Latham Group Reports 5.3% Net Sales Increase to $117.3 Million, Faces $8.5 Million Net Loss

Latham Group, Inc. reported a net sales increase of 5.3% for the fiscal quarter ending March 28, 2026, reaching $117.3 million, compared to $111.4 million in the same period last year. The growth was attributed to a combination of higher sales volume and increased pricing, with notable contributions from the company's product lines, including in-ground swimming pools, liners, and covers. However, the company also experienced a net loss of $8.5 million, a significant increase from the $6.0 million loss reported in the prior year, resulting in a net loss margin of 7.3%.

The company's cost of sales rose to $80.2 million, leading to a gross profit of $37.2 million and a gross margin of 31.7%, up from 29.5% in the previous year. This improvement in gross margin was primarily driven by production efficiencies and lean manufacturing initiatives. Selling, general, and administrative expenses increased by 19.5% to $36.6 million, largely due to acquisition-related costs and investments in sales and marketing to support growth in key markets, particularly in Florida.

Strategically, Latham Group completed the acquisition of Freedom Pools in Australia for $15.4 million, which is expected to contribute approximately $20 million in net sales and $4 million in adjusted EBITDA annually. The company also purchased four fiberglass production facilities for $17.6 million, enhancing its production capacity. These acquisitions are part of Latham's broader strategy to expand its market presence and product offerings, particularly in the fiberglass pool segment.

Operationally, Latham Group's workforce averaged around 1,900 employees across approximately 35 locations. The company reported a significant increase in trade receivables, which rose by $49.5 million, reflecting the timing of sales. Additionally, inventory levels increased by $9.6 million, driven by the acquisition of Freedom Pools. The company continues to focus on enhancing its dealer network and expanding its market share, particularly in the Sand State markets, where fiberglass pool sales have seen double-digit growth.

Looking ahead, Latham Group remains optimistic about its growth trajectory, supported by ongoing strategic initiatives and a strong market position. The company plans to leverage its recent acquisitions and investments in marketing to drive further sales growth and improve profitability. However, it acknowledges the potential impact of adverse weather conditions and market fluctuations on its performance.