Hayward (HAYW) Q2 2026 earnings summary

Executive summary

• Net sales increased 6.3% year-over-year to $318.4 million in Q2 2026 and 9% for the first half, driven by strong price realization, stable volume, and resilient aftermarket demand, with North America leading growth.

• Adjusted EBITDA rose 5% to $92.7 million (29.1% margin) in Q2; adjusted diluted EPS up 8% to $0.26; net income for Q2 was $45.6 million, up from $44.8 million.

• Completed comprehensive debt refinancing, extending maturities to 2033, reducing annual interest expense by ~$6 million, and increasing financial flexibility.

• Net leverage reduced to 1.5x, the lowest since IPO, supported by strong cash flow generation and accelerated share repurchases.

• Strategic focus on innovation, operational excellence, and customer engagement is driving market share gains and profitability.

Financial highlights

• Q2 2026 net sales: $318.4 million (+6.3% YoY); H1 2026 net sales: $573.6 million (+8.5% YoY).

• Gross profit for Q2 increased 5.2% to $155.1 million; gross margin declined 50 bps to 48.7% due to inflation and tariffs.

• Adjusted EBITDA for Q2: $92.7 million (+5% YoY); H1 adjusted EBITDA: $149.1 million (+9% YoY); adjusted EBITDA margin: 29.1% (down 40 bps YoY).

• Adjusted diluted EPS for Q2: $0.26 (+8% YoY); H1 adjusted diluted EPS: $0.40 (+18% YoY).

• Free cash flow was $154 million in the first half; full-year outlook remains $200 million.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: net sales expected to grow ~5% over FY2025, adjusted diluted EPS forecasted at $0.84–$0.87 (up 9–13% YoY), and free cash flow projected at ~$200 million.

• CapEx expected to increase to ~$40 million to support operational upgrades.

• Long-term growth expected from pool industry trends, technology adoption, and installed base expansion.

• Assumptions include net interest expense ~$45 million and effective tax rate ~24%.

• Management remains confident in execution and positive on pool industry growth, supported by aftermarket strength.