Latham Group Reports 7.8% Increase in Net Sales to $172.6 Million for Fiscal Quarter Ended June 28, 2025

Latham Group, Inc. reported a notable increase in financial performance for the fiscal quarter ended June 28, 2025, with net sales reaching $172.6 million, a 7.8% increase from $160.1 million in the same quarter of the previous year. The company also saw a rise in net income, which grew by $2.7 million to $16.0 million, resulting in a net income margin of 9.3%, up from 8.3% a year earlier. The increase in sales was attributed to a combination of higher sales volume and pricing adjustments, particularly in the covers and liners product lines, despite a decline in sales of in-ground swimming pools.

For the two fiscal quarters ended June 28, 2025, Latham Group's net sales totaled $284.1 million, reflecting a 4.9% increase compared to $270.8 million in the prior year. Net income for this period also rose significantly, reaching $10.0 million, up from $5.4 million, with a corresponding net income margin increase from 2.0% to 3.5%. The company attributed these results to organic growth and contributions from recent acquisitions, including the strategic acquisition of Coverstar Central, which enhanced its market position in the automatic safety cover segment.

Operationally, Latham Group's total assets increased to $822.1 million as of June 28, 2025, compared to $794.2 million at the end of 2024. The company’s employee headcount remained stable at approximately 1,800 across its 30 locations. The acquisition of Coverstar Central, completed in August 2024, was a significant strategic move, allowing for vertical integration and expected margin improvements in the automatic safety cover product line. Additionally, Latham Group acquired two smaller autocover dealers in early 2025, further expanding its market reach.

The company reported a cash balance of $26.9 million as of June 28, 2025, down from $56.4 million at the end of 2024, primarily due to cash used in operating activities and investments in acquisitions and property. Latham Group's long-term debt stood at $281.5 million, with no outstanding borrowings under its revolving credit facility, which has $75.0 million available for future use. The company continues to focus on capital investments in product innovation and operational efficiencies, while also monitoring market conditions and consumer confidence.

Looking ahead, Latham Group remains cautious about new pool starts in 2025, projecting levels to be in line with 2024. The company is implementing targeted price increases to mitigate potential impacts from tariffs and is committed to enhancing its fiberglass pool and automatic safety cover offerings. Management emphasizes a disciplined approach to capital investments, aiming to drive growth and improve operational efficiencies in a competitive market environment.