Hayward Holdings Reports Record Q2 Earnings, Raises Full-Year Guidance

Hayward Holdings reported strong Q2 earnings with record gross profit margins of 52.7%, exceeding expectations with a 5% increase in net sales to $300 million. The company achieved a significant reduction in net leverage to 2.1x, despite facing challenges from tariffs and pressures on discretionary market elements. Hayward Holdings also reported a 14% increase in adjusted diluted EPS, reaching $0.24, and raised its full-year 2025 guidance, adjusting the lower end of its net sales growth outlook to 2%-5%.

Title: Hayward Holdings Reports Strong Q2 Earnings with Record Gross Profit Margin

Hayward Holdings Inc. (NYSE: HAYW) reported robust Q2 earnings, with net sales increasing by 5% to approximately $300 million, a significant improvement over the previous quarter. The company achieved a record gross profit margin of 52.7%, marking the 10th consecutive quarter of year-over-year gross margin expansion [1]. This performance was driven by growth in both North America and Europe, with North America net sales increasing by 6% to $255 million and Europe and Rest of World net sales rising by 3% to $44 million [1].

Despite facing challenges from tariffs and pressures on discretionary market elements, Hayward Holdings successfully reduced its net leverage to 2.1 times, providing enhanced financial flexibility [1]. The company's adjusted EBITDA margin increased to 29.5%, reflecting strong profitability [1]. Additionally, the adjusted diluted EPS increased by 14% to $0.24 [1].

The company's full-year 2025 net sales guidance was adjusted to a range of 2% to 5%, with an expected increase to $1.07 billion to $1.1 billion [1]. The adjusted EBITDA guidance for 2025 was also updated to a range of $280 million to $290 million [1].

However, the company faces ongoing challenges from tariff uncertainties, which could impact future financial performance. Tariff-related costs are expected to have an annualized impact of approximately $30 million, with a partial year impact of $18 million in 2025 [1]. The more discretionary elements of the market, such as new pool construction and remodeling, remain pressured [1].

Hayward Holdings' stock price has seen positive movement, with a 2.87% increase during the most recent full trading week and a 11.73% month-to-date jump [3]. The company's earnings report reflects a strategy of balanced growth, prioritizing organic investments and M&A opportunities, while also authorizing a $450 million share repurchase program over three years [1].

In conclusion, Hayward Holdings' Q2 earnings report showcases a company with strong financial performance and a clear path to growth. Despite facing challenges, the company's ability to maintain high gross profit margins and reduce net leverage positions it well for continued success.

References:
[1] https://finance.yahoo.com/news/hayward-holdings-inc-hayw-q2-072000819.html
[2] https://www.ainvest.com/news/pros-holdings-q2-earnings-deep-dive-long-term-growth-potential-2508/
[3] https://www.ainvest.com/news/hayward-holdings-2025-q2-earnings-beats-expectations-net-income-grows-19-2507/