Q2 2025 Hayward Holdings Inc Earnings Call Transcript
Key Points
- Net sales increased by 5% to approximately $300 million, driven by growth in both North America and Europe.
- Gross profit margins reached a record 52.7%, marking the 10th consecutive quarter of year-over-year gross margin expansion.
- Adjusted EBITDA margin increased to 29.5%, reflecting strong profitability.
- The company significantly reduced net leverage to 2.1 times, providing enhanced financial flexibility.
- Hayward Holdings Inc (HAYW) successfully integrated the Clor King acquisition, doubling commercial sales in North America.
- Volume decreased by 2%, indicating some pressure on sales despite overall revenue growth.
- Tariff-related costs are expected to have an annualized impact of approximately $30 million, with a partial year impact of $18 million in 2025.
- The more discretionary elements of the market, such as new pool construction and remodeling, remain pressured.
- SG&A expenses increased as a percentage of sales due to targeted investments in engineering and customer care.
- The company faces ongoing challenges from tariff uncertainties, which could impact future financial performance.
Greetings. Welcome to Hayward Holdings. Second quarter 2025 earnings call. My name is Latanya, and I will be your operator for today's call. (Operator Instructions) Please note this conference call is being recorded.
I will now turn the call over to Kevin Masca, Vice President of Investor Relations and FNPNA. Mr. Masca, you may begin.
Thank you and good morning, everyone. We issued our second quarter 2025 earnings press release this morning, which has been posted to the investor relations section of our website at investor.hayward.com. There you can also find the earning slide presentation referenced during this call.
I'm joined today by Kevin Holleran, President and Chief Executive Officer, and Eifion Jones, Senior Vice President and Chief Financial Officer. Before we begin, I would like to remind everyone that during this call, the company may make certain statements that are considered forward-looking in nature, including management outlook for 2025 and future periods.
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