PoolCorp (POOL) Q4 2025 earnings summary

Executive summary

• 2025 revenue was stable at $5.3 billion, with steady maintenance sales and improved gross margin despite a mid-single-digit decline in new pool construction and macroeconomic headwinds.

• Strategic investments in technology, exclusive brands, and distribution enhanced efficiency and customer experience.

• Maintenance spending remained resilient, offsetting declines in discretionary and new construction categories.

• Shareholder returns increased, with nearly $530 million distributed via dividends and share repurchases, a 10% increase over last year.

• Digital sales reached 15% of total revenue, peaking at 17% during pool season.

Financial highlights

• Annual revenue held steady at $5.3 billion; Q4 sales were $982.2 million, down 1% year-over-year.

• Gross margin for 2025 was 29.7%, up 20 basis points adjusted for one-time items; Q4 gross margin rose to 30.1%, up 70 basis points.

• Operating income for 2025 was $580.2 million, down 6% from 2024; Q4 operating income was $52 million, down from $61 million.

• Diluted EPS for 2025 was $10.85, compared to $11.30 in 2024; adjusted diluted EPS was $10.73, down 3% year-over-year.

• Cash flow from operations was $366 million (90% of net income), impacted by deferred tax payments.

Outlook and guidance

• 2026 net sales expected to grow in the low single-digit range, with gross margin projected to remain consistent.

• Diluted EPS guidance for 2026 is $10.85–$11.15, with no ASU tax benefit.

• Maintenance revenues expected to remain resilient; new pool construction projected flat at ~60,000 units.

• Operating margin anticipated to improve, partially offset by higher incentive compensation.

• Capital allocation to include $25–$50 million for acquisitions, $200 million for dividends, and continued share repurchases.