Q2 2025 Latham Group Inc Earnings Call Transcript
Key Points
- Latham Group Inc (SWIM) achieved a year-on-year revenue growth of 7.8% and adjusted EBITDA growth of 15.7% in the second quarter.
- The company has a diversified product portfolio and holds the number one market share in every subcategory it competes in.
- Successful marketing efforts have led to an 18% increase in leads to dealers and a 34% increase in consumer sessions on the company's website.
- The acquisition of three autocover dealers has contributed to sales growth and improved the company's margin profile.
- Lean manufacturing and value engineering initiatives have driven production efficiencies and improved gross margins by 400 basis points year-over-year.
- Adverse weather conditions delayed pool building activity, resulting in a slight decline in in-ground pool sales.
- The market for package pools remains flat, particularly affecting the lower end of the market due to consumer confidence and financing challenges.
- SG&A expenses increased by $5.3 million due to investments in marketing and personnel for the sand state growth strategy.
- The pool market is currently in a trough period, with new pool starts expected to be slightly down from the previous year.
- The company faces ongoing challenges in the broader market environment, impacting immediate pool sales despite increased interest and leads.
Good afternoon and welcome to Latham Group's second-quarter 2025 earnings conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Casey Kotary, Investor Relations representative. Please go ahead.
Thank you. This afternoon, we issued our second-quarter 2025 earnings press release, which is available on the Investor Relations portion of our website.
On today's call are Latham's President and CEO Scott Rajeski; and CFO, Oliver Gloe. Following their remarks, we will open the call to questions. During this call, the company may make certain statements that constitute forward-looking statements which reflect the company's views with respect to future events and financial performance as of today or the date specified.
Actual events and results may differ materially from those contemplated by such forward-looking statements due to risks and other factors that are set forth in the company's annual
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