Latham Group misses Q3 sales estimates, narrows 2025 net sales guidance

Latham

04/11/2025 21:52

Overview

Latham Group Q3 net sales grow 7.6% but miss analyst expectations

Adjusted EBITDA for Q3 beats analyst estimates, reflecting strong operational performance

Gross margin expanded by 300 basis points due to acquisitions and operational efficiencies

Outlook

Latham narrows 2025 net sales guidance to $540-$550 mln

Adjusted EBITDA guidance for 2025 revised to $92-$98 mln

Capital expenditure estimate for 2025 reduced to $22-$24 mln

Result Drivers

FIBERGLASS POOLS - Increased adoption of fiberglass pools contributed significantly to sales growth, particularly in Sand State markets

AUTOCOVERS AND LINERS - Sales growth driven by increased adoption rates for autocovers and success of Measure by Latham tool for liners

MARGIN EXPANSION - Gross margin increased due to acquisitions and operational efficiencies from lean manufacturing and value engineering

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Miss
$161.9 mln
$165.80 mln (8 Analysts)
Q3 EPS
$0.07
Q3 Net Income
$8.1 mln
Q3 Adjusted EBITDA
Beat
$38.3 mln
$35.57 mln (7 Analysts)
Q3 Gross Margin
35.4%
Q3 Adjusted EBITDA Margin
23.7%


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 9.1% above its November 3 closing price of $7.27

The stock recently traded at 49 times the next 12-month earnings vs. a P/E of 51 three months ago

Press Release: ID:nGNX9WzTt8

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(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.)