Financial Performance & Outlook - The company narrows its net sales guidance for 2025 to a range of $540 million to $550 million, reflecting a 7% year-over-year growth at the midpoint[26] - Adjusted EBITDA guidance is narrowed to $92 million to $98 million, indicating a 19% year-over-year growth at the midpoint[26] - Capital expenditures guidance is revised to $22 million to $24 million, reflecting project efficiencies and timing shifts[26] - Net sales for the three fiscal quarters ended September 27, 2025, reached $445962 thousand, with an Adjusted EBITDA of $89354 thousand and an Adjusted EBITDA margin of 200%[41] - Net debt leverage ratio as of September 27, 2025, is 23, with a net debt of $210555 thousand and LTM Adjusted EBITDA of $92976 thousand[44] Market Position & Growth Strategy - The company holds the number one share in every subcategory in which it competes[9] - The company has approximately 50% share of the fiberglass category in North America[10] - Fiberglass constitutes 23% of total pool installs, marking a 600 bps increase[11] - Replacement sales account for 51% of liners and covers[13] - The company is expanding its share in the Sand States through new dealer sign-ups, presence in Master Planned Communities, and aligning products with demand[18][19][20] Market Dynamics - The company forecasts new U S pool starts in 2025 to be flat to slightly down compared to 2024 levels[25][29]

Core Insights - Latham Group, Inc. reported a net sales increase of 7.6% in Q3 2025, reaching $161.9 million, driven by higher sales volume from organic growth and acquisitions [6][8] - The company achieved a gross margin expansion of 300 basis points to 35.4%, attributed to operational efficiencies and the benefits from recent acquisitions [5][9] - Latham's net income rose by 37.7% to $8.1 million, with earnings per diluted share increasing to $0.07 from $0.05 in the prior year [8][11] Financial Highlights - **Q3 2025 Results**: - Net sales: $161.9 million, up $11.4 million or 7.6% from $150.5 million in Q3 2024 [6][8] - Gross profit: $57.3 million, a 17.7% increase from $48.7 million in the prior year [9][11] - Adjusted EBITDA: $38.3 million, up 28.5% from $29.8 million in Q3 2024, with a margin of 23.7% [11][12] - **Nine Months 2025 Results**: - Net sales: $446.0 million, a 5.9% increase from $421.2 million in the prior year [12][15] - Gross profit: $154.2 million, up 16.5% from $132.3 million [13][15] - Net income: $18.1 million, a 60.3% increase from $11.3 million [15] Strategic Initiatives - The company is focusing on increasing awareness and adoption of fiberglass pools and autocovers, particularly in the Sand State markets [2][4] - Latham has established partnerships with custom homebuilders in Florida to enhance its market presence [4][21] - The Measure by Latham tool is being developed to support sales growth and customer engagement [19][21] Market Position - Latham's fiberglass pools are projected to account for approximately 75% of its full-year 2025 in-ground pool sales, reflecting strong consumer recognition of their advantages [3][21] - The company expects fiberglass pools to gain an additional percentage point of market share, reaching about 24% of total U.S. in-ground pool sales in 2025 [21] Guidance and Outlook - Latham narrowed its net sales guidance for 2025 to a range of $540-$550 million, representing a 7% growth [20][23] - Adjusted EBITDA guidance was updated to $92-$98 million, indicating a 19% growth at the midpoint [20][23] - Capital expenditure estimates for 2025 were revised to $22-$24 million [20][23]

Financial Performance & Outlook - The company projects net sales for 2025 to be between $535 million and $565 million, representing a year-over-year growth of 8% at the midpoint[24] - Adjusted EBITDA for 2025 is projected to be between $90 million and $100 million, a 19% year-over-year increase at the midpoint[24] - Capital expenditures for 2025 are estimated to be between $27 million and $33 million[24] - In Q1 2025, Adjusted EBITDA was $11.139 million, with a margin of 10.0%, compared to $12.293 million and 11.1% in Q1 2024[38] - Net sales in Q1 2025 were $111.420 million compared to $110.629 million in Q1 2024[38] Market Position & Growth Strategy - The company holds the 1 market share in every subcategory in which it competes[7] - Fiberglass constitutes 75% of the company's in-ground pool sales, while packaged pools make up 25%[9] - Fiberglass accounts for 23% of total pool installs, up 600 bps since 2019[9] - Replacement sales account for 51% of the company's liners and covers sales[11] - The company estimates that approximately 180,000 to 200,000 vinyl liners are replaced annually in the U S[13]

Core Insights - Latham Group, Inc. reported first quarter 2025 net sales of $111.4 million, reflecting a slight increase of 0.7% compared to the same period last year, driven by strong performance in fiberglass pools and autocovers [4][7][29] - The company experienced a net loss of $6.0 million, an improvement from a net loss of $7.9 million in the prior year, indicating a narrowing net loss margin from 7.1% to 5.4% [9][10] - Latham maintains its full-year guidance for 2025, projecting an 8% growth in sales and a 19% increase in adjusted EBITDA at the midpoints, supported by strategic initiatives and market share gains [12][13] Financial Performance - Net sales for the first quarter of 2025 were $111.4 million, up from $110.6 million in the prior year's first quarter [4][29] - Gross profit increased to $32.9 million, a rise of 7.5% from $30.6 million year-over-year, with a gross margin expansion of 190 basis points to 29.5% [4][10] - Adjusted EBITDA for the first quarter was $11.1 million, down 9.4% from $12.3 million in the previous year, with an adjusted EBITDA margin of 10.0% [10][38] Product Line Performance - In-ground swimming pools generated $57.7 million in sales, down from $59.8 million in the prior year [6][29] - Covers sales increased to $31.6 million from $26.9 million, while liners sales decreased to $22.1 million from $23.9 million [6][29] Strategic Initiatives - The company is executing a Sand State expansion strategy aimed at increasing market share in Florida, Texas, Arizona, and California, which are key regions for new pool installations [3][7] - Latham's "GOOTSA" advertising campaign is active in targeted states to enhance consumer awareness and drive sales [3][7] Cost Management - Selling, general, and administrative expenses rose to $30.6 million, an increase of 16.6% from the previous year, primarily due to investments in sales and marketing [8][10] - Lean manufacturing and value engineering initiatives contributed to a 190-basis point increase in gross margin, helping to offset rising SG&A costs [4][10] Balance Sheet and Cash Flow - As of the end of the first quarter, Latham had cash of $24.0 million and total debt of $306.9 million, resulting in a net debt leverage ratio of 3.6 [11][42] - Net cash used in operating activities was $46.9 million, consistent with seasonal working capital requirements [11][35]