Latham Group, Inc. reported a financial performance improvement for the fiscal year ending December 31, 2025, with net sales increasing by 7.4% to $545.9 million, up from $508.5 million in 2024. The company also achieved a net income of $11.1 million, a significant turnaround from a net loss of $17.9 million the previous year. This resulted in a net income margin of 2.0%, compared to a loss margin of 3.5% in 2024. Adjusted EBITDA rose to $99.8 million, reflecting a margin increase from 15.8% to 18.3%, driven by operational efficiencies and strategic acquisitions.
The company experienced notable changes in its operational landscape, including the acquisition of Coverstar Central in August 2024 and two smaller Coverstar dealers in February 2025, which enhanced its market position in automatic safety covers. Additionally, Latham Group announced the acquisition of Freedom Pools in February 2026, expected to contribute approximately $20 million in net sales and $4 million in adjusted EBITDA annually. These acquisitions align with Latham's strategy to expand its product offerings and geographic reach, particularly in the underrepresented Sand States of the U.S.
Operationally, Latham Group maintained an average employee count of approximately 1,850 across 30 locations, supporting its extensive manufacturing and distribution network. The company reported a 3.2% decrease in cost of sales as a percentage of net sales, attributed to production efficiencies and the impact of its lean manufacturing initiatives. The company’s focus on fiberglass pools, which are gaining market share from traditional concrete pools, is expected to continue driving growth, particularly as consumer awareness of the benefits of fiberglass increases.
Looking ahead, Latham Group anticipates continued growth in 2026, with plans to enhance its branding and marketing efforts, particularly in the Sand States. The company aims to leverage its digital marketing strategies to generate high-quality leads for its dealer partners, further solidifying its market leadership. However, Latham also acknowledges potential challenges, including economic conditions that may affect consumer spending and the ongoing impact of inflation on raw material costs. The company remains committed to optimizing its operations and expanding its market share through strategic initiatives and partnerships.
About Latham Group, Inc.
Latham Group, Inc. is a leading manufacturer and marketer of in-ground residential swimming pools, specializing in fiberglass, vinyl, covers, and liners. The company focuses on direct-to-homeowner digital marketing, dealer partnerships, and innovative products with a competitive cost structure. Serving North America, Australia, and New Zealand, it emphasizes quality, installation speed, and customer connectivity to drive industry growth and market share.
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