Pentair PLC has reported strong financial results for the fourth quarter and full year of 2024. In the fourth quarter of 2024, the company generated sales of $973 million, which was down 1% from the same period in 2023. However, when excluding currency translation, acquisitions, and divestitures, core sales declined by 1% in the fourth quarter of 2024. The company reported operating income of $195 million in the fourth quarter, reflecting a 17% increase compared to the fourth quarter of 2023. Return on sales (ROS) was 20.1%, an increase of 310 basis points from the same period in 2023.
For the full year of 2024, Pentair's sales were $4.1 billion, down 1% compared to the previous year. Excluding currency translation, acquisitions, and divestitures, core sales remained flat in 2024. The company reported operating income of $804 million for the full year, representing a 9% increase from 2023. The ROS for the full year was 19.7%, an increase of 170 basis points from the prior year.
The company's GAAP earnings per diluted share (EPS) for the fourth quarter of 2024 were $0.99, down from $1.25 in the fourth quarter of 2023. However, on an adjusted basis, the company reported EPS of $1.08 in the fourth quarter of 2024, compared to $0.87 in the same period of 2023. For the full year of 2024, GAAP EPS was $3.74, slightly lower than the $3.75 reported in 2023. On an adjusted basis, the company reported EPS of $4.33 for 2024, an increase from $3.75 in 2023.
The company also highlighted improvements in its segments. In the Flow segment, sales were down 5% in the fourth quarter of 2024, but reportable segment income increased by 13% compared to the same period in 2023. The Water Solutions segment reported a 4% decrease in sales for the fourth quarter of 2024, but reportable segment income increased by 21% year-over-year. On the other hand, the Pool segment experienced a 5% increase in sales for the fourth quarter of 2024, with reportable segment income up by 14% from the same period in 2023.
Pentair's net cash provided by operating activities from continuing operations for the full year of 2024 was $767 million, representing an increase of $146 million compared to the prior year. Free cash flow from continuing operations for the same period was $693 million, up by $143 million from full year 2023.
The company has introduced its 2025 GAAP EPS guidance of approximately $4.37 to $4.52, and adjusted EPS guidance of approximately $4.65 to $4.80. This marks an increase of 7% to 11% compared to the 2024 adjusted EPS. Pentair anticipates full year 2025 sales to be approximately flat to up 2% on a reported basis.
Following these announcements, the company's shares moved -4.0%, and are now trading at a price of $98.54. If you want to know more, read the company's complete 8-K report here.
