Panther’s US-listed shares fell 17% on Wednesday after the water technology firm cut its annual forecast on Wednesday due to cost pressures on outdoor living projects, citing lower demand in its pool segment.

The warning from London-based Pentair could raise concerns about demand across the pool-equipment supply chain, including major distributor ⁠Pool Corp and rival Hayward Holdings. Investors are looking for signs that the industry’s inventory correction following the pandemic-driven boom is about to end.

Panther shares were trading around $63, down 28% so far this year. Wednesday’s decline could wipe about $2 billion from its market value, if losses hold.

The reduced profit and revenue forecast reflects a slower-than-expected slowdown in the company’s pool business, as distributors reduce inventories ahead of next year’s selling season.

Pentair said its second-quarter results were hurt by lower sales in the segment as distributors trimmed inventory amid high interest rates and elevated inflation.

Its pool segment sells pumps, filters, heaters, automation systems and other equipment for residential and commercial swimming pools.

Stifel analyst Nathan Jones said Panter’s preliminary quarterly results and the forecast cut were driven by widespread inventory destocking, which Stifel estimated had caused Panter’s pool segment revenue to fall 40%-42% from a year earlier.

The company lowered its annual adjusted profit forecast and now expects adjusted earnings per share of $4.60 to $4.80, down from its previous forecast of $5.30 to $5.40.

It expects 2026 revenue growth to fall to around 4% to 7%, down from its previous expectation of 2% to 4%.

Pentair also said late Tuesday that it had named former CFO Bob Fishman as interim finance chief, effective immediately.

The appointment follows the departure of Nicolas Brazis last week.