Latham Q1 2025 Earnings Report
Key Takeaways
Latham Group, Inc. reported first quarter 2025 results that were in line with expectations, showing slight net sales growth and improved gross margin, partially offset by increased SG&A expenses. The company maintained its full-year guidance.
Net sales for Q1 2025 were $111.4 million, a 0.7% increase year-over-year.
Gross profit increased by 7.5% to $32.9 million, with gross margin expanding by 190 basis points to 29.5%.
Net loss narrowed to $6.0 million, or $0.05 per diluted share, compared to a net loss of $7.9 million in the prior year.
Adjusted EBITDA was $11.1 million, a decrease of 9.4% year-over-year, with Adjusted EBITDA margin at 10.0%.
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Latham Revenue by Segment
Forward Guidance
Latham is maintaining its full-year 2025 guidance, anticipating an 8% increase in net sales and a 19% increase in Adjusted EBITDA at the midpoints.
Positive Outlook
- Maintaining full year guidance for 8% sales growth at the midpoint.
- Maintaining full year guidance for 19% growth in Adjusted EBITDA at the midpoint.
- Expectation for progressively higher year-on-year comparisons during Q2 and Q3.
- Anticipating category share gains in fiberglass pools and autocovers.
- Expected contributions from recent acquisitions.
Challenges Ahead
- Remaining cautious on 2025 new pool starts, projecting them to be roughly in line with 2024 levels.
- Closely monitoring the impact of elevated tariffs on imported raw materials.
- Tariff-related uncertainty remains.
- Increased investment in growth initiatives factored into Adjusted EBITDA growth.
- Exposure to imports representing 15-20% of raw materials.
Revenue & Expenses
Visualization of income flow from segment revenue to net income