Q2 2026 Hayward Holdings Inc Earnings Call Transcript
Key Points
- Net sales increased by 6% in the second quarter and 9% in the first half, driven by positive price realization and stable volume.
- Completed a comprehensive debt refinancing, reducing the cost of capital by approximately $6 million annually and extending maturities.
- Reduced net leverage to 1.5 times, the lowest level since the IPO in 2021, while increasing share repurchases.
- Continued solid demand for discretionary product categories such as salt chlorine generators, automation, and lighting.
- Maintained guidance for full year 2026 with expected net sales increase of approximately 5% and adjusted diluted EPS increase of 9% to 13%.
- Gross profit margin declined modestly in the second quarter due to incremental inflation in specialty metals, freight, and resin costs.
- Europe and rest of world sales declined 8% due to macroeconomic conditions and geopolitical disruptions.
- Adjusted EBITDA margin declined 40 basis points year-over-year to 29.1%.
- Faced challenges over the past 12 months, including tariffs, commodity inflation, and higher transportation costs.
- Inventory levels in the channel are expected to climb as the year progresses, potentially impacting cash flow.
Welcome to Hayward Holdings' Second Quarter 2026 Earnings Conference Call. My name is Robert, and I'll be your operator for today's call. At this time, all participants are on a listen-only mode. Later, we will conduct a question-and-answer session. During the question-and-answer session, if you have a question, please press *1 on your telephone keypad. Please note that this conference is being recorded. I will now turn the call over to Kevin Maska, Vice. President, Investor Relations and FP&A. Mr. Mascot, you may begin.
Thank you, and good morning, everyone. We issued our second 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 Ivy and Jones. Senior Vice President and Chief Financial Officer. Before we begin, I would like to remind
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