Q4 2025 Hayward Holdings Inc Earnings Call Transcript
Key Points
- Hayward Holdings Inc (HAYW) delivered strong fourth quarter and full year 2025 results, with net sales increasing 7% and adjusted EBITDA growing 8%.
- The company achieved a record gross margin of 48% for the full year, demonstrating effective cost management and operational efficiency.
- Cash flow generation was exceptional, enabling a significant reduction in net leverage to 1.9x by year-end.
- Hayward Holdings Inc (HAYW) continued to invest in innovation and operational excellence, launching several new products, including the OmniX automation ecosystem.
- The company successfully mitigated the impact of tariffs and reduced dependency on China, showcasing strong supply chain management.
- Adjusted EBITDA margin decreased by 80 basis points year-over-year in the fourth quarter, partly due to increased variable compensation costs.
- The company faced challenges from a macroeconomic backdrop with new pool construction approaching post-GFC lows.
- Higher sales, general, and administrative expenses grew 14% due to increased compensation expenses and integration costs.
- The effective tax rate for the full year was 18%, which is higher than the previous year's rate.
- Weather conditions in early 2026 were more severe than in prior years, potentially impacting first-quarter performance.
Welcome to Hayward Holdings fourth quarter 2025 earnings call. My name is Carrie, and I will be your operator for today's call. (Operator Instructions). Please note that this conference is being recorded. I will now turn the call over to Kevin Maczka, Vice President, Investor Relations and FP&A.
Mr. Maczka, you may begin.
Thank you, and good morning, everyone. We issued our fourth-quarter and full-year 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 earnings 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's outlook for 2026 and future
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