Hayward (HAYW) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2025 rose 5.3% year-over-year to $299.6 million, with record gross margin of 52.7% and adjusted EBITDA margin of 29.5%.

• Net income increased 19% year-over-year to $44.8 million, with adjusted diluted EPS up 14% to $0.24 and diluted EPS up 18% to $0.20.

• Net leverage declined to 2.1x, the lowest in over three years, enhancing financial flexibility.

• Guidance for FY2025 was refined, raising the low end of net sales to $1.070–$1.100 billion and adjusted EBITDA to $280–$290 million.

• ChlorKing acquisition contributed to commercial growth and incurred related transaction and retention costs.

Financial highlights

• Q2 2025 net sales reached $299.6 million, up 5.3% year-over-year, driven by 5% net price increase, 2% lower volume, and 2% from acquisitions.

• Gross profit increased 8.8% to $157.8 million, with gross margin up 170 bps to 52.7%.

• Adjusted EBITDA was $88.2 million, up 7% year-over-year, with margin up 50 bps to 29.5%.

• Adjusted diluted EPS increased 14% to $0.24; net income margin expanded 180 bps to 15.0%.

• Cash and cash equivalents were $365.1 million as of June 28, 2025; free cash flow year-to-date was $175 million.

Outlook and guidance

• FY2025 net sales expected to grow 2–5% to $1.070–$1.100 billion; adjusted EBITDA guidance is $280–$290 million.

• Free cash flow conversion projected at >100% of net income; net price realization of ~4% anticipated.

• Guidance excludes potential new tariffs effective after July 27, with mitigation plans in place.

• Long-term growth expected from aftermarket sales, innovation, and favorable industry trends.

• No significant impact anticipated from recent U.S. tax law changes in Q3 2025.