Earnings

Hayward Lifts 2026 Sales and Earnings Outlook

The Tip Desk · November 9, 2026 · 3 min read

Third-quarter net sales were $260.1 million, up 6%, as the company now expects full-year sales to rise about 5% to 6% and adjusted diluted EPS of $0.86 to $0.88.

Hayward Holdings, Inc. (HAYW), a specialty water-management company that designs pool and outdoor-living equipment and industrial flow-control products, raised its full-year 2026 outlook after a third quarter in which net sales reached $260.1 million, up 6% from a year earlier.

The company now expects fiscal 2026 net sales to increase approximately 5% to 6% from fiscal 2025, compared with prior guidance of approximately 5%. It also now expects adjusted diluted earnings of $0.86 to $0.88 a share, an increase of about 12% to 14% from fiscal 2025, versus prior guidance of $0.84 to $0.87. Hayward said the raise reflects sales and earnings growth from execution, positive price realization and continued technology adoption.

Net income rose 35% to $32.4 million, or $0.15 a share, after a 2% year-over-year increase in the second quarter. Adjusted diluted earnings were $0.18 a share. Adjusted EBITDA increased 9% to $64.5 million.

The company said the sales increase was driven by positive net price to offset inflation and tariffs and modest volume growth. President and Chief Executive Officer Kevin Holleran said net sales rose 6% in the quarter and 8% year-to-date, and that data from primary U.S. channel partners indicated strong demand, continued market-share gains and balanced channel inventories. He said an early buy program for the 2027 pool season is progressing well, with orders ahead of the prior year in North America.

Gross profit increased 7% to $124.7 million. Gross profit margin increased 10 basis points to 47.9%, reversing a 50-basis-point decline to 48.7% in the second quarter. Hayward said the mix shift came from a greater contribution from North America relative to Europe & Rest of World. Gross profit margin declined modestly in both segments as inflationary pressures slightly exceeded the benefits of pricing initiatives.

Selling, general and administrative expense decreased 3% to $59.4 million, primarily due to the absence of a non-recurring litigation expense incurred in the prior-year period, partially offset by higher incentive compensation. As a percentage of net sales, SG&A fell to 22.9% from 25.1%. Research, development and engineering expense increased 21% to $8.6 million, which the company attributed to higher spend on new product development and performance improvements and increased investment in specialized engineering talent.

Operating income increased 22% to $50.2 million, after 6% growth in the second quarter. Operating income as a percentage of net sales was 19.3%, up 250 basis points from 16.8%. Interest expense, net, decreased 30% to $7.9 million, primarily due to lower interest rates on bank debt and increased interest income on cash deposits and short-term investments.

North America net sales rose 9% to $226.4 million, primarily due to favorable net pricing that offset inflation and tariffs, along with higher volume. Segment income increased 12% to $61.8 million. Europe & Rest of World net sales declined 6% to $33.8 million, primarily due to lower volume resulting from geopolitical conflicts in the Middle East and a modest decrease in net price. Segment income decreased 8% to $5.7 million.

As of September 26, 2026, Hayward had cash and cash equivalents of $236.3 million, short-term investments of $239.2 million and $422.3 million available for future borrowings under revolving credit facilities. Holleran said the company maintained net leverage at 1.5x, the lowest level since its 2021 initial public offering, while increasing capital returns through share repurchases.

The company said it remains focused on advancing strategic growth initiatives. It described the installed base of pools as increasing every year and said it benefits from secular demand trends in outdoor living, sunbelt migration and technology adoption, with the aftermarket representing approximately 85% of North America residential pool net sales.

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