Latham Group (SWIM) investor relations material

Executive summary

• Achieved 7.8% year-over-year revenue growth and 15.7% adjusted EBITDA growth in Q2, driven by organic and acquisition-related sales, with strong performance in covers and liners despite challenging industry conditions.

• Maintains leading share in every residential pool subcategory, with a diversified product portfolio and growing fiberglass market share, especially in Sand States.

• Strategic focus on expanding fiberglass pools and auto covers, with significant marketing investments and dealer network expansion in high-growth regions.

• Accretive acquisitions, notably Coverstar Central and two smaller autocover dealers, enhanced vertical integration, sales, and operational efficiency.

• Unique direct-to-homeowner model and broad branded product portfolio drive dealer and consumer engagement.

Financial highlights

• Q2 2025 net sales: $172.6M (+7.8% YoY); net income: $16.0M (9.3% margin); adjusted EBITDA: $39.9M (23.1% margin); gross margin: 37.1%.

• Six months 2025: net sales $284.1M (+4.9% YoY); net income $10.0M (3.5% margin); adjusted EBITDA $51.0M (18.0% margin).

• In-ground pool sales declined 2.9% to $79M in Q2; cover sales rose 46% to $37M; liner sales grew 5.8% to $57M.

• Net cash from operations in Q2: $36M; cash at quarter end: $26.9M; total debt: $281.5M.

• Selling, general, and administrative expenses increased due to investments in marketing, personnel, and ERP infrastructure.

Outlook and guidance

• Reaffirmed 2025 guidance: 8% net sales growth and 19% adjusted EBITDA growth at midpoints; net sales guidance $535M–$565M, adjusted EBITDA $90M–$100M, CapEx $27M–$33M.

• U.S. new pool starts expected to remain flat at 60,000 in 2025, below long-term average.

• Management remains cautiously optimistic, focusing on acquisitions, Sand State expansion, and operational improvements.