Hayward Holdings reported higher sales and earnings for its fiscal third quarter, citing pricing gains and modest volume growth. The pool and outdoor-living products maker also raised its full-year 2026 guidance, while reporting lower net leverage and increased share repurchases.
Key details
- Sales rose 6% year over year to $260.1 million. The increase reflected positive pricing, which helped offset inflation and tariffs, along with modest volume growth. Hayward said sales were up 8% for the year to date.
- Net income increased 35% to $32.4 million. Diluted earnings per share rose 36% to $0.15. Adjusted diluted EPS increased 29% to $0.18.
- Adjusted EBITDA rose 9% to $64.5 million.
- Gross profit increased 7% to $124.7 million. Gross margin expanded 10 basis points to 47.9%, primarily because North America contributed a greater share of sales than Europe and the rest of the world. Hayward said margins declined modestly in both segments as inflation slightly outpaced the benefit of pricing.
- Selling, general and administrative expenses fell 3% to $59.4 million. The decline mainly reflected the absence of litigation costs recorded a year earlier, partly offset by higher incentive compensation. SG&A fell to 22.9% of sales from 25.1%.
- The company raised its full-year 2026 guidance. The release excerpt provided here does not include the revised numerical targets.
- Hayward reported net leverage of 1.5 times, which CEO Kevin Holleran described as the lowest level since the company’s 2021 IPO. The company also increased capital returns through share repurchases; no repurchase amount was specified in the excerpt.
- Management cited positive demand signals in North America. Hayward said data from its primary U.S. channel partners pointed to strong demand, market-share gains and balanced channel inventories. Orders through its early-buy program for the 2027 pool season were ahead of the prior year in North America.
The results show sales growth alongside higher reported and adjusted earnings, with pricing helping offset cost pressures. Hayward’s higher guidance reflects its confidence in continued execution, while its stated leverage level and share repurchases highlight its balance-sheet position and capital returns.