Hayward Raises 2026 Outlook After Q3 Sales Rise 6%

Hayward Holdings, Inc. (NYSE: HAYW) increased its full-year 2026 outlook after third-quarter sales rose 6% and adjusted diluted earnings per share increased 29%, supported by higher pricing, modest volume growth and resilient demand for aftermarket pool equipment.

The company now expects 2026 net sales to increase 5% to 6% year over year, compared with its previous forecast of approximately 5% growth. Adjusted diluted EPS is projected at $0.86 to $0.88, representing growth of about 12% to 14%, versus prior guidance of $0.84 to $0.87. Hayward continues to expect approximately $200 million of free cash flow, exceeding 100% of net income.

The outlook assumes about $47 million of net interest expense, an effective tax rate of approximately 24% and capital expenditures of roughly $40 million. It also reflects tariffs enacted as of October 23, 2026.

Pricing and volume lift quarterly sales

Third-quarter net sales reached $260.1 million, with net price contributing five percentage points of growth and volume adding one point. Foreign-exchange effects were approximately neutral. Hayward said aftermarket maintenance demand remained resilient and offset pressure in new pool construction, while channel inventory was balanced.

Gross profit was $124.7 million, and gross margin increased 10 basis points to 47.9%. Adjusted EBITDA rose 9% to $64.5 million, while the adjusted EBITDA margin expanded 60 basis points to 24.8%. The company continued targeted investments in sales and marketing, advanced engineering and customer experience while expanding profitability.

GAAP diluted EPS increased 36% to $0.15. Adjusted diluted EPS was $0.18, up 29%. Adjusted EBITDA, adjusted diluted EPS and free cash flow are non-GAAP measures.

For the first nine months of 2026, net sales increased 8% to $833.7 million. Adjusted EBITDA rose 9% to $213.6 million, with the adjusted EBITDA margin up 20 basis points to 25.6%. Adjusted diluted EPS increased 21% to $0.58, while gross margin was unchanged at 47.8%.

North America offsets weaker European demand

North America remained the main growth driver. Segment sales increased 8.7% to $226.4 million, reflecting a 7% net-price gain and 2% volume growth. U.S. sales rose 10%, while Canada declined 9%.

North American gross margin decreased 10 basis points to 48.9%, but adjusted segment income margin increased 80 basis points to 30.4%. Hayward also reported higher year-over-year early-buy orders in North America, with the program nearing completion and customer participation in line with its expectations.

Europe and Rest of World sales fell 6.4% to $33.8 million. Volume declined 6% and net price decreased 1%. European sales dropped 18%, partly offset by 6% growth in the Rest of World. The segment’s gross margin declined 40 basis points year over year to 40.0%, though it improved 210 basis points from the second quarter. Adjusted segment income margin increased 50 basis points to 19.0%.

Year to date, North American sales were up 9.7% to $713.8 million, while Europe and Rest of World sales declined 1.9% to $119.9 million.

Pricing, automation and customer expansion remain priorities

Hayward expects net price realization to increase by a mid-single-digit percentage in 2026 as it uses pricing to address inflation after productivity benefits. The company is also continuing value-based pricing and product rationalization initiatives.

Its growth priorities include bringing automation products to the existing installed base, converting additional dealers and improving customer service. Hayward has opened its first commercial aquatics hub in Atlanta, expanding a network that includes locations in North Carolina, Arizona, Texas, Florida and California. The company is also repurposing its China facility to support the Europe and Rest of World segment.

Leverage holds at 1.5 times as buybacks increase

Hayward ended September 26 with $236 million of cash and cash equivalents and $239 million of short-term investments. Total debt principal was $965 million, while trailing-12-month adjusted EBITDA was $316 million. Net leverage stood at 1.5 times, down from 1.8 times a year earlier and the company’s lowest level since its 2021 initial public offering.

Total liquidity was approximately $900 million, including $422 million available under credit facilities, and the company reported no near-term debt maturities. Hayward repurchased about 7.8 million shares for approximately $115 million during the first nine months of 2026, leaving $331 million under its $450 million authorization.

Year-to-date operating cash flow declined to $225 million from $283 million, while free cash flow decreased to $196 million from $262 million. The company attributed third-quarter cash-flow effects to the timing of shipments and receivable collections.

Hayward’s outlook remains subject to economic conditions, pressure on new construction, distributor and customer performance, competition, tariffs, raw-material inflation, currency fluctuations and supply-chain or manufacturing disruptions. The company also identified risks related to technology implementation, product adoption and its ability to manage channel and internal inventory effectively.