Pool Corporation Reports Modest Sales Growth and Decline in Net Income for Q2 2026

Pool Corporation reported its financial results for the second quarter and first half of 2026, revealing a modest increase in net sales and a slight decline in net income compared to the same periods in 2025. For the three months ended June 30, 2026, net sales reached $1.82 billion, a 2% increase from $1.78 billion in the prior year. Gross profit also saw a slight uptick, rising to $540.8 million from $535.2 million, although the gross margin decreased by 30 basis points to 29.7%. The decline in gross margin was attributed to higher inbound freight costs and a shift in customer mix, which were partially offset by supply chain initiatives.

In terms of profitability, net income for the second quarter fell to $188.1 million, down 3% from $194.3 million in the same quarter of 2025. Earnings per diluted share remained stable at $5.17, while adjusted earnings per diluted share increased by 4% to $5.38. The decrease in net income was influenced by $8.3 million in CEO transition costs, which included both cash and non-cash share-based compensation expenses. Excluding these costs, adjusted operating expenses increased by only 1%, reflecting a more stable operational environment.

Operationally, Pool Corporation's total net receivables, including pledged receivables, increased by 11% year-over-year, primarily due to higher sales in June 2026. The company reported an inventory balance of $1.38 billion, a 4% increase from the previous year, indicating a strategic response to inflation and the addition of new sales centers. The company operated through 455 sales centers as of June 30, 2026, with approximately 95% of net sales generated from North America.

Looking ahead, Pool Corporation anticipates a low single-digit percentage increase in sales for the full year of 2026 compared to 2025. The company projects gross margin to be approximately 30 basis points lower than the previous year, primarily due to ongoing challenges with inbound freight costs. Operating expenses are expected to rise by about 3%, or 2% to 3% when excluding CEO transition costs. The effective tax rate for 2026 is projected to be around 25.0%, with diluted earnings per share expected to range between $10.66 and $10.96, excluding the impact of transition costs.

Overall, while Pool Corporation experienced slight declines in net income and gross margin, it continues to navigate a challenging market environment with strategic initiatives aimed at maintaining operational efficiency and growth. The company remains focused on leveraging its existing infrastructure and managing discretionary spending to support its financial objectives.