Pentair plc (NYSE:PNR) stock plummeted in Wednesday’s premarket session after the company sharply reduced its second-quarter and full-year outlook and announced a CFO transition.

Pool Destocking Pressures Q2

Pentair expects preliminary second-quarter sales of about $930 million, down 17% year over year. That falls below its previous $1.134 billion guidance and the $1.137 billion analyst estimate.

Adjusted EPS is expected at approximately $1.12, down from the prior outlook of $1.47 to $1.50 and below the $1.48 estimate.

GAAP EPS from continuing operations is expected at about 80 cents, versus the previous guidance of $1.39 to $1.42 and the $1.37 estimate.

Pentair estimated that destocking of Pool channel inventory reduced quarterly segment sales by about $170 million. It also cut segment income by approximately $105 million.

The company expects second-quarter results to include roughly $35 million in tariff refunds. The refunds relate to tariffs previously collected under the International Emergency Economic Powers Act.

Pentair Slashes 2026 Outlook

Pentair now expects full-year sales of $3.884 billion to $4.009 billion, representing a decline of about 4% to 7%.

That compares with its previous forecast of $4.260 billion to $4.343 billion and the $4.284 billion analyst estimate.

The company cut adjusted EPS guidance to $4.60 to $4.80 from $5.30 to $5.40, below the $5.34 estimate. It also lowered GAAP EPS guidance to $3.90 to $4.10 from $4.83 to $4.93, versus the $4.91 estimate.

Pool destocking is expected to reduce full-year segment sales by about $250 million and income by approximately $155 million. The outlook includes an estimated $35 million to $50 million in IEEPA refunds.

Management cited a larger-than-expected inventory reset among major Pool channel partners, as well as elevated interest rates and inflation.

Pentair said its Flow and Water Solutions segments and corporate spending remain broadly in line with prior expectations.

Former CFO Returns

Pentair appointed former CFO Bob Fishman as interim executive vice president and CFO. Nicholas Brazis left on July 10 to pursue an opportunity at a private company.

"We believe these headwinds are temporary and we are taking decisive actions to adapt the business to current demand levels while positioning it to return to normalized performance in 2027," CEO John L. Stauch said.

Pentair also repurchased approximately 2 million shares for $150 million during the second quarter.

The company will report complete second-quarter results before the market opens on July 28.

PNR Price Action: Pentair shares were down 20.61% at $60.08 during premarket trading on Wednesday. The stock is trading at a new 52-week low, according to Benzinga Pro data.

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