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Dec 31, 2025
Latham Q4 2025 Earnings Report
Latham Q4 2025 Earnings Report
Key Takeaways
Latham Group delivered a strong fourth quarter with 14.5% revenue growth and significant margin expansion, outperforming the U.S. in-ground pool market. Despite a net loss for the quarter, the company achieved positive net income for the full year and expanded its Adjusted EBITDA margin by 630 basis points in Q4.
Net sales increased 14.5% year-over-year to $100.0 million in Q4, driven by strong fiberglass pool and autocover demand.
Adjusted EBITDA grew 189.6% to $10.5 million, with margins expanding to 10.5% from 4.2% in the prior year.
Gross margin improved by 340 basis points to 28.0% due to volume leverage and lean manufacturing initiatives.
The company expanded its international footprint by acquiring Freedom Pools in Australia/New Zealand in February 2026.
Revenue by Segment
Forward Guidance
Latham expects 9.0% net sales growth in 2026, driven by organic growth and the Freedom Pools acquisition, despite a flat U.S. market outlook.
Positive Outlook
- Anticipated net sales between $580 million and $610 million.
- Adjusted EBITDA expected to grow 12.7% at the midpoint to $105M-$120M.
- Freedom Pools acquisition expected to be immediately accretive to earnings.
- Expected mid-single-digit organic growth outperforming the market.
- Significant growth runways in fiberglass pools and autocovers.
Challenges Ahead
- U.S. in-ground pool starts projected to remain flat with 2025 levels.
- Increased capital expenditures planned between $42 million and $48 million.
- Increased spending on growth initiatives may impact short-term margins.
- Uncertainty related to future income tax expense affecting GAAP reconciliations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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