Pool Reaffirms 2026 Earnings Range After Sales Pick Up

The Tip Desk · October 22, 2026 · 4 min read

Third-quarter net sales rose 4% to $1.5 billion, faster than the 2% gain in the second quarter, as the pool-products distributor held its full-year outlook.

Pool Corporation (POOL) reported third-quarter net sales of $1.5 billion, a 4% increase that accelerated from 2% growth in the second quarter, and said it is confirming its full-year earnings ranges.

The world’s largest wholesale distributor of swimming pool and related backyard products said the sales gain primarily reflected 3% growth from price, coupled with stronger maintenance activity and building materials growth. President and CEO John B. Watwood said the company moved through the end of the peak selling season and reduced inventory by 3% while growing sales.

Gross profit increased 2% to $436.3 million. Gross margin decreased 60 basis points to 29.0% from 29.6% a year earlier, a larger compression than the 30-basis-point decline in the second quarter. The company said the decrease was primarily driven by higher inbound freight costs and customer mix, as well as the comparison against the prior-year benefit from mid-season price increases.

Selling and administrative expenses increased 5% to $264.1 million from $251.2 million in the same period of 2025, reflecting higher performance-based compensation from increased sales, increases in employee insurance and outside fees related to strategic initiatives. Operating income decreased 3% to $172.2 million from $178.0 million in the third quarter of 2025.

Net income decreased 3% to $123.0 million from $127.0 million. Diluted earnings were $3.40 a share, consistent with the year-ago quarter. Adjusted diluted earnings, which exclude the impact of Accounting Standards Update 2016-09, were $3.40 a share compared with $3.39 a share.

For the nine months ended September 30, 2026, net sales increased 4% to $4.5 billion from $4.3 billion. Gross margin declined 30 basis points to 29.3% from 29.6%. Operating expenses increased 5% to $784.5 million from $748.5 million and included $8.3 million of CEO transition costs, comprising $6.3 million of non-cash share-based compensation on awards previously granted but not fully amortized and $2.0 million of cash transition costs. Adjusting for those costs, operating expenses increased 4%. Operating income was $522.5 million compared with $528.2 million. Adjusted operating income was $530.7 million, in line with the same period of 2025.

Nine-month net income decreased 3% to $364.4 million from $374.8 million. Diluted earnings were $10.02 a share, up 1% from $9.97. Adjusted diluted earnings were $10.21 a share, up 4% from $9.86.

Inventory decreased 3% at September 30, 2026 compared with September 30, 2025. Total debt outstanding increased $104.9 million to $1.2 billion. Net cash provided by operations increased 47% to $419.8 million in the first nine months of 2026 from $285.7 million. The company returned $338.1 million to shareholders year to date through $140.1 million in dividends and $198.0 million in share repurchases, primarily funded by operating cash flows after investing $49.8 million in the business and making $33.1 million in net debt repayments. It increased its quarterly dividend 4% to $1.30 a share from $1.25 a share in the third quarter of 2025. In the third quarter alone it returned $158.7 million through share repurchases and dividends.

As of September 30, 2026, POOLCORP operated 454 sales centers in North America, Europe and Australia, distributing more than 200,000 products to roughly 125,000 wholesale customers. Excluded sales centers contributed less than 1% to the change in reported net sales.

Based on performance to date and its outlook for the remainder of the year, the company is confirming full-year diluted EPS guidance of $10.66 to $10.96 a share and adjusted diluted EPS guidance of $10.87 to $11.17 a share, including $0.02 of year-to-date ASU 2016-09 tax benefits. The diluted range includes $0.21 of after-tax CEO transition costs. Watwood said the team’s dedication and execution remain the source of success and that the company’s network, operational performance and supplier relationships position it to continue delivering value to customers and the outdoor living industry.