Hayward Holdings, Inc.

What they do

Hayward sells residential and commercial pool equipment — pumps, filters, cleaners, heaters, heat pumps, lighting, sanitizers and automation — plus industrial flow control products. Products are sold direct to specialized pool distributors, large retailers, major builders and online resellers in North America, and through distribution centers in France and Spain plus third-party distribution in Australia elsewhere. The company operates seven manufacturing facilities worldwide, located in North Carolina, Georgia, Tennessee, Rhode Island, Spain (two) and China. It estimates a North American residential pool market share of approximately 33% and an installed base of roughly 25 million pools globally.

Revenue drivers

• North America (NAM) segment — Manufactures and sells residential and commercial pool equipment in the U.S. and Canada, plus industrial flow control products; accounted for 87% of total net sales in Q2 fiscal 2026 and 85% for the six months ended June 27, 2026.
• Europe & Rest of World (E&RW) segment — Sells pool equipment in Europe, Central and South America, the Middle East, Australia and other Asia Pacific countries; accounted for 13% of Q2 fiscal 2026 net sales and 15% for the first half.
• Aftermarket sales — Repair, replacement, remodeling and upgrading of existing pool equipment; management estimates about 85% of North American residential pool net sales, with a product replacement cycle of approximately eight to 11 years.
• IoT and energy-efficient upgrades — Upgrades to higher-value IoT and energy-efficient models (SmartPad platform, OmniLogic mobile application) are described as a primary growth driver for the business.

Recent performance

For the second quarter of fiscal 2026 ended June 27, 2026, Hayward reported net sales up 6% year-over-year to $318.4 million, driven by positive net price to offset inflation and tariffs plus favorable foreign currency translation. Net income rose 2% to $45.6 million, or $0.21 diluted EPS, while Adjusted EBITDA increased 5% to $92.7 million and adjusted diluted EPS rose 8% to $0.26. Gross margin declined 50 basis points to 48.7% on tariff and inflation pressure, and operating income rose 6% to $76.0 million. Net interest expense increased 24% to $17.0 million, including $5.2 million of debt financing costs from the June 23, 2026 Amended and Restated First Lien Credit Agreement. First-half net sales rose 9% year-over-year.

Strategy

Management emphasizes the installed-base aftermarket model, price realization and stable volumes, and says it is gaining traction on share gain initiatives. In the second quarter of 2026 the company completed a debt refinancing intended to extend maturities, reduce cost of capital and enhance financial flexibility, reducing net leverage to 1.5x — described as the lowest level since the 2021 IPO. Cash flow generation is being used to return capital to stockholders through share repurchases. Research, development and engineering spending rose 25% to $7.7 million in Q2 fiscal 2026, focused on new product development and performance improvements.

Risks

• Tariffs and trade restrictions — Tariffs and inflation increased cost of sales and lowered gross margin by 50 basis points in Q2 fiscal 2026, and the company cites substantial global economic uncertainty following 2025 U.S. tariff actions and a February 20, 2026 Supreme Court ruling striking down certain tariffs.
• Customer concentration and channel dependence — The business depends on distributors, builders, buying groups, retailers and servicers, and a loss of or material reduction in purchases by one or more of its largest customers is a stated risk.
• Competition and product obsolescence — Hayward operates in markets with high levels of competition and states that its future success depends on developing, manufacturing and attaining market adoption of new products, including keeping pace with evolving technologies such as AI.
• Interest expense and leverage — Net interest expense rose 24% to $17.0 million in Q2 fiscal 2026, including $5.2 million of debt financing costs from the June 23, 2026 credit agreement refinancing.

Outlook

Management confirmed its full-year 2026 guidance in the July 29, 2026 earnings release, citing balanced channel inventory levels and increasing traction with share gain initiatives. The CEO stated confidence in executing strategic growth plans, delivering profitable growth and creating long-term stockholder value. No specific guidance figures were provided in the excerpt.