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

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

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