FIRST QUARTER FISCAL 2026 SUMMARY
-- Net Sales increased 12% year-over-year to $255.2 million -- Net Income increased 63% year-over-year to $23.4 million -- Adjusted EBITDA* increased 15% year-over-year to $56.4 million -- Diluted earnings per share (EPS) increased 83% year-over-year to $0.11 -- Adjusted diluted EPS* increased 30% year-over-year to $0.13 CHARLOTTE, N.C.--(BUSINESS WIRE)--April 29, 2026--
Hayward Holdings, Inc. (NYSE: HAYW) ("Hayward," the "Company," "we," "us, " or "our"), a leading global specialty water management company focused on designing and manufacturing pool and outdoor living technology and industrial flow control products, today announced financial results for the first quarter of fiscal year 2026, ended March 28, 2026. Comparisons are to financial results for the prior-year first fiscal quarter.
CEO COMMENTS
"Hayward delivered an outstanding first quarter highlighted by double-digit net sales growth and increased profitability," said Kevin Holleran, Hayward's President and Chief Executive Officer. "Net sales increased 12% year-over-year, primarily driven by further strong price realization and positive volume growth, underscoring the strength of our predominantly installed base aftermarket business model and disciplined execution of our strategic initiatives. We achieved another quarter of margin expansion while making targeted investments in new product innovation and customer service. Based on our strong start to the year, we are increasing our full year guidance and remain confident in our ability to deliver continued profitable growth and stockholder value."
FIRST QUARTER FISCAL 2026 CONSOLIDATED RESULTS
Net sales increased by 12% to $255.2 million for the first quarter of fiscal 2026. The increase in net sales during the quarter was driven by positive net price to offset inflation and tariffs, the favorable impact from foreign currency translation, and an increase in volume.
Gross profit increased by 13% to $118.7 million for the first quarter of fiscal 2026. Gross profit margin increased by 50 basis points to 46.5% primarily due to positive net price and operating efficiencies, partially offset by an increase in cost of sales driven by tariffs and inflation.
Selling, general, and administrative expense ("SG&A") increased by 10% to $62.6 million for the first quarter of fiscal 2026. The increase in SG&A was mainly attributable to the timing of certain sales expenses during the year, incremental advertising expense for trade shows and new customers, and increased software costs. As a percentage of net sales, SG&A decreased to 24.5% for the first quarter of fiscal 2026 as compared to 24.9% in the prior-year period, a decrease of 40 basis points, as the growth in net sales exceeded the growth in SG&A.
Research, development, and engineering expense ("RD&E") increased by 13% to $6.8 million for the first quarter of fiscal 2026. The increase was primarily driven by investments in new product development and new product performance improvements. As a percentage of net sales, RD&E remained relatively consistent as 2.6% for both the first quarters of fiscal 2026 and 2025.
Operating income increased by 27% to $42.5 million for the first quarter of fiscal 2026, due to the aggregated effects of the items described above. Operating income as a percentage of net sales was 16.6% for the first quarter of fiscal 2026, a 200 basis point increase compared to 14.6% in the prior-year period.
Interest expense, net, decreased by 16% to $11.5 million for the first quarter of fiscal 2026, primarily due to higher interest income on cash deposits and decreased net interest expense on bank debt.
Net income increased by 63% to $23.4 million for the first quarter of fiscal 2026. Net income margin increased by 290 basis points to 9.2%. Adjusted net income* increased by 35% to $29.8 million for the first quarter of fiscal 2026. Adjusted net income margin* increased by 200 basis points to 11.7%.
Adjusted EBITDA* increased by 15% to $56.4 million for the first quarter of fiscal 2026 compared to $49.1 million in the prior-year period. Adjusted EBITDA margin* increased by 60 basis points to 22.1%.
Diluted EPS increased by 83% to $0.11 for the first quarter of fiscal 2026. Adjusted diluted EPS* increased by 30% to $0.13 for the first quarter of fiscal 2026.
FIRST QUARTER FISCAL 2026 SEGMENT RESULTS
North America ("NAM")
Net sales increased by 12% to $209.8 million for the first quarter of fiscal 2026. The increase was driven by positive net price to offset inflation and tariffs, an increase in volume, and the favorable impact from foreign currency translation.
Segment income increased by 16% to $50.5 million for the first quarter of fiscal 2026. Adjusted segment income* increased by 13% to $57.3 million.
Europe & Rest of World ("E&RW")
Net sales increased by 9% to $45.4 million for the first quarter of fiscal 2026. The increase was primarily due to the favorable impact of foreign currency translation and positive net price, partially offset by a modest decrease in volume.
Segment income increased by 27% to $8.3 million for the first quarter of fiscal 2026. Adjusted segment income* increased by 26% to $8.8 million.
BALANCE SHEET AND CASH FLOW
As of March 28, 2026, Hayward had cash and cash equivalents of $135.8 million, short-term investments of $94.9 million and $186.6 million available for future borrowings under its revolving credit facilities. Net cash used in operating activities for the three months ended March 28, 2026 increased by $144.8 million from the three months ended March 29, 2025. The increase in cash used was primarily driven by higher accounts receivable, largely because there were no sales under the Receivables Purchase Agreement in the current period, whereas the prior year period included the sale of $100.0 million of accounts receivable.
OUTLOOK
Hayward is increasing its full year 2026 guidance reflecting continued sales and earnings growth driven by solid execution across the organization, positive price realization and continued technology adoption. For Fiscal Year 2026, Hayward now expects net sales to increase approximately 5% from Fiscal Year 2025, compared to our prior guidance of approximately 4%. We now expect adjusted diluted earnings per share* of $0.84 to $0.87, an increase of approximately 9% to 13% from Fiscal Year 2025, compared to our prior guidance of $0.82 to $0.86.
Hayward is excited about the long-term dynamics of the pool industry. The installed base of pools increases every year, providing continued growth opportunities, and the Company benefits from favorable secular demand trends in outdoor living, sunbelt migration, and technology adoption. Hayward continues to leverage its competitive advantages and drive increasing adoption of its leading SmartPad$(TM)$ pool equipment products both in new construction and the aftermarket, which represents approximately 85% of net sales. Hayward is confident in its long-term outlook for profitable growth and robust cash flow generation, driven by its technology leadership, operational excellence, strong brand and installed base, and multi-channel capabilities.
Please see the Forward-Looking Statements section of this release for a discussion of certain risks relevant to Hayward's outlook.
CONFERENCE CALL INFORMATION
Hayward will hold a conference call to discuss the results today, April 29, 2026 at 9:00 a.m. $(ET)$.
Interested investors and other parties can listen to a webcast of the live conference call by logging on to the Investor Relations section of the Company's website at https://investor.hayward.com/events-and-presentations/default.aspx. An earnings presentation will be posted to the Investor Relations section of the Company's website prior to the conference call.
The conference call can also be accessed by dialing (877) 423-9813 or (201) 689-8573.
For those unable to listen to the live conference call, a replay will be available approximately three hours after the call through the archived webcast on the Hayward website or by dialing (844) 512-2921 or (412) 317-6671. The access code for the replay is 13759829. The replay will be available until 11:59 p.m. Eastern Time on May 13, 2026.
ABOUT HAYWARD HOLDINGS, INC.
Hayward Holdings, Inc. (NYSE: HAYW) is a leading global specialty water management company focused on designing and manufacturing pool and outdoor living technology and industrial flow control products. Driven by a mission to transform the experience of water, Hayward offers a comprehensive portfolio of energy--efficient and sustainable pool equipment--including pumps, heaters, sanitizers, filters, LED lighting, water features, and cleaners--integrated through its intuitive, IoT--enabled SmartPad(TM) platform. The Company also provides industrial thermoplastic valves and process control products serving a wide range of applications.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This earnings release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act") and rules and regulations of the Securities and Exchange Commission ("SEC"). Forward-looking statements include, without limitation, statements regarding our plans, strategies, objectives, expectations, intentions, outlook, expenditures, guidance, targets, and assumptions, as well as other statements that are not historical facts. Forward-looking statements are based on management's current beliefs, assumptions, expectations, and information available at the time the statements are made. Words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "intend," "may," "outlook," "plan," "potential," "predict," "project," "seek," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these words. These statements are made in reliance upon the safe harbor provisions of the Act. However, forward-looking statements are subject to risks, uncertainties, and other factors, many of which are beyond our control, that could cause actual results to differ materially from those expressed or implied by such statements. Readers are cautioned not to place undue reliance on forward-looking statements. We undertake no obligation to publicly update, revise, or correct any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable federal securities laws. Forward-looking statements should be read in conjunction with the risk factors and other cautionary statements, including those described under the heading "Risk Factors" in our most recent Annual Report on Form 10-K and other filings with the SEC.
Important factors that could cause actual results to differ materially include, but are not limited to, the following:
-- our business depends on the performance of distributors, builders,
buying groups, retailers and servicers;
-- the demand for our products may be adversely affected by unfavorable
economic and business conditions;
-- we operate in markets with high levels of competition;
-- our future success depends on developing, manufacturing and attaining
market adoption of new products and maintaining product quality and
reliability;
-- our ability to keep pace with rapidly evolving technological
developments and standards, including artificial intelligence , and
effectively develop and deploy such technologies;
-- our results of operations and cash flows may fluctuate from quarter to
quarter;
-- a loss of, or material cancellation, reduction or delay in purchases by
one or more of our largest customers;
-- our exposure to credit risk on our accounts receivable;
-- risks arising from our international business operations;
-- past growth may not be indicative of future growth;
-- our inability to identify, finance and complete suitable acquisitions;
-- negative impacts of litigation and other claims;
-- future impairment of our goodwill and intangible assets;
-- exchange rate fluctuations, cost increases and other inflation, changes
in our effective tax rate or exposure to additional income tax
liabilities;
-- our ability to attract, develop and retain highly qualified personnel,
including key members of management;
-- disruptions in the financial markets;
-- significant disruption or breach of our technology infrastructure or
that of our vendors or third parties, or failure to maintain the security
of confidential information;
-- difficulties in operating or implementing the new ERP system or human
resources information system;
-- misuse of our technology-enabled products;
-- failure to maintain an effective system of internal controls;
-- dependence on key suppliers, including single-source suppliers and
sole-source suppliers;
-- ability to manage product inventory in an effective and efficient
manner;
-- product manufacturing disruptions, including as a result of
catastrophic or other events beyond our control;
-- tariffs and other trade restrictions and the cost of raw materials;
-- compliance with, and potential liabilities under, employment,
environmental, health, transportation, safety and other governmental laws
and regulations;
-- risks related to our handling of personal information;
-- our employees, commercial partners and vendors may engage in misconduct
or other improper activities;
-- violations of the U.S. Foreign Corrupt Practices Act, the U.K. Bribery
Act, and other anti-corruption laws;
-- our failure to comply with international trade compliance regulations,
and changes in U.S. government sanctions;
-- changes in laws, regulations, government policies or regulatory
interpretations;
-- climate change and legal or regulatory responses thereto, and
increasing scrutiny from stakeholders on environmental, social and other
sustainability matters;
-- our ability to obtain, maintain and enforce our intellectual property
and proprietary rights;
-- protection of our trademarks or trade names;
-- our reliance on access to intellectual property owned by third
parties;
-- claims that our employees, consultants or advisors have wrongfully used
or disclosed alleged trade secrets or other proprietary information or
claims asserting ownership of intellectual property that we regard as our
own;
-- our ability to enforce our intellectual property rights in all
jurisdictions;
-- other risks related to our indebtedness, corporate structure and
ownership of our common stock; and
-- other factors described in the Risk Factors section of our Annual
Report on Form 10-K for the year ended December 31, 2025.
Many of these factors are beyond our control. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, actual results, performance, or achievements may differ materially from those expressed or implied by forward-looking statements in this earnings release. The forward-looking statements included in this earnings release speak only as of the date of this release.
*NON-GAAP FINANCIAL MEASURES
This earnings release includes certain financial measures not presented in accordance with the generally accepted accounting principles in the United States ("GAAP"), including adjusted net income, adjusted net income margin, adjusted basic EPS, adjusted diluted EPS, EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted segment income and adjusted segment income margin. These financial measures are not measures of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing the Company's financial results. Hayward believes these non-GAAP measures provide analysts, investors and other interested parties with additional insight into the underlying trends of its business and assist these parties in analyzing the Company's performance across reporting periods on a consistent basis by excluding items that it does not believe are indicative of its core operating performance, which allows for a better comparison against historical results and expectations for future performance. Management uses these non-GAAP measures to understand and compare operating results across reporting periods for various purposes including internal budgeting and forecasting, short and long-term operating planning, employee incentive compensation, and debt compliance. These measures should not be considered in isolation or as an alternative to net income, segment income or other measures of profitability, performance or financial condition under GAAP. You should be aware that the Company's presentation of these measures may not be comparable to similarly titled measures used by other companies, which may be defined and calculated differently. See the appendix for a reconciliation of historical non-GAAP measures to the most directly comparable GAAP measures.
Reconciliation of full fiscal year 2026 adjusted diluted earnings per share outlook to diluted earnings per share is not being provided, as Hayward does not currently have sufficient data to accurately estimate the variables and individual adjustments for such reconciliation. The outlook for adjusted diluted earnings per share for full year 2026 is calculated in a manner consistent with the historical presentation of these measures, as shown in the appendix.
Hayward Holdings, Inc.
Unaudited Condensed Consolidated Balance Sheets
(Dollars in thousands. except per share data)
March 28, 2026 December 31, 2025
---------------- ---------------------
Assets
Current assets
Cash and cash equivalents $ 135,794 $ 329,648
Short-term investments 94,935 69,462
Accounts receivable, net of
allowances of $1,614 and
$1,931, respectively 430,878 280,161
Inventories, net 229,032 210,739
Prepaid expenses 14,702 19,500
Income tax receivable -- 656
Other current assets 42,927 41,080
----------- --------------
Total current assets 948,268 951,246
Property, plant, and
equipment, net of
accumulated depreciation of
$130,634 and $125,807,
respectively 165,466 164,560
Goodwill 949,778 951,197
Trademark 736,000 736,000
Customer relationships, net 172,865 178,126
Other intangibles, net 85,854 88,899
Other non-current assets 77,352 80,956
----------- --------------
Total assets $ 3,135,583 $ 3,150,984
=========== ==============
Liabilities and Stockholders'
Equity
Current liabilities
Current portion of
long-term debt $ 11,053 $ 13,261
Accounts payable 86,097 77,007
Accrued expenses and other
liabilities 178,408 224,222
Income taxes payable 15,231 8,754
----------- --------------
Total current liabilities 290,789 323,244
Long-term debt, net 942,756 943,547
Deferred tax liabilities,
net 227,734 227,449
Other non-current
liabilities 62,570 63,736
----------- --------------
Total liabilities 1,523,849 1,557,976
Stockholders' equity
Preferred stock, $0.001 par
value, 100,000,000
authorized, no shares issued
or outstanding as of March
28, 2026 and December 31,
2025 -- --
Common stock $0.001 par
value, 750,000,000
authorized; 246,928,772
issued and 217,662,403
outstanding at March 28,
2026; 246,272,783 issued and
217,356,414 outstanding at
December 31, 2025 247 247
Additional paid-in capital 1,113,530 1,109,522
Common stock in treasury;
29,266,369 and 28,916,369 at
March 28, 2026 and December
31, 2025, respectively (370,720) (363,182)
Retained earnings 874,493 851,134
Accumulated other
comprehensive loss (5,816) (4,713)
----------- --------------
Total stockholders'
equity 1,611,734 1,593,008
----------- --------------
Total liabilities and
stockholders' equity $ 3,135,583 $ 3,150,984
=========== ==============
Hayward Holdings, Inc.
Unaudited Condensed Consolidated Statements of Operations
(Dollars in thousands, except per share data)
Three Months Ended
----------------------------------
March 28, 2026 March 29, 2025
---------------- ----------------
Net sales $ 255,216 $ 228,841
Cost of sales 136,515 123,588
------------ ------------
Gross profit 118,701 105,253
Selling, general and administrative
expense 62,586 56,995
Research, development and engineering
expense 6,756 5,986
Acquisition and restructuring related
expense 505 1,926
Amortization of intangible assets 6,366 6,835
------------ ------------
Operating income 42,488 33,511
------------ ------------
Interest expense, net 11,507 13,651
Loss on debt extinguishment 201 --
Other expense, net 666 1,179
------------ ------------
Total other expense 12,374 14,830
------------ ------------
Income from operations before income
taxes 30,114 18,681
Provision for income taxes 6,755 4,348
------------ ------------
Net income $ 23,359 $ 14,333
============ ============
Earnings per share
Basic $ 0.11 $ 0.07
Diluted $ 0.11 $ 0.06
Weighted average common shares
outstanding
Basic 217,359,824 215,962,018
Diluted 222,423,409 221,851,399
Hayward Holdings, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(Dollars in thousands)
Three Months Ended
------------------------------------
March 28, 2026 March 29, 2025
---------------- ------------------
Cash flows from operating
activities
Net income $ 23,359 $ 14,333
Adjustments to reconcile net
income to net cash used in
operating activities
Depreciation 5,949 6,263
Amortization of intangible
assets 8,181 8,535
Amortization of deferred debt
issuance fees 826 837
Stock-based compensation 3,624 2,935
Deferred income taxes
(benefit) (273) (709)
Allowance for credit losses (282) (5)
Loss on sale/disposal of
property, plant and
equipment 689 11
Changes in operating assets
and liabilities
Accounts receivable (151,601) (13,931)
Inventories (18,915) (14,977)
Other current and
non-current assets 6,174 7,918
Accounts payable 9,220 13,519
Accrued expenses and other
liabilities (37,588) (30,579)
----------- -----------
Net cash used in operating
activities (150,637) (5,850)
----------- -----------
Cash flows from investing
activities
Purchases of property, plant,
and equipment (7,132) (5,517)
Software development costs (152) (595)
Proceeds from sale of
property, plant, and
equipment -- 1
Purchases of short-term
investments (84,880) --
Proceeds from short-term
investments 60,000 --
----------- -----------
Net cash used in investing
activities (32,164) (6,111)
----------- -----------
Cash flows from financing
activities
Payments of long-term debt (3,384) (590)
Payments of short-term notes
payable -- (1,788)
Purchase of common stock (5,851) --
Taxes paid for net share
settlement of equity awards (1,687) (993)
Other, net (43) (364)
----------- -----------
Net cash used in financing
activities (10,965) (3,735)
----------- -----------
Effect of exchange rate changes on
cash and cash equivalents (88) 440
----------- -----------
Change in cash and cash
equivalents (193,854) (15,256)
Cash and cash equivalents,
beginning of period 329,648 196,589
----------- -----------
Cash and cash equivalents, end of
period $ 135,794 $ 181,333
=========== ===========
Supplemental disclosures of cash
flow information:
Cash paid-interest $ 9,248 $ 9,826
Cash paid-income taxes, net of
refunds (126) 151
Non-cash investing and financing
activities:
Accrued and unpaid purchases of
property, plant, and equipment 1,891 2,232
Equipment financed under finance
leases -- 103
Reconciliations
Consolidated Reconciliations
Net Income and Net Income Margin to Adjusted EBITDA and Adjusted EBITDA Margin Reconciliations (Non-GAAP)
Following is a reconciliation from net income and net income margin to adjusted EBITDA and adjusted EBITDA margin:
(Dollars in thousands) Three Months Ended
--------------------------------------
March 28, 2026 March 29, 2025
------------------ ------------------
Net income $ 23,359 $ 14,333
Depreciation 5,949 6,263
Amortization 8,181 8,535
Interest expense, net 11,507 13,651
Income taxes 6,755 4,348
Loss on debt extinguishment 201 --
--------- --- --------- ---
EBITDA 55,952 47,130
--------- --- --------- ---
Stock-based compensation (a) -- 46
Currency exchange items (b) (76) (6)
Acquisition and restructuring
related expense, net (c) 505 1,926
Other (d) -- 6
--------- --- --------- ---
Total Adjustments 429 1,972
--------- --- --------- ---
Adjusted EBITDA $ 56,381 $ 49,102
========= === ========= ===
Net income margin 9.2% 6.3%
Adjusted EBITDA margin 22.1% 21.5%
(a) Represents non-cash stock-based compensation expense related to equity
awards issued to management, employees, and directors. The adjustment
includes only expense related to awards issued under the 2017 Equity
Incentive Plan, which were awards granted prior to the effective date
of Hayward's initial public offering (the "IPO").
(b) Represents unrealized non-cash (gains) losses on foreign denominated
monetary assets and liabilities and foreign currency contracts.
(c) Adjustments in the three months ended March 28, 2026 were primarily
driven by $0.5 million of costs related to termination benefits
associated with the restructuring of several teams. Adjustments in the
three months ended March 29, 2025 were primarily driven by $1.7 million
of transaction and integration costs associated with the acquisition of
the business of ChlorKing HoldCo., LLC and related entities
("ChlorKing") and $0.2 million of separation costs for the
consolidation of operations in North America.
(d) Adjustments in the three months ended March 29, 2025 were primarily
driven by losses on the sale of assets.
Following is a reconciliation from net income and net income margin to adjusted EBITDA and adjusted EBITDA margin for the last 12 months:
(Dollars in thousands) Last Twelve Months(e) Fiscal Year
------------------------- ---------------------
March 28, 2026 December 31, 2025
------------------------- ---------------------
Net income $ 160,596 $ 151,570
Depreciation 22,521 22,835
Amortization 34,097 34,451
Interest expense, net 48,138 50,282
Income taxes 35,474 33,067
Loss on debt
extinguishment 201 --
--- -------------- ---- ------------ ---
EBITDA 301,027 292,205
Stock-based
compensation (a) 11 57
Currency exchange
items (b) 9 79
Acquisition and
restructuring related
expense, net (c) 2,465 3,886
Other (d) 3,046 3,052
--- -------------- ---- ------------ ---
Total Adjustments 5,531 7,074
--- -------------- ---- ------------ ---
Adjusted EBITDA $ 306,558 $ 299,279
=== ============== ==== ============ ===
Net income margin 14.0% 13.5%
Adjusted EBITDA margin 26.7% 26.7%
(a) Represents non-cash stock-based compensation expense related to equity
awards issued to management, employees, and directors. The adjustment
includes only expense related to awards issued under the 2017 Equity
Incentive Plan, which were awards granted prior to the effective date
of the IPO.
(b) Represents unrealized non-cash (gains) losses on foreign denominated
monetary assets and liabilities and foreign currency contracts.
(c) Adjustments in the last 12 months ended March 28, 2026 were primarily
driven by $1.6 million of compensation expenses for the retention of
key employees acquired in the ChlorKing acquisition. Pursuant to the
ChlorKing acquisition agreement, the full amount held in escrow was
released to the specified key employees if such employees were employed
by Hayward on the one-year anniversary of the acquisition. These
payments were contingent on continued employment and were not dependent
on the achievement of any metric or performance measure. The retention
costs were recognized over the 12-month period from the date of
acquisition. Other adjustments include $0.5 million of costs related to
termination benefits associated with the restructuring of several
teams, $0.4 million of costs related to restructuring actions in E&RW
and $0.2 million of other acquisition and integration costs, partially
offset by a reduction in expense of $0.2 million to finalize the
relocation of the Company's corporate office functions to Charlotte,
North Carolina from Berkeley Heights, New Jersey. Adjustments in the
year ended December 31, 2025 were primarily driven by $3.1 million of
compensation expenses for the retention of key employees acquired in
the ChlorKing acquisition pursuant to the conditions in the acquisition
agreement discussed above. Other adjustments for the year ended
December 31, 2025 include $0.4 million of costs related to
restructuring actions in E&RW, $0.3 million of separation costs for the
consolidation of operations in North America and $0.2 million of other
acquisition and integration costs, partially offset by a reduction in
expense of $0.2 million to finalize the relocation of the Company's
corporate office functions to Charlotte, North Carolina from Berkeley
Heights, New Jersey.
(d) Adjustments in the last 12 months ended March 28, 2026 were primarily
driven by $4.3 million for the settlement in principle of the
securities class action litigation. Expenses beyond the $4.3 million
related to this case are subject to insurance recoveries pursuant to
the Company's retention amount with its insurance carriers. Other
adjustments include $1.3 million of income from insurance proceeds
related to flood damage associated with a hurricane at a contract
manufacturing facility, partially offset by losses on the sale of
assets. Adjustments in the year ended December 31, 2025 were primarily
driven by $4.3 million for the settlement in principle of the
securities class action litigation. Expenses beyond the $4.3 million
related to this case are subject to insurance recoveries pursuant to
the Company's retention amount with its insurance carriers. Other
adjustments include $1.3 million of income from insurance proceeds
related to flood damage associated with a hurricane at a contract
manufacturing facility.
(e) Items for the last 12 months ended March 28, 2026 were calculated by
adding the items for the three months ended March 28, 2026 plus fiscal
year ended December 31, 2025 and subtracting the items for the three
months ended March 29, 2025.
Net Income, Net Income Margin and Diluted EPS to Adjusted Net Income, Adjusted Net Income Margin and Adjusted EPS Reconciliations (Non-GAAP)
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