Latham Group (SWIM) Q4 2025 earnings summary

Executive summary

• Achieved strong Q4 and full-year 2025 results, with Q4 revenues up 14.5%–15% year-over-year and full-year sales exceeding guidance midpoint, driven by increased demand for fiberglass pools and auto covers.

• Outperformed a declining U.S. in-ground pool market, expanding market share in key regions, notably Florida, and completing the acquisition of Freedom Pools to strengthen presence in Australia and New Zealand.

• Expanded dealer base and partnerships, especially in the Sand States, with double-digit growth in fiberglass pool sales in Florida.

• Benefited from acquisitions and strategic partnerships, supporting growth in automatic safety covers and branded product portfolio.

• Continued focus on organic growth, targeted marketing, and select accretive acquisitions.

Financial highlights

• Q4 2025 net sales: $100M, up 14.5%–15% year-over-year; organic growth 14%.

• Full-year 2025 net sales: $546M, up 7.4% year-over-year; organic growth 5%.

• Q4 adjusted EBITDA: $10.5M (up 189.6%); full-year adjusted EBITDA: $99.8M (up 24.4%).

• Gross margin expanded by 340 bps in Q4 to 28% and by 320 bps for the year to 33.4%.

• Net income for 2025: $11.1M, reversing a prior year net loss of $17.9M.

Outlook and guidance

• 2026 net sales guidance: $580M–$610M; adjusted EBITDA: $105M–$120M, representing 9% and 12.7% growth at midpoints.

• Expect mid-single digit organic growth, with incremental contributions from Freedom Pools acquisition.

• Capital expenditures projected at $42M–$48M, including facility purchases and upgrades.

• U.S. in-ground pool starts expected to remain flat year-over-year.

• Revenue growth driven by organic expansion and recent acquisitions.