Q3 2025 Latham Group Inc Earnings Call Transcript
Key Points
- Net sales increased by 7.6% year-on-year, significantly outpacing the US in-ground pool market.
- Adjusted EBITDA rose by $8.5 million or 28.5%, showcasing substantial operating leverage.
- All three product lines—In-ground pools, pool covers, and liners—experienced year-on-year growth.
- Gross margin improved to 35.4%, up 300 basis points year-on-year, with adjusted EBITDA margin increasing to 23.7%.
- Strong financial position with $71 million in cash, enabling investments in organic growth and potential acquisitions.
- The US in-ground pool market is expected to be flat or slightly down compared to 2024 levels.
- Continued softness in packaged pool sales partially offset the positive momentum in fiberglass pools.
- Challenges in the Texas and California markets, which have been tough compared to other regions.
- Tariff-related uncertainties and interest rate concerns are impacting consumer confidence in pool buying decisions.
- SG&A expenses increased slightly, reflecting investments in sales, marketing, and new ERP infrastructure.
Good afternoon and welcome to the Latham Group third 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 third 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 reflects 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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