Latham Group (SWIM) Q2 2026 earnings summary

Executive summary

• Net sales increased 14.4% year-over-year in Q2 2026 to $197.5 million, driven by 10.3% organic growth, strong Sand States performance, and the Freedom Pools acquisition.

• Adjusted EBITDA rose 11.9% to $44.6 million, with margin at 22.6%; full-year guidance for both net sales and adjusted EBITDA was raised to 11.7% and 15.2% growth at the midpoints.

• Net income for Q2 was $12.8 million (6.5% margin), down from $16.0 million (9.3% margin) last year, impacted by $5 million in unfavorable FX and margin pressures.

• Strategic initiatives, including marketing campaigns, operational improvements, and targeted expansion in the Sand States, are driving sustained growth and market share gains.

• Completed the acquisition of Freedom Pools in Australia and purchased four key fiberglass production facilities.

Financial highlights

• Q2 net sales: $197.5 million (up 14.4% year-over-year); in-ground pool sales up 22.5% to $96 million; cover sales up 10% to $41 million; liner sales up 6% to $60 million.

• Gross profit increased 9.6% to $70.1 million; gross margin at 35.5%, down 160 bps year-over-year due to $2.8 million in ramp-up costs.

• Adjusted EBITDA: $44.6 million (up 11.9% year-over-year); margin at 22.6%, down 50 bps.

• Net income: $12.8 million for Q2 (6.5% margin); six-month net income: $4.2 million.

• Cash at quarter-end: $43.5 million; total debt: $279.8 million; $75 million available under revolving credit facility.

Outlook and guidance

• Full-year 2026 net sales guidance raised to $600–$620 million (11.7% growth midpoint), with 8.4% organic growth expected.

• Adjusted EBITDA guidance increased to $110–$120 million (15.2% growth midpoint); CapEx guidance revised to $40–$45 million.

• Management expects continued share gains, especially in the Sand States, and majority of ramp-up costs to be recovered in H2.

• Net debt leverage ratio expected to fall below 2x by year-end.

• U.S. pool starts expected to remain flat, but company anticipates outperforming the market.