May 1, 2025 Hayward Holdings Reports First Quarter Fiscal Year 2025 Financial Results and Confirms 2025 Guidance FIRST QUARTER FISCAL 2025 SUMMARY CHARLOTTE, N.C. -- (BUSINESS WIRE) -- Hayward Holdings, Inc. (NYSE: HAYW) ("Hayward" or the "Company"), a global designer, manufacturer and marketer of a broad portfolio of pool and outdoor living technology, today announced financial results for the first quarter ended March 29, 2025 of its fiscal year 2025. Comparisons are to financial results for the prior-yea ...

The market expects Hayward Holdings, Inc. (HAYW) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to b ...

Investors interested in Electronics - Miscellaneous Products stocks are likely familiar with Hayward Holdings, Inc. (HAYW) and Rockwell Automation (ROK) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores ...

Core Insights - Investors in the Electronics - Miscellaneous Products sector should consider Hayward Holdings, Inc. (HAYW) and Teradyne (TER) for potential value opportunities [1] Valuation Metrics - HAYW has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while TER has a Zacks Rank of 5 (Strong Sell) [3] - HAYW's forward P/E ratio is 18.73, compared to TER's forward P/E of 24.46, suggesting HAYW is more attractively priced [5] - HAYW has a PEG ratio of 2.19, while TER's PEG ratio is 3.66, indicating HAYW's expected EPS growth is more favorable [5] - HAYW's P/B ratio is 2.07, significantly lower than TER's P/B of 4.77, further supporting HAYW's valuation advantage [6] - HAYW has a Value grade of B, while TER has a Value grade of F, highlighting HAYW's stronger valuation metrics [6] Conclusion - Given the stronger estimate revision activity and more attractive valuation metrics, HAYW is positioned as the superior option for value investors compared to TER [7]

Approximately three years ago, in February 2022, I wrote a bullish article about Hayward Holdings (NYSE: HAYW ). For those not familiar with the firm, it operates in the swimming pool industry. Specifically, it produces and sells poolCrude Value Insights offers you an investing service and community focused on oil and natural gas. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential.Subscribers get to use a 50+ stock model account, in-depth cash ...

Financial Data and Key Metrics Changes - Net sales increased 17% in Q4 2024 to $327 million, driven by a 12% increase in volume and 4% positive net price realization [9][28] - Full-year net sales for 2024 increased 6% to $1.05 billion, exceeding guidance [15][30] - Gross profit margin expanded to a record 51.4% in Q4, up 220 basis points year-over-year [14][28] - Adjusted EBITDA increased 30% in Q4, with an adjusted EBITDA margin of 30.2% [14][27] - Full-year adjusted EBITDA increased 12% to $277 million, with an adjusted EBITDA margin of 26.4% [15][32] Business Line Data and Key Metrics Changes - North America net sales increased 20% in Q4 to $286 million, driven by a 13% increase in volume [33][34] - Europe and the rest of the world saw a 2% increase in net sales to $41 million in Q4, with a gross profit margin of 31.4% [35][36] - For the full year, North America net sales increased 9% to $896 million, while Europe and the rest of the world net sales decreased 8% to $156 million [36][38] Market Data and Key Metrics Changes - North America accounted for the majority of sales growth, with a strong performance in the U.S. and Canada [33][36] - The company noted a resilient aftermarket, contributing over 80% of revenue, while new construction remains under pressure due to elevated interest rates [84][85] Company Strategy and Development Direction - The company aims to drive growth through innovation, focusing on energy-efficient and automated solutions [22][23] - The acquisition of ClorKing is expected to enhance the commercial pool product category and create cross-selling opportunities [24][25] - The company maintains a disciplined approach to capital allocation, emphasizing organic growth and strategic acquisitions [43][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth outlook for the pool industry, particularly in the aftermarket segment [48] - For 2025, the company expects net sales to increase approximately 1% to 5%, reflecting modest volume growth and positive price realization [45][46] - Management acknowledged potential challenges from evolving tariff environments and plans to respond with appropriate pricing actions [46][73] Other Important Information - The company celebrated its 100-year anniversary, reflecting on its history and resilience [6][8] - Significant improvements in cash flow and balance sheet were noted, with free cash flow increasing 22% to $188 million in 2024 [42][43] Q&A Session Summary Question: Inquiry about volume growth in North America - Management noted a 13% volume growth in North America, driven by strong in-quarter demand and early buy orders, with expectations for Q1 to be similar to the prior year [54][58] Question: Discussion on tariff impacts - Management indicated that 85% of North American net sales are produced locally, with limited exposure to tariffs from China and Mexico [68][70] Question: Clarification on margin performance and guidance - Management explained that while 2024 margins exceeded expectations, the guidance for 2025 reflects a more pragmatic approach, considering ongoing investments and market conditions [78][90] Question: Insights on working capital improvements - Management highlighted focused initiatives that improved cash conversion and reduced inventory days, contributing to strong free cash flow [99][100] Question: Discussion on SKU rationalization - Management confirmed that SKU rationalization is aimed at improving earnings quality and inventory agility, with no negative implications for top-line growth [138][140]

Financial Data and Key Metrics Changes - Net sales increased 17% in Q4 2024 to $327 million, driven by a 12% increase in volume and 4% positive net price realization [9][28] - Full-year net sales for 2024 increased 6% to $1.52 billion, with adjusted EBITDA rising 12% to $277 million [15][30] - Gross profit margins expanded to a record 51.4% in Q4, with adjusted diluted EPS increasing 35% to $0.27 [14][29] Business Line Data and Key Metrics Changes - North America net sales increased 20% in Q4 to $286 million, driven by 13% higher volume and 5% net price realization [33] - Europe and the rest of the world saw net sales increase 2% to $41 million, benefiting from 2% higher volume [34] - For the full year, North America net sales increased 9% to $896 million, while Europe and the rest of the world net sales decreased 8% to $156 million [36][38] Market Data and Key Metrics Changes - Strong in-quarter demand and early buy orders contributed to robust sales growth in North America [56] - The company noted that over 80% of revenue is derived from the nondiscretionary aftermarket, which remains resilient despite pressures in new construction [84] Company Strategy and Development Direction - The company aims to drive growth through innovation, focusing on energy-efficient and automated solutions for pool ownership [22] - The acquisition of ClorKing is seen as a strategic move to enhance the commercial pool product category and create cross-selling opportunities [24] - The company maintains a disciplined approach to capital allocation, emphasizing organic growth and strategic acquisitions [43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth prospects for the pool industry, particularly in the aftermarket segment [48] - For 2025, the company expects net sales to increase approximately 1% to 5%, reflecting modest volume growth and positive price contributions [45] - Management acknowledged macroeconomic challenges but highlighted strong cash flow generation and margin expansion as key achievements [10][20] Other Important Information - The company celebrated its 100-year anniversary, reflecting on its journey and commitment to customer service and innovation [6][8] - The company reduced net leverage to a targeted range of 2x to 3x while completing early debt repayment and strategic acquisitions [10][21] Q&A Session Summary Question: Can you dissect the strength in the early buy from the in-quarter demand? - Management noted that early buy orders were up year-over-year, but they shipped proportionately less in 2024 than in 2023, leading to a stronger backlog for 2025 [56][58] Question: What is the impact of tariffs on the company's operations? - Approximately 85% of North American net sales are produced locally, with only about 15% sourced from China or Europe, minimizing tariff impacts [68][70] Question: How does the company view gross margin performance for 2025? - Management indicated a pragmatic approach for 2025, expecting stable margins while focusing on long-term growth and operational improvements [78][80] Question: What are the expectations for North America versus international markets in 2025? - The company anticipates a 1% carryover from the ClorKing acquisition and expects stable channel inventory levels without significant changes [146] Question: How is the SKU rationalization process impacting the business? - The SKU rationalization is aimed at improving earnings quality and inventory management, with no expected negative implications for top-line growth [138][140]

分组1 - Hayward Holdings, Inc. reported quarterly earnings of $0.27 per share, exceeding the Zacks Consensus Estimate of $0.24 per share, and up from $0.20 per share a year ago, representing an earnings surprise of 12.50% [1] - The company posted revenues of $327.08 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 8.38%, compared to year-ago revenues of $278.47 million [2] - Over the last four quarters, Hayward Holdings has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] 分组2 - The stock has underperformed the market, losing about 6% since the beginning of the year, while the S&P 500 gained 1.3% [3] - The current consensus EPS estimate for the coming quarter is $0.10 on revenues of $222.67 million, and for the current fiscal year, it is $0.71 on revenues of $1.07 billion [7] - The Zacks Industry Rank for Electronics - Miscellaneous Products is currently in the bottom 33% of over 250 Zacks industries, indicating potential challenges for the sector [8]

Sales and Market Segments - North America and Europe & Rest of World segments accounted for approximately 85% and 15% of total net sales for Fiscal Year 2024, respectively[25]. - The company’s two largest customers represented approximately 36% and 11% of net sales in Fiscal Year 2024[34]. - Approximately 50% of net sales are derived from non-discretionary products essential for pool operation[32]. - In Fiscal Year 2024, approximately 77% of residential pool equipment in the U.S. was sold through specialty distributors, with 18% sold directly to retailers[41]. Supplier and Patent Information - The company maintains relationships with approximately 640 suppliers, with an average relationship of over 15 years across the top 30 suppliers[35][36]. - The company holds approximately 220 issued U.S. patents and 247 issued foreign patents as of December 31, 2024[51]. - The company has approximately 39 pending U.S. patent applications and 53 pending foreign patent applications as of December 31, 2024[150]. Product Development and Sustainability - Recent product development focuses on energy efficiency, advanced sanitization, reduced chemical usage, and enhanced IoT-driven experiences[33]. - The company’s environmentally sustainable products can conserve up to 92% more water compared to standard sand filters[31]. - The company is committed to sustainability through responsible manufacturing practices and innovative environmentally sustainable products[62]. - The company published its first sustainability data sheet in 2022, with updates in 2023 and 2024, indicating a commitment to transparency in sustainability reporting[64]. Operational Efficiency and Employee Engagement - The company implemented over 688 employee suggestions for improvements during the year ended December 31, 2024[69]. - The company is in the process of implementing a new ERP system and a new human resources information system to improve operational efficiency[117]. Financial Risks and Cost Management - The company has experienced material cost inflation, particularly in raw materials, and is striving for productivity improvements to mitigate these costs[107]. - The company expects an increase in sales denominated in non-dollar currencies, which may expose it to currency transaction risks[105]. - Fluctuations in the prices of raw materials, such as metals and resins, could increase the cost of goods sold and negatively affect financial results[131]. - Compliance with evolving environmental and safety regulations may result in higher operational costs and potential liabilities[135]. - The company faces potential increases in costs due to tariffs on imports, particularly from China, which could impact profit margins[130]. Regulatory and Compliance Issues - The company is subject to various federal and state regulations that could impact operations and compliance costs[72]. - The company is subject to stringent data privacy regulations, such as GDPR and CCPA, which could lead to significant compliance costs and liabilities[136]. - Misconduct by employees or third-party vendors could expose the company to regulatory investigations and substantial costs[142]. - Violations of anti-corruption laws, such as the FCPA, could result in costly investigations and sanctions, adversely affecting the company's reputation and financial condition[143]. - Changes in international trade compliance regulations and U.S. government sanctions could have a material adverse effect on the company's operations[144]. Debt and Financial Position - As of December 31, 2024, the company's total indebtedness was approximately $973.9 million, including $965.0 million under the first lien term loan facility[161]. - The company has an asset-based lending facility that allows borrowing up to $425.0 million, with $163.4 million of undrawn lines of credit available as of December 31, 2024[162]. - A 1% increase in the effective interest rate would result in an increase in interest costs of approximately $3.7 million, net of interest rate swap settlements[163]. - The company may need to refinance debt or raise additional capital if unable to generate sufficient cash flow from operations[164]. - The company’s ability to generate cash flow is subject to various external factors, which may impact its financial condition[163]. Stock and Shareholder Considerations - The company had 215,778,520 shares of common stock outstanding and 505,555,111 shares of common stock issuable upon potential exchanges and/or conversions as of December 31, 2024[177]. - The company has filed a registration statement on Form S-8 for 30,639,900 shares reserved for issuance under various equity incentive plans[177]. - The company does not currently expect to declare or pay dividends on its common stock for the foreseeable future[169]. - Future sales of common stock may dilute existing shareholders' economic and voting rights[176]. - The company’s ability to make future dividend payments is contingent upon the earnings of its subsidiaries[169]. Market and Operational Challenges - The business is seasonal, with higher sales typically in the second and fourth quarters due to the summer pool season[44]. - Disruptions in manufacturing due to natural disasters or equipment failures could significantly impact the company's ability to meet customer demand and increase operational costs[127]. - Recent geopolitical conflicts and adverse weather events have led to increased shipping costs, adversely affecting profitability[128]. - The company relies on single-source and sole-source suppliers for certain components, which poses risks of supply interruptions and increased costs[124]. - The market price of the company’s common stock has been volatile and may fluctuate significantly due to various factors[178].

Financial Performance - Net sales increased by 17% year-over-year to $327.1 million for Q4 2024, driven by higher volumes and price increases[3] - Net income for Q4 2024 rose 76% year-over-year to $54.7 million, with a net income margin expansion of 560 basis points to 16.7%[10] - Adjusted EBITDA for Q4 2024 increased by 30% year-over-year to $98.7 million, with an adjusted EBITDA margin expansion of 300 basis points to 30.2%[10] - For the full fiscal year 2024, net sales increased by 6% to $1,051.6 million, primarily due to net price increases and volume growth[14] - Gross profit for the full fiscal year 2024 rose 11% to $530.8 million, with a gross profit margin of 50.5%, an increase of 240 basis points[15] - Operating income for the full fiscal year 2024 increased by 19% to $208.8 million, with an operating margin of 19.9%, up 220 basis points[16] - Net income for the twelve months ended December 31, 2024, reached $118,655 thousand, representing a 46.9% increase from $80,687 thousand in 2023[35] - Adjusted EBITDA for the twelve months ended December 31, 2024, was $277,447,000, up from $247,273,000 in 2023, reflecting a 12.2% growth[37] - Adjusted net income for the twelve months ended December 31, 2024, was $147,934,000, compared to $122,869,000 in 2023, marking a 20.4% increase[43] Cash Flow and Assets - Cash flow from operations for fiscal 2024 was $212.1 million, an increase of $27.6 million from the prior year[19] - Total assets as of December 31, 2024, were $2,990,624 thousand, a slight increase from $2,946,284 thousand as of December 31, 2023[34] - Cash and cash equivalents increased to $196,589 thousand as of December 31, 2024, compared to $178,097 thousand at the end of 2023[36] - The company experienced a net cash provided by operating activities of $212,068 thousand for the year ended December 31, 2024, compared to $184,540 thousand in 2023[36] Segment Performance - North America segment income for Q4 2024 was $95,089,000, an increase from $71,079,000 in Q4 2023, representing a growth of 33.8%[50] - Europe & Rest of World segment income for Q4 2024 was $4,832,000, down from $7,871,000 in Q4 2023, a decline of 38.8%[50] - Adjusted segment income for North America for the twelve months ended December 31, 2024, was $290,964,000, up from $237,693,000 in 2023, reflecting a growth of 22.4%[51] - The company reported a total adjusted segment income for Europe & Rest of World of $22,857,000 for the twelve months ended December 31, 2024, down from $34,503,000 in 2023, a decrease of 33.9%[51] Expenses and Adjustments - Research, development, and engineering expenses for the twelve months ended December 31, 2024, were $25,778 thousand, up from $24,547 thousand in 2023[35] - The company incurred $3.2 million in compensation expenses for the retention of key employees from the ChlorKing acquisition, part of a total $6.3 million retention payment[39] - Total other adjustments for the twelve months ended December 31, 2024, amounted to $10,315,000, compared to $19,540,000 in 2023[43] - The company incurred $4,079,000 in other adjustments for North America in the year ended December 31, 2024, compared to $503,000 in 2023, a significant increase[51] Future Outlook - For fiscal year 2025, the company expects net sales of approximately $1.060 billion to $1.100 billion and Adjusted EBITDA of $280 million to $290 million[20] - Adjusted EBITDA guidance for fiscal 2025 is not provided due to insufficient data to estimate variables and adjustments[33] Tax and Shareholder Information - Basic EPS for the three months ended December 31, 2024, was $0.25, an increase from $0.15 in the same period of 2023[43] - The effective tax rate for the three months ended December 31, 2024, was 13.7%, compared to 20.6% for the same period in 2023[49] - The weighted average number of common shares outstanding, diluted, was 221,872,482 for the three months ended December 31, 2024, compared to 220,848,098 in the same period of 2023[43] Operational Insights - The company continues to leverage its competitive advantages in technology adoption and operational excellence to drive growth in the pool industry[21] - The installed base of pools is increasing annually, providing continued growth opportunities for the company[21] - Hayward's ability to maintain favorable relationships with suppliers and manage disruptions in its global supply chain is critical for future performance[30]