Hayward Holdings Reports First Quarter Fiscal Year 2026 Financial Results and Increases Guidance

Hayward Holdings Reports First Quarter Fiscal Year 2026 Financial Results and Increases Guidance CHARLOTTE, N.C.--( BUSINESS WIRE)--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™ 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™ 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:

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

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

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

)

Loss on sale/disposal of property, plant and equipment

689

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

—

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)

—

Currency exchange items (b)

(76

)

Acquisition and restructuring related expense, net (c)

505

1,926

Other (d)

—

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)

Currency exchange items (b)

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

(a)

(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)

Following is a reconciliation of net income and net income margin to adjusted net income and adjusted net income margin, and a reconciliation of earnings per share to adjusted earnings per share:

(Dollars in thousands, except per share data)

Three Months Ended

March 28, 2026

March 29, 2025

Net income

23,359

14,333

Tax adjustments (a)

(277

)

(182

)

Other adjustments and amortization:

Stock-based compensation (b)

—

Currency exchange items (c)

(76

)

Acquisition and restructuring related expense, net (d)

505

1,926

Other (e)

—

Total other adjustments

429

1,972

Loss on debt extinguishment

201

—

Amortization

8,181

8,535

Tax effect (f)

(2,057

)

(2,548

)

Adjusted net income

29,836

22,110

Weighted average number of common shares outstanding, basic

217,359,824

215,962,018

Weighted average number of common shares outstanding, diluted

222,423,409

221,851,399

Basic EPS

0.11

0.07

Diluted EPS

0.11

0.06

Adjusted basic EPS

0.14

0.10

Adjusted diluted EPS

0.13

0.10

(a)

Tax adjustments for the three months ended March 28, 2026 reflected a normalized tax rate of 23.3% compared to the Company’s effective tax rate of 22.4%. The Company’s effective tax rate for the three months ended March 28, 2026 was primarily driven by tax benefits resulting from stock-based compensation. Tax adjustments for the three months ended March 29, 2025 reflected a normalized tax rate of 24.3% compared to the Company's effective tax rate of 23.3%. The Company’s effective tax rate for the three months ended March 29, 2025 primarily included the tax benefits resulting from stock-based compensation.

(b)

(c)

Represents unrealized non-cash (gains) losses on foreign denominated monetary assets and liabilities and foreign currency contracts.

(d)

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.

(e)

Adjustments in the three months ended March 29, 2025 were primarily driven by losses on the sale of assets.

(f)

The tax effect represented the immediately preceding adjustments at the normalized tax rates as discussed in footnote (a) above.

Segment Reconciliations

Following is a reconciliation from segment income and segment income margin to adjusted segment income and adjusted segment income margin for the NAM and E&RW segments:

(Dollars in thousands)

Three Months Ended

March 28, 2026

March 29, 2025

NAM

E&RW

NAM

E&RW

Segment income

50,506

8,283

43,454

6,538

Depreciation

5,013

508

5,500

414

Amortization

1,816

—

1,700

—

Other (a)

—

Total adjustments

6,829

508

7,203

414

Adjusted segment income

57,335

8,791

50,657

6,952

Segment income margin %

24.1

18.2

23.2

15.7

Adjusted segment income margin %

27.3

19.4

27.1

16.6

(a)

Adjustments in the three months ended March 29, 2025 for NAM represented losses on the sale of assets, which the Company believes are not representative of its ongoing business operations.