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Jul 01, 2023
Hayward Q2 2023 Earnings Report
Hayward Holdings reported a decrease in net sales due to lower volumes, partially offset by favorable pricing and acquisitions, and distribution channel destocking.
Key Takeaways
Hayward Holdings reported a decrease in net sales by 29% to $283.5 million. Net income decreased by 56% to $29.5 million, and diluted EPS decreased by 54% to $0.13. The company is refining its full year 2023 guidance to reflect incremental reductions in channel inventory levels and better than expected margins. For the full fiscal year 2023, Hayward expects net sales to decrease 20% to 23% and Adjusted EBITDA* of $265 million to $280 million.
Net sales decreased by 29% to $283.5 million.
Net income decreased by 56% to $29.5 million.
Diluted EPS decreased by 54% to $0.13.
Adjusted EBITDA decreased by 38% to $79.5 million.
Hayward
Hayward
Forward Guidance
Hayward is refining its full year 2023 guidance to reflect incremental reductions in channel inventory levels and better than expected margins. For the full fiscal year 2023, Hayward expects net sales to decrease 20% to 23% and Adjusted EBITDA of $265 million to $280 million.
Positive Outlook
- We remain positive about the health of the pool industry, particularly the strength of the ever-increasing aftermarket, representing approximately 80% of the business.
- The industry continues to benefit from secular demand tailwinds, including outdoor living, sunbelt migration, smart home technology adoption, and environmentally sustainable products.
- Hayward is confident in its ability to successfully execute in an evolving environment in the near-term and its long-term outlook for robust growth
- Hayward is confident in its ability to generate cash flow, driven by new product innovation
- Hayward is confident in its ability to expand commercial relationships, and drive operational excellence.
Challenges Ahead
- Hayward expects net sales to decrease 20% to 23%
- Distribution channel destocking
- Moderation of end-market demand due to macroeconomic factors.
- Operating margin decreased 350 basis points to 22.2% due to lower sales.
- Adjusted EBITDA margin decreased 400 basis points to 28.0%.