Latham Group Q2 sales beat estimates on demand for fiberglass pools

Latham

04/08/2026 21:18

Overview
US pool maker's Q2 net sales rose 14.4%, beating analyst expectations
Adjusted EBITDA for Q2 increased but missed analyst estimates
Company raised full-year guidance for net sales and adjusted EBITDA growth

Outlook
Latham raises full-year 2026 net sales guidance to $600-620 mln from $580-610 mln
Company now sees 2026 adjusted EBITDA of $110-120 mln, up from $105-120 mln
Latham expects most Q2 ramp-up costs to be recovered in second half of 2026

Result Drivers
IN-GROUND POOL SALES - Co said Q2 sales growth was led by in-ground pool sales, especially fiberglass pools, which are expected to account for about 80% of full-year in-ground pool sales
SAND STATES GROWTH - Co said sales in the Sand States increased at a double-digit rate, supported by new sales initiatives and expanded commercial organization
RAMP-UP COSTS - Surge in demand for fiberglass pools resulted in about $2.8 mln of incremental quarter-specific ramp-up costs, impacting gross margin by 140 basis points

Company press release: ID:nGNX2vKldn

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$197.50 mln
$188.33 mln (8 Analysts)
Q2 EPS
 
$0.11
 
Q2 Net Income
 
$12.80 mln
 
Q2 Adjusted EBITDA
Miss
$44.60 mln
$45.09 mln (8 Analysts)
Q2 Gross Margin
 
35.50%
 
Q2 Adjusted EBITDA Margin
 
22.60%
 

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 $7.00, about 24.1% above its August 3 closing price of $5.64
The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 29 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)