Pentair plc (PNR) Q2 2022 Earnings Call Transcript

For the period ending June 30, 2022

July 26, 2022 9:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Welcome to the Pentair Second Quarter 2022 Earnings Conference Call. [Operator Instructions] Please also note that today's event is being recorded.

At this time, I'd like to turn the conference call over to Jim Lucas, SVP, Treasurer SG&A and Investor Relations. Please go ahead.

Jim Lucas

Thanks, Jamie, and welcome to Pentair's Second 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 second quarter performance as outlined in this morning's press release.

Before we begin, let me remind you that during our presentation today, we'll make forward-looking statements. Listeners are cautioned that these statements are subject to certain risks and uncertainties, many of which are difficult to detect 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 would like to request that you limit your questions to 1 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. Pentair delivered another strong quarter with sales, segment income and adjusted EPS, all up double digits. We are particularly encouraged with our margin expansion, both sequentially and year-over-year as price more than offset continued inflationary headwinds. We're also excited to have received all of the necessary regulatory approvals related to our acquisition of Manitowoc Ice and we expect to close the acquisition later this week.

With the significant growth of pool since 2019, and our Water Solutions business expected to exceed $1 billion in sales on a pro forma basis, including Manitowoc Ice and to be predominantly a commercial platform, we'll be moving to 3 segment reporting segments starting January 1, 2023. The 3 segments will be Pool, Water Solutions, Industrial & Flow Technologies. I'll provide more details on the new segment structure shortly.