Latham Group Reports 7.6% Increase in Net Sales and Improved Net Income for Fiscal Quarter Ended September 27, 2025

Latham Group, Inc. reported a notable increase in financial performance for the fiscal quarter ended September 27, 2025, with net sales reaching $161.9 million, a 7.6% increase from $150.5 million in the same quarter of the previous year. The company's net income also rose to $8.1 million, up from $5.9 million, resulting in a net income margin of 5.0%, compared to 3.9% in the prior year. For the three fiscal quarters ending September 27, 2025, net sales totaled $446.0 million, reflecting a 5.9% increase from $421.2 million, while net income increased to $18.1 million from $11.3 million.

The company's gross profit for the latest quarter was $57.3 million, representing a gross margin of 35.4%, an improvement from 32.4% in the prior year. This increase was attributed to higher sales volumes and production efficiencies achieved through lean manufacturing initiatives. Selling, general, and administrative expenses rose slightly to $28.6 million, primarily due to increased marketing investments and personnel costs. The company also reported a decrease in interest expenses, which fell to $6.1 million from $9.2 million, largely due to favorable changes in the fair value of its interest rate swap.

Strategically, Latham Group has been active in expanding its market presence through acquisitions. Notably, the company acquired Coverstar Central, LLC in August 2024, enhancing its vertical integration in the automatic safety cover product line. This acquisition, along with the purchase of two smaller autocover dealers in early 2025, has contributed to increased market share and operational efficiencies. The company continues to focus on product innovation and digital transformation, which are expected to drive future growth.

Operationally, Latham Group has approximately 1,850 employees and operates across 30 locations, allowing for efficient service delivery. The company has also seen growth in its product lines, particularly in covers and liners, with the Measure by Latham tool contributing to increased adoption rates. Despite the positive performance, Latham Group is monitoring macroeconomic conditions and consumer confidence, projecting that new pool starts in 2025 may remain flat to slightly down compared to 2024 levels.

Looking ahead, Latham Group remains committed to its strategic initiatives, including targeted price increases to mitigate potential tariff impacts and continued investments in lean manufacturing and technology. The company believes its current cash position, along with cash generated from operations and available credit, will adequately support its operational and capital needs over the next year.