Latham Group (SWIM) investor relations material

Executive summary

• Q3 net sales rose 12.5% to $182.2M, including 8.4% organic growth; Adjusted EBITDA increased 18.1% to $45.3M.

• Nine-month sales increased 11.4% to $497.0M, including 7.9% organic growth; Adjusted EBITDA rose 14.2% to $102.0M.

• Fiberglass pools, Sand States expansion and autocover growth supported results; a three-year $100M share repurchase program was approved.

Financial highlights

• Q3 gross profit rose 16.6% to $66.8M; net income increased 48.5% to $12.1M, with diluted EPS of $0.10 versus $0.07.

• Nine-month gross profit rose 12.9% to $174.1M; net income declined to $16.3M from $18.1M, including a $5.0M refinancing loss.

• Q3 Adjusted EBITDA was $45.3M, up 18.1%; nine-month Adjusted EBITDA was $102.0M, up 14.2%.

• Q3 sales growth included $16.7M from higher volume and $3.6M from higher pricing; nine-month growth included $38.8M from volume and $12.2M from pricing.

• Nine-month operating cash flow was $54.6M versus $40.1M; period-end cash was $94.8M.

Outlook and guidance

• FY26 net sales guidance narrowed to $605M–$615M from $600M–$620M; Adjusted EBITDA guidance narrowed to $112M–$118M from $110M–$120M.

• Guidance implies midpoint growth of 11.7% for sales and 15.2% for Adjusted EBITDA; FY26 capital expenditure guidance remains $40M–$45M.

• Management expects a flat 2027 pool-start market and plans to grow through share gains; Texas staffing is planned by year-end, with Arizona expansion starting in January.

• Current surcharges and pricing are expected to offset freight and commodity cost headwinds at current rates; the cost environment remains dynamic.