Pool 2025 Q2 Earnings Steady Growth with Net Income Up 0.9%

Pool Corporation reported its fiscal 2025 Q2 earnings on July 30th, 2025. The company saw a modest increase in both revenue and earnings, with revenue rising by 0.8% to $1.78 billion and net income showing a 0.9% growth to $194.26 million. While the company did not mention specific analyst expectations, the updated full-year EPS guidance suggests cautious optimism. Pool raised its EPS guidance to a range of $10.80 to $11.30, including a $0.10 benefit from ASU 2016-09, indicating a positive outlook despite anticipated flat sales and gross margins.

Revenue

The total revenue of Pool Corporation increased by 0.8% to $1.78 billion in 2025 Q2, up from $1.77 billion in 2024 Q2.

Earnings/Net Income

Pool's EPS rose 3.4% to $5.19 in 2025 Q2 from $5.02 in 2024 Q2, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $194.26 million in 2025 Q2, marking 0.9% growth from $192.44 million in 2024 Q2. This EPS performance indicates a steady financial trajectory.

Price Action

The stock price of Pool has edged down 1.47% during the latest trading day, has edged down 1.45% during the most recent full trading week, and has climbed 6.65% month-to-date.

Post-Earnings Price Action Review

The strategy of buying Pool shares when earnings beat and selling after 30 days resulted in significant underperformance, yielding a total return of -16.77% compared to the benchmark return of 87.61%. Although the strategy showed no capital loss during the period, evidenced by a maximum drawdown of 0.00%, it failed to outperform the benchmark, reflecting a Sharpe ratio of -0.11 and a CAGR of -3.63%. This outcome suggests that while the company demonstrated consistent earnings growth, the market response was lukewarm, likely influenced by broader economic factors or investor sentiment.

CEO Commentary

Peter D. Arvan, President and CEO, noted that during Q2 2025, Pool Corporation experienced a 1% sales increase to $1.8 billion, driven by strong performance in maintenance products and improving trends in discretionary spending. He emphasized the successful execution of strategic initiatives, including the opening of the company’s 450th sales center, which positions Pool for sustained success. Arvan acknowledged challenges in new pool construction due to macroeconomic conditions but expressed confidence in the resilience of the maintenance business and the potential for future growth as the market stabilizes.

Guidance

For the full year 2025, Pool Corporation updated its diluted EPS guidance to a range of $10.80 to $11.30, which includes a $0.10 benefit from ASU 2016-09. The company anticipates flat sales and gross margins compared to the prior year, with expected SG&A expense growth of 2% to 3% reflecting ongoing investments in new sales centers.

Additional News

On July 10, 2025, Pool Corporation amended and restated its credit agreements, refinancing a $500 million term loan and extending maturity dates to September 2029. This extension removed a Term SOFR adjustment and updated repayment terms for agreements with both its main and Bank of America. These financial maneuvers grant Pool enhanced flexibility and potential cost reductions in upcoming years. The company also announced updates to its receivables purchase agreement on April 30, 2025, which, alongside the refinancing, supports liquidity and readiness to tackle short-term challenges in demand or margin pressure. These strategic financial adjustments bolster Pool's capacity to navigate the current economic landscape effectively.