Hayward (HAYW) Q1 2025 earnings summary

Executive summary

• Q1 2025 net sales rose 8% year-over-year to $228.8 million, surpassing expectations, with growth driven by volume, price increases, and the ChlorKing acquisition across North America and Europe.

• Net income increased 46% year-over-year to $14.3 million, with net income margin improving to 6.3% from 4.6%.

• Adjusted EBITDA grew 9% to $49.1 million, with margin up 30 bps to 21.5%; adjusted diluted EPS increased 25% to $0.10.

• Net leverage remained at 2.8x, within the targeted range, despite seasonally low cash collection.

• Launched OmniX, an IoT automation platform targeting the large aftermarket pool segment.

Financial highlights

• Q1 2025 net sales: $228.8 million (+8% YoY); gross profit: $113.4 million (+8% YoY); gross margin: 49.5% (+30 bps YoY).

• Adjusted EBITDA: $49.1 million (+9% YoY); margin: 21.5% (+30 bps YoY); adjusted diluted EPS: $0.10 (+25% YoY).

• Net income: $14.3 million (+46% YoY); net income margin: 6.3% (+170 bps YoY).

• Interest expense fell 27% to $13.7 million due to debt repayment and lower rates.

• Cash and equivalents at quarter-end: $181.3 million; total liquidity: $398 million.

Outlook and guidance

• FY2025 guidance confirmed: net sales expected at $1.060–$1.100 billion, adjusted EBITDA at $280–$290 million, and free cash flow of $150 million (>100% of net income).

• Positive net price contribution of 5%-6% expected, offsetting tariff-related inflation.

• Capex planned at $35 million; net interest expense $50 million; effective tax rate 23%-25%.

• Anticipates normal seasonal strength in Q2 and Q4, with more weighting in the second half due to timing of price increases.