Pool Corp(US:POOL)2026-02-19 14:35Financial Performance - Net sales for 2025 were $5.3 billion, consistent with 2024, indicating stability in maintenance sales and growth in building materials in the latter half of the year[5]. - Gross margin remained at 29.7% for both 2025 and 2024, with a 20 basis points improvement in 2025 when excluding the 2024 import tax reversal[6]. - Operating income decreased by 6% to $580.2 million in 2025 compared to $617.2 million in 2024[8]. - Net income for 2025 was $406.4 million, down from $434.3 million in 2024, reflecting a decrease of 6%[8]. - Diluted EPS for 2025 was $10.85, a decline of 4% from $11.30 in 2024, which included a $0.25 benefit from the import tax reversal[10]. - Adjusted EBITDA for 2025 was $654,344, down from $680,856 in 2024, reflecting a decrease of approximately 4%[37]. - Adjusted diluted EPS for 2025 was $10.73, down from $11.07 in 2024, a decrease of approximately 3%[41]. Cash Flow and Working Capital - Net cash provided by operations was $365.9 million in 2025, significantly lower than $659.2 million in 2024, primarily due to working capital investments[12]. - Net cash provided by operating activities decreased significantly by 44% to $365,850 from $659,186 in 2024[27]. - Cash and cash equivalents at the end of the period increased by 35% to $104,963, compared to $77,862 in 2024[27]. Debt and Liabilities - Total debt outstanding rose by $249.1 million to $1.2 billion, primarily to fund share repurchases of $341.1 million in 2025[11]. - Long-term debt increased by 32% to $1,186,424, up from $900,883 in 2024[25]. - Accounts payable rose by 24% to $652,619, compared to $525,235 in 2024[25]. Inventory and Assets - Inventory balance increased by 13% to $1.5 billion as of December 31, 2025, driven by increased purchasing ahead of price increases and inflation[11]. - Total assets increased by 8% to $3,626,126, up from $3,368,184 in 2024, with current assets rising by 14% to $1,969,864[25]. Company Operations - The company operates 456 sales centers globally, distributing over 200,000 products to approximately 125,000 wholesale customers[19]. - The company acquired 3 new locations and opened 8 new locations, resulting in a total of 456 sales centers by December 31, 2025[31]. Future Outlook - For 2026, the company expects diluted EPS to be in the range of $10.85 to $11.15, reflecting expectations for modest sales growth and improved earnings[9][16]. Impairments - The company reported a goodwill impairment of $285 in 2025, with no such impairment reported in 2024[37].