Latham Group Dives into Safety with Bode Miller Partnership—A Strategic Move to Boost Pool Industry Credibility?

Latham Group, Inc. (NASDAQ: SWIM), a leading manufacturer of in-ground residential swimming pools, has aligned with Olympic gold medalist and World Champion skier Bode Miller to promote pool safety during National Water Safety Month in May 2025. The partnership aims to underscore Latham’s commitment to safety innovation, particularly through its CoverStar automatic pool covers, while leveraging Miller’s tragic personal experience of losing his daughter to a drowning incident in 2018. This move reflects Latham’s broader strategy to bolster its market position in a challenging industry environment.

The Bode Miller Partnership: A Safety-First Play

The collaboration centers on raising awareness around drowning prevention, a critical issue given the Centers for Disease Control and Prevention’s (CDC) data showing drowning as the leading cause of accidental death for children aged 1–4 in the U.S. Latham’s five-point safety campaign—highlighting constant supervision, swim lessons, automatic pool covers, safety rules, and emergency preparedness—directly ties to its CoverStar product line.

The partnership’s timing is strategic: it coincides with the start of the 2025 swimming season, when families are most likely to consider pool installation or upgrades. By associating its products with a high-profile athlete’s advocacy, Latham aims to differentiate itself in a competitive market dominated by fiberglass, concrete, and vinyl-lined pools.

Industry Context: Navigating Cyclical Challenges

Latham operates in a cyclical industry, with U.S. pool starts declining 15% in 2024 due to economic headwinds and shifting consumer priorities. Despite this, Latham has maintained its leadership in fiberglass pools, which now command 23% of the U.S. in-ground pool market—up from 22% in 2023. Fiberglass’s cost efficiency, eco-friendly profile, and faster installation continue to gain traction, positioning Latham to capitalize on market share gains.

However, the company faces risks. Its net loss of $17.9 million in 2024—though narrower than 2023’s $2.4 million loss—highlights operational challenges. While Adjusted EBITDA margins improved to 15.8% in 2024, Q4’s margin dropped to 4.2% due to elevated sales and marketing expenses.

Financial Outlook: Betting on Resilience and Innovation

Latham’s 2025 guidance reflects optimism. The company expects 8% sales growth (to $535–565 million) and 19% EBITDA expansion (to $90–100 million), driven by fiberglass market share gains and CoverStar’s contributions. The $27–33 million CapEx budget—up $10 million from 2024—targets expansion in “Sand States” (AZ, CA, NV, TX), which account for 66% of U.S. pool starts.

The CoverStar acquisition, completed in August 2024 for $65 million, is a linchpin of this strategy. Automatic safety covers not only address safety concerns but also reduce long-term maintenance costs for homeowners, making pools more appealing. Latham’s CEO, Scott Rajeski, has framed these covers as “non-negotiable safety measures,” a stance amplified by the Bode Miller partnership.

Risks and Considerations

• Cyclical Industry Headwinds: Latham’s reliance on U.S. housing starts and discretionary spending leaves it vulnerable to macroeconomic downturns. Management expects “trough market conditions” in 2025, with pool starts flat year-on-year.
• Competitive Pressures: Concrete and vinyl-lined pool manufacturers may undercut fiberglass pricing, while new entrants could challenge Latham’s innovation leadership.
• Governance Concerns: Latham’s ISS Governance QualityScore of 4/10—particularly weak on executive compensation—could deter institutional investors.

Conclusion: A Safety-First Narrative for Long-Term Growth

Latham’s partnership with Bode Miller is more than a PR stunt; it’s a calculated move to reinforce its safety-focused brand identity. By aligning with a credible advocate like Miller, Latham positions itself as a responsible innovator in an industry often associated with risk. The data supports this strategy: CoverStar’s automatic covers reduce drowning risks by 88% (per NIH studies), and their integration into Latham’s product portfolio could drive premium pricing and repeat sales.

Financially, Latham’s $56.4 million cash balance and manageable net debt (2.8x leverage) provide a solid foundation to weather 2025’s “trough” conditions. If the company meets its 2025 EBITDA target of $90–100 million, its margins could expand to 16–18%, nearing pre-pandemic levels. The Bode Miller campaign’s success will hinge on translating safety advocacy into tangible sales growth—a metric investors should monitor closely.

For now, Latham’s blend of innovation, geographic focus, and safety leadership positions it to outperform peers if the pool market recovers. The partnership with Bode Miller is a compelling first step—but execution remains key.