Pool 2025 Q1 Earnings Misses Targets as Net Income Declines 32.1%

Pool Corporation reported its fiscal 2025 Q1 earnings on April 29th, 2025. The company missed expectations as both revenue and net income decreased compared to the previous year. Despite these declines, Pool Corporation confirmed its full-year 2025 diluted EPS guidance range. The company remains focused on strategic initiatives and organic growth investments to strengthen its market position. The guidance remains in line with prior projections, reflecting continued commitment to disciplined execution and innovation.

Revenue
Pool Corporation's total revenue fell by 4.4% to $1.07 billion in the first quarter of 2025, compared to $1.12 billion in the same quarter of 2024. The company's net sales and net revenues each contributed $1.07 billion to the total revenue, indicating continuity in its core business segments despite overall revenue contraction.

Earnings/Net Income
Pool's earnings per share (EPS) declined significantly by 30.7%, dropping to $1.42 in the first quarter of 2025 from $2.05 in the similar quarter of 2024. The company's net income similarly decreased, standing at $53.55 million in 2025 Q1, a 32.1% drop from the $78.89 million reported in the same quarter of the previous year. The EPS performance reflects challenging conditions impacting Pool's profitability.

Price Action
Pool Corporation's stock price increased by 1.58% during the latest trading day but fell by 4.17% over the last full trading week and 9.34% month-to-date, showing volatility and investor responses to earnings results.

Post-Earnings Price Action Review
The earnings report metrics for Pool Corporation show a positive correlation between earnings beats and stock price appreciation. Historically, when revenue, net income, or EPS exceeds expectations, the stock tends to perform well in the short term following the earnings release. Revenue beats have led to a 3-day win rate of 45% and a 10-day win rate of 75%, while net income beats have similar short-term performance. EPS beats show slightly lower consistency in the 3-day timeframe but maintain a 45% win rate over 30 days. The maximum return observed from such beats was 4.34% on day 74 post-release. Despite these historical trends, investors should remain cautious as past performance does not guarantee future results, and other factors may influence the stock price.

CEO Commentary
“Our long-term strategic initiatives and organic growth investments positively contributed to our performance this quarter, generating over $1.0 billion in net sales, highlighting our business's strength and resiliency. We expanded our sales center network by adding two new locations and optimized our supply chain capabilities, while further integrating our digital platform to enhance customer experience. Although discretionary projects faced pressure, we saw growth in maintenance-related products, with chemical volumes increasing by 1% and double-digit growth in our private-label products. Our focus remains on capturing available demand and outperforming the market in challenging conditions,” said Peter D. Arvan, President and CEO.

Guidance
Pool Corporation confirms its full-year 2025 diluted EPS guidance range of $11.10 to $11.60 per share, which includes a year-to-date tax benefit of $0.10. As the company approaches the swimming pool season, it remains committed to strengthening its market position through disciplined execution, continuous innovation of its digital ecosystem, and expanding its sales center network to support client growth.

Additional News
In recent developments, Fluidra has announced a strategic partnership with Aiper, initiating a $100 million investment to secure a 27% stake in the pool technology firm. Additionally, Maytronics Europe welcomed Nicolas Mouret as the new General Manager, a move aimed at reinforcing its presence in Europe. Furthermore, Superior Wellness expanded its global position by acquiring Portcril, a renowned spa manufacturer, enhancing its market reach and product offerings.