Overview
Pool manufacturer Latham Group's Q4 net sales rose 14.5%, beating analyst expectations
Adjusted EBITDA for Q4 beat estimates, rising significantly year-over-year
Company recently acquired Freedom Pools, expanding market presence in Australia/New Zealand
Outlook
Latham Group expects 2026 net sales growth of 9.0% at the midpoint
Company projects 2026 adjusted EBITDA growth of 12.7% at the midpoint
Latham plans increased branding and marketing investments in Sand States for 2026
Result Drivers
FIBERGLASS POOL SALES - Growth in fiberglass pool sales drove Q4 in-ground pool sales, accounting for 76.5% of total sales in 2025
COVERS AND LINERS - Increased awareness and adoption of covers and liners contributed to sales growth
MARGIN EXPANSION - Margin expansion achieved through higher volumes, lean manufacturing, and value engineering initiatives
Company press release: ID:nGNX48M57d
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Sales | Beat | $100 mln | $96.79 mln (8 Analysts) |
Q4 EPS | -$0.06 | ||
Q4 Net Income | -$7 mln | ||
Q4 Adjusted EBITDA | Beat | $10.50 mln | $7.04 mln (7 Analysts) |
Q4 Gross Margin | 28.00% | ||
Q4 Adjusted EBITDA Margin | 10.50% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the recreational products peer group is "buy"
Wall Street's median 12-month price target for Latham Group Inc is $8.00, about 21.2% above its March 2 closing price of $6.60
The stock recently traded at 40 times the next 12-month earnings vs. a P/E of 41 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)