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Dec 31, 2024
Latham Q4 2024 Earnings Report
Latham reported a decline in Q4 2024 revenue with increased losses.
Key Takeaways
Latham Group reported Q4 2024 revenue of $87.3 million, down 4.0% year-over-year, reflecting challenging industry conditions. The company posted a net loss of $29.2 million, or $0.25 per share, largely impacted by non-recurring tax expenses and foreign currency losses. Adjusted EBITDA declined 63.4% to $3.6 million, primarily due to higher investments in sales and marketing. Despite these challenges, gross margin expanded by 130 basis points, and the company ended the year with $56.4 million in cash.
Q4 2024 revenue declined 4.0% year-over-year to $87.3 million.
Net loss widened to $29.2 million, or $0.25 per share.
Adjusted EPS was -$0.17, reflecting operational and tax impacts.
Adjusted EBITDA decreased 63.4% to $3.6 million.
Revenue by Segment
Forward Guidance
Latham anticipates an 8% revenue growth in 2025, driven by increased market share in fiberglass pools and acquisitions.
Positive Outlook
- 2025 revenue guidance of $535M to $565M, reflecting 8% growth.
- Adjusted EBITDA expected to increase by 19% at the midpoint.
- Further margin expansion anticipated due to cost efficiencies.
- Stronger presence in the Sand States expected to drive sales.
- Continued adoption of automatic safety covers expected to support growth.
Challenges Ahead
- Market conditions remain challenging with pool starts flat in 2025.
- Higher investments in growth initiatives could pressure margins.
- Increased performance-based compensation may impact profitability.
- Integration risks associated with recent acquisitions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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