Latham Group Sees Return to Sales Growth in FY25

Latham Group, Inc. (NASDAQ: SWIM), the largest designer, manufacturer, and marketer of in-ground residential swimming pools in North America, Australia, and New Zealand, has reported its financial results for the fourth quarter and full year ended December 31, 2024. The company's President and CEO, Scott Rajeski, expressed his satisfaction with the company's performance, highlighting its ability to outperform the U.S. in-ground pool market, expand margins, and make strategic investments for future growth.

Latham Group's in-ground pool sales outperformed the U.S. pool market in 2024, driven by fiberglass share gains and increased adoption of automatic safety covers. The company's fiberglass pools represented 75% of its in-ground pool sales, up from 73% in 2023. According to management estimates, fiberglass pools gained one percentage point of total in-ground-pool market share, accounting for 24% of all in-ground pools installed in the U.S. last year, up from 23% in 2023. The company's diversified product mix, including pool liners and covers, also contributed to its ability to outperform new U.S. pool starts.

The company's gross margin expanded by over 300 basis points year-on-year, led by lean manufacturing and value engineering initiatives, supplier diversification, and improved procurement activities. This resulted in a gross margin of 30.2% for the full year, up from 27.2% in 2023. Adjusted EBITDA margin expanded by 30 basis points as higher gross margin more than offset increased spending on growth projects, including the build-out of the company's market position in the Sand States.

Latham Group ended 2024 in a strong financial position, with operating cash flow exceeding $60 million and a year-end cash balance of $56 million after spending approximately $65 million on the Coverstar Central acquisition and repaying $21 million in debt. The company's strong balance sheet provides it with important financial flexibility to support both organic and acquisitive growth.

For 2025, latham group anticipates 8% sales growth and 19% growth in Adjusted EBITDA at the midpoints, driven by market share gains in fiberglass pools and benefits from the Coverstar Central acquisition. The company expects U.S. pool starts in 2025 to remain at 2024 levels.



In conclusion, Latham Group's strong performance in 2024, driven by its leadership position in fiberglass pools, strategic acquisitions, and operational efficiency, sets the stage for continued growth in 2025. The company's focus on lean manufacturing, value engineering, and market expansion positions it well to capitalize on future opportunities in the construction industry.