PoolCorp (POOL) Q1 2026 earnings summary

Executive summary

• Net sales rose 6% year-over-year to $1.14 billion, driven by strong maintenance demand, improved discretionary spending, and digital engagement, with operating income up 7% to $82.6 million and operating margin expanding 10 bps to 7.3%.

• Diluted EPS increased 2% to $1.45; adjusted EPS (excluding ASU 2016-09 tax benefit) grew 8% to $1.43.

• Growth was supported by digital ecosystem expansion, franchise growth, and higher sales in key product categories.

• The installed base of 5.5 million in-ground pools and robust maintenance/remodel activity anchored results.

• Annual earnings guidance confirmed at $10.87–$11.17 per diluted share, including a $0.02 Q1 tax benefit.

Financial highlights

• Net sales reached $1,138.0 million (up 6% year-over-year), with gross profit of $329.9 million and gross margin at 29.0%, down 20 bps due to product mix and early buy activity.

• Operating income was $82.6 million (up 7% year-over-year); operating margin improved to 7.3%.

• Net income was $53.2 million, slightly down from $53.5 million last year due to higher interest expense and lower tax benefit.

• Inventory at quarter-end was $1.7 billion, up 14% year-over-year, supporting new locations and product introductions.

• Net cash from operations was $25.7 million, down from $27.2 million prior year.

Outlook and guidance

• Full-year diluted EPS guidance reaffirmed at $10.87–$11.17, including a $0.02 ASU benefit.

• Expecting 1%-2% full-year pricing benefit and low single-digit top-line growth on a same selling day basis.

• Gross margin for 2026 expected to remain consistent with 2025, with expense growth moderating as capacity is absorbed.

• Projected full-year interest expense of $49–$51 million and tax rate of ~25%.

• Continued focus on operational efficiency, infrastructure leverage, and investment in technology.