Pool Corp(US:POOL) Yahoo Financeยท2025-09-17 09:51Core Insights - Pool Corporation demonstrated resilience in a challenging market, with a 1% year-over-year increase in net sales to approximately $1.8 billion, maintaining a gross margin of 30% and an operating margin of 15.3% [3] - The company's earnings power is supported by recurring maintenance products, which offset weaker discretionary spending in areas like new pool construction and renovations [2][3] - Berkshire Hathaway has significantly increased its stake in Pool Corporation, reflecting confidence in the company's long-term prospects [5][8] Financial Performance - In the second quarter, earnings per share rose 4% to $5.17, with management projecting full-year earnings per share between $10.80 and $11.30 [3] - The company has been actively managing expenses, which increased only 1% in the quarter, and has spent approximately $156 million on stock buybacks in the first half of the year [6][10] - Pool Corporation's stock trades at around $323, with a price-to-earnings multiple in the high-20s, which is considered reasonable for a quality distributor [9] Business Model and Market Position - Pool Corporation operates over 450 sales centers across North America, Europe, and Australia, serving approximately 125,000 professional customers, which provides a competitive advantage in a fragmented industry [4] - The company's focus on maintenance products creates a stable revenue base, while its digital tools and private-label offerings enhance customer relationships [10] - Despite market pressures from high interest rates and competition, Pool's business model is built on repeat demand, making it a potentially attractive investment [11]