Latham Group (SWIM) Q4 2025 earnings summary

Executive summary

• Achieved strong Q4 and full-year 2025 results, with revenues up 15% in Q4 and full-year net sales up 7.4%, outperforming a declining U.S. in-ground pool market.

• Fiberglass pools drove growth, representing 76.5% of in-ground pool sales and gaining market share to 24% of U.S. pool starts, with double-digit growth in key Sand States like Florida.

• Auto cover sales grew 22% and liner sales increased 4% in 2025, supported by product innovation, digital tools, and marketing partnerships.

• Expanded dealer base and presence in Sand States, especially Florida, with strategic partnerships and double-digit sales growth.

• Completed the acquisition of Freedom Pools in February 2026, expanding market position in Australia/New Zealand and providing immediate earnings accretion.

Financial highlights

• Q4 2025 net sales were $100 million, up 14.5% year-over-year; full-year 2025 net sales reached $545.9 million, up 7.4% from 2024.

• Q4 adjusted EBITDA was $10.5 million (up 189.6%); full-year adjusted EBITDA was $99.8 million, up from $80.2 million in 2024.

• Gross margin expanded by 340 bps in Q4 to 28% and by 320 bps for the year to 33.4%.

• Net income for 2025 was $11.1 million, reversing a net loss of $17.9 million in 2024.

• Ended 2025 with $71 million in cash and $279.8 million in total debt.

Outlook and guidance

• 2026 net sales guidance: $580–$610 million; adjusted EBITDA: $105–$120 million, representing 9% and 12.7% growth at midpoints.

• Expect mid-single digit organic growth, with additional contributions from Freedom Pools acquisition.

• Capital expenditures projected at $42–$48 million, including facility purchases and upgrades.

• U.S. in-ground pool starts expected to remain flat in 2026; company aims to outperform market via strategic priorities.