PoolCorp (POOL) Q2 2025 earnings summary

Executive summary

• Net sales grew 1% year-over-year in Q2 2025 to $1.8 billion, driven by strong maintenance product sales and strategic investments, offsetting weaker new construction and renovation activity.

• Gross margin held steady at 30.0%, with operating income up $1.2 million to $272.7 million and diluted EPS rising 4% to $5.17.

• Regional performance varied: Florida and Arizona saw 2% sales growth, while Texas and California experienced declines in new pool construction but resilient maintenance sales; Europe net sales increased 7% year-over-year.

• Digital innovation drove POOL360 platform transactions to 17% of net sales, up from 14.5% last year.

• Opened four new sales centers in Q2, reaching 451 globally.

Financial highlights

• Q2 2025 net sales: $1.8 billion (+1% year-over-year); gross profit: $535.2 million (30.0% margin); operating income: $272.7 million; net income: $194.3 million; diluted EPS: $5.17 (+4%).

• Adjusted EBITDA for Q2 2025 was $292.1 million, up from $287.3 million in Q2 2024.

• Inventory increased 3% year-over-year to $1.33 billion, supporting expanded product offerings.

• Share repurchases totaled $156.4 million in the first half of 2025, with $515.7 million remaining authorized.

• Cash flow from operations was negative $1.5 million in H1 2025, mainly due to deferred tax payment and higher inventory.

Outlook and guidance

• Full-year 2025 sales expected to be flat versus 2024, with gross margin projected in line with prior year and operating expenses expected to rise 2–3%.

• Updated full-year diluted EPS guidance to $10.80–$11.30, including a $0.10 ASU 2016-09 tax benefit.

• Interest expense projected at $45M–$47M, annual tax rate around 25%.

• No material improvement expected in new pool construction for the remainder of 2025 without interest rate cuts.

• Management remains confident in long-term industry strength and ability to deliver shareholder value.