Hayward raises 2026 profit forecast as Q3 sales rise 6%

Hayward Holdings Inc. (HAYW) raised its full-year 2026 forecast on Oct. 28, after reporting third-quarter net sales of $260.1 million, up 6% from a year earlier.

The company said in a press release furnished with its 8-K filing that it now expects net sales to rise about 5% to 6% in fiscal 2026. Its prior forecast called for growth of about 5%.

The company also raised its adjusted diluted earnings per share forecast to 86 to 88 cents, from the 84 to 87 cents it gave on July 29. That is an increase of about 12% to 14% from fiscal 2025.

Here's how the company did:

• Net sales: $260.1 million vs. $244.3 million a year earlier
• Adjusted diluted EPS: 18 cents vs. 14 cents a year earlier
• Diluted EPS: 15 cents vs. 11 cents a year earlier
• Net income: $32.4 million vs. $24.0 million a year earlier
• Adjusted EBITDA: $64.5 million vs. $59.1 million a year earlier

Adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, excludes certain items the company does not consider part of its core operations.

President and Chief Executive Officer Kevin Holleran said the quarter reflected "disciplined execution and the resilience of our installed base aftermarket business model."

2026 guidance

The company said the raised forecast reflects sales and earnings growth from solid execution, positive price realization and continued technology adoption.

Holleran said early buy orders for the 2027 pool season were ahead of the prior year in North America.

Segment results

North America net sales rose 9% to $226.4 million, primarily due to favorable net pricing that offset inflation and tariffs, along with higher volume. Segment income rose 12% to $61.8 million.

Europe & Rest of World net sales fell 6% to $33.8 million, primarily due to lower volume resulting from geopolitical conflicts in the Middle East. Segment income fell 8% to $5.7 million.

Costs and cash

Gross profit rose 7% to $124.7 million, and gross margin was 47.9%. Selling, general and administrative expense fell 3% to $59.4 million, mainly because the prior-year period included a non-recurring litigation expense.

Research, development and engineering expense rose 21% to $8.6 million. Operating income rose 22% to $50.2 million.

As of Sept. 26, the company had cash and cash equivalents of $236.3 million and short-term investments of $239.2 million. It said net leverage was 1.5 times, the lowest level since its 2021 initial public offering.

Net cash provided by operating activities for the nine months ended Sept. 26 decreased by $57.5 million from a year earlier, the company said. It bought $115.3 million of common stock in the period.