POOL · Pool Corporation

Pool Corporation delivered a solid start to 2026 with first-quarter net sales growing 6% year-over-year to $1.138 billion, fueled by resilient maintenance product demand, strong equipment sales, and gradual recovery in discretionary categories like building materials. Sales growth also benefited from prior-year price increases and a 1% contribution from customer early buys and favorable currency rates. Gross profit rose $17.5 million, but gross margin contracted 20 basis points to 29.0%, reflecting a higher mix of lower-margin equipment sales and seasonal early buy activity, partially mitigated by pricing and supply chain optimizations. Operating expenses increased 5% to $247.3 million due to greenfield location costs, technology investments, and inflation, yet operating income grew 7% to $82.6 million with margin expansion to 7.3%, signaling emerging expense leverage. Net income dipped slightly to $53.2 million amid higher interest from share repurchases and a reduced ASU 2016-09 tax benefit ($0.02 vs. $0.10 last year), yielding diluted EPS of $1.45, up 2% reported and 8% adjusted. Balance sheet shows inventory up 14% to $1.66 billion to support service levels and new centers, with debt rising to $1.2 billion primarily for $349 million in trailing-12-month repurchases. Management, led by CEO Peter D. Arvan, expressed confidence in strategy, highlighting 455 sales centers, POOL360 adoption, and vendor partnerships. The company reaffirmed full-year 2026 diluted EPS guidance of $10.87-$11.17, inclusive of the $0.02 year-to-date tax benefit, underscoring discipline amid peak pool season.