Pentair PLC

Good morning and welcome to the Pentair first quarter 2026 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star and then one using a touch-tone telephone. To withdraw your questions, you may press star and two. Please also note today's event is being recorded. At this time, I'd like to turn the conference call over to Shelly Hubbard, Vice President of Investor Relations. Ma'am, please go ahead.

Thank you, Operator, and welcome to Pentair's first quarter 2026 earnings conference call. On the call with me are John Stouck, our President and Chief Executive Officer, and Nick Brazos, our Chief Financial Officer. On today's call, we will provide details on our first quarter performance as outlined in this morning's press release. On the Pantera Investor Relations website, you can find our earnings release and slide deck, which is intended to supplement our prepared remarks during today's call and provide a reconciliation of differences between GAAP and non-GAAP financial measures that we will reference. The non-GAAP financial measures provided should not be considered as a substitute for or superior to the measures of financial performance prepared in accordance with GAAP. They are included as additional clarifying items to aid investors in further understanding the company's performance, in addition to the impact these items and events have on the financial results. Before we begin, let me remind you that during our presentation today, we will make forward-looking statements, which are predictions, projections, or other statements about future events. Listeners are cautioned that these statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of Pentair. These risks and uncertainties can cause actual results to differ materially from our current expectations. We advise listeners to carefully review the risk factors in our most recent Form 10-Q and Form 10-K. Please note that during the presentation today, we will be making references to record financial results. These references reflect the time period post the invent separation in 2018, unless noted otherwise. Following our prepared remarks, we will open the call up for questions. Please limit your questions to two and re-enter the queue to allow everyone an opportunity to participate. I will now turn the call over to John.

Thank you, Shelley, and good morning, everyone. We appreciate you joining us today. Let's start with our long-term strategy on slide four. At our Investor Day in March, we outlined our long-term strategy, growth initiatives, favorable secular trends, innovation pipeline, and our financial growth outlook. We are very excited about the next level of growth and profitability that we expect will build upon the structural improvements we've made to our operating model over the last several years to drive more durable financial performance during economic cycles. We believe our balanced water portfolio is uniquely positioned to drive superior value across our move, improve, and enjoy water segments. We are focused on accelerating growth through innovation and elite customer experiences. We expect to continue to see strong execution drive profitable growth and accelerate operational efficiencies over the next few years. And our strong cash flow and ROIC provide flexibility for enhanced value creation. Let's move to the executive summary on slide five. In Q1, we delivered another solid quarter supported by disciplined execution and continued focus on our Pentair business system tools. Sales increased 3%, adjusted operating income increased 7%, ROS expanded by 100 basis points to 25.0%, our 16th consecutive quarter margin expansion, and adjusted APS rose double digits to $1.22. Flow delivered strong financial and operational performance in the quarter, and water solutions and pool also contributed to core sales growth and margin expansion. Our strategy, supported by our Pentair business system tools, including transformation processes inclusive of 80-20, continues to guide our execution across the company. At our investor day in March, we introduced new long-term financial targets through 2028. Reflecting our confidence in our value creation model, we repurchased $200 million of outstanding shares in the open market during Q1. We also achieved dividend king status, marking our 50th consecutive year of higher dividends. We continue to see a range of underlying demand drivers, including aging U.S. infrastructure, population growth in Sunbelt states, evolving customer demand in beverage, premiumization in food service with an emphasis on reliability and serviceability, and growth in the aftermarket. We also had several key wins in Q1, including sales growth with our top customers, Quad One, strong productivity driven by the Pentair business system, a solid innovation pipeline across our segments, and continued execution against our strategy. Our 2026 outlook reflects our current expectations and continued confidence in our business model and the resilience of our end markets. We plan to continue investing in digital and AI-enabled solutions, strengthening our portfolio, and returning capital to shareholders, while advancing our efforts in sustainable water technologies. For full year 2026, we narrowed our adjusted EPS guidance range to $5.30 to $5.40, raising the low end by 5 cents versus our initial outlook. At the midpoint, this represents 9% growth year over year. We remain focused as we navigate macro volatility in the broader operating environment, and we are taking actions to manage risk and support consistent execution. We are watching housing and related markets closely, along with the pace of non-residential investment, and we remain focused on prudent pricing, productivity, and execution to manage through the environment. Now let's turn to our strategic actions driving performance on slide six. We were off to a solid start in 2026, with Q1 performance supported by targeted growth initiatives, strong productivity execution, and disciplined delivery across our water portfolio. Q1 also reflected strong segment income and we turn on sales performance across all three segments. We deliver 3% sales growth despite ongoing headwinds in the residential markets, driven by execution on our growth initiatives. We are investing in technology and capabilities to expand Poole's total addressable market, accelerate growth in commercial buildings and data center infrastructure, and support U.S. water infrastructure needs. We have also strengthened digital capabilities and leveraged our global technology and R&D resources across the portfolio. And we continue to maintain a strong balance sheet and a disciplined capital deployment strategy. Before I turn it over to Nick, I want to thank Jerome Pedretti for 20 years of outstanding leadership. Throughout his career, Jerome has delivered superior results in all of the roles he has held. He has taken on difficult challenges and has always optimized the businesses and engaged employees in the Pentair way, And I and the ELT will personally miss his passionate debates with me and, of course, his enthusiasm for French and Italian food and wines. I also want to thank Shelly Hubbard for her over three years of superior and professional engagement with shareholders. She has elevated our investor outreach and discussions, and we wish her well in her new role. Shelly has accepted a new position as VP of Investor Relations for a much larger company that helps her to further her development and broaden her experience. An announcement regarding Shelly will be issued by our new company in the near future. Shelley will continue with Pentair through May 1st. We're using this opportunity to rotate Jeff Thompson, the CFO of our flow and water solution segments, into the VP investor relations role. And we are confident that Jeff will learn quickly and be able to share unique insights regarding our PBS playbook and business positioning. With that, I'll turn it over to Nick to walk through our financial results and our 2026 guidance in more detail.