Hayward Holdings Reports Fourth Quarter Fiscal Year 2025 Financial Results and Introduces 2026 Guidance
Hayward Holdings, Inc. (NYSE: HAYW) (“Hayward” or the “Company”), a leading global designer and manufacturer of a broad portfolio of pool equipment, outdoor living products and industrial flow...
FOURTH QUARTER FISCAL 2025 SUMMARY
- Net Sales increased 7% year-over-year to $349.4 million
- Net Income increased 25% year-over-year to $68.4 million
- Adjusted EBITDA* increased 4% year-over-year to $102.9 million
- Diluted EPS increased 24% year-over-year to $0.31
- Adjusted diluted EPS* increased 7% year-over-year to $0.29
FULL FISCAL YEAR 2025 HIGHLIGHTS
- Net Sales increased 7% year-over-year to $1,122.2 million
- Net Income increased 28% year-over-year to $151.6 million
- Adjusted EBITDA* increased 8% year-over-year to $299.3 million
- Diluted EPS and adjusted diluted EPS* of $0.68 and $0.77, increased 26% and 15%, respectively
- Net cash provided by operating activities increased 21% year-over-year to $256.0 million
CHARLOTTE, N.C.: Hayward Holdings, Inc. (NYSE: HAYW) (“Hayward” or the “Company”), a leading global designer and manufacturer of a broad portfolio of pool equipment, outdoor living products and industrial flow control products, today announced financial results for the fourth quarter and full fiscal year ended December 31, 2025.
CEO COMMENTS
“Hayward delivered a strong fourth quarter, outperforming expectations and building on our momentum,” said Kevin Holleran, Hayward’s President and Chief Executive Officer. “Our team executed at a high level across the organization, driving an exceptional finish to 2025, with solid in-quarter demand and strong participation in our Early Buy programs for the upcoming 2026 pool season. Full year net sales increased 7% year‑over‑year, reflecting solid performance across both our North America and Europe & Rest of World segments, as well as the strength of our aftermarket model. We expanded margins through operational efficiencies and successful mitigation of new tariffs and other inflationary pressures, while continuing to invest strategically in product innovation and customer support. Impressive cash flow generation further strengthened our balance sheet and enabled a meaningful reduction in net leverage. With industry‑leading products, a customer‑centric approach, and ongoing investments in technology and operational efficiency, Hayward is well positioned to capitalize on the long‑term growth drivers of the pool industry and continue delivering value for our stockholders.”
BASIS OF PRESENTATION
During the fourth quarter of Fiscal Year 2025, the Company changed its presentation of warranty costs from selling, general and administrative to cost of sales within the consolidated statements of operations. Tables outlining this presentation change are included near the end of this release. This change in presentation has been applied retrospectively to all periods presented and affects cost of sales, gross profit and selling, general and administrative expense.
This change in presentation has no impact to net sales, operating income, income from operations before income taxes, income tax expense, net income, net income per common share, retained earnings, other components of equity, net assets, or cash flows.
FOURTH QUARTER FISCAL 2025 CONSOLIDATED RESULTS
Net sales increased by 7% to $349.4 million for the fourth quarter of fiscal 2025. The increase in net sales during the quarter was driven by positive net price to offset inflation and tariffs and the favorable impact from foreign currency translation, partially offset by a modest decrease in volume.
Gross profit increased by 10% to $169.3 million for the fourth quarter of fiscal 2025. Gross profit margin increased 160 basis points to 48.5%. Gross profit margin increased primarily due to higher net prices, lower warranty expenses and operational efficiencies. These gains were partially offset by higher net tariff charges and inflation.
Selling, general, and administrative ("SG&A") expense increased by 14% to $67.0 million for the fourth quarter of fiscal 2025. The increase in SG&A expenses was mainly attributable to increased variable compensation, strategic investments in our selling and customer service teams and the settlement in principle related to the securities class action litigation.
Research, development, and engineering expenses were $8.0 million for the fourth quarter of fiscal 2025, or 2.3% of net sales, as compared to $6.9 million for the prior-year period, or 2.1% of net sales. The increase was primarily driven by investments in product innovation.
Operating income increased by 14% to $87.3 million for the fourth quarter of fiscal 2025, due to the aggregated effects of the items described above. Operating income as a percentage of net sales (“operating margin”) was 25.0% for the fourth quarter of fiscal 2025, a 160 basis point increase compared to 23.4% in the prior-year period.
Interest expense, net, decreased by 14% to $11.7 million for the fourth quarter of fiscal 2025 driven by lower interest rates and increased interest income on cash deposits.
Net income increased by 25% to $68.4 million for the fourth quarter of fiscal 2025. Net income margin expanded 290 basis points to 19.6%. Adjusted net income* increased by 8.6% to $64.3 million for the fourth quarter of fiscal 2025. Adjusted net income margin* increased 30 basis points to 18.4%.
Adjusted EBITDA* increased by 4% to $102.9 million for the fourth quarter of fiscal 2025 compared to $98.7 million in the prior-year period. Adjusted EBITDA margin* decreased 80 basis points to 29.4%.
Diluted EPS increased by 24% to $0.31 for the fourth quarter of fiscal 2025. Adjusted diluted EPS* increased by 7.4% to $0.29 for the fourth quarter of fiscal 2025.
FOURTH QUARTER FISCAL 2025 SEGMENT RESULTS
North America
Net sales increased by 8% to $308.7 million for the fourth quarter of fiscal 2025. The increase was driven by positive net price to offset inflation and tariffs, partially offset by a modest decline in volume.
Segment income increased by 8% to $102.5 million for the fourth quarter of fiscal 2025. Adjusted segment income* increased by 4% to $109.2 million.
Europe & Rest of World
Net sales decreased by 1% to $40.7 million for the fourth quarter of fiscal 2025. The decrease was primarily due to a decrease in volume and net price, partially offset by the favorable impact of foreign currency translation.
Segment income increased by 28% to $6.2 million for the fourth quarter of fiscal 2025. Adjusted segment income* increased by 26% to $6.6 million.
FULL FISCAL YEAR 2025 CONSOLIDATED RESULTS
Net sales increased by 7% to $1,122.2 million for Fiscal Year 2025. The increase in net sales was primarily driven by positive net price and the favorable impact from acquisitions. The increase in net price was due to price increases enacted to offset inflationary and tariff pressures.
Gross profit increased by 11% to $538.7 million for Fiscal Year 2025. Gross profit margin increased to 48.0% for Fiscal Year 2025, an increase of 170 basis points compared to Fiscal Year 2024. This growth was driven by positive pricing, lower warranty costs and improved manufacturing efficiency, though partially offset by higher net tariffs and inflation.
SG&A expense increased by 14% to $246.9 million for Fiscal Year 2025. The increase was mainly caused by higher variable compensation, higher wage inflation, investments in our selling and customer service teams, plus a full year of expense from the ChlorKing HoldCo, LLC and related entities business ("ChlorKing") acquired in June 2024.
Research, development, and engineering expenses were $27.2 million for Fiscal Year 2025, or 2.4% of net sales, as compared to $25.8 million for Fiscal Year 2024, or 2.5% of net sales.
Operating income increased by 12% to $233.3 million for Fiscal Year 2025. The increase in operating income was driven by the accumulated effect of the items described above. Operating margin was 20.8% in Fiscal Year 2025, a 90 basis point increase from the 19.9% operating margin in Fiscal Year 2024.
Net income increased by 28% to $151.6 million for Fiscal Year 2025. Adjusted net income* increased by 15% to $170.5 million compared to Fiscal Year 2024. Net income margin expanded 220 basis points to 13.5% and adjusted net income margin* increased 110 basis points to 15.2%.
Adjusted EBITDA* increased by 8% to $299.3 million for Fiscal Year 2025 driven primarily by an increase in net sales and gross profit, partially offset by an increase in SG&A expenses. Adjusted EBITDA margin* increased by 30 basis points to 26.7% for Fiscal Year 2025 compared to Fiscal Year 2024.
Diluted EPS increased by 26% to $0.68 for the Fiscal Year 2025. Adjusted diluted EPS* increased by 15% to $0.77 for Fiscal Year 2025.
BALANCE SHEET AND CASH FLOW
As of December 31, 2025, Hayward had cash and cash equivalents of $329.6 million, short-term investments of $69.5 million and approximately $125.5 million available for future borrowings under its revolving credit facilities. Net cash provided by operating activities for Fiscal Year 2025 of $256.0 million was an increase of $44.0 million from Fiscal Year 2024. The increase in cash provided by operating activities was primarily driven by an increase in net income and an increase in cash generated by changes in working capital compared to the prior-year period.
OUTLOOK
Hayward is introducing 2026 guidance reflecting continued sales and earnings growth driven by solid execution across the organization, positive price realization and continued technology adoption. For Fiscal Year 2026, Hayward expects net sales to increase approximately 4% from Fiscal Year 2025, and adjusted diluted earnings per share* of $0.82 to $0.86, or an increase of approximately 6% to 12%.
Hayward is excited about the long-term dynamics of the pool industry. The installed base of pools increases every year, providing continued growth opportunities, and the Company benefits from favorable secular demand trends in outdoor living, sunbelt migration, and technology adoption. Hayward continues to leverage its competitive advantages and drive increasing adoption of its leading SmartPad™ pool equipment products both in new construction and the aftermarket, which represents approximately 85% of net sales. Hayward is confident in its long-term outlook for profitable growth and robust cash flow generation, driven by its technology leadership, operational excellence, strong brand and installed base, and multi-channel capabilities.
Please see the Forward-Looking Statements section of this release for a discussion of certain risks relevant to Hayward’s outlook.
CONFERENCE CALL INFORMATION
Hayward will hold a conference call to discuss the results today, February 25, 2026 at 9:00 a.m. (ET).
Interested investors and other parties can listen to a webcast of the live conference call by logging onto the Investor Relations section of the Company’s website at https://investor.hayward.com/events-and-presentations/default.aspx. An earnings presentation will be posted to the Investor Relations section of the Company’s website prior to the conference call.
The conference call can also be accessed by dialing (877) 423-9813 or (201) 689-8573.
For those unable to listen to the live conference call, a replay will be available approximately three hours after the call through the archived webcast on the Hayward website or by dialing (844) 512-2921 or (412) 317-6671. The access code for the replay is 13758285. The replay will be available until 11:59 p.m. Eastern Time on March 11, 2026.
ABOUT HAYWARD HOLDINGS, INC.
Hayward Holdings, Inc. (NYSE: HAYW) is a leading global designer and manufacturer of a broad portfolio of pool equipment, outdoor living products and industrial flow control products. With a mission to deliver exceptional products, outstanding service and innovative solutions to transform the experience of water, Hayward offers a full line of energy-efficient and sustainable residential and commercial pool equipment including pumps, heaters, sanitizers, filters, LED lighting, water features, and cleaners all digitally connected through Hayward’s intuitive IoT-enabled SmartPad™, and a line of thermoplastic valves and process control products.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Unless otherwise indicated, the terms “Company,” “we,” “our” and “us” refer to Hayward Holdings, Inc. and its consolidated subsidiaries. This earnings release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”) and rules and regulations of the Securities and Exchange Commission (“SEC”). Forward-looking statements include, without limitation, statements regarding our plans, strategies, objectives, expectations, intentions, outlook, expenditures, guidance, targets, and assumptions, as well as other statements that are not historical facts. Forward-looking statements are based on management’s current beliefs, assumptions, expectations, and information available at the time the statements are made. Words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these words. These statements are made in reliance upon the safe harbor provisions of the Act. However, forward-looking statements are subject to risks, uncertainties, and other factors, many of which are beyond our control, that could cause actual results to differ materially from those expressed or implied by such statements. Readers are cautioned not to place undue reliance on forward-looking statements. We undertake no obligation to publicly update, revise, or correct any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable federal securities laws. Forward-looking statements should be read in conjunction with the risk factors and other cautionary statements, including those described under the heading "Risk Factors" in our most recent Annual Report on Form 10-K and other filings with the SEC.
Important factors that could cause actual results to differ materially include, but are not limited to, the following:
- our business depends on the performance of distributors, builders, buying groups, retailers and servicers;
- the demand for our products may be adversely affected by unfavorable economic and business conditions;
- we operate in markets with high levels of competition;
- our future success depends on developing, manufacturing and attaining market adoption of new products and maintaining product quality and reliability;
- our ability to keep pace with rapidly evolving technological developments and standards, including artificial intelligence (“AI”), and effectively develop and deploy such technologies;
- our results of operations and cash flows may fluctuate from quarter to quarter;
- a loss of, or material cancellation, reduction or delay in purchases by one or more of our largest customers;
- our exposure to credit risk on our accounts receivable;
- risks arising from our international business operations;
- past growth may not be indicative of future growth;
- our inability to identify, finance and complete suitable acquisitions;
- negative impacts of litigation and other claims;
- future impairment of our goodwill and intangible assets;
- exchange rate fluctuations, cost increases and other inflation, changes in our effective tax rate or exposure to additional income tax liabilities;
- our ability to attract, develop and retain highly qualified personnel, including key members of management;
- disruptions in the financial markets;
- significant disruption or breach of our technology infrastructure or that of our vendors or third parties, or failure to maintain the security of confidential information;
- difficulties in operating or implementing the new ERP system or human resources information system;
- misuse of our technology-enabled products;
- failure to maintain an effective system of internal controls;
- dependence on key suppliers, including single-source suppliers and sole-source suppliers;
- ability to manage product inventory in an effective and efficient manner;
- product manufacturing disruptions, including as a result of catastrophic or other events beyond our control;
- tariffs and other trade restrictions and the cost of raw materials;
- compliance with, and potential liabilities under employment, environment, health, transportation, safety and other governmental laws and regulations;
- risks related to our handling of personal information;
- our employees, commercial partners and vendors may engage in misconduct or other improper activities;
- violations of the U.S. Foreign Corrupt Practices Act, the U.K. Bribery Act, and other anti-corruption laws;
- our failure to comply with international trade compliance regulations, and changes in U.S. government sanctions;
- changes in laws, regulations, government policies or regulatory interpretations;
- climate change and legal or regulatory responses thereto, and increasing scrutiny from stakeholders on environmental, social and other sustainability matters;
- our ability to obtain, maintain and enforce our intellectual property and proprietary rights;
- protection of our trademarks or trade names;
- our reliance on access to intellectual property owned by third parties;
- claims that our employees, consultants or advisors have wrongfully used or disclosed alleged trade secrets or other proprietary information or claims asserting ownership of intellectual property that we regard as our own;
- our ability to enforce our intellectual property rights in all jurisdictions;
- other risks related to our indebtedness, corporate structure and ownership of our common stock; and
- other factors described in the Risk Factors section of our Annual Report on Form 10-K for the year ended December 31, 2025.
Many of these factors are beyond our control. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, actual results, performance, or achievements may differ materially from those expressed or implied by forward-looking statements in this earnings release. The forward-looking statements included in this earnings release speak only as of the date of this release.
*NON-GAAP FINANCIAL MEASURES
This earnings release includes certain financial measures not presented in accordance with the generally accepted accounting principles in the United States (“GAAP”), including adjusted net income, adjusted net income margin, adjusted basic EPS, adjusted diluted EPS, EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted segment income and adjusted segment income margin. These financial measures are not measures of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing the Company’s financial results. Hayward believes these non-GAAP measures provide analysts, investors and other interested parties with additional insight into the underlying trends of its business and assist these parties in analyzing the Company’s performance across reporting periods on a consistent basis by excluding items that it does not believe are indicative of its core operating performance, which allows for a better comparison against historical results and expectations for future performance. Management uses these non-GAAP measures to understand and compare operating results across reporting periods for various purposes including internal budgeting and forecasting, short and long-term operating planning, employee incentive compensation, and debt compliance. These measures should not be considered in isolation or as an alternative to net income, segment income or other measures of profitability, performance or financial condition under GAAP. You should be aware that the Company’s presentation of these measures may not be comparable to similarly titled measures used by other companies, which may be defined and calculated differently. See the appendix for a reconciliation of historical non-GAAP measures to the most directly comparable GAAP measures.
Reconciliation of full fiscal year 2026 adjusted diluted earnings per share outlook to diluted earnings per share is not being provided, as Hayward does not currently have sufficient data to accurately estimate the variables and individual adjustments for such reconciliation. The outlook for adjusted diluted earnings per share for full year 2026 is calculated in a manner consistent with the historical presentation of these measures, as shown in the appendix.
Hayward Holdings, Inc. | ||||||||
Consolidated Balance Sheets | ||||||||
(In thousands) | ||||||||
|
| December 31, 2025 |
| December 31, 2024 | ||||
Assets |
|
|
|
| ||||
Current assets |
|
|
|
| ||||
Cash and cash equivalents |
| $ | 329,648 |
|
| $ | 196,589 |
|
Short-term investments |
|
| 69,462 |
|
|
| - |
|
Accounts receivable, net of allowances of $1,931 and $2,701, respectively |
|
| 280,161 |
|
|
| 278,582 |
|
Inventories, net |
|
| 210,739 |
|
|
| 216,472 |
|
Prepaid expenses |
|
| 19,500 |
|
|
| 20,203 |
|
Income tax receivable |
|
| 656 |
|
|
| 6,426 |
|
Other current assets |
|
| 41,080 |
|
|
| 48,697 |
|
Total current assets |
|
| 951,246 |
|
|
| 766,969 |
|
Property, plant, and equipment, net of accumulated depreciation of $125,807 and $112,099, respectively |
|
| 164,560 |
|
|
| 160,377 |
|
Goodwill |
|
| 951,197 |
|
|
| 943,645 |
|
Trademark |
|
| 736,000 |
|
|
| 736,000 |
|
Customer relationships, net |
|
| 178,126 |
|
|
| 198,333 |
|
Other intangibles, net |
|
| 88,899 |
|
|
| 96,095 |
|
Other non-current assets |
|
| 80,956 |
|
|
| 89,205 |
|
Total assets |
| $ | 3,150,984 |
|
| $ | 2,990,624 |
|
Liabilities and Stockholders’ Equity |
|
|
|
| ||||
Current liabilities |
|
|
|
| ||||
Current portion of long-term debt |
| $ | 13,261 |
|
| $ | 13,991 |
|
Accounts payable |
|
| 77,007 |
|
|
| 81,476 |
|
Accrued expenses and other liabilities |
|
| 224,222 |
|
|
| 217,242 |
|
Income taxes payable |
|
| 8,754 |
|
|
| 273 |
|
Total current liabilities |
|
| 323,244 |
|
|
| 312,982 |
|
Long-term debt, net |
|
| 943,547 |
|
|
| 950,562 |
|
Deferred tax liabilities, net |
|
| 227,449 |
|
|
| 239,111 |
|
Other non-current liabilities |
|
| 63,736 |
|
|
| 64,322 |
|
Total liabilities |
|
| 1,557,976 |
|
|
| 1,566,977 |
|
|
|
|
|
| ||||
Stockholders’ equity |
|
|
|
| ||||
Preferred stock, $0.001 par value, 100,000,000 authorized, no shares issued or outstanding as of December 31, 2025 and December 31, 2024 |
|
| - |
|
|
| - |
|
Common stock $0.001 par value, 750,000,000 authorized; 246,272,783 issued and 217,356,414 outstanding at December 31, 2025; 244,444,889 issued and 215,778,520 outstanding at December 31, 2024 |
|
| 247 |
|
|
| 245 |
|
Additional paid-in capital |
|
| 1,109,522 |
|
|
| 1,093,468 |
|
Common stock in treasury; 28,916,369 and 28,666,369 at December 31, 2025 and December 31, 2024, respectively |
|
| (363,182 | ) |
|
| (358,133 | ) |
Retained earnings |
|
| 851,134 |
|
|
| 699,564 |
|
Accumulated other comprehensive loss |
|
| (4,713 | ) |
|
| (11,497 | ) |
Total stockholders’ equity |
|
| 1,593,008 |
|
|
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