Financial Data and Key Metrics Changes - Net sales increased by 8% to $229 million, driven by a 3% increase in both price and organic volume, along with a 3% contribution from the Core King acquisition [7][19] - Gross profit margins rose to 49.5%, an increase of 30 basis points, marking the ninth consecutive quarter of year-over-year gross margin expansion [5][10] - Adjusted EBITDA increased by 9% to $49 million, with adjusted EBITDA margins also increasing by 30 basis points to 21.5% [10][19] - Adjusted diluted EPS increased by 25% to $0.10 [11] Business Line Data and Key Metrics Changes - North American net sales increased by 8% to $187 million, driven by 3% net price realization and 2% higher volume [20] - In Europe and Rest of World, net sales increased by 7% to $42 million, benefiting from 1% favorable net pricing and 8% higher volume [22] Market Data and Key Metrics Changes - Sales growth was consistent across both segments, with North America net sales increasing by 8% and Europe and Rest of World by 7% [8] - Trends improved in March, aligning with normal seasonal demand as the peak pool season approached [9] Company Strategy and Development Direction - The company is focused on mitigating tariff impacts while supporting margins and positioning for growth, with over 80% of sales aligned with aftermarket needs [6] - The recent launch of the Omni X platform aims to provide wireless IoT connectivity and control for non-automated pools, representing a significant growth opportunity [5][16] - The company confirmed its guidance for 2025, expecting net sales to increase approximately 1% to 5% and adjusted EBITDA of $280 million to $290 million [7][27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the increasing economic uncertainty but expressed confidence in the resilience of the business model, particularly in the aftermarket segment [9][28] - The company anticipates pressure on discretionary elements of the market, such as new construction and remodels, due to economic conditions and higher interest rates [9][28] - Management remains optimistic about long-term growth in the pool industry, especially in the aftermarket segment [29] Other Important Information - The company is taking proactive measures to reduce reliance on China for sourcing, aiming to decrease direct sourcing from approximately 10% to 3% by year-end [12][13] - Total liquidity at the end of the first quarter was $398 million, with no near-term debt maturities [23] Q&A Session Summary Question: Clarification on tariffs and mitigation actions - Management discussed the estimated annualized tariff impact of approximately $85 million, primarily from China, and outlined steps to increase domestic manufacturing to mitigate this impact [34][35] Question: Channel inventory levels and demand impact - Management expressed confidence in current channel inventory levels, stating they are appropriate for the season and have been recalibrated in prior periods [49][51] Question: Trends in consumer behavior and pricing actions - Management noted that while there has been some deferral in discretionary spending, the maintenance side of the business remains resilient [53][72] Question: Insights on OmniX sales and automation adoption - Early trends with OmniX have been encouraging, and the platform is expected to provide a cost-effective solution for homeowners looking to automate their pools [75][76] Question: Manufacturing utilization and cost levers - Management indicated that bringing more manufacturing to the U.S. will increase utilization rates and provide opportunities for margin improvement through automation [80][83]

Financial Performance - Net sales for Q1 2025 reached $228.8 million, an increase of 8% year-over-year[8, 10] - Gross profit margin increased by 30 bps year-over-year to 49.5%[10] - Adjusted EBITDA for Q1 2025 was $49.1 million, up 9% year-over-year[10] - Adjusted diluted EPS increased by 25% year-over-year to $0.10[10] Tariff Impact and Mitigation - The company estimates an annualized tariff impact of approximately $85 million, with $30 million expected for FY'25[15] - Mitigation plans include reducing China direct sourcing to the US from ~10% to ~3% of COGS by year-end 2025[13] - Implemented a 3% price increase in North America effective April and 4% effective June[15] Strategic Initiatives - Launched OmniX, an innovative wireless solution targeting the aftermarket with a total addressable market (TAM) of ~3.5 million non-automated pools in the US[16, 18] - Net leverage is at 2.8x during a seasonally low cash collection period[8] Financial Outlook - The company confirms full-year 2025 guidance with net sales projected between $1.060 billion and $1.100 billion[8, 39] - Adjusted EBITDA is expected to be between $280 million and $290 million[39] - Free cash flow is projected to be approximately $150 million, exceeding 100% of net income[39]

Financial Performance - Net sales increased by 8% year-over-year to $228.8 million for Q1 FY 2025, driven by volume growth and favorable pricing [3] - Gross profit rose by 8% to $113.4 million, with a gross profit margin of 49.5%, an increase of 30 basis points [4] - Net income surged by 46% to $14.3 million, expanding the net income margin by 170 basis points to 6.3% [10] - Adjusted EBITDA increased by 9% to $49.1 million, with an adjusted EBITDA margin of 21.5%, up 30 basis points [10] - SG&A expenses rose by 9% to $65.1 million, representing 28.5% of net sales, an increase of 30 basis points from the prior year [5] - Adjusted net income for the three months ended March 29, 2025, was $22.1 million, compared to $16.6 million for the same period in 2024, reflecting a year-over-year increase of 33.5% [38] - The company reported a net income of $14.3 million for the three months ended March 29, 2025, up from $9.8 million in the prior year, representing a 45.4% increase [38] - Adjusted diluted EPS for the three months ended March 29, 2025, was $0.10, compared to $0.08 for the same period in 2024, indicating a 25% increase [38] Segment Performance - North America segment net sales grew by 8% to $187.1 million, aided by the acquisition of ChlorKing [11] - Europe & Rest of World segment net sales increased by 7% to $41.8 million, primarily due to volume growth [12] - Segment income for North America was $43.5 million for the three months ended March 29, 2025, compared to $39.7 million for the same period in 2024, showing an increase of 4.5% [42] - Adjusted segment income margin for North America was 27.1% for the three months ended March 29, 2025, compared to 26.1% for the same period in 2024 [42] Guidance and Future Outlook - Hayward confirms full year 2025 guidance, expecting net sales of approximately $1.060 billion to $1.100 billion and Adjusted EBITDA of $280 million to $290 million [14] - The company continues to leverage its competitive advantages in the pool industry, focusing on technology adoption and market expansion [15] Balance Sheet and Cash Flow - Cash and cash equivalents decreased to $181,333,000 as of March 29, 2025, down from $196,589,000 at the end of 2024 [29] - Total assets as of March 29, 2025, were $2,984,597,000, slightly down from $2,990,624,000 at the end of 2024 [27] - Total liabilities decreased to $1,545,218,000 as of March 29, 2025, from $1,566,977,000 at the end of 2024 [27] Acquisition and Restructuring Costs - The company incurred $1,926,000 in acquisition and restructuring-related expenses during the three months ended March 29, 2025 [28] - The company incurred $3.2 million in compensation expenses related to the retention of key employees from the ChlorKing acquisition, part of a total $6.3 million retention payment [37] - Adjustments for the last twelve months ended March 29, 2025, included a $3.3 million increase in cost of goods sold due to fair value inventory step-up from the ChlorKing acquisition [37] - The company recognized $1.7 million in transaction and integration costs associated with the ChlorKing acquisition for the three months ended March 29, 2025 [40] - The company reported $1.1 million in transaction and integration costs related to the ChlorKing acquisition for the year ended December 31, 2024 [37] Interest and Tax - Interest expense decreased by 27% to $13.7 million, attributed to reduced debt and lower interest rates [7] - The effective tax rate for the three months ended March 29, 2025, was 23.3%, reflecting tax benefits from stock compensation [38]

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]