Financial Performance - Net sales reached $244.3 million, a 7% year-over-year increase[10] - Adjusted EBITDA was $59.1 million, up 16% year-over-year[10] - Gross profit margin stood at 51.2%, an increase of 150 basis points year-over-year[10, 20] - Adjusted diluted EPS increased by 27% year-over-year to $0.14[10, 20] Segment Performance - North America net sales were $208.2 million, a 6.8% year-over-year increase, with a gross profit margin of 52.8%[23] - Europe & Rest of World net sales were $36.1 million, a 10.7% year-over-year increase, with a gross profit margin of 41.9%[24] Balance Sheet and Cash Flow - Net leverage decreased to 1.8x, the lowest level since Q4 2021[8, 26] - Free cash flow for the year-to-date reached $262 million, compared to $258 million in the same period of the previous year[28] Outlook - The company increased its full-year 2025 net sales outlook to between $1.095 billion and $1.110 billion, representing a growth of approximately 4% to 5.5% year-over-year[37] - The company increased its full-year 2025 adjusted EBITDA outlook to between $292 million and $297 million, representing a growth of approximately 5% to 7% year-over-year[37]

Financial Performance - Net sales increased by 7% year-over-year to $244.3 million for Q3 FY2025, driven by positive net pricing and increased volume[3] - Gross profit rose by 11% to $125.1 million, with a gross profit margin of 51.2%, an increase of 150 basis points[4] - Net income surged by 46% year-over-year to $24.0 million, with a net income margin expanding by 250 basis points to 9.8%[9] - Adjusted EBITDA increased by 16% to $59.1 million, with an adjusted EBITDA margin expanding by 170 basis points to 24.2%[10] - Operating income grew by 23% to $41.1 million, resulting in an operating margin of 16.8%, up 210 basis points from the prior year[6] - Cash flow from operations for the nine months ended September 27, 2025, was $283.0 million, an increase of $7.2 million from the prior-year period[13] - Net income for the nine months ended September 27, 2025, was $83,160 thousand, a 30.0% increase from $63,922 thousand in the same period last year[29] - The company reported a net income margin of 10.8% for the nine months ended September 27, 2025, compared to 8.8% for the same period in 2024[30] - Adjusted EBITDA for the nine months ended September 27, 2025, was $196,404 thousand, up 9.8% from $178,748 thousand in the prior year[30] - Adjusted EBITDA for the last twelve months ended September 27, 2025, is $295.1 million, reflecting a margin of 26.8% compared to 26.4% for the fiscal year ended December 31, 2024[34] Segment Performance - North America segment net sales increased by 7% to $208.2 million, with segment income also rising by 7% to $55.4 million[11] - Europe & Rest of World segment net sales increased by 11% to $36.1 million, with segment income soaring by 152% to $6.2 million[12] - North America segment income for the three months ended September 27, 2025, was $55,387 thousand, an increase from $51,569 thousand for the same period in 2024, representing a growth of 5.4%[41] - Europe & Rest of World segment income for the three months ended September 27, 2025, was $6,247 thousand, up from $2,475 thousand in the prior year, reflecting a significant increase of 152.5%[41] - Adjusted segment income for North America for the nine months ended September 27, 2025, reached $201,448 thousand, compared to $186,038 thousand in the same period of 2024, indicating a growth of 8.3%[42] - The company reported a total adjusted segment income of $21,668 thousand for Europe & Rest of World for the nine months ended September 27, 2025, up from $17,601 thousand in the prior year, marking an increase of 23.5%[42] Guidance and Future Outlook - The company is increasing its full-year 2025 guidance, expecting net sales of $1.095 billion to $1.110 billion, a 4% to 5.5% increase from FY2024[14] - The company remains focused on profitable growth and long-term shareholder value creation through investments in innovation and operational excellence[2] Cash and Assets - Cash and cash equivalents increased to $428,684 thousand as of September 27, 2025, compared to $196,589 thousand at the beginning of the period[29] - Total assets reached $3,035,620 thousand as of September 27, 2025, a slight increase from $2,990,624 thousand at the end of 2024[27] - Total liabilities decreased to $1,512,834 thousand as of September 27, 2025, from $1,566,977 thousand at the end of 2024[27] Expenses and Adjustments - Research, development, and engineering expenses for the nine months ended September 27, 2025, totaled $19,236 thousand, up from $18,870 thousand in the prior year[28] - The company incurred $3.3 million in transaction and integration costs related to the ChlorKing acquisition during the nine months ended September 27, 2025[39] - A non-recurring litigation expense of $2.8 million was recorded in the three months ended September 27, 2025, with additional insurance proceeds of $0.2 million related to flood damage[39] - The company recognized $6.3 million in retention compensation expenses for key employees acquired in the ChlorKing acquisition, with payments contingent on continued employment[35] - Total adjustments for the last twelve months ended September 27, 2025, amount to $11.7 million, compared to $10.3 million for the fiscal year ended December 31, 2024[34] - The company reported a $1.6 million increase in cost of goods sold due to fair value inventory step-up adjustments from the ChlorKing acquisition[39] Shareholder Information - The weighted average number of diluted shares outstanding for the nine months ended September 27, 2025, is 222,074,267[36] - The net income margin for the nine months ended September 27, 2025, is 12.5%, an increase from 11.3% for the previous fiscal year[34] Depreciation and Compensation - The depreciation expense for North America for the nine months ended September 27, 2025, was $14,623 thousand, an increase from $12,619 thousand in the same period of 2024, representing a rise of 15.9%[42] - Stock-based compensation for North America was recorded at $0 for the three months ended September 27, 2025, compared to $107 thousand in the prior year, indicating a reduction in this expense category[41]

Core Insights - Hayward Holdings, Inc. reported third quarter financial results for the fiscal year 2025, exceeding expectations and demonstrating continued growth in the pool and outdoor living technology sector [1] Financial Performance - The company announced financial results for the third quarter ended September 27, 2025, with comparisons made to the prior-year third fiscal quarter [1] - Specific financial metrics were not detailed in the provided text, but the overall performance was characterized as ahead of expectations [1] Management Commentary - The CEO expressed satisfaction with the third quarter results, indicating a positive outlook for the company's performance [1]

Core Viewpoint - Halper Sadeh LLC is investigating potential breaches of fiduciary duties by certain officers and directors of Hayward Holdings, Inc. [1] Group 1 - The investigation pertains to whether the actions of Hayward's leadership have harmed shareholder interests [1] - Shareholders who acquired Hayward stock on or before October 27, 2021, may seek various forms of relief, including corporate governance reforms and financial incentives [1]

Core Viewpoint - Hayward Holdings, Inc. (NYSE:HAYW) is recognized as a promising investment opportunity within the clean energy sector, particularly due to its significant upside potential and strong financial metrics [1][3]. Group 1: Financial Performance - Stifel has reiterated a 'Buy' rating on Hayward Holdings, setting a price target of $18, reflecting confidence in the company's management and performance [2]. - The company has demonstrated resilience by recovering margins despite weak volumes in the post-COVID period, achieving a gross profit margin of 51% [3]. - Hayward maintains a healthy current ratio of 2.84, indicating strong liquidity and financial stability [3]. - Fiscal 2025 revenue and EBITDA estimates are at the high end of guidance, suggesting continued strong performance [3]. - Projections for fiscal 2026 indicate mid-single-digit revenue growth, even in a slower recovery environment for the category [3]. Group 2: Business Overview - Hayward Holdings, Inc. specializes in pool equipment and automation systems, serving markets across North America, Europe, and internationally [4]. - The company is recognized as one of the best clean energy stocks, highlighting its position within the industry [4].

Core Viewpoint - Hayward Holdings, Inc. (HAYW) is currently viewed as a more attractive investment option compared to Garmin (GRMN) for value investors, based on stronger earnings outlook and favorable valuation metrics [3][7]. Valuation Metrics - HAYW has a forward P/E ratio of 22.10, while GRMN has a higher forward P/E of 29.69, indicating HAYW may be undervalued [5]. - The PEG ratio for HAYW is 2.32, compared to GRMN's PEG ratio of 2.66, suggesting HAYW offers better value relative to its expected earnings growth [5]. - HAYW's P/B ratio stands at 2.34, significantly lower than GRMN's P/B ratio of 5.67, further supporting HAYW's valuation attractiveness [6]. Earnings Outlook - HAYW has experienced stronger estimate revision activity, indicating a more favorable earnings outlook compared to GRMN [3][7]. - The Zacks Rank for HAYW is 2 (Buy), while GRMN holds a Zacks Rank of 3 (Hold), reflecting HAYW's superior position in terms of earnings estimates [3]. Value Grades - HAYW has a Value grade of B, while GRMN has a Value grade of D, highlighting the relative undervaluation of HAYW [6].

Core Viewpoint - Schubert Jonckheer & Kolbe LLP is investigating potential legal claims against Hayward Holdings, Inc. regarding misleading sales practices and inventory levels [1][2] Group 1: Legal Investigation - The firm is looking into allegations that Hayward misled investors about its sales practices and inventory levels [1][2] - A U.S. District Court ruling allows a securities fraud lawsuit against Hayward and its executives to proceed [1] - The lawsuit claims that Hayward engaged in "channel stuffing" between October 2021 and July 2022, artificially inflating sales figures [1] Group 2: Impact on Company Performance - The alleged practices led to an undisclosed inventory glut, negatively affecting future sales [1] - Following the revelation of these practices in July 2022, Hayward's stock price fell by 18% [1]

Group 1 - Hayward Holdings, Inc. reported revenue of $299.6 million for the quarter ended June 2025, reflecting a year-over-year increase of 5.4% and an EPS of $0.24 compared to $0.21 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $287 million by 4.39%, while the EPS surpassed the consensus estimate of $0.22 by 9.09% [1] - The stock has returned +5.7% over the past month, outperforming the Zacks S&P 500 composite's +3.4% change, and currently holds a Zacks Rank 3 (Hold) [3] Group 2 - Net Sales in North America (NAM) amounted to $255.2 million, exceeding the three-analyst average estimate of $242 million, representing a year-over-year change of +5.8% [4] - Net Sales in Europe & Rest of World (E&RW) were reported at $44.4 million, slightly below the average estimate of $45 million, with a year-over-year change of +2.6% [4]

Financial Data and Key Metrics Changes - Net sales increased by 5% to approximately $300 million, driven by a 5% increase in net price realization, a 2% decrease in volume, and a 2% contribution from the Core King acquisition [9][19] - Gross profit margins reached a record 52.7%, with adjusted EBITDA margin increasing to 29.5%, marking the tenth consecutive quarter of year-over-year gross margin expansion [7][12] - Net leverage was significantly reduced to 2.1 times, the lowest level in over three years, providing enhanced financial flexibility [7][23] Business Line Data and Key Metrics Changes - North American net sales increased by 6% to $255 million, driven by a 6% net price realization and a 3% contribution from the Clor King acquisition [20] - In Europe and Rest of World, net sales increased by 3% to $44 million, with a 1% contribution from favorable net pricing and a 3% favorable foreign currency translation [22] Market Data and Key Metrics Changes - End demand improved in June, resulting in customer orders generally aligning with normal seasonal patterns for the quarter [10] - Nondiscretionary aftermarket maintenance demand remained resilient, while discretionary elements of the market faced pressure [10][27] Company Strategy and Development Direction - The company is focused on mitigating tariff impacts and enhancing margins while executing strategic growth plans [8][9] - Investments are being made in advanced engineering and new product development to drive future growth [12][25] - The company aims to increase its presence in high-growth regions and capture market share through targeted sales and marketing strategies [12][102] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic environment and refining guidance for full-year 2025, raising the low end of the net sales guidance range [9][26] - The company expects solid cash flow generation in 2025, with a conversion of greater than 100% of net income [27] - Management remains positive about the long-term growth outlook for the pool industry, particularly in the aftermarket segment [27] Other Important Information - The company has authorized a share repurchase of up to $450 million over three years [25][94] - The effective tax rate was approximately 25% in the second quarter, consistent with guidance [20] Q&A Session Summary Question: Outlook for gross margin in the second half - Management highlighted that the strong Q2 gross margin performance was driven by productivity improvements and product line rationalization, with expectations for continued margin protection despite potential moderation in percentage [32][36] Question: New pool market outlook - Management indicated that the new pool market remains modestly down year-over-year but is showing signs of improvement, with expectations for upward inflection as interest rates and the housing market improve [39][41] Question: Guidance clarification - Management confirmed that the lower net price increase guidance is offset by a stronger volume outlook, particularly in the U.S. market [46][48] Question: SG&A increase explanation - The increase in SG&A as a percentage of sales is due to targeted investments in advanced engineering and customer care, with expectations to leverage SG&A in the future [55][56] Question: Trends in sell-in versus sell-through - Management noted that Q2 saw strong sell-through, particularly in June, with expectations for normal inventory levels as the season progresses [64][66] Question: Repair versus replace dynamic - Management observed an increase in parts sales, indicating a trend towards repairing rather than replacing equipment, which may impact future pricing strategies [66][74]

Financial Data and Key Metrics Changes - Net sales increased by 5% to approximately $300 million, driven by a 5% increase in net price realization, a 2% decrease in volume, and a 2% contribution from the Core King acquisition [7][18] - Gross profit margins reached a record 52.7%, with adjusted EBITDA margin increasing to 29.5%, marking the tenth consecutive quarter of year-over-year gross margin expansion [6][11] - Net leverage was significantly reduced to 2.1 times, the lowest level in over three years, providing enhanced financial flexibility [6][23] Business Line Data and Key Metrics Changes - North American net sales increased by 6% to $255 million, driven by a 6% net price realization and a 3% contribution from the Clor King acquisition [20] - In Europe and Rest of World, net sales increased by 3% to $44 million, with a 1% contribution from favorable net pricing and a 3% favorable foreign currency translation [22] Market Data and Key Metrics Changes - End demand improved in June, resulting in customer orders generally aligning with normal seasonal patterns for the quarter [8] - Nondiscretionary aftermarket maintenance demand remained resilient, while discretionary elements of the market faced pressure [8][27] Company Strategy and Development Direction - The company is focused on mitigating tariff impacts while supporting margins and fulfilling commitments to shareholders and customers [6][12] - Investments are being made in advanced engineering and new product development to drive future growth, particularly in high-growth regions [11][25] - The company aims to increase its presence in the commercial pool business, which has seen significant growth post-acquisition of Clor King [10][87] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic environment and refined guidance for full-year 2025, expecting net sales to increase approximately 2% to 5% [7][26] - The company anticipates solid cash flow generation in 2025, with a conversion of greater than 100% of net income [27] Other Important Information - The company has authorized a share repurchase of up to $450 million over three years [25][94] - The tariff environment remains uncertain, with an estimated total annualized tariff impact of approximately $30 million [13][14] Q&A Session Summary Question: Outlook for gross margin in the second half - Management highlighted that the strong Q2 gross margin performance was driven by productivity improvements and product line rationalization, with expectations for continued margin protection despite potential percentage moderation [34][37] Question: New pool market outlook - Management expects modestly down pool data for the year but sees potential for improvement as interest rates and the housing market stabilize [39][42] Question: Guidance adjustments and volume outlook - The company adjusted its volume outlook to reflect stronger performance, with expectations for a negative 1% overall on volume [46][48] Question: SG&A increase and future expectations - The increase in SG&A is attributed to targeted investments in engineering and customer care, with a goal to leverage SG&A as a percentage of sales in the medium term [56][57] Question: Trends in sell-in versus sell-through - Management noted that Q2 saw a strong sell-through, with healthy order profiles and expectations for normal inventory levels as the season progresses [63][65] Question: Repair versus replace dynamics - There is a noticeable trend towards repairing equipment rather than replacing it, driven by economic pressures [66][68] Question: M&A pipeline and opportunities - The company has a healthy pipeline of M&A opportunities, focusing on both domestic and international bolt-on acquisitions [88][90]