PoolCorp (POOL) investor relations material

Executive summary

• 2025 net sales were $5.3 billion, flat year-over-year, with steady maintenance sales and a mid-single-digit decline in new pool construction to just under 60,000 units in the U.S.

• Gross margin improved to 29.7% for 2025, up 20 basis points year-over-year, and Q4 gross margin rose to 30.1%, up 70 basis points.

• Diluted EPS for 2025 was $10.85 (down 4%), with adjusted EPS at $10.73; 2026 guidance is $10.85–$11.15, excluding ASU tax benefits.

• Strategic investments in technology, exclusive brands, and digital platforms improved efficiency and customer experience, supporting future growth.

• Shareholder returns increased 10% to nearly $530 million, including $341 million in share repurchases and a 4% dividend increase.

Financial highlights

• Q4 2025 net sales were $982 million, down 1% year-over-year; full year gross profit was $1.57 billion, down $2.9 million.

• Operating income for 2025 was $580.2 million, down 6% from 2024; adjusted EBITDA was $654.3 million, down from $680.9 million.

• Operating margin for 2025 was 11.0%, down from 11.6% in 2024; Q4 operating margin was 5.3%.

• Cash flow from operations was $366 million (90% of net income), impacted by deferred tax payments.

• Inventory at year-end was $1.45 billion, up 13% year-over-year.

Outlook and guidance

• 2026 net sales expected to grow in the low single-digit range, with gross margin projected flat to slightly up.

• Diluted EPS guidance for 2026 is $10.85–$11.15, with no ASU tax benefit; operating margin expected to improve, partially offset by higher incentive compensation.

• Maintenance revenues expected to remain resilient; new pool construction projected flat at ~60,000 units.

• Annual tax rate expected around 25%; interest expense to be ~$50 million.

• Capital allocation to include 1%-1.5% of net sales reinvested, $25–$50 million for acquisitions, $200 million for dividends, and continued share repurchases.