Pentair plc (PNR) Q1 2022 Earnings Call Transcript

For the period ending March 31, 2022

April 21, 2022 9:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Ladies and gentlemen, thank you for standing by. And welcome to the Pentair’s Q1 2022 Earnings Conference Call. [Operator Instructions]

I would now like to hand the conference over to Jim Lucas. Please go ahead.

Jim Lucas

Thanks Jay, and welcome to Pentair's First Quarter 2022 Earnings Conference Call. We're glad you could join us today. I'm Jim Lucas, Senior VP, Treasurer, FP&A and Investor Relations. And with me today is 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 first quarter performance as outlined in this morning's press release.

Before we begin, let me remind you that during our presentation today, we will make forward-looking statements. Listeners are cautioned that these statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of Pentair. These risks and uncertainties can cause actual results to differ materially from our current expectations. We advise listeners to carefully review the risk factors in our most recent Form 10-Q and Form 10-K and today's release. We will also reference certain non-GAAP measures. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures can be found in the Investor Relations section of Pentair's website. We will be sure to reserve time for questions and answers after our prepared remarks.

I will now turn the call over to John.

John Stauch

Thank you, Jim. And good morning, everyone. Please turn to slide 4 titled executive summary. We were pleased to deliver a solid first quarter that exceeded our previously communicated expectations. Sales expanded 15% in the first quarter, and we were encouraged to see price continue to read out positively. Inflation is unfortunately not showing any signs of moderating, which is why we expect to increase price even further to cover the incremental inflation headwinds. During the first quarter, we announced the agreement to acquire Manitowoc Ice, which I’ll discuss it a little bit more detail shortly. We believe this is a great complimentary acquisition that will help enhance our strong commercial water solutions business. Bob will give more details on our guidance later in the call. But we are updating our full year guidance to reflect a little more top line growth. And our full year adjusted EPS range remains unchanged at $3.70 to $3.80. We are entering our seasonally strongest quarter with continued momentum. And we believe that Pentair is well positioned for 2022 and beyond.