Brief: Latham Group Q2 Sales USD 172.6 Million Vs. IBES Estimate USD 173.4 Million

Latham

05/08/2025 21:05

Overview

Latham Group Inc Q2 net sales rise 7.8% but miss analyst expectations, per LSEG data

Adjusted EBITDA for Q2 beats estimates, driven by margin expansion and efficiencies

The maker of of in-ground residential swimming pools, liners, and covers reconfirms FY guidance for 8% sales growth

Outlook

Company reconfirms full-year guidance of 8% net sales growth

Latham projects 2025 adjusted EBITDA growth of 19% at midpoints

Company expects 2025 net sales between $535 mln and $565 mln

Latham forecasts adjusted EBITDA between $90 mln and $100 mln

Result Drivers

FIBERGLASS POOLS - Strong growth in fiberglass pool sales driven by targeted marketing and consumer recognition of their benefits, per CEO Scott Rajeski

AUTOCOVERS - Significant increase in autocover sales due to consumer interest in safety and cost savings, along with Coverstar acquisitions

GROSS MARGIN EXPANSION - 400-basis-point increase attributed to higher volumes, lean manufacturing, and recent acquisitions

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Miss
$172.60 mln
$173.40 mln (8 Analysts)
Q2 EPS
$0.13
Q2 Net Income
$16 mln
Q2 Adjusted EBITDA
Beat
$39.90 mln
$39 mln (7 Analysts)
Q2 Gross Margin
37.1%
Q2 Adjusted EBITDA Margin
23.1%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the recreational products peer group is "buy"

Wall Street's median 12-month price target for Latham Group Inc is $8.00, about 15.7% above its August 4 closing price of $6.74

The stock recently traded at 51 times the next 12-month earnings vs. a P/E of 38 three months ago

Press Release: ID:nGNX2K73Hb

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)