Hayward Holdings (HAYW) Earnings Date & Reports

Key Takeaways

• Net sales rose 6% year over year to $260.1 million, topping consensus estimates of roughly $252 million.
• Adjusted diluted earnings per share (EPS) came in at $0.18, well above the $0.15 analysts had expected.
• Management raised its full-year 2026 outlook, now projecting net sales growth of 5% to 6% and adjusted diluted EPS of $0.86 to $0.88.
• North America net sales climbed 9%, while Europe and Rest of World sales declined 6% on shipment timing.
• Net leverage fell to 1.5x, the lowest level since the company's 2021 initial public offering.
• Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 9% to about $65 million, with margin expanding to 24.8%.
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Earnings Context and Why It Matters

Hayward Holdings is a global designer and manufacturer of pool and outdoor living technology and industrial flow control products, with a business model heavily tied to the large installed base of existing pools that need replacement parts and upgrades. Its third-quarter results matter because they show whether pricing actions and aftermarket demand can offset pressure on new pool construction, which remains soft in a higher-rate environment. Investors also watch Hayward's margins closely, given ongoing inflation in specialty metals, resins, and freight, as well as tariff-related costs. The company's ability to raise guidance while expanding profitability offers a signal about both demand resilience and cost discipline heading into the slower fourth quarter.

Reported Results

For its third quarter of fiscal 2026, which ended September 26, 2026, Hayward reported net sales of $260.1 million, up 6% from the prior-year period and ahead of the roughly $252 million consensus estimate. Net income rose 35% to $32.4 million, with diluted EPS of $0.15 versus $0.11 a year earlier.

On an adjusted basis, diluted EPS increased 29% to $0.18, exceeding the $0.15 analysts had forecast. Adjusted EBITDA climbed 9% to about $65 million, and adjusted EBITDA margin expanded 60 basis points to 24.8%. Gross margin came in at 47.9%, while operating income rose 22% to $50.2 million.

By segment, North America net sales grew 9% to $226.4 million, driven by price realization and higher volumes. Europe and Rest of World sales declined 6% to $33.8 million, largely reflecting the timing of initial shipments from the company's repurposed facility in Wuxi, China.

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Market Reaction and Investor Sentiment

Hayward shares rose following the report, with the stock advancing roughly 5% as investors responded to the top-and-bottom-line beat and the raised full-year guidance. The positive reaction stands out against a broader backdrop of caution around pool and building-products names, where new construction demand has been uneven. Investors appeared to focus on the resilience of Hayward's aftermarket business, continued North American volume growth, and the company's ability to expand margins despite inflationary and tariff pressures. The improved balance-sheet position, with net leverage down to 1.5x, also reinforced confidence in the company's capital allocation flexibility, including ongoing share repurchases.

Forward Outlook and Key Factors to Monitor

Hayward raised its full-year 2026 outlook following the strong quarter. Management now expects net sales growth of approximately 5% to 6%, up from prior guidance of about 5%, and adjusted diluted EPS of $0.86 to $0.88, up from $0.84 to $0.87. Free cash flow is expected to remain around $200 million, exceeding 100% of net income.

For the fourth quarter, the company anticipates net sales growth of flat to up 3%, with pricing remaining positive at low-to-mid single digits and volume serving as the primary swing factor. Investors will want to watch how the early buy program for the 2027 pool season progresses, since order timing can influence both revenue recognition and promotional mix.

Other factors to monitor include the ramp-up of shipments from the repurposed Wuxi, China facility, which temporarily shifted some third-quarter revenue into the fourth quarter. Input-cost trends for specialty metals, resins, and freight, along with any changes to tariff policy, could also influence margins. Finally, the balance between new pool construction and replacement-driven aftermarket demand will remain central to Hayward's growth trajectory over the coming quarters.

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