Pentair plc has reported strong financial results for the third quarter of 2024, with sales reaching $993 million, down 2 percent from the same period last year. However, the company's operating income stood at $180 million, resulting in a return on sales (ROS) of 18.1 percent, marking a 20 basis points increase compared to the prior year period. On an adjusted basis, ROS expanded by 310 basis points to 24.1 percent.
The GAAP earnings per share (EPS) increased by 6 percent to $0.84 compared to the same period last year. Conversely, the adjusted EPS rose by 16 percent to $1.09. The company's net cash provided by operating activities from continuing operations also saw a notable increase of $86 million compared to the same period last year, reaching $249 million. Free cash flow provided by continuing operations for the quarter experienced a significant surge, increasing by $90 million to $234 million compared to the same period last year.
Pentair's operating income for the third quarter of 2024 remained flat at $180 million, but on an adjusted basis, the company reported an increase of 13 percent in operating income, reaching $239 million. The ROS on an adjusted basis also saw a substantial increase of 310 basis points, reaching 24.1 percent compared to the third quarter of 2023.
The company's pool sales experienced a notable upturn, increasing by 7 percent compared to the same period last year. Excluding currency translation, acquisitions, and divestitures, core sales in this segment grew by 8 percent in the third quarter, with reportable segment income soaring by 24 percent to $113 million. The ROS for the pool segment also saw a significant increase, rising by 470 basis points to 34.0 percent.
Furthermore, Pentair managed to increase its dividend for the 48th consecutive year, paying a regular cash dividend of $0.23 per share in the third quarter of 2024.
Looking ahead, Pentair has updated its estimated 2024 GAAP EPS from continuing operations to approximately $3.70 and increased its estimated adjusted EPS to approximately $4.27, reflecting a 14 percent increase compared to 2023. The company also introduced fourth-quarter 2024 GAAP EPS from continuing operations guidance of approximately $0.95 and an adjusted EPS basis of approximately $1.02, up approximately 17 percent compared to the prior year period.
Pentair President and CEO, John L. Stauch, expressed confidence in the company's transformation initiatives and 80/20 strategy, expecting them to continue driving strategic decisions and operational efficiencies across the balanced water portfolio.
The company's earnings conference call is scheduled for 9:00 a.m. Eastern today, during which further details of the financial results will be discussed. Following these announcements, the company's shares moved -0.0%, and are now trading at a price of $98.32. Check out the company's full 8-K submission here.
