Hayward Holdings 2025 Q2 Earnings Beats Expectations as Net Income Grows 19%

Hayward Holdings reported its fiscal 2025 Q2 earnings on Jul 30th, 2025. The company exceeded expectations with a 6.9% revenue beat and a 4.3% EPS beat, showcasing robust performance in a challenging environment. Hayward's guidance has been refined, predicting a 2% to 5% increase in net sales for 2025, and adjusted EBITDA is projected to be in line with estimates at $280 million to $290 million. The guidance reflects confidence amid macroeconomic fluctuations.

Revenue

The total revenue of Hayward Holdings increased by 5.3% to $299.60 million in 2025 Q2, up from $284.39 million in 2024 Q2.

Earnings/Net Income

Hayward Holdings's EPS rose 23.5% to $0.21 in 2025 Q2 from $0.17 in 2024 Q2, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $44.80 million in 2025 Q2, marking 19.2% growth from $37.58 million in 2024 Q2. The EPS reflects strong financial performance.

Price Action

The stock price of Hayward Holdings has edged up 1.25% during the latest trading day, has edged up 2.87% during the most recent full trading week, and has jumped 11.73% month-to-date.

Post-Earnings Price Action Review

The strategy of buying Hayward Holdings shares after their revenue increase quarter-over-quarter on the financial report release date and holding for 30 days resulted in a -13.83% return, significantly underperforming the benchmark return of 55.07% over the past three years. The strategy's CAGR was -3.36%, with a maximum drawdown of 0.00% and a Sharpe ratio of -0.08, indicating a high-risk, low-reward scenario with considerable volatility, as the strategy's volatility was 42.10%. This suggests the approach is fraught with risk, offering limited rewards in exchange for the high volatility observed.

CEO Commentary

Kevin P. Holleran, President, CEO & Director, expressed optimism about Hayward's performance, stating that net sales increased 5% with significant contributions from both North America and Europe. He highlighted a record gross profit margin of 52.7%, attributing this success to the commercial and operations teams’ efforts. Holleran emphasized the importance of effective working capital management, which has reduced net leverage to 2.1x, providing enhanced financial flexibility. He noted ongoing tariff uncertainties but assured that the company remains resilient, focusing on mitigating impacts and investing strategically in advanced engineering and new product development to maintain market leadership.

Guidance

Hayward now expects net sales for 2025 to increase approximately 2% to 5%, estimating revenue between $1.07 billion and $1.1 billion. Adjusted EBITDA is projected at $280 million to $290 million. The company anticipates a positive full-year net price contribution of at least 4%, reflecting the implementation of a 3% price increase in North America. While the guidance does not account for potential new tariffs, Hayward expects to maintain solid cash flow generation with over 100% conversion of net income, targeting approximately $150 million.

Additional News

Hayward Holdings has recently announced strategic initiatives to enhance its market position, including a significant expansion in its North American operations. The company also unveiled a new marketing campaign focused on promoting its energy-efficient pool equipment, aligning with sustainability trends. Additionally, there have been changes in the executive team, with the appointment of a new Chief Operating Officer to drive operational excellence and support growth strategies. These developments aim to capitalize on favorable industry dynamics and bolster Hayward's leadership in the pool equipment sector.