Hayward Holdings, Inc. (NYSE: HAYW) reported fourth‑quarter 2025 results that exceeded expectations, with net sales of $349.4 million—up 7% year‑over‑year from $327.1 million in Q4 2024—and adjusted diluted earnings per share of $0.29, beating the consensus estimate of $0.28 by $0.01 (a 3.6% beat). The company’s gross profit margin expanded to 48.5%, a 160‑basis‑point lift driven by higher net prices and a shift in warranty accounting that moved warranty costs from SG&A to cost of sales, improving gross margin without affecting net income or adjusted EBITDA.
North America sales rose 8% to $308.7 million, while the Europe & Rest of World segment held steady, with Europe up 7% and Rest of World down 9%, resulting in an overall 1% decline for the combined segment. The mix shift and the warranty accounting change contributed to the margin expansion, as the company’s higher‑margin product mix in North America and improved pricing power offset the lower‑margin impact of the Rest of World decline.
Hayward’s margin expansion reflects a combination of pricing power, operational efficiencies, and the warranty accounting shift. Higher net prices were achieved through successful pricing strategies and a strong demand for its SmartPad® automation platform, while lower warranty costs reduced the cost of sales. These factors, together with continued mitigation of tariff and inflationary pressures, allowed the company to increase gross margin without compromising profitability.
The company raised its full‑year 2026 guidance, projecting net sales growth of approximately 4% and adjusted diluted EPS of $0.82 to $0.86. The guidance represents a modest lift over the prior outlook and signals management’s confidence in sustained demand for its automation solutions and ongoing investment in product innovation.
"Hayward delivered a strong fourth quarter, outperforming expectations and building on our momentum. Our team executed at a high level across the organization, driving an exceptional finish to 2025, with solid in‑quarter demand and strong participation in our Early Buy programs for the upcoming 2026 pool season," said Kevin Holleran, President and CEO.
The results underscore Hayward’s resilience amid headwinds such as tariff and inflationary pressures and a modest decline in the Europe & Rest of World segment. The company’s focus on automation, product innovation, and operational excellence positions it to capture continued demand in the pool industry, while the raised guidance reflects confidence in a stable growth trajectory for 2026.
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