Hayward
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Hayward (HAYW) investor relations material

Hayward Q1 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q1 2026 earnings summary29 Apr, 2026

Executive summary

  • Q1 FY2026 results exceeded expectations, with net sales up 12% to $255.2 million, adjusted EBITDA up 15% to $56.4 million, and adjusted diluted EPS up 30% to $0.13; net income surged 63% to $23.4 million, and diluted EPS rose 83% to $0.11.

  • Margin expansion achieved despite inflation, tariffs, and targeted investments in innovation and customer service.

  • Both North America and Europe & Rest of World segments delivered higher sales and profitability.

  • Net leverage reduced to 2.4x from 2.8x year-over-year, though up from 1.9x at year-end due to seasonal cash usage.

  • Strategic growth, operational excellence, and leadership initiatives continued, with expanded AI adoption and new product launches.

Financial highlights

  • Net sales up 12% year-over-year to $255.2 million; North America up 12.1% to $209.8 million, Europe & Rest of World up 8.7% to $45.4 million.

  • Gross profit increased 13% to $118.7 million; gross margin expanded by 50 bps to 46.5%; adjusted EBITDA margin up 60 bps to 22.1%.

  • Adjusted EBITDA reached $56.4 million, up 15% year-over-year; adjusted net income was $29.8 million, up 34.9%.

  • Net income margin increased to 9.2% (up from 6.3%); adjusted net income margin up to 11.7%.

  • Cash and cash equivalents were $135.8 million; cash flow used in operations was $151 million, reflecting seasonal patterns and absence of prior year receivables sale.

Outlook and guidance

  • Full-year 2026 net sales growth now expected at ~5% (up from 4%); adjusted diluted EPS guidance raised to $0.84–$0.87, up 9–13% year-over-year.

  • Free cash flow expected around $200 million, exceeding 100% of net income.

  • Gross margin expected to remain in line with last year, with some Q2 compression before mitigation efforts take effect.

  • Pricing for the year now expected to average +4%, with North America higher and Europe/Rest of World lower.

  • Confidence in long-term growth driven by installed pool base, technology adoption, and favorable industry trends.

Impact of Receivables Purchase Agreement on cash
Factors behind the volume decrease in E&RW
Gross margin expansion drivers despite tariffs
Detail specialty metal costs and 2.5% surcharge
Channel inventory and sell-in vs sell-out trends
Drivers of market share gains and OmniX adoption
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