Latham Group Earnings Call Transcripts
Fiscal Year 2026
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Q3 sales and Adjusted EBITDA grew strongly, led by fiberglass pools, autocovers and Sand State gains. FY26 guidance was narrowed, while management expects share-led growth despite a flat 2027 market.
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Leading market share in fiberglass, vinyl pools, and automatic covers, with growth driven by product differentiation, regional expansion in the southern U.S., and builder conversion from concrete to fiberglass. Margin improvements stem from lean manufacturing and value engineering, while M&A remains a key strategy for expansion.
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Q2 2026 saw 14% sales growth (10% organic), strong Sand States performance, and raised full-year guidance for both sales and adjusted EBITDA. Gross margin was impacted by ramp-up costs, but operational and marketing initiatives are driving sustained growth and market share gains.
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Fiberglass pools are rapidly gaining U.S. market share due to cost, speed, and durability, with major expansion efforts focused on the Sand States. Operational improvements, data-driven sales, and brand marketing are driving growth, with a three-to-five-year target of $750M revenue and $160M EBITDA.
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Q1 2026 saw 5% sales growth and margin expansion despite adverse weather, with strong gains in fiberglass pools and covers, and successful integration of the Freedom Pools acquisition. Guidance for 2026 is reaffirmed, with continued investment in marketing and operational efficiency amid cost headwinds.
Fiscal Year 2025
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Delivered strong Q4 and full-year 2025 results, outpacing a declining market with 15% Q4 revenue growth and 7% full-year sales growth. Guidance for 2026 anticipates 9% sales and 12.7% Adjusted EBITDA growth, supported by acquisitions and continued expansion in key regions.
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Net sales rose 7.6% year-over-year, with all product lines growing and margins expanding. Guidance for 2025 was raised to 7% sales and 19% adjusted EBITDA growth, driven by strong performance in fiberglass pools, covers, and liners, especially in the Sand States.
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Q2 saw 7.8% revenue and 15.7% adjusted EBITDA growth, driven by strong performance in autocovers and liners, operational efficiencies, and successful expansion in the Sand States. Guidance for 2025 is reaffirmed, with continued focus on growth initiatives and margin improvement.
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Fiberglass pools are rapidly gaining share, especially in underpenetrated Sun states, driven by cost, speed, and product innovation. Strategic focus on regional marketing, builder partnerships, and operational efficiency supports strong financial growth and market leadership.
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Q1 2025 results met expectations with strong performance in fiberglass and autocovers, gross margin expansion, and progress in Sand State markets. Revenue grew slightly year-over-year, and 2025 guidance for 8% revenue and 19% adjusted EBITDA growth is maintained.
Fiscal Year 2024
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Despite a 15% industry decline, the company grew fiberglass pool market share, improved gross margins, and executed strategic acquisitions. 2025 guidance calls for 8% sales and 19% adjusted EBITDA growth, driven by Sand States expansion, new products, and operational efficiencies.
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Q3 results showed resilience with gross margin expansion despite a 6.4% sales decline and a 15% drop in new pool starts. Guidance for 2024 was narrowed, and the Coverstar Central acquisition is expected to boost sales and margins. Investments target growth in underpenetrated Sand States.
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Q2 2024 saw strong profitability gains and margin expansion despite a 9.6% sales decline, driven by cost controls, lean initiatives, and lower material costs. Full-year guidance was raised for both revenue and Adjusted EBITDA, supported by the accretive Coverstar Central acquisition.
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The company is leveraging its leading market position and broad product lineup to drive fiberglass pool adoption, supported by operational investments and an expanded dealer network. Despite a forecasted 11% revenue decline in 2024, cost efficiencies and recurring revenue streams position it for growth as the market rebounds in 2025.