Q1 2026 Hayward Holdings Inc Earnings Call Transcript
Key Points
- Hayward Holdings Inc (HAYW) reported a 12% increase in net sales for the first quarter, driven by strong pricing execution and positive volume.
- Adjusted EBITDA grew by 15%, and adjusted diluted EPS increased by 30%, showcasing the company's earnings power.
- The company reduced net leverage from 2.8 times to 2.4 times year over year, indicating solid progress on the balance sheet.
- Hayward Holdings Inc (HAYW) increased its full-year guidance, expecting net sales to rise approximately 5% and adjusted diluted EPS to increase by 9% to 13%.
- The company is leveraging AI to enhance decision-making, sharpen execution, and improve productivity, setting a strong foundation for future growth.
- Geopolitical disruptions and rising costs for specialty metals, freight, and resins are applying downward pressure on gross margins.
- The company expects some year-over-year gross margin compression in Q2 before mitigation efforts are fully realized.
- Net leverage increased in the first quarter from 1.9 times at year-end due to seasonal cash usage tied to the early-buy program.
- The rest of the world segment saw a 1% reduction in sales, impacted by geopolitical disruption in the Middle East.
- Despite strong performance, the company remains cautious about the demand environment, particularly in new construction, which is expected to remain flat.
Welcome to Hayward Holdings' first-quarter 2026 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 first-quarter 2026 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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