INVESTOR DAY 2026 ©2026 Pentair. All Rights Reserved. INVESTOR DAY 2026 WELCOME & OPENING REMARKS 2 Forward Looking Statements This presentation contains statements that we believe to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, are forward-looking statements. Withoutlimitation, any statements preceded or followed by or that include the words "targets," "plans," "believes," "expects," "in ...

Financial Data and Key Metrics Changes - Net sales increased by 7% in Q4 2025 to $349 million, with a prior year comparison of 17% growth [4][6] - Gross margin expanded to a record 48%, with adjusted EBITDA increasing by 4% to $103 million [4][18] - For the full year 2025, net sales rose 7% to $1.122 billion, and adjusted EBITDA increased 8% to $299 million, exceeding guidance [7][19] - Adjusted diluted EPS grew 15% to $0.77 for the full year [7][20] Business Line Data and Key Metrics Changes - North America sales were up 8% to $309 million, driven mainly by price gains, with gross margin increasing to 50.1% [20][21] - Europe and rest of world sales remained steady at $41 million, with a gross margin increase of 590 basis points to 35.8% [21] - The aftermarket model, which constitutes approximately 85% of total sales, demonstrated resilience despite challenges in new pool construction [8][9] Market Data and Key Metrics Changes - U.S. sales increased by 8%, while Canada saw a 10% rise, indicating strong performance in key markets [20][21] - Europe sales grew by 7%, while the rest of the world experienced a 9% decline, reflecting varied market conditions [21] Company Strategy and Development Direction - The company is focused on innovation, operational excellence, and enhancing customer experience, which are seen as key to long-term value creation [5][10] - Hayward aims to leverage its aftermarket-driven model and expand its product offerings, including the OmniX automation ecosystem [10][12] - The company plans to maintain a balanced approach to capital allocation, prioritizing organic growth investments while pursuing strategic acquisitions [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the business and the ability to execute strategic growth initiatives, expecting net sales to increase approximately 4% in 2026 [6][24] - The company anticipates continued strong performance in the aftermarket, despite challenges in new pool construction [36][37] - Management highlighted the importance of disciplined execution and a cycle-tested business model in navigating the current macroeconomic environment [25][26] Other Important Information - The company achieved a significant reduction in net leverage to 1.9 times by year-end, enhancing its financial flexibility [5][22] - Increased investments in research, development, and engineering were noted, with a focus on product innovation and customer support [10][50] Q&A Session Summary Question: What was the source of the upside surprise in Q4? - Management noted that early buy orders and strong in-quarter demand contributed to the positive results, despite a challenging prior year comparison [28][30] Question: Can you discuss the assumptions for aftermarket and new pool demand? - Management indicated that they expect normal demand levels for 2026, with continued strength in the aftermarket, while new construction remains uncertain [35][36] Question: Any updates on the tariff situation and supply chain realignment? - Management reported a successful reduction in dependency on China and expressed confidence in managing tariff impacts through price increases and operational improvements [46][47] Question: Can you elaborate on the increased CapEx investments? - Management explained that the increased CapEx is aimed at upgrading U.S. manufacturing capabilities and enhancing operational efficiency [51][52] Question: What is the outlook for the 4-horsepower pump and pressure cleaner markets? - Management highlighted the significant market opportunity for these products, estimating that a quarter of all pumps are 3.5 horsepower or larger, which they previously could not serve [94]

Hayward (NYSE:HAYW) Q4 2025 Earnings call February 25, 2026 09:00 AM ET Speaker5Welcome to Hayward Holdings' fourth quarter 2025 earnings call. My name is Carrie, I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. During the question-and-answer session, if you have a question, please press Star, then one on your touchtone phone. Please note that this conference is being recorded. I will now turn the call o ...

Company Overview - Hayward Holdings, Inc. (NYSE:HAYW) is a leading global pool equipment manufacturer, primarily serving the residential pool market, with North America accounting for 85% of sales and over 90% of profits [3] - The company offers a range of products including Pumps, Automation and Sanitization, Heaters, Filters, Lighting and Water Features, and Cleaners [3] - Approximately 80% of total sales come from the existing installed base of pools, with 50% attributed to repair and replacement, making the business relatively resilient to economic cycles [3] Financial Performance - Hayward Holdings, Inc. has demonstrated strong margins and cash-generation potential, leading the fund to view the stock as undervalued relative to mid-cycle earnings [2] - The stock's one-month return was approximately 5.51%, and it gained about 11.59% over the last 12 months, closing at approximately $16.85 per share on January 16, 2026, with a market capitalization of about $3.65 billion [2] Market Dynamics - The pool industry experienced supercharged growth during the early stages of COVID-19, followed by a period of weak end-market demand exacerbated by destocking in the distribution channel [3] - Although the industry has stabilized, there is still lackluster demand for newly built and remodeled pools, but it is expected that the discretionary sides of the business will recover over time [3] - Hayward is positioned to continue raising prices and growing volumes within the installed base of pools due to strong pricing power, as purchase decisions are typically made by pool service professionals who are less sensitive to price [3]

Core Insights - Maytronics has launched the Dolphin EON line of robotic pool cleaners, which is designed to clean every inch of a pool, including shallow areas with as little as 8 inches of water, making it suitable for pools with tanning ledges or Baja shelves [1][3]. Product Features - The Dolphin EON offers total-pool coverage and innovative filtration technology, resulting in water that is 4 times clearer than competing products [2]. - The EON utilizes JetIQ technology, allowing it to clean sun ledges and navigate around stairs and corners effectively [3]. - It features ultra-fine filters and a patented DebrisLock™ backwash filtration system that cleans the filter while the robot is in the pool, reducing maintenance time by up to 20 hours per season [4]. Market Positioning - The CEO of Maytronics emphasized that the Dolphin EON is designed to meet the specific cleaning needs of individual pools, claiming it cleans more thoroughly than any other pool cleaner on the market [5]. - The Dolphin EON 120d is priced at $1,199, while the Dolphin EON 100 model is priced at $899, with both models available for purchase starting January 2026 [8]. Additional Features - The Dolphin EON includes SmartMap Navigation for tailored cleaning paths, hybrid power options, extended runtimes of up to 4.5 hours, and app-controlled scheduling and monitoring [9]. - Maytronics has a strong global presence, operating through six subsidiaries and over 100 distributors in more than 65 countries, serving millions of customers [10].

Core Insights - Hayward Holdings experienced a significant increase in stock price following the announcement of strong fiscal third-quarter results, with shares rising over 10% [1] Financial Performance - Sales increased by 7% year over year to $244 million for the quarter ending September 27, driven by price increases to counteract tariffs [3] - Gross profit rose by 11% to $125 million, with gross margin improving by 1.5 percentage points to 51.2% [3] - Adjusted net income surged by 26% to $32 million, while adjusted earnings per share increased by 27% to $0.14, supported by lower interest expenses and stock buybacks [4] Future Outlook - Management raised the full-year profit outlook, projecting adjusted EBITDA to rise by 5% to 7%, estimating between $292 million and $297 million for 2025, up from a previous forecast of $280 million to $290 million [5] - The company noted a growing installed base of pools, which presents opportunities for automation upgrades and accessory sales, indicating a focus on profitable growth and long-term shareholder value [6]

Core Viewpoint - Hayward Holdings, Inc. (NYSE:HAYW) is recognized as a promising investment opportunity within the clean energy sector, particularly due to its significant upside potential and strong financial metrics [1][3]. Group 1: Financial Performance - Stifel has reiterated a 'Buy' rating on Hayward Holdings, setting a price target of $18, reflecting confidence in the company's management and performance [2]. - The company has demonstrated resilience by recovering margins despite weak volumes in the post-COVID period, achieving a gross profit margin of 51% [3]. - Hayward maintains a healthy current ratio of 2.84, indicating strong liquidity and financial stability [3]. - Fiscal 2025 revenue and EBITDA estimates are at the high end of guidance, suggesting continued strong performance [3]. - Projections for fiscal 2026 indicate mid-single-digit revenue growth, even in a slower recovery environment for the category [3]. Group 2: Business Overview - Hayward Holdings, Inc. specializes in pool equipment and automation systems, serving markets across North America, Europe, and internationally [4]. - The company is recognized as one of the best clean energy stocks, highlighting its position within the industry [4].

Hayward (HAYW) FY Conference Summary Company Overview - Hayward is a leading pool equipment OEM specializing in pumps, filters, heaters, and control systems, with approximately 75% of sales tied to the aftermarket [2][4] - The company generates about 95% of its net sales from the pool industry, primarily residential, with 5% from commercial and industrial flow control [4] - North America accounts for about 85% of revenue, while Europe and the rest of the world contribute 15% [5] Financial Performance - Hayward's revenue is just over $1 billion, with a five-year CAGR of 7.5% [5][6] - Gross margins exceeded 50% last year, with an adjusted EBITDA CAGR of 10% over the same period [6] - The company has seen a shift towards 85% of net sales derived from existing pools due to a decline in new construction [7] Market Dynamics - The pool market is characterized by a large installed base, with 5.5 million in-ground pools in the U.S. and nearly 25 million globally, which continues to grow annually [10][11] - The average age of pools is approximately 23 years, indicating a strong aftermarket opportunity for upgrades and modernization [11] - Hayward has pricing power, as equipment costs represent only 10-15% of overall construction costs, allowing for annual price increases to offset inflation [12][13] Strategic Focus - The company emphasizes organic growth, margin expansion, and disciplined capital deployment as key strategic themes [15] - Gross margins have expanded by 600 basis points over the last five years, reaching 50.5% by the end of 2024 [16] - Hayward's strategy includes investing in innovation and technology, with a focus on smart connected products and automation [9][15] Product Innovation - Hayward is focusing on digital conversion, chemical conversion, and energy conversion as pivotal areas for growth [27] - The company has launched several new products, including a heat pump with cooling capabilities, an automation app for consumers, and a new lighting platform [32][33] - The OmniX system allows for retrofitting existing equipment with automation controls, creating a significant revenue opportunity [35] Distribution and Market Strategy - Approximately 75% of Hayward's products are sold through distribution channels, with the remaining 25% through direct sales [37] - The company has initiated "Hayward hubs" in high-volume markets to provide training and support for trade professionals [38] Competitive Advantages - Hayward's competitive advantages include strong brand recognition, a large installed base, and a commitment to sustainability with energy-efficient products [41] - The company has a proven ability to maintain gross margins over 50% due to innovative products and effective supply chain management [42][44] Conclusion - Hayward is well-positioned in the pool equipment industry, leveraging its strong aftermarket model, pricing power, and innovative product offerings to drive growth and shareholder value [41]

Financial Data and Key Metrics Changes - Net sales increased by 8% to $229 million, driven by a 3% increase in both price and organic volume, along with a 3% contribution from the Core King acquisition [8][19] - Gross profit margins rose to 49.5%, an increase of 30 basis points year-over-year, marking the ninth consecutive quarter of gross margin expansion [6][10] - Adjusted EBITDA increased by 9% to $49 million, with adjusted EBITDA margins also increasing by 30 basis points to 21.5% [10][19] - Adjusted diluted EPS increased by 25% to $0.10 [11][19] Business Line Data and Key Metrics Changes - North American net sales increased by 8% to $187 million, driven by 3% net price realization and 2% higher volume [20] - In Europe and Rest of World, net sales increased by 7% to $42 million, benefiting from 1% favorable net pricing and 8% higher volume [22] Market Data and Key Metrics Changes - Sales growth was consistent across both segments, with North America seeing an 8% increase and Europe and Rest of World experiencing a 7% increase [8][19] - The commercial pool business continues to grow organically, benefiting from the integration of the Core King acquisition [9] Company Strategy and Development Direction - The company is focused on mitigating the impact of tariffs and supporting margins while positioning for continued growth [7][12] - The recent launch of the Omni X automation platform aims to unlock the addressable aftermarket of millions of non-automated pools [6][15] - The company confirmed its guidance for full-year 2025, expecting net sales to increase approximately 1% to 5% and adjusted EBITDA of $280 million to $290 million [8][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current economic uncertainty, highlighting the resilience of the business model with over 80% of sales aligned with aftermarket needs [7][29] - The company anticipates pressure on discretionary elements of the market, such as new construction and remodels, due to economic conditions and higher interest rates [9][28] - Management remains optimistic about the long-term growth outlook for the pool industry, particularly in the aftermarket segment [29] Other Important Information - The company is strategically reinvesting in sales and marketing, customer service, and engineering to drive future growth [20] - Total liquidity at the end of the first quarter was $398 million, with no near-term debt maturities [23][24] Q&A Session Summary Question: Can you clarify the impact of tariffs and mitigation actions? - Management indicated an annualized tariff impact of approximately $85 million, primarily from China-based products, and discussed proactive measures to mitigate this impact [33][34][37] Question: How is channel inventory managed? - Management expressed confidence in current inventory levels, stating that they are appropriate for the season and have been recalibrated in prior periods [48][50] Question: What are the trends in consumer behavior post price increases? - Management noted that while there may be some deferral in discretionary spending, the maintenance side of the business remains resilient [70][71] Question: How will increased manufacturing in the U.S. affect margins? - Management stated that bringing more manufacturing to the U.S. will increase utilization rates and potentially enhance margins through automation and variable cost structures [78][81]

Financial Data and Key Metrics Changes - Net sales increased by 8% to $229 million, driven by a 3% increase in both price and organic volume, along with a 3% contribution from the Core King acquisition [7][19] - Gross profit margins rose to 49.5%, an increase of 30 basis points, marking the ninth consecutive quarter of year-over-year gross margin expansion [5][10] - Adjusted EBITDA increased by 9% to $49 million, with adjusted EBITDA margins also increasing by 30 basis points to 21.5% [10][19] - Adjusted diluted EPS increased by 25% to $0.10 [11] Business Line Data and Key Metrics Changes - North American net sales increased by 8% to $187 million, driven by 3% net price realization and 2% higher volume [20] - In Europe and Rest of World, net sales increased by 7% to $42 million, benefiting from 1% favorable net pricing and 8% higher volume [22] Market Data and Key Metrics Changes - Sales growth was consistent across both segments, with North America net sales increasing by 8% and Europe and Rest of World by 7% [8] - Trends improved in March, aligning with normal seasonal demand as the peak pool season approached [9] Company Strategy and Development Direction - The company is focused on mitigating tariff impacts while supporting margins and positioning for growth, with over 80% of sales aligned with aftermarket needs [6] - The recent launch of the Omni X platform aims to provide wireless IoT connectivity and control for non-automated pools, representing a significant growth opportunity [5][16] - The company confirmed its guidance for 2025, expecting net sales to increase approximately 1% to 5% and adjusted EBITDA of $280 million to $290 million [7][27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the increasing economic uncertainty but expressed confidence in the resilience of the business model, particularly in the aftermarket segment [9][28] - The company anticipates pressure on discretionary elements of the market, such as new construction and remodels, due to economic conditions and higher interest rates [9][28] - Management remains optimistic about long-term growth in the pool industry, especially in the aftermarket segment [29] Other Important Information - The company is taking proactive measures to reduce reliance on China for sourcing, aiming to decrease direct sourcing from approximately 10% to 3% by year-end [12][13] - Total liquidity at the end of the first quarter was $398 million, with no near-term debt maturities [23] Q&A Session Summary Question: Clarification on tariffs and mitigation actions - Management discussed the estimated annualized tariff impact of approximately $85 million, primarily from China, and outlined steps to increase domestic manufacturing to mitigate this impact [34][35] Question: Channel inventory levels and demand impact - Management expressed confidence in current channel inventory levels, stating they are appropriate for the season and have been recalibrated in prior periods [49][51] Question: Trends in consumer behavior and pricing actions - Management noted that while there has been some deferral in discretionary spending, the maintenance side of the business remains resilient [53][72] Question: Insights on OmniX sales and automation adoption - Early trends with OmniX have been encouraging, and the platform is expected to provide a cost-effective solution for homeowners looking to automate their pools [75][76] Question: Manufacturing utilization and cost levers - Management indicated that bringing more manufacturing to the U.S. will increase utilization rates and provide opportunities for margin improvement through automation [80][83]