3 percent to 4 percent on a reported basis compared to first quarter 2024.
Source: Pentair plc.
