Pentair plc (PNR) Q3 2022 Earnings Call Transcript

For the period ending September 30, 2022

October 25, 2022 9:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning, and welcome to the Pentair’s Third Quarter 2022 Results Conference Call. [Operator Instructions]. Please note this event is being recorded. I would now like to turn the conference over to Jim Lucas, Senior Vice President, Treasurer and Investor Relations. Please go ahead.

Jim Lucas

Thanks, Andrea, and welcome to Pentair's Third Quarter 2022 Earnings Conference Call. We're glad you can join us. 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 third 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 Web site. We will be sure to reserve time for questions and answers after our prepared remarks. I would like to request that you please limit your questions to one and a follow up to ensure everyone an opportunity to ask their questions. I will now turn the call over to John.

John Stauch

Thank you, Jim, and good morning, everyone. Please turn to Slide number 4, titled Executive Summary. We are pleased to announce that our Q3 results were strong considering near-term challenges, and were in line with our expectations. Sales growth of 9% and segment income growth of 15% included a partial quarter of our recently-completed Manitowoc Ice acquisition. ROS expanded 110 basis points, demonstrating that price and productivity offset inflation, and our adjusted EPS grew 11% to $0.99 in Q3, which included incremental debt from our acquisitions and rising interest rates. We are very excited about the addition of Ice to our portfolio and the expansion of our commercial Water Solutions platform, and the team and the integration process is off to a fast start. Bob will give more detail on our updated full year 2022 guidance later in this call.