Company Overview - Hayward Holdings, Inc. (NYSE:HAYW) is a leading global pool equipment manufacturer, primarily serving the residential pool market, with North America accounting for 85% of sales and over 90% of profits [3] - The company offers a range of products including Pumps, Automation and Sanitization, Heaters, Filters, Lighting and Water Features, and Cleaners [3] - Approximately 80% of total sales come from the existing installed base of pools, with 50% attributed to repair and replacement, making the business relatively resilient to economic cycles [3] Financial Performance - Hayward Holdings, Inc. has demonstrated strong margins and cash-generation potential, leading the fund to view the stock as undervalued relative to mid-cycle earnings [2] - The stock's one-month return was approximately 5.51%, and it gained about 11.59% over the last 12 months, closing at approximately $16.85 per share on January 16, 2026, with a market capitalization of about $3.65 billion [2] Market Dynamics - The pool industry experienced supercharged growth during the early stages of COVID-19, followed by a period of weak end-market demand exacerbated by destocking in the distribution channel [3] - Although the industry has stabilized, there is still lackluster demand for newly built and remodeled pools, but it is expected that the discretionary sides of the business will recover over time [3] - Hayward is positioned to continue raising prices and growing volumes within the installed base of pools due to strong pricing power, as purchase decisions are typically made by pool service professionals who are less sensitive to price [3]

Core Insights - Terreno Realty Corporation has acquired two long-term leases in bankruptcy for $1.25 million, which will be terminated effective December 31, 2025 [1] - The properties involved are land parcels of 12.7 acres in Carlstadt, New Jersey, and 10.2 acres in Hayward, California, currently improved with transshipment facilities that will be available for release or redevelopment [1] Company Overview - Terreno Realty Corporation operates in six major coastal U.S. markets: New York City/Northern New Jersey, Los Angeles, Miami, San Francisco Bay Area, Seattle, and Washington, D.C. [2]

Core Insights - Crude Value Insights provides an investment service and community focused on the oil and natural gas sector, emphasizing cash flow generation and growth potential [1] - Subscribers benefit from a model account featuring over 50 stocks, detailed cash flow analyses of exploration and production (E&P) firms, and live discussions about the industry [1] Subscription Offer - A two-week free trial is available for new subscribers, allowing them to explore the oil and gas investment opportunities [2]

Core Viewpoint - Hayward Holdings Inc. has demonstrated strong performance with a significant increase in net earnings and sales, leading to a new 52-week high in stock price, supported by a positive growth outlook for the full year [1][3]. Financial Performance - Net earnings for the third quarter rose by 45% to $24 million, compared to $16.5 million in the same period last year [3]. - Net sales increased by 7.4% to $244 million from $227 million year-on-year, driven by positive net pricing, increased volume, and favorable foreign currency translation [3]. Growth Outlook - For the full year, Hayward Holdings targets net sales between $1.095 billion to $1.11 billion, reflecting a growth of 4.5% to 5.5% from fiscal year 2024, an increase from previous guidance of $1.07 billion to $1.1 billion [4]. - The company expects adjusted EBITDA to range from $292 million to $297 million, indicating a year-on-year growth of 5% to 7%, up from the previous outlook of $280 million to $290 million [5]. Stock Performance - During intra-day trading, Hayward Holdings' stock reached a peak price of $17.65 before closing at $17.17, marking a 12% increase for the day [2]. - The stock's performance is attributed to the strong earnings report and optimistic future projections [1][3].

Core Viewpoint - Hayward Holdings, Inc. (HAYW) has shown strong stock performance, with a 12.7% increase over the past month and a new 52-week high of $17.65, outperforming both the Zacks Computer and Technology sector and the Zacks Electronics - Miscellaneous Products industry [1][2]. Financial Performance - The company has consistently exceeded earnings expectations, reporting an EPS of $0.14 against a consensus estimate of $0.12 in its last earnings report [2]. - For the current fiscal year, Hayward Holdings is projected to achieve earnings of $0.73 per share on revenues of $1.09 billion, reflecting an 8.96% increase in EPS and a 3.98% increase in revenues [3]. - The next fiscal year forecasts an EPS of $0.81 on revenues of $1.15 billion, indicating a year-over-year change of 10.96% in EPS and 5.26% in revenues [3]. Valuation Metrics - The stock currently trades at 23.5 times the current fiscal year EPS estimates, slightly below the peer industry average of 24.4 times [7]. - On a trailing cash flow basis, it trades at 17.8 times compared to the peer group's average of 16.2 times [7]. - The PEG ratio stands at 2.32, which does not position the company among the top value stocks [7]. Zacks Rank and Style Scores - Hayward Holdings holds a Zacks Rank of 2 (Buy), supported by rising earnings estimates [8]. - The stock has a Value Score of B, a Growth Score of A, and a Momentum Score of F, resulting in a combined VGM Score of B [6][9]. - The combination of a Zacks Rank of 2 and Style Scores of A or B suggests potential for further stock price appreciation in the near term [9].

Core Insights - Hayward Holdings, Inc. reported strong third-quarter earnings for fiscal year 2025, showcasing impressive financial performance and a positive growth outlook [1][2][3] Financial Performance - Earnings per share reached $0.14, exceeding the estimated $0.12, resulting in a 16.67% earnings surprise [2][6] - Revenue was approximately $244.3 million, surpassing the estimated $231.5 million, marking a 5.55% increase over the Zacks Consensus Estimate and an improvement from $227.57 million in the same period last year [2][6] Market Position - The company has a price-to-earnings (P/E) ratio of approximately 26.71, indicating favorable market valuation of its earnings [4] - Price-to-sales ratio stands at about 3.35, while the enterprise value to sales ratio is around 2.97, suggesting a strong market position relative to revenue and sales [4] Financial Health - Hayward's low debt-to-equity ratio of 0.009 indicates minimal debt compared to equity, reflecting strong financial health [5] - The current ratio of approximately 3.18 suggests strong liquidity, enabling effective coverage of short-term liabilities [5] - An earnings yield of about 3.74% reinforces the company's appeal to investors by generating solid earnings per dollar invested [5]

Core Insights - Hayward Holdings experienced a significant increase in stock price following the announcement of strong fiscal third-quarter results, with shares rising over 10% [1] Financial Performance - Sales increased by 7% year over year to $244 million for the quarter ending September 27, driven by price increases to counteract tariffs [3] - Gross profit rose by 11% to $125 million, with gross margin improving by 1.5 percentage points to 51.2% [3] - Adjusted net income surged by 26% to $32 million, while adjusted earnings per share increased by 27% to $0.14, supported by lower interest expenses and stock buybacks [4] Future Outlook - Management raised the full-year profit outlook, projecting adjusted EBITDA to rise by 5% to 7%, estimating between $292 million and $297 million for 2025, up from a previous forecast of $280 million to $290 million [5] - The company noted a growing installed base of pools, which presents opportunities for automation upgrades and accessory sales, indicating a focus on profitable growth and long-term shareholder value [6]

Financial Data and Key Metrics Changes - Net sales increased by 7% to $244 million, driven by a 5% increase in net price and a 2% increase in volume [4][7][15] - Adjusted EBITDA increased by 16% to $59 million, with adjusted EBITDA margin expanding by 170 basis points to 24.2% [4][7][15] - Gross profit margin increased by 150 basis points to 51.2% [4][7][15] - Net leverage reduced to 1.8x, the lowest level in nearly four years [5][19] Business Line Data and Key Metrics Changes - North American net sales increased by 7% to $208 million, with net price realization increasing by 7% and stable volume [16][17] - European and rest of the world net sales increased by 11% to $36 million, with an 8% increase in volume offsetting a 1% reduction in net price realization [17][18] Market Data and Key Metrics Changes - Strong demand trends were reported, particularly in North America and Canada, with Canada seeing over 20% growth [8][27] - The aftermarket model remains resilient, with approximately 85% of sales aligned with serving the aftermarket needs of the existing installed base [8][9] Company Strategy and Development Direction - The company is focused on expanding customer relationships, developing innovative products, and leveraging operational excellence capabilities [5][6] - Investments are being made in advanced engineering and product development, particularly with the introduction of the OmniX automation platform [11][12][34] - The company is also pursuing additional acquisition opportunities in residential and commercial pool sectors [21][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic environment and raised full-year guidance for net sales and adjusted EBITDA [6][22][23] - The company anticipates solid cash flow generation and a conversion of greater than 100% of net income [23] - Management noted that the macroeconomic and tariff environment continues to evolve, but they remain positive about the long-term growth outlook for the pool industry [24][23] Other Important Information - The company is implementing AI tools to enhance customer service, with new AI agents resolving approximately 80% of inbound calls without human intervention [14][13] - The company has authorized a share repurchase program of up to $450 million over three years [21][22] Q&A Session Summary Question: Demand trends since July and upside in Q3 - Management noted strong sales out demand, particularly in September, and highlighted improved performance in Canada and Europe [26][27][28] Question: Early buy program and price increase reception - The early buy program is tracking well, with discounts offered to mitigate price increases due to inflation and tariffs [29][30] Question: Investments in new products and their impact on sales - The company is making targeted investments in new product development, particularly in technology and innovation, which is expected to drive future sales [33][34] Question: Impact of private label competition - Management believes that their loyal dealer base will continue to appreciate the value proposition of Hayward products despite competition from lower-priced alternatives [40][41] Question: Increase in cash flow guidance - The increase in cash flow guidance is attributed to improved EBITDA, project timing, and working capital management [43][44] Question: International market margin improvements - European margins improved due to stabilization of production capabilities and a cumulative tariff refund [74][75] Question: Tariff refunds and supply chain realignment - The company is actively pursuing tariff refunds and has made significant progress in reducing exposure to China [82][84]

Financial Data and Key Metrics Changes - Net sales increased by 7% to $244 million, driven by a 5% increase in net price and a 2% increase in volume [4][7][15] - Adjusted EBITDA increased by 16% to $59 million, with an adjusted EBITDA margin of 24.2%, up 170 basis points [4][7][15] - Gross profit margin expanded by 150 basis points to 51.2% [4][15] - Cash flow from operations year-to-date was $283 million, compared to $276 million in the previous year [20] Business Line Data and Key Metrics Changes - North American net sales increased by 7% to $208 million, with a 7% increase in net price realization and stable volume [16][17] - European and rest of the world net sales increased by 11% to $36 million, with an 8% increase in volume offsetting a 1% reduction in net price realization [17][18] - Adjusted segment income margins in Europe increased to 18.5% from 8.4% a year ago [18] Market Data and Key Metrics Changes - Strong demand trends were reported, particularly in Canada, which saw over 20% growth [28] - The U.S. market experienced improved out-the-door sales growth rates for Hayward products, especially in September [8][26] - The aftermarket model remains resilient, with approximately 85% of sales aligned with serving existing installed base needs [8][9] Company Strategy and Development Direction - The company is focusing on expanding customer relationships, developing innovative products, and leveraging operational excellence [5][6] - Strategic initiatives include tariff mitigation actions and investments in advanced engineering and product development [11][12] - The company is also pursuing additional acquisition opportunities in residential and commercial pool sectors [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic environment and raised full-year guidance for net sales and adjusted EBITDA [6][22] - The company expects net sales to increase approximately 4% to 5.5% for the full year, with adjusted EBITDA projected to increase by 5% to 7% [22][23] - Management noted that the macroeconomic and tariff environment continues to evolve, but they remain positive about long-term growth in the pool industry [24] Other Important Information - The company has reduced net leverage to 1.8 times, the lowest level in nearly four years, providing enhanced financial flexibility [5][19] - The board authorized a share repurchase program of up to $450 million over three years [21] Q&A Session Summary Question: How did the season progress since July, and where did you see the upside in the third quarter? - Management noted strong sales out demand, particularly in September, and highlighted improved performance in Canada and Europe [26][28] Question: How do you think about the early buy program relative to the market being flat? - Management indicated that the early buy program is tracking expectations and that they are managing price increases carefully to mitigate inflation impacts [30][31] Question: Can you discuss your investments in new products and how they are impacting sales? - Management emphasized targeted investments in engineering and new product development, particularly with the OmniX platform, which is expected to drive future growth [34][36] Question: What are your capital allocation priorities moving forward? - Management stated that they will focus on organic capex, M&A opportunities, and share repurchases, with an emphasis on automation and supply chain improvements [49][50] Question: How are you addressing the impact of tariffs and supply chain realignment? - Management reported significant progress in reducing exposure to China and successfully applying for tariff refunds, which positively impacted margins [82][84]

Financial Data and Key Metrics Changes - Net sales increased by 7% to $244 million, driven by a 5% increase in net price and a 2% increase in volume [6][14] - Adjusted EBITDA increased by 16% to $59 million, with an adjusted EBITDA margin of 24.2%, up 170 basis points [6][14] - Gross profit margin expanded by 150 basis points to 51.2% [6][14] - Cash flow generation was strong, reducing net leverage to 1.8 times, the lowest level in nearly four years [5][18] Business Line Data and Key Metrics Changes - North American net sales increased by 7% to $208 million, with a 7% increase in net price realization and stable volume [15][16] - European and rest of the world net sales increased by 11% to $36 million, with an 8% increase in volume offsetting a 1% reduction in net price realization [16][17] - Adjusted segment income margins in Europe increased to 18.5% from 8.4% a year ago [17] Market Data and Key Metrics Changes - Strong demand trends were reported, particularly in Canada, which saw a 21% increase in net sales [16][26] - The U.S. market experienced improved out-the-door sales growth rates for Hayward products, particularly in September [7][25] - The aftermarket model remains resilient, with approximately 85% of sales aligned with serving the aftermarket needs of the existing installed base [7][8] Company Strategy and Development Direction - The company is focused on expanding customer relationships, developing innovative products, and leveraging operational excellence [5][10] - Investments are being made in advanced engineering and product development, particularly with the introduction of the OmniX automation platform [10][11] - The company is actively pursuing acquisition opportunities in residential and commercial pool markets to augment organic growth [19][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic environment and raised full-year guidance for net sales and adjusted EBITDA [5][21] - The company expects net sales to increase approximately 4% to 5.5% for the full year, with adjusted EBITDA projected to increase by 5% to 7% [21][22] - Management noted that the tariff environment remains uncertain but emphasized ongoing tariff mitigation actions [9][75] Other Important Information - The company authorized a share repurchase program of up to $450 million over three years [19] - Year-to-date cash flow from operations was $283 million, reflecting improved profitability and working capital management [19] Q&A Session Summary Question: How did the season progress since July, and where did you see the upside in the third quarter? - Management noted strong sales out demand, particularly in September, and highlighted improved performance in Canada [25][26] Question: How do you think about the early buy program relative to the market being flat? - The early buy program is tracking expectations, and the company aims to level load factories while managing price increases due to inflation and tariffs [29][30] Question: Can you discuss your investments in new products and their impact on sales? - The company is making targeted investments in engineering and new product development, with a focus on technology and innovation [31][32] Question: What are your capital allocation priorities moving forward? - The company plans to increase CapEx for automation and supply chain improvements while also considering M&A opportunities [41][45] Question: How do you view the impact of the recent tariff refunds on margins? - The company received a cumulative tariff refund that positively impacted margins, and it will continue to pursue eligible tariff refunds [73][75]