Latham Group Reports 14.4% Increase in Net Sales, Net Income Declines by 20.2%

Latham Group, Inc. reported a 14.4% increase in net sales for the fiscal quarter ended June 27, 2026, reaching $197.5 million, compared to $172.6 million for the same period in the previous year. The growth was attributed to a $19 million increase in sales volume and a $5.8 million rise in pricing, driven primarily by strong demand for in-ground swimming pools, particularly fiberglass models. However, net income decreased by 20.2% to $12.8 million, resulting in a net income margin of 6.5%, down from 9.3% in the prior year. The decline in profitability was influenced by increased costs associated with production ramp-up and unfavorable foreign currency transaction impacts.

For the two fiscal quarters ending June 27, 2026, Latham Group's net sales rose by 10.8% to $314.8 million, compared to $284.1 million in the same period last year. The increase was driven by a $22 million rise in sales volume and an $8.7 million increase from higher pricing. However, net income fell to $4.2 million, a 57.9% decrease from $10 million in the previous year, resulting in a net income margin of 1.3%. The company reported an Adjusted EBITDA of $56.8 million for the two quarters, reflecting an 11.3% increase year-over-year.

Strategically, Latham Group completed the acquisition of Freedom Pools, a fiberglass pool manufacturer in Australia and New Zealand, for $15.4 million, which is expected to add approximately $20 million in net sales and $4 million in Adjusted EBITDA annually. This acquisition aligns with the company's growth strategy and is anticipated to enhance its market presence in key regions. Additionally, Latham Group purchased four fiberglass production facilities for $17.6 million, further expanding its operational capacity.

Operationally, Latham Group's workforce averaged around 1,900 employees across approximately 40 locations, supporting its extensive manufacturing and distribution network. The company reported a significant increase in trade receivables, reflecting the timing of sales, which contributed to a net cash provided by operating activities of $5.8 million for the two quarters. The company also noted a strategic focus on enhancing its digital transformation efforts and optimizing operational functions to support growth initiatives.

Looking ahead, Latham Group anticipates continued growth driven by its strategic initiatives and market expansion efforts, particularly in the Sand States. The company remains committed to leveraging its strong brand and dealer partnerships to capture additional market share while managing costs effectively. The outlook suggests that the company will maintain its focus on innovation and operational efficiency to navigate market challenges and capitalize on emerging opportunities.