Hayward (HAYW) Q4 2024 earnings summary

Executive summary

• Q4 2024 net sales grew 17% year-over-year to $327.1M, with full-year net sales up 6% to $1.052B and record gross profit margin of 50.5%.

• Achieved strong execution, margin expansion, and robust free cash flow, reducing net leverage to 2.8x.

• Executed strategic initiatives including the $55M acquisition of ChlorKing, leadership strengthening, and product innovation.

• Introduced 2025 guidance projecting continued growth and profitability.

• Celebrated 100-year anniversary, reflecting on a century of growth and resilience.

Financial highlights

• Q4 net sales $327.1M (+17.5% YoY), gross margin 51.4% (+220 bps YoY), adjusted EBITDA $98.7M (+30% YoY), adjusted diluted EPS $0.27 (+35% YoY).

• FY 2024 net sales $1.052B (+6.0% YoY), gross margin 50.5% (+240 bps YoY), adjusted EBITDA $277.4M (+12% YoY), adjusted diluted EPS $0.67 (+20% YoY).

• Free cash flow increased 22% YoY to $188M; cash flow from operations up 15% YoY to $212M.

• Net leverage reduced from 3.7x to 2.8x; total liquidity at year-end was $360M.

• Q4 operating income up 38% to $76.5M; full-year operating income up 19% to $208.8M.

Outlook and guidance

• FY 2025 net sales expected at $1.06B–$1.1B; adjusted EBITDA $280M–$290M; free cash flow guidance ~$160M, exceeding 100% of net income.

• Aftermarket maintenance expected to show modest growth; new construction and remodel segments remain under pressure.

• Net price realization expected to be -2–3%; robust margins anticipated.

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