HAYW · Hayward Holdings, Inc.

Hayward Holdings delivered a robust first quarter for fiscal 2026, with net sales increasing 12% year-over-year to $255.2 million, driven by positive net price realization to offset inflation and tariffs, favorable foreign currency translation, and volume growth. Gross profit rose 13% to $118.7 million, with gross margin expanding 50 basis points to 46.5% due to pricing and operating efficiencies, partially offset by higher costs from tariffs and inflation. Operating income grew 27% to $42.5 million, with operating margin improving 200 basis points to 16.6%, as SG&A leverage (down 40 bps as a percentage of sales) and stable RD&E spending contributed. Net income surged 63% to $23.4 million, with net margin up 290 bps to 9.2%, aided by a 16% decline in net interest expense. On an adjusted basis, net income rose 35% to $29.8 million, and adjusted EBITDA increased 15% to $56.4 million, with margin up 60 bps to 22.1%. Diluted EPS of $0.11 (GAAP) and adjusted diluted EPS of $0.13 (Non-GAAP) grew 83% and 30%, respectively. Segment performance was strong: North America net sales increased 12% to $209.8 million with segment income up 16%; Europe & Rest of World net sales rose 9% to $45.4 million with segment income up 27%. Management highlighted the strength of the installed base aftermarket model and disciplined execution. The company raised its full-year 2026 guidance, now expecting net sales growth of approximately 5% (from ~4%) and adjusted diluted EPS of $0.84 to $0.87 (from $0.82-$0.86), reflecting confidence in continued profitable growth. The balance sheet remains solid with $135.8 million cash, $94.9 million short-term investments, and $186.6 million available under revolving credit facilities.