The company continues to execute on its Transformation Program initiatives, focusing on pricing excellence, strategic sourcing, operations excellence, and organizational effectiveness. These initiatives are expected to drive margin expansion in 2024 and beyond.

The company executed certain business restructuring initiatives in 2023 aimed at reducing its fixed cost structure and realigning its business. These actions are expected to continue into 2024 and drive margin growth.

The company continues to focus on capital allocation, committing to maintaining its investment grade rating, reducing long-term debt, returning cash to shareholders through dividends and share repurchases, and accelerating performance with strategically-aligned mergers and acquisitions.

The company made strategic progress on its Transformation Program initiatives, focusing on four key themes: pricing excellence, strategic sourcing, operations excellence, and organizational effectiveness.

The company continued execution of business restructuring initiatives aimed at reducing its fixed cost structure and realigning its business.

The company's cybersecurity program is aligned with the National Institute of Standards and Technology (NIST) Cybersecurity Framework and leverages International Organization for Standardization and other applicable industry standards.

The company anticipates supply chain pressures and inflationary cost increases to continue into 2024, impacting raw materials, labor, and logistics costs.

Global economic conditions, including recessions, economic downturns, inflation, and political instability, could negatively affect the company's revenues and financial performance. Military conflicts, such as those between Russia and Ukraine and Hamas and Israel, may also adversely impact results of operations.

The company competes in attractive markets with a high level of competition, which may result in pressure on profit margins and limit its ability to maintain or increase market share.

Pentair's strategy includes a focus on growth in its core businesses and strategic initiatives, indicating a commitment to strengthening its competitive position.

The company faces numerous domestic and international competitors, with competition focusing on brand names, product performance, quality, service, and price.

Future growth is dependent upon the ability to transform and adapt products, services, solutions, and organization to meet the demands of local markets in both developed and emerging economies.

The Transformation Program is designed to accelerate growth and drive margin expansion by driving operational excellence, reducing complexity, and streamlining processes.

The company experienced supply chain challenges in 2023, including increased lead times for raw materials due to availability constraints and high demand.

The company strives for productivity improvements and implements increases in selling prices to help mitigate cost increases.

Pentair is accelerating digital, innovation, technology, and ESG investments as part of its strategy.

The company relies extensively on information systems and technology to operate and manage its business and summarize operating results.

The company is in the process of a multi-year implementation of an updated global enterprise resource planning (ERP) system.

Pentair is focusing on reducing its long-term debt as part of its capital allocation strategy.

The company is committed to returning cash to shareholders through dividends and share repurchases.

In December 2020, the Board of Directors authorized the repurchase of ordinary shares up to a maximum dollar limit of $750.0 million.

Pentair completed a refreshed ESG assessment in alignment with the European Union's Corporate Sustainability Reporting Directive (CSRD).

The assessment supported the topics focused on for the company's Strategic Targets and they remain in effect.

The company publishes a corporate responsibility report on its ESG and social responsibility activities and accomplishments annually.

The company experiences seasonal demand with end customers and end users within each of its business segments.

Volatility in currency exchange rates could have a material adverse effect on the company's financial condition, results of operations and cash flows.

Changes in U.S. or foreign government administrative policy, including changes to existing trade agreements, could have a material adverse effect on the company.