Pool Corporation Reports Second Quarter Results and Updates Annual Earnings Guidance Range

Core Insights - Pool Corporation reported a 1% increase in net sales for Q2 2025, driven by growth in maintenance products and improved discretionary spending trends [4][11] - The company celebrated the opening of its 450th sales center, emphasizing its commitment to enhancing customer experience and technology investments [3][11] - Annual earnings guidance has been updated to a range of $10.80 to $11.30 per diluted share [11][15] Financial Performance - For Q2 2025, net sales reached $1.78 billion, with gross profit increasing by $5 million and maintaining a gross margin of 30% [7][11] - Operating income rose by $1.2 million, with an operating margin of 15.3% [7][11] - Net income for Q2 2025 was $194.3 million, a slight increase from $192.4 million in Q2 2024, resulting in diluted earnings per share of $5.17, up 4% from $4.99 [7][11] Year-to-Date Performance - For the first six months of 2025, net sales declined by 1% to $2.86 billion compared to $2.89 billion in the same period of 2024 [8][9] - Gross margin decreased by 40 basis points to 29.7% due to a non-recurring reversal of estimated import taxes in the previous year [8] - Operating income decreased by 8% to $350.2 million, with a corresponding decline in operating margin to 12.3% [9] Balance Sheet and Liquidity - As of June 30, 2025, inventory increased by 3% to $1.3 billion, while total debt rose by $113.4 million to $1.2 billion, primarily for share repurchases [13] - Net cash used in operations was $1.5 million for the first half of 2025, a significant decline from $172.1 million in the same period of 2024 [14] Strategic Outlook - The company remains optimistic about the outdoor living industry and believes its scale and customer-first approach will drive long-term shareholder value [15]