Q4 2025 Earnings Call March 3, 2026 Disclaimer Forward-looking Statements 2 Latham: A Compelling Long-term Growth Story Industry leader benefiting from increased adoption of Fiberglass Pools and Autocovers Certain statements in this presentation constitute forward-looking statements under federal securities laws. These forward-looking statements reflect our views with respect to future events and financial performance as of the date of this presentation or otherwise specified herein. Actual events and resul ...

Summary of Latham's Conference Call Company Overview - Latham is a leading producer of inground residential pools, specializing in fiberglass pools, vinyl liners, and pool covers [2][4] - The company is the largest manufacturer of inground swimming pools in North America, Australia, and New Zealand [4] Industry Insights - Fiberglass pools are gaining market share over concrete pools due to lower costs and faster installation [2][12] - The U.S. market for inground pools is currently at 62,000 pools sold in 2024, with expectations of a flat market in 2025 [15][42] - Fiberglass pools represent 23% of all pools installed in the U.S., a number that has increased from 16% in 2019 [14][48] - The company holds a 50% market share in the fiberglass category and is the market leader in other categories with shares of 30-40% [6][7] Growth Strategies - Focus on expanding market share in the "sand states" (Florida, Texas, Arizona, California) where fiberglass pools are underrepresented [4][8] - Strategic priorities include increasing customer awareness, expanding the dealer base, and tailoring products to regional market needs [9][24][30] - The company aims to increase fiberglass pool adoption in the sand states, leveraging demographic similarities to Australia, where fiberglass pools hold a 70% market share [23][24] Financial Performance - The company has implemented restructuring projects to improve operating efficiencies and reduce costs [5][41] - Guidance for 2025 includes an 8% increase in net sales, driven by organic growth and contributions from recent acquisitions [42][43] - EBITDA is projected to increase by 19% compared to 2024, with a target of $95 million in EBITDA for 2025 [44] Market Dynamics - The company has seen a consistent annual conversion rate of 100 basis points towards fiberglass pools [48] - Tariffs are expected to create a $20 million headwind in 2025, but the company has mitigated some of this impact through supply chain strategies and price increases [50][51] - There are no significant cancellations or delays reported, as current installations are based on long-term decisions made by cash buyers [52] Key Takeaways - Latham is well-positioned for growth in the fiberglass pool market, particularly in underrepresented regions - The company is actively managing costs while pursuing strategic growth initiatives - Financial projections indicate a strong outlook for the coming years, despite market challenges and external pressures like tariffs [41][44]