Pentair plc PNR announced the completion of its previously announced acquisition of Taco Group Holdings. This deal is expected to boost Pentair’s portfolio of smart, sustainable water solutions to support increased exposure to key high-growth end markets, primarily in North America.
Details of Pentair’s Strategic Acquisition of Taco
Pentair inked a deal to acquire Taco in July 2026 for $1.4 billion. The purchase price is 10.5X of the company's 2026 estimated EBITDA. Taco, a manufacturer of innovative, sustainable and high-performance hydronic and water-based HVAC and data center solutions,
will become part of Pentair’s Water Solutions segment.
PNR will gain from the addition of Taco’s portfolio of pumps, valves and controls, which will boost the company’s position across commercial end-markets, including data centers, schools, hospitals, universities and multi-family residential. Taco expects to yield revenues of $540 million in 2026. It anticipates the adjusted EBITDA margin to be above 20% when including expected run-rate cost synergies.
The acquisition is expected to be 10-15 cents accretive to the adjusted EPS in fiscal 2027. Pentair expects to generate $30 million in run-rate cost synergies related to supply-chain and operational efficiencies, and $165 million in tax benefits.
PNR’s Q2 Performance
Pentair reported adjusted earnings of $1.14 per share for the second quarter of 2026, beating the Zacks Consensus Estimate of $1.12 and also coming in above the company’s expectation for the quarter. However, earnings declined 18% from $1.39 in the year-ago quarter.
Revenues fell 17% year over year to $932.6 million and missed the consensus estimate of $1.01 billion. The figure also came in higher than Pentair’s expectation of $930 million for the quarter.
Water Solutions sales declined 5% to $422 million, with core sales down 3%. Segment income advanced 17% to $126.4 million, while return on sales improved 560 basis points to 30%, supported by productivity and price exceeding inflation.
Pentair Stock’s Price Performance
Pentair’s stock has plummeted 52.7% over the past year compared with the industry’s 15.4% decline.
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PNR’s Zacks Rank & Stocks to Consider
Pentair currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks from the Industrial Products sector are Zurn Elkay Water Solutions Corporation ZWS, Ralliant Corporation RAL and Ingram Micro Holding Corporation INGM. These three companies have a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Zurn Elkay Water Solutions’ 2026 earnings is pegged at $1.82 per share, indicating a year-over-year increase of 19.7%. It delivered an average trailing four-quarter earnings surprise of 7.6%. Zurn Elkay Water Solutions’ shares have inched up 0.8% in a year.
Ralliant delivered an average trailing four-quarter earnings surprise of 7.1%. The Zacks Consensus Estimate for Ralliant’s 2026 earnings is pinned at $2.88 per share, which indicates a year-over-year rise of 7.1%. RAL shares have skyrocketed 66.4% in a year.
Ingram Micro Holding delivered an average trailing four-quarter earnings surprise of 8.4%. The Zacks Consensus Estimate for Ingram Micro Holding’s 2026 earnings is pinned at $3.40 per share, which indicates year-over-year growth of 17%. The company’s shares have gained 32.3% in a year.
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Pentair plc (PNR): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).