Latham Group Q1 sales rise 5% but miss estimates

Latham

05/05/2026 21:22

Overview

US pool maker's Q1 net sales rose 5% yr/yr but missed analyst expectations

Q1 adjusted EBITDA increased but missed analyst expectations

Company reaffirmed full-year guidance for sales and adjusted EBITDA growth

Outlook

Latham reaffirms FY 2026 net sales guidance of $580 mln to $610 mln

Company maintains FY 2026 adjusted EBITDA guidance of $105 mln to $120 mln

Latham expects U.S. in-ground pool market to be approximately flat with 2025 levels

Result Drivers

PRODUCT LINE GROWTH - Sales gains in autocovers and liners, along with contributions from the Freedom Pools acquisition, drove overall revenue growth

FLORIDA SALES MOMENTUM - Double-digit fiberglass pool sales growth in Florida, driven by new dealer sign-ups and targeted marketing

MARGIN EXPANSION - Gross margin rose due to volume leverage, lean manufacturing, and value engineering initiatives

Company press release: ID:nGNX8Yx5yF

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Miss
$117.3 mln
$118.90 mln (8 Analysts)
Q1 EPS
-$0.07
Q1 Net Income
-$8.5 mln
Q1 Adjusted EBITDA
Miss
$12.2 mln
$13.36 mln (8 Analysts)
Q1 Gross Margin
31.7%


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 $9.00, about 55.2% above its May 4 closing price of $5.80

The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 38 three months ago

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.)