Hayward Surpasses Q2 Revenue Expectations with Strong Performance.

Hayward reported Q2 revenue of $299.6 million, surpassing expectations and up 5% YoY. The company's gross profit margins reached a record 52.7%, supported by successful tariff mitigation strategies. Hayward's net leverage decreased to 2.1x, its lowest in over three years. Despite changing macroeconomic conditions, Hayward remains committed to executing growth strategies and enhancing shareholder value.

Title: Hayward Holdings Inc. Reports Strong Q2 2025 Results, Boosts Full-Year Sales Guidance

Hayward Holdings Inc. (HAYW) reported robust financial results for the second quarter of fiscal year 2025, with revenue and earnings growth outpacing expectations. The company's net sales reached $299.6 million, a 5% year-over-year (YoY) increase, surpassing the estimated $290.26 million [1]. This performance was driven by strong operational efficiency and strategic pricing, with gross profit margins reaching a record 52.7%, up 170 basis points from the prior year [1].

The company's net income increased by 19% to $44.8 million, and diluted earnings per share (EPS) grew by 18% to $0.20, both of which exceeded analyst estimates [1]. These figures reflect Hayward's resilience in navigating macroeconomic challenges such as inflation and tariffs. The company's adjusted EBITDA also increased by 7% to $88.2 million, with a margin expansion of 50 basis points to 29.5% [1].

Hayward's financial flexibility was enhanced by a decline in net leverage to 2.1x, the lowest level in over three years, which provides the company with significant financial flexibility [1]. Operating cash flow for the first half of 2025 was $188.4 million, although it decreased from the prior year due to working capital changes [1].

Management highlighted the company's strategic acquisition of ChlorKing and favorable foreign currency impacts as key drivers of growth. The company's North America and Europe & Rest of World segments saw net sales increase by 6% and 3%, respectively [1]. Despite these gains, challenges such as declining sales volume and increased SG&A expenses remain areas to monitor.

Kevin Holleran, Hayward's President and Chief Executive Officer, expressed satisfaction with the quarter's performance, stating, "I am pleased to report strong second quarter results, including continued sales and earnings growth, impressive margin expansion, and further balance sheet improvement" [1]. Looking ahead, Hayward has refined its full-year 2025 guidance, expecting net sales between $1.070 billion and $1.100 billion, reflecting a 2% to 5% increase from 2024 [2]. The company remains optimistic about the long-term dynamics of the pool industry, driven by favorable demand trends and technology adoption.

References:
[1] https://www.gurufocus.com/news/3015951/hayward-holdings-inc-hayw-q2-earnings-eps-of-020-beats-estimate-revenue-surpasses-forecast-at-2996-million
[2] https://seekingalpha.com/news/4474501-hayward-raises-2025-net-sales-guidance-range-to-2-5-percent-growth-while-advancing-tariff