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Jun 28
Latham Q2 2025 Earnings Report
Latham Group, Inc. reported strong second quarter 2025 financial results with significant net sales growth and gross margin expansion.
Key Takeaways
Latham Group, Inc. delivered a strong second quarter in 2025, with net sales increasing by 7.8% to $172.6 million and net income rising to $16.0 million. The company achieved a 400-basis-point expansion in gross margin, reaching 37.1%, driven by higher volumes, operational efficiencies, and recent acquisitions. Adjusted EBITDA also saw a substantial increase, reaching $39.9 million with a margin of 23.1%.
Net sales for the second quarter of 2025 increased by 7.8% year-over-year to $172.6 million.
Gross margin expanded by 400 basis points to 37.1%, primarily due to higher volumes, lean manufacturing, and acquisitions.
Net income for the quarter was $16.0 million, or $0.13 per diluted share, up from $13.3 million in the prior year.
Adjusted EBITDA grew by 15.7% to $39.9 million, with an Adjusted EBITDA margin of 23.1%.
Latham
Latham
Latham Revenue by Segment
Revenue by Segment
In-ground Swimming Pools Revenue
CapyFin.comCovers Revenue
CapyFin.comLiners Revenue
CapyFin.com Forward Guidance
Latham Group, Inc. reaffirmed its full-year 2025 guidance, projecting net sales growth of 8% and Adjusted EBITDA growth of 19% at the midpoints, despite challenging market conditions for new U.S. pool starts.
Positive Outlook
- Reaffirmed full-year 2025 guidance for net sales and Adjusted EBITDA growth.
- Expectations for 8% net sales growth at the midpoint.
- Expectations for 19% Adjusted EBITDA growth at the midpoint.
- Anticipated category share gains in fiberglass pools, autocovers, and liners.
- Contributions from the Coverstar Central acquisition and two smaller autocover dealer acquisitions.
Challenges Ahead
- Challenging market conditions for new U.S. pool starts, projected at approximately 60,000 in 2025.
- No specific negative financial guidance provided beyond the challenging market environment.
- Reliance on continued execution of strategic initiatives to outperform the market.
- Potential impact of macroeconomic and geopolitical conditions on consumer spending.
- Uncertainty related to future income tax (benefit) expense for Adjusted EBITDA reconciliation.
Revenue & Expenses
Visualization of income flow from segment revenue to net income