Hayward (US:HAYW)2025-10-29 11:05Financial 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]