Financial Data and Key Metrics Changes - Net sales increased by 7% to $244 million, driven by a 5% increase in net price and a 2% increase in volume [4][7][15] - Adjusted EBITDA increased by 16% to $59 million, with adjusted EBITDA margin expanding by 170 basis points to 24.2% [4][7][15] - Gross profit margin increased by 150 basis points to 51.2% [4][7][15] - Net leverage reduced to 1.8x, the lowest level in nearly four years [5][19] Business Line Data and Key Metrics Changes - North American net sales increased by 7% to $208 million, with net price realization increasing by 7% and stable volume [16][17] - European and rest of the world net sales increased by 11% to $36 million, with an 8% increase in volume offsetting a 1% reduction in net price realization [17][18] Market Data and Key Metrics Changes - Strong demand trends were reported, particularly in North America and Canada, with Canada seeing over 20% growth [8][27] - The aftermarket model remains resilient, with approximately 85% of sales aligned with serving the aftermarket needs of the existing installed base [8][9] Company Strategy and Development Direction - The company is focused on expanding customer relationships, developing innovative products, and leveraging operational excellence capabilities [5][6] - Investments are being made in advanced engineering and product development, particularly with the introduction of the OmniX automation platform [11][12][34] - The company is also pursuing additional acquisition opportunities in residential and commercial pool sectors [21][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic environment and raised full-year guidance for net sales and adjusted EBITDA [6][22][23] - The company anticipates solid cash flow generation and a conversion of greater than 100% of net income [23] - Management noted that the macroeconomic and tariff environment continues to evolve, but they remain positive about the long-term growth outlook for the pool industry [24][23] Other Important Information - The company is implementing AI tools to enhance customer service, with new AI agents resolving approximately 80% of inbound calls without human intervention [14][13] - The company has authorized a share repurchase program of up to $450 million over three years [21][22] Q&A Session Summary Question: Demand trends since July and upside in Q3 - Management noted strong sales out demand, particularly in September, and highlighted improved performance in Canada and Europe [26][27][28] Question: Early buy program and price increase reception - The early buy program is tracking well, with discounts offered to mitigate price increases due to inflation and tariffs [29][30] Question: Investments in new products and their impact on sales - The company is making targeted investments in new product development, particularly in technology and innovation, which is expected to drive future sales [33][34] Question: Impact of private label competition - Management believes that their loyal dealer base will continue to appreciate the value proposition of Hayward products despite competition from lower-priced alternatives [40][41] Question: Increase in cash flow guidance - The increase in cash flow guidance is attributed to improved EBITDA, project timing, and working capital management [43][44] Question: International market margin improvements - European margins improved due to stabilization of production capabilities and a cumulative tariff refund [74][75] Question: Tariff refunds and supply chain realignment - The company is actively pursuing tariff refunds and has made significant progress in reducing exposure to China [82][84]

Financial Data and Key Metrics Changes - Net sales increased by 7% to $244 million, driven by a 5% increase in net price and a 2% increase in volume [4][7][15] - Adjusted EBITDA increased by 16% to $59 million, with an adjusted EBITDA margin of 24.2%, up 170 basis points [4][7][15] - Gross profit margin expanded by 150 basis points to 51.2% [4][15] - Cash flow from operations year-to-date was $283 million, compared to $276 million in the previous year [20] Business Line Data and Key Metrics Changes - North American net sales increased by 7% to $208 million, with a 7% increase in net price realization and stable volume [16][17] - European and rest of the world net sales increased by 11% to $36 million, with an 8% increase in volume offsetting a 1% reduction in net price realization [17][18] - Adjusted segment income margins in Europe increased to 18.5% from 8.4% a year ago [18] Market Data and Key Metrics Changes - Strong demand trends were reported, particularly in Canada, which saw over 20% growth [28] - The U.S. market experienced improved out-the-door sales growth rates for Hayward products, especially in September [8][26] - The aftermarket model remains resilient, with approximately 85% of sales aligned with serving existing installed base needs [8][9] Company Strategy and Development Direction - The company is focusing on expanding customer relationships, developing innovative products, and leveraging operational excellence [5][6] - Strategic initiatives include tariff mitigation actions and investments in advanced engineering and product development [11][12] - The company is also pursuing additional acquisition opportunities in residential and commercial pool sectors [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic environment and raised full-year guidance for net sales and adjusted EBITDA [6][22] - The company expects net sales to increase approximately 4% to 5.5% for the full year, with adjusted EBITDA projected to increase by 5% to 7% [22][23] - Management noted that the macroeconomic and tariff environment continues to evolve, but they remain positive about long-term growth in the pool industry [24] Other Important Information - The company has reduced net leverage to 1.8 times, the lowest level in nearly four years, providing enhanced financial flexibility [5][19] - The board authorized a share repurchase program of up to $450 million over three years [21] Q&A Session Summary Question: How did the season progress since July, and where did you see the upside in the third quarter? - Management noted strong sales out demand, particularly in September, and highlighted improved performance in Canada and Europe [26][28] Question: How do you think about the early buy program relative to the market being flat? - Management indicated that the early buy program is tracking expectations and that they are managing price increases carefully to mitigate inflation impacts [30][31] Question: Can you discuss your investments in new products and how they are impacting sales? - Management emphasized targeted investments in engineering and new product development, particularly with the OmniX platform, which is expected to drive future growth [34][36] Question: What are your capital allocation priorities moving forward? - Management stated that they will focus on organic capex, M&A opportunities, and share repurchases, with an emphasis on automation and supply chain improvements [49][50] Question: How are you addressing the impact of tariffs and supply chain realignment? - Management reported significant progress in reducing exposure to China and successfully applying for tariff refunds, which positively impacted margins [82][84]

Financial Data and Key Metrics Changes - Net sales increased by 7% to $244 million, driven by a 5% increase in net price and a 2% increase in volume [6][14] - Adjusted EBITDA increased by 16% to $59 million, with an adjusted EBITDA margin of 24.2%, up 170 basis points [6][14] - Gross profit margin expanded by 150 basis points to 51.2% [6][14] - Cash flow generation was strong, reducing net leverage to 1.8 times, the lowest level in nearly four years [5][18] Business Line Data and Key Metrics Changes - North American net sales increased by 7% to $208 million, with a 7% increase in net price realization and stable volume [15][16] - European and rest of the world net sales increased by 11% to $36 million, with an 8% increase in volume offsetting a 1% reduction in net price realization [16][17] - Adjusted segment income margins in Europe increased to 18.5% from 8.4% a year ago [17] Market Data and Key Metrics Changes - Strong demand trends were reported, particularly in Canada, which saw a 21% increase in net sales [16][26] - The U.S. market experienced improved out-the-door sales growth rates for Hayward products, particularly in September [7][25] - The aftermarket model remains resilient, with approximately 85% of sales aligned with serving the aftermarket needs of the existing installed base [7][8] Company Strategy and Development Direction - The company is focused on expanding customer relationships, developing innovative products, and leveraging operational excellence [5][10] - Investments are being made in advanced engineering and product development, particularly with the introduction of the OmniX automation platform [10][11] - The company is actively pursuing acquisition opportunities in residential and commercial pool markets to augment organic growth [19][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic environment and raised full-year guidance for net sales and adjusted EBITDA [5][21] - The company expects net sales to increase approximately 4% to 5.5% for the full year, with adjusted EBITDA projected to increase by 5% to 7% [21][22] - Management noted that the tariff environment remains uncertain but emphasized ongoing tariff mitigation actions [9][75] Other Important Information - The company authorized a share repurchase program of up to $450 million over three years [19] - Year-to-date cash flow from operations was $283 million, reflecting improved profitability and working capital management [19] Q&A Session Summary Question: How did the season progress since July, and where did you see the upside in the third quarter? - Management noted strong sales out demand, particularly in September, and highlighted improved performance in Canada [25][26] Question: How do you think about the early buy program relative to the market being flat? - The early buy program is tracking expectations, and the company aims to level load factories while managing price increases due to inflation and tariffs [29][30] Question: Can you discuss your investments in new products and their impact on sales? - The company is making targeted investments in engineering and new product development, with a focus on technology and innovation [31][32] Question: What are your capital allocation priorities moving forward? - The company plans to increase CapEx for automation and supply chain improvements while also considering M&A opportunities [41][45] Question: How do you view the impact of the recent tariff refunds on margins? - The company received a cumulative tariff refund that positively impacted margins, and it will continue to pursue eligible tariff refunds [73][75]

THIRD QUARTER 2025 EARNINGS October 29, 2025 © 2025 Hayward Holdings, Inc. EIFION JONES Senior Vice President and Chief Financial Officer KEVIN MACZKA Vice President of Investor Relations and FP&A NYSE: HAYW 2 © 2025 Hayward Holdings, Inc. 2 Forward-Looking Statements and Non-GAAP Financial Measures 1 THIRD QUARTER 2025 EARNINGS CALL KEVIN HOLLERAN President and Chief Executive Officer Non-GAAP Financial Measures This presentation includes certain financial measures not presented in accordance with the gene ...

Financial Data and Key Metrics Changes - Net sales increased by 5% to approximately $300 million, driven by a 5% increase in net price realization, a 2% decrease in volume, and a 2% contribution from the Core King acquisition [7][18] - Gross profit margins reached a record 52.7%, with adjusted EBITDA margin increasing to 29.5%, marking the tenth consecutive quarter of year-over-year gross margin expansion [6][11] - Net leverage was significantly reduced to 2.1 times, the lowest level in over three years, providing enhanced financial flexibility [6][23] Business Line Data and Key Metrics Changes - North American net sales increased by 6% to $255 million, driven by a 6% net price realization and a 3% contribution from the Clor King acquisition [20] - In Europe and Rest of World, net sales increased by 3% to $44 million, with a 1% contribution from favorable net pricing and a 3% favorable foreign currency translation [22] Market Data and Key Metrics Changes - End demand improved in June, resulting in customer orders generally aligning with normal seasonal patterns for the quarter [8] - Nondiscretionary aftermarket maintenance demand remained resilient, while discretionary elements of the market faced pressure [8][27] Company Strategy and Development Direction - The company is focused on mitigating tariff impacts while supporting margins and fulfilling commitments to shareholders and customers [6][12] - Investments are being made in advanced engineering and new product development to drive future growth, particularly in high-growth regions [11][25] - The company aims to increase its presence in the commercial pool business, which has seen significant growth post-acquisition of Clor King [10][87] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic environment and refined guidance for full-year 2025, expecting net sales to increase approximately 2% to 5% [7][26] - The company anticipates solid cash flow generation in 2025, with a conversion of greater than 100% of net income [27] Other Important Information - The company has authorized a share repurchase of up to $450 million over three years [25][94] - The tariff environment remains uncertain, with an estimated total annualized tariff impact of approximately $30 million [13][14] Q&A Session Summary Question: Outlook for gross margin in the second half - Management highlighted that the strong Q2 gross margin performance was driven by productivity improvements and product line rationalization, with expectations for continued margin protection despite potential percentage moderation [34][37] Question: New pool market outlook - Management expects modestly down pool data for the year but sees potential for improvement as interest rates and the housing market stabilize [39][42] Question: Guidance adjustments and volume outlook - The company adjusted its volume outlook to reflect stronger performance, with expectations for a negative 1% overall on volume [46][48] Question: SG&A increase and future expectations - The increase in SG&A is attributed to targeted investments in engineering and customer care, with a goal to leverage SG&A as a percentage of sales in the medium term [56][57] Question: Trends in sell-in versus sell-through - Management noted that Q2 saw a strong sell-through, with healthy order profiles and expectations for normal inventory levels as the season progresses [63][65] Question: Repair versus replace dynamics - There is a noticeable trend towards repairing equipment rather than replacing it, driven by economic pressures [66][68] Question: M&A pipeline and opportunities - The company has a healthy pipeline of M&A opportunities, focusing on both domestic and international bolt-on acquisitions [88][90]

Financial Performance - Net sales for Q1 2025 reached $228.8 million, an increase of 8% year-over-year[8, 10] - Gross profit margin increased by 30 bps year-over-year to 49.5%[10] - Adjusted EBITDA for Q1 2025 was $49.1 million, up 9% year-over-year[10] - Adjusted diluted EPS increased by 25% year-over-year to $0.10[10] Tariff Impact and Mitigation - The company estimates an annualized tariff impact of approximately $85 million, with $30 million expected for FY'25[15] - Mitigation plans include reducing China direct sourcing to the US from ~10% to ~3% of COGS by year-end 2025[13] - Implemented a 3% price increase in North America effective April and 4% effective June[15] Strategic Initiatives - Launched OmniX, an innovative wireless solution targeting the aftermarket with a total addressable market (TAM) of ~3.5 million non-automated pools in the US[16, 18] - Net leverage is at 2.8x during a seasonally low cash collection period[8] Financial Outlook - The company confirms full-year 2025 guidance with net sales projected between $1.060 billion and $1.100 billion[8, 39] - Adjusted EBITDA is expected to be between $280 million and $290 million[39] - Free cash flow is projected to be approximately $150 million, exceeding 100% of net income[39]