Hayward Holdings, Inc. Q4 2025 Earnings Call Summary

2 weeks ago 7

Moby Intelligence

Wed, February 25, 2026 astatine 11:34 AM CST 3 min read

Delivered 7% nett income maturation successful 2025 contempt U.S. caller excavation operation approaching post-GFC lows, demonstrating the resilience of the 85% aftermarket-driven gross model.
Achieved grounds full-year gross margins of 48%, driven by a 700 ground constituent enlargement implicit six years done productivity gains and a displacement toward higher-margin exertion products.
Successfully mitigated 2025 tariff headwinds by reducing China-sourced U.S. outgo of income vulnerability from 10% to astir 3% by year-end.
Expanded the addressable marketplace by making OmniX automation modular connected each caller adaptable velocity pumps and state heaters, lowering the introduction obstruction for excavation modernization.
Entered antecedently unserved segments with the motorboat of 4-horsepower pumps for ample residential pools and a caller unit cleaner line, targeting astir 100,000 yearly portion opportunities.
Strengthened the commercialized conception done the archetypal afloat twelvemonth of ChlorKing ownership and the enlargement of the 'Hayward Hub' determination grooming and work network.

Projecting 4% nett income maturation for 2026, assuming astir 3% planetary terms gains and humble measurement maturation portion expecting caller operation to stay flat.
Anticipating adjusted diluted EPS maturation of 6% to 12%, supported by operational execution and borderline transportation alternatively than changes successful superior structure.
Planning a step-up successful superior expenditures to astir $40 cardinal to modernize U.S. manufacturing facilities and onboard assets relocated from Asia.
Expects escaped currency travel to transcend 100% of nett income (approximately $200 million), providing optionality for strategical M&A successful excavation and concern travel power sectors.
Guidance assumes a 'normal' seasonal signifier for 2026, with Q2 and Q4 serving arsenic the superior contributors to apical and bottom-line results.

Implemented a alteration successful accounting principle, reclassifying warranty costs from SG&A to outgo of sales; this reduced reported gross margins but had nary interaction connected EBITDA.
Supply concatenation realignment distant from China resulted successful an incremental outgo of $5 cardinal to $6 million, representing a astir 1.5% summation successful outgo of sales.
Q4 adjusted EBITDA borderline was diluted by 130 ground points owed to higher adaptable compensation pursuing above-target yearly show and one-time ineligible settlements.
Net leverage was reduced to 1.9x astatine year-end 2025, importantly beneath the 2.0x target, enhancing the capableness for inorganic maturation investments.