Latham Group Q4 sales beat estimates on fiberglass pool strength

Latham

03/03/2026 21:25

Overview

Pool manufacturer Latham Group's Q4 net sales rose 14.5%, beating analyst expectations

Adjusted EBITDA for Q4 beat estimates, rising significantly year-over-year

Company recently acquired Freedom Pools, expanding market presence in Australia/New Zealand

Outlook

Latham Group expects 2026 net sales growth of 9.0% at the midpoint

Company projects 2026 adjusted EBITDA growth of 12.7% at the midpoint

Latham plans increased branding and marketing investments in Sand States for 2026

Result Drivers

FIBERGLASS POOL SALES - Growth in fiberglass pool sales drove Q4 in-ground pool sales, accounting for 76.5% of total sales in 2025

COVERS AND LINERS - Increased awareness and adoption of covers and liners contributed to sales growth

MARGIN EXPANSION - Margin expansion achieved through higher volumes, lean manufacturing, and value engineering initiatives

Company press release: ID:nGNX48M57d

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Beat
$100 mln
$96.79 mln (8 Analysts)
Q4 EPS
-$0.06
Q4 Net Income
-$7 mln
Q4 Adjusted EBITDA
Beat
$10.50 mln
$7.04 mln (7 Analysts)
Q4 Gross Margin
28.00%
Q4 Adjusted EBITDA Margin
10.50%


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 21.2% above its March 2 closing price of $6.60

The stock recently traded at 40 times the next 12-month earnings vs. a P/E of 41 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.)