Hayward Raises 2026 Outlook As Third-Quarter Net Income Climbs 35% On 6% Sales Growth
The pool equipment maker lifted its full-year sales and adjusted earnings guidance, citing price gains and lower interest costs.
Hayward Holdings, which designs and makes pool equipment, outdoor living products and industrial flow control products, raised its 2026 guidance after third-quarter net income rose 35% to $32.4 million on sales up 6% to $260.1 million, the company said Wednesday. Orders in its early buy program for the 2027 pool season are ahead of last year in North America, management said.
Profit outruns sales
Diluted earnings per share rose 36% to $0.15. Adjusted diluted earnings per share, the company's own measure excluding certain items, rose 29% to $0.18, and adjusted EBITDA, an operating-profit measure before interest, taxes, depreciation and amortization, rose 9% to $64.5 million, the company said in an 8-K.
Operating income rose 22% to $50.2 million. Selling, general and administrative expense fell 3% to $59.4 million because a non-recurring litigation expense in the prior-year quarter did not repeat, partly offset by higher incentive pay. Net interest expense fell 30% to $7.9 million on lower rates on bank debt and more interest income on cash and short-term investments.
Gross margin rose 10 basis points (0.10 percentage points) to 47.9%. Research and development spending rose 21% to $8.6 million.
North America carries the quarter
Higher prices that offset inflation and tariffs, plus modest volume growth, drove the sales gain. North America sales rose 9% to $226.4 million, while Europe & Rest of World sales fell 6% to $33.8 million, which the company attributed to lower volume from geopolitical conflicts in the Middle East and a modest price decrease.
North America made up about 85% of net sales in fiscal 2025, according to the company's annual report. Hayward sells mostly through distributors who supply pool builders and servicers.
Guidance and balance sheet
Hayward now expects 2026 net sales growth of about 5% to 6%, up from about 5%. It sees adjusted earnings per share of $0.86 to $0.88, against prior guidance of $0.84 to $0.87.
Net leverage, total debt less cash and short-term investments relative to trailing adjusted EBITDA, stood at 1.5x, which CEO Kevin Holleran said is "the lowest level since our 2021 initial public offering." Cash was $236.3 million and short-term investments $239.2 million at quarter-end. For the first nine months, the company spent $115.3 million buying back stock, and operating cash flow was $57.5 million lower than a year earlier on the timing of collections and inventory purchases and higher rebate payments.
Hayward held its conference call at 9:00 a.m. ET on Wednesday to discuss the results.
Sources
- 8-K Filing — Hayward Holdings, Inc. (HAYW) — SEC EDGAR
- Exhibit a2026q3991er.htm — Hayward Holdings, Inc. 8-K exhibit — SEC EDGAR
- Hayward Holdings Reports Third Quarter Fiscal Year 2026 Financial Results and Increases 2026 Guidance — businesswire.com
