Latham Group, Inc. (NASDAQ: SWIM) reported fourth‑quarter 2025 results that surpassed analyst expectations. Net sales rose 14.5% year‑over‑year to $100.0 million, while the company posted a net loss of $7.0 million, or $0.06 per diluted share. Adjusted EBITDA climbed 189.6% to $10.5 million, driven by a 630‑basis‑point expansion in adjusted EBITDA margin to 10.5%. The company’s full‑year 2025 performance also improved, with net sales of $545.9 million (+7.4%) and adjusted EBITDA of $99.8 million (+24.4%).
Compared with the same period a year earlier, Q4 2024 net sales were $87.3 million, a net loss of $29.2 million, and adjusted EBITDA of $3.6 million. Full‑year 2024 net sales were $508.5 million, a net loss of $17.9 million, and adjusted EBITDA of $80.2 million. The acceleration in revenue and margin expansion in Q4 2025 reflects a shift in the company’s product mix toward higher‑margin fiberglass pools and automatic safety covers.
In Q4 2025, in‑ground pool sales totaled $50 million, up 15% year‑over‑year, while cover sales reached $37 million, up 19%, and liner sales were $13 million, up 2%. The stronger demand for fiberglass pools, which accounted for 76.5% of in‑ground pool sales in 2025, and the growth in automatic safety covers drove the revenue lift and contributed to the margin expansion.
The company also announced the acquisition of Freedom Pools in February 2026, a move that is expected to add roughly $20 million in annual net sales and $4 million in adjusted EBITDA. The acquisition expands Latham’s presence in Australia and New Zealand and strengthens its position as the largest designer, manufacturer, and marketer of in‑ground residential swimming pools in North America, Australia, and New Zealand.
Management guided for 2026 net sales of $580 million to $610 million and adjusted EBITDA of $112 million to $118 million, representing a mid‑point sales growth of 9.0% and a mid‑point EBITDA increase of 12.7%. The guidance signals confidence in continued demand for fiberglass pools and automatic safety covers, while the company’s net debt leverage of 2.1× underscores a disciplined deleveraging program that supports future growth.
Investors responded with mixed sentiment. The strong earnings beat and margin expansion were highlighted as positive drivers, while concerns about regional market headwinds, particularly in Texas, tempered enthusiasm. Management emphasized the company’s execution, saying, "2025 marked another year of strong execution by the Latham team." and "Fourth quarter results represented a strong finish to the year, with the Company delivering year‑over‑year sales growth across all three product categories, underscoring the strength and resilience of Latham’s diversified product portfolio."
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