Pentair's (PNR) Q2 results largely matched its earlier "negative preannouncement," with pool destocking and share loss with smaller dealers driving the weakness, RBC Capital Markets said in a report emailed Wednesday.

Organic sales fell 17.3%, led by a 42.4% decline in the Pool segment, the firm noted. RBC added that customers made purchases ahead of 7% to 8% price increases, contributing to subsequent destocking, while disruptions tied to Pentair's 80/20 strategy hurt relationships with some smaller dealers.

Pentair expects to right-size channel inventory by the end of Q3, but RBC said a pool-market recovery could be gradual because of high interest rates, inflation and weak new-pool construction.

Pentair's planned $1.4 billion acquisition of Taco Group, a maker of hydronic pumps and valves, expands the company's scale into higher-growth infrastructure and multifamily markets, according to the report.

The firm lowered the company's 2026 and 2027 earnings estimates to $4.70 and $5.30 per share, respectively.

RBC maintained a sector perform rating on Pentair and cut its price target to $73 from $74.

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