Hayward (HAYW) Q3 2026 earnings summary

Executive summary

• Q3 net sales rose 6.5% YoY to $260.1M; net income increased to $32.4M from $24.0M, adjusted EBITDA rose 9% to $64.5M, and adjusted diluted EPS increased 29% to $0.18.

• Aftermarket demand, North America strength, favorable pricing, modest volume growth and share gains supported results amid pressured new construction and weaker Europe & Rest of World sales.

Financial highlights

• Q3 gross profit was $124.7M, up 6.8%; gross margin was 47.9%, up 10 bps, while adjusted EBITDA margin expanded 60 bps to 24.8%.

• Nine-month sales increased 7.9% to $833.7M; adjusted EBITDA was $213.6M, up 9%, and adjusted diluted EPS rose 21% to $0.58.

• Q3 R&D and engineering expense rose 21% to $8.6M; SG&A declined 3% to $59.4M, partly reflecting no repeat of the prior-year litigation expense.

Outlook and guidance

• FY 2026 net sales growth guidance increased to 5%-6% from ~5%; adjusted diluted EPS guidance rose to $0.86-$0.88 from $0.84-$0.87, implying 12%-14% YoY growth.

• FY 2026 free cash flow is expected at ~$200M, exceeding 100% of net income; assumptions include capex ~$40M, net interest expense ~$47M and a normalized tax rate ~24%.

• Q4 sales are expected flat to +3% YoY; mix may include more discounted Early Buy orders and fewer full-price in-season orders.

• Early Buy orders in North America were ahead of prior year at Q3 end, with the program expected to close with solid YoY growth.