Financial Performance & Outlook - The company narrows its net sales guidance for 2025 to a range of $540 million to $550 million, reflecting a 7% year-over-year growth at the midpoint[26] - Adjusted EBITDA guidance is narrowed to $92 million to $98 million, indicating a 19% year-over-year growth at the midpoint[26] - Capital expenditures guidance is revised to $22 million to $24 million, reflecting project efficiencies and timing shifts[26] - Net sales for the three fiscal quarters ended September 27, 2025, reached $445962 thousand, with an Adjusted EBITDA of $89354 thousand and an Adjusted EBITDA margin of 200%[41] - Net debt leverage ratio as of September 27, 2025, is 23, with a net debt of $210555 thousand and LTM Adjusted EBITDA of $92976 thousand[44] Market Position & Growth Strategy - The company holds the number one share in every subcategory in which it competes[9] - The company has approximately 50% share of the fiberglass category in North America[10] - Fiberglass constitutes 23% of total pool installs, marking a 600 bps increase[11] - Replacement sales account for 51% of liners and covers[13] - The company is expanding its share in the Sand States through new dealer sign-ups, presence in Master Planned Communities, and aligning products with demand[18][19][20] Market Dynamics - The company forecasts new U S pool starts in 2025 to be flat to slightly down compared to 2024 levels[25][29]

Financial Performance - Net sales for Q3 2025 were $161.9 million, an increase of 7.6% from $150.5 million in Q3 2024, driven by higher sales volume and tariff-related price increases[8] - Gross profit for Q3 2025 increased by 17.7% to $57.3 million, with gross margin expanding by 300 basis points to 35.4%[10] - Net income for Q3 2025 was $8.1 million, up 37.7% from $5.9 million in Q3 2024, resulting in an earnings per diluted share of $0.07 compared to $0.05 in the prior year[12] - Adjusted EBITDA for Q3 2025 rose by 28.5% to $38.3 million, with an adjusted EBITDA margin of 23.7%, an increase of 390 basis points from the previous year[12] - For the first nine months of 2025, net sales reached $446.0 million, a 5.9% increase from $421.2 million in the prior-year period[13] - Net income for the three fiscal quarters ended September 27, 2025, was $18,135,000, a 60.5% increase from $11,310,000 for the same period in 2024[46] - Adjusted EBITDA for the three fiscal quarters ended September 27, 2025, was $89,354,000, representing a 16.6% increase from $76,598,000 in the prior year[48] - Net sales for the three fiscal quarters ended September 27, 2025, reached $445,962,000, up 5.9% from $421,247,000 in the same period of 2024[48] Guidance and Projections - The company narrowed its net sales guidance for 2025 to a range of $540-$550 million, reflecting a projected 7% growth[20] - Adjusted EBITDA guidance for 2025 is set at $92-$98 million, indicating a 19% growth at the midpoints[20] - Capital expenditures for 2025 are revised to a range of $22-$24 million, down from the previous estimate of $27-$33 million[24] - The company expects fiberglass pools to gain another percentage point of market share, reaching approximately 24% of total U.S. in-ground pool sales in 2025[22] Debt and Liquidity - Latham's net debt leverage ratio improved to 2.3 from 3.0 in the previous quarter, with total debt at $281.1 million[17] - The company reported a net debt of $277,823,000 as of September 27, 2025, with a net debt leverage ratio calculated based on last twelve months of Adjusted EBITDA[41] - Total current assets increased to $240,915,000 from $178,298,000 as of December 31, 2024, reflecting improved liquidity[44] - Total liabilities rose to $436,065,000 from $406,985,000 as of December 31, 2024, indicating a slight increase in leverage[44] - The company’s cash balance increased to $70,518,000 from $56,398,000, enhancing its financial flexibility[44] Operating Expenses - Selling, general, and administrative expenses for the quarter were $28,586,000, slightly up from $28,336,000 in the previous year[42] - The company incurred $4,934,000 in acquisition costs, significantly lower than $64,046,000 in the previous year[46] - Stock-based compensation expense for the three fiscal quarters ended September 27, 2025, was $5,332,000, slightly up from $5,187,000 in the prior year[48] Other Financial Metrics - The net cash provided by operating activities for the three fiscal quarters ended September 27, 2025, was $40,121,000, compared to $55,150,000 in the prior year, reflecting a decrease of 27.3%[46] - The adjusted EBITDA margin improved to 20.0% for the three fiscal quarters ended September 27, 2025, compared to 18.2% in the same period of 2024[48] - Cash at the end of the period was $70,518,000, an increase from $59,862,000 at the end of the same period in 2024[46] - The company experienced a foreign currency loss of $2,878,000 for the three fiscal quarters ended September 27, 2025, compared to a gain of $1,668,000 in the same period of 2024[48] Market Conditions - The company anticipates future operating results to be influenced by macroeconomic conditions and changes in consumer demand[37]

Core Insights - Latham Group, Inc. reported a net sales increase of 7.6% in Q3 2025, reaching $161.9 million, driven by higher sales volume from organic growth and acquisitions [6][8] - The company achieved a gross margin expansion of 300 basis points to 35.4%, attributed to operational efficiencies and the benefits from recent acquisitions [5][9] - Latham's net income rose by 37.7% to $8.1 million, with earnings per diluted share increasing to $0.07 from $0.05 in the prior year [8][11] Financial Highlights - **Q3 2025 Results**: - Net sales: $161.9 million, up $11.4 million or 7.6% from $150.5 million in Q3 2024 [6][8] - Gross profit: $57.3 million, a 17.7% increase from $48.7 million in the prior year [9][11] - Adjusted EBITDA: $38.3 million, up 28.5% from $29.8 million in Q3 2024, with a margin of 23.7% [11][12] - **Nine Months 2025 Results**: - Net sales: $446.0 million, a 5.9% increase from $421.2 million in the prior year [12][15] - Gross profit: $154.2 million, up 16.5% from $132.3 million [13][15] - Net income: $18.1 million, a 60.3% increase from $11.3 million [15] Strategic Initiatives - The company is focusing on increasing awareness and adoption of fiberglass pools and autocovers, particularly in the Sand State markets [2][4] - Latham has established partnerships with custom homebuilders in Florida to enhance its market presence [4][21] - The Measure by Latham tool is being developed to support sales growth and customer engagement [19][21] Market Position - Latham's fiberglass pools are projected to account for approximately 75% of its full-year 2025 in-ground pool sales, reflecting strong consumer recognition of their advantages [3][21] - The company expects fiberglass pools to gain an additional percentage point of market share, reaching about 24% of total U.S. in-ground pool sales in 2025 [21] Guidance and Outlook - Latham narrowed its net sales guidance for 2025 to a range of $540-$550 million, representing a 7% growth [20][23] - Adjusted EBITDA guidance was updated to $92-$98 million, indicating a 19% growth at the midpoint [20][23] - Capital expenditure estimates for 2025 were revised to $22-$24 million [20][23]

Core Viewpoint - Latham Group, Inc. will release its financial results for Q3 2025 on November 4, 2025, after the U.S. market closes, followed by a conference call to discuss the results [1]. Company Overview - Latham Group, Inc. is the largest designer, manufacturer, and marketer of in-ground residential swimming pools in North America, Australia, and New Zealand [4]. - The company operates with approximately 1,850 employees across 30 locations [4]. Conference Call Details - Participants are encouraged to pre-register for the conference call via a provided link, with confirmation emails sent to those who register [2]. - A live audio webcast of the conference call will be available online, and an archived version will be accessible approximately two hours after the call [3]. - Dial-in options are available for participants, including a toll-free number for U.S. callers and an international dial-in number [3].

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Core Insights - Latham, The Pool Company has been recognized as one of America's Greatest Companies 2025 by Newsweek, highlighting its commitment to innovation, sustainability, and employee experience [1][3]. Company Performance - The recognition is based on a comprehensive study evaluating companies with over $75 million in annual revenue, involving over 151,000 employees and 3.3 million company reviews on various performance metrics [2]. - Latham's selection was influenced by its financial performance, employee satisfaction, innovation, and sustainability efforts [1][2]. Sustainability Efforts - Latham achieved a 50% reduction in waste from fiberglass pool production in 2023 compared to 2022, and recycled thousands of tons of materials, including scrap vinyl, galvanized steel, and aluminum [3]. - The company expanded energy-efficient LED lighting to nearly half of its fiberglass facilities, contributing to its environmental stewardship [3]. Employee Commitment - Latham's President and CEO emphasized the company's dedication to fostering a culture that empowers employees and drives innovation, which is reflected in the recognition received [3][4]. - The company aims to build brand trust, which is crucial for consumer decisions in the outdoor products market [4]. Company Overview - Latham Group, Inc. is the largest designer, manufacturer, and marketer of in-ground residential swimming pools and pool accessories in North America, Australia, and New Zealand, with over 60 years of experience [5].

Company Overview - Latham Group, Inc. is the largest designer, manufacturer, and marketer of in-ground residential swimming pools in North America, Australia, and New Zealand [1] - The company is headquartered in Latham, NY, and operates with approximately 1,850 employees across 30 locations [1] Investor Conferences - On August 13, 2025, the President and CEO, Scott Rajeski, along with CFO Oliver Gloe, will host investor meetings at the Barclays 2025 Housing, Building, and Building Products Conference in New York, NY [2] - On August 19, 2025, CFO Oliver Gloe will host investor meetings at the Wolfe Research August Small Group/1x1 Conference, which will take place virtually [2]

分组1 - Latham Group reported quarterly earnings of $0.14 per share, exceeding the Zacks Consensus Estimate of $0.13 per share, but down from $0.15 per share a year ago, representing an earnings surprise of +7.69% [1] - The company posted revenues of $172.64 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.66% and up from $160.12 million year-over-year [2] - Over the last four quarters, Latham Group has surpassed consensus EPS estimates two times and topped consensus revenue estimates twice [2] 分组2 - The stock has underperformed the market, losing about 3.2% since the beginning of the year compared to the S&P 500's gain of 7.6% [3] - The current consensus EPS estimate for the coming quarter is $0.09 on revenues of $163.5 million, and for the current fiscal year, it is $0.11 on revenues of $539.5 million [7] - The Zacks Industry Rank for Building Products - Miscellaneous is currently in the bottom 35% of over 250 Zacks industries, indicating potential challenges for the sector [8]

Financial Data and Key Metrics Changes - Year-on-year revenue growth of 7.8% and adjusted EBITDA growth of 15.7% were reported for the second quarter [5][19] - Net sales for the second quarter were $173 million, up from $160 million, reflecting both organic and acquisition-related growth [16] - Adjusted EBITDA increased to $39.9 million, with an adjusted EBITDA margin of 23.1%, a 160 basis point improvement [19][20] Business Line Data and Key Metrics Changes - In-ground pool sales were $79 million, down 2.9%, impacted by adverse weather conditions [17] - Cover sales increased to $37 million, reflecting a 46% growth due to acquisitions and organic growth [17] - Liner sales grew by 5.8% to $57 million, driven by the adoption of the proprietary AI measuring tool [17][18] Market Data and Key Metrics Changes - Fiberglass pools are projected to account for approximately 75% of in-ground pool sales for the full year [6] - The company expects fiberglass pools to gain another 1% market penetration in 2025 [7] - The Sand States (Florida, Texas, Arizona, California) represent a substantial growth opportunity, accounting for two-thirds of annual new pool starts in the U.S. [12] Company Strategy and Development Direction - The company is focused on increasing awareness and adoption of fiberglass pools and auto covers, particularly in the Sand States [12][14] - Recent acquisitions have strengthened the margin profile and contributed to sales growth [6][22] - Lean manufacturing and value engineering initiatives are expected to drive production efficiencies and margin improvements [6][14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the second half of the year despite challenging market conditions [24] - The company reconfirmed its 2025 guidance of 8% net sales growth and 19% adjusted EBITDA growth at the midpoint [23][24] - Management noted that the current pool market is in a trough period, with expectations of a rebound as conditions improve [26] Other Important Information - The company has integrated recent acquisitions fully and is seeing anticipated benefits in sales and margins [22] - The balance sheet remains strong, with cash of $27 million at the end of the quarter and a net debt leverage ratio of 3.0 [20][21] - The company plans to invest between $27 million to $33 million in capital expenditures for 2025 [21] Q&A Session Summary Question: How is the company measuring success in marketing campaigns? - Management indicated that the focus is on driving brand awareness and dealer capacity, with significant increases in website activity and leads generated from marketing efforts [34][36] Question: Update on the Sand State strategy? - Management reported good progress in recruiting new dealers and entering master plan communities, with expectations for increased revenue from these markets [38][41] Question: Were fiberglass pool sales affected by weather? - Management confirmed that fiberglass pool sales were impacted but showed a positive trajectory in June and July as weather improved [46][48] Question: What is the outlook for gross margins? - Management expressed satisfaction with the gross margin performance, attributing improvements to acquisitions and lean manufacturing initiatives [49][50] Question: How is labor availability affecting installation? - Management noted no issues with labor availability for fiberglass pool installations, highlighting the efficiency of fiberglass compared to traditional materials [70][72] Question: What are the capital allocation priorities going forward? - Management outlined priorities as investing in the business, pursuing M&A opportunities, and debt repayment [88][90]

Financial Performance & Outlook - Latham forecasts net sales between $535 million and $565 million for full year 2025, representing an 8% year-over-year growth at the midpoint[23] - The company projects adjusted EBITDA between $90 million and $100 million for 2025, a 19% year-over-year increase at the midpoint[23] - In Q2 2025, Latham's net sales reached $172639 thousand with an adjusted EBITDA of $39887 thousand, resulting in an adjusted EBITDA margin of 231%[37] - For the two fiscal quarters ended June 28, 2025, net sales were $284059 thousand with an adjusted EBITDA of $51027 thousand, yielding an adjusted EBITDA margin of 180%[37] - Latham's net debt leverage ratio is 301, and the pro forma net debt leverage ratio is 295[41] Market Position & Strategy - Latham holds the number one share in every subcategory in which it competes[8] - Fiberglass constitutes 75% of Latham's fiberglass pool sales, while packaged pools account for 25%[10] - Fiberglass accounts for 23% of total pool installs, up 600 bps since 2019[10] - Replacement sales make up 51% of liners and covers sales[12] Market Dynamics - Approximately 100-120 thousand all-season covers and 180-200 thousand vinyl liners are replaced annually in the US[13][14] - The company anticipates continued market trough with new US pool starts remaining flat compared to 2024[22]