PoolCorp (POOL) investor relations material

Executive summary

• Net sales for Q2 2026 grew 2% year-over-year to $1.8 billion, driven by recurring maintenance and building materials, while discretionary and new construction categories remained soft.

• Europe delivered 11% sales growth, while U.S. seasonal markets grew 6%; key states like California, Texas, and Arizona saw mid-single digit declines, mainly due to Horizon's performance and fewer new pool permits.

• CEO transition completed, incurring $8.3 million in costs, with new leadership emphasizing operational discipline and customer-centric investments.

• Strategic focus remains on sales excellence, pricing and supply chain discipline, operational execution, and disciplined M&A.

• Six-month net sales increased 4% to $3.0 billion; adjusted net income up 2% to $248.1 million.

Financial highlights

• Q2 net sales reached $1.8 billion, up 2% year-over-year; building materials grew 4%, chemicals declined 2% on pricing.

• Gross profit increased 1% to $541 million; gross margin was 29.7%, down 30 bps year-over-year due to higher inbound freight and customer mix.

• Adjusted operating income rose 1% to $276 million (15.1% margin); reported operating income fell 2% to $268 million.

• Adjusted net income increased 1% to $196 million; reported net income was $188 million, down 3%.

• Adjusted EPS grew 4% to $5.38, excluding CEO transition costs; reported EPS was flat at $5.17.

Outlook and guidance

• Full-year adjusted EPS guidance maintained at $10.87–$11.17; reported EPS range updated to $10.66–$10.96 due to one-time CEO transition costs.

• Expecting low single-digit top-line growth for the year, with 2–3% from pricing; pricing benefit to moderate in H2.

• Full-year gross margin now expected to be 30 bps below prior year, reflecting higher freight and customer mix.

• Interest expense forecasted at $49–$51 million; tax rate at ~25%.

• Management remains confident in achieving guidance, citing strong distribution network and digital capabilities.