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Jun 29, 2024
Hayward Q2 2024 Earnings Report
Hayward's Q2 2024 financial performance showed increased net sales, net income, and adjusted EBITDA, driven by operational efficiencies and strategic acquisitions.
Key Takeaways
Hayward Holdings reported a modest increase in net sales to $284.4 million and a 28% increase in net income to $37.6 million for the second quarter of fiscal year 2024. The company saw improvements in gross profit and operating income, along with a strategic acquisition of ChlorKing. However, the company is experiencing a more challenging demand environment, particularly in new construction and remodels and certain international markets.
Net sales increased modestly to $284.4 million.
Net income increased 28% year-over-year to $37.6 million.
Gross profit increased by 6% to $145.1 million with gross profit margin increasing 290 basis points to 51.0%.
Diluted EPS increased by 31% to $0.17, and adjusted diluted EPS increased by 11% to $0.21.
Forward Guidance
Hayward is narrowing its full-year 2024 guidance, reflecting better than expected margins offset by a more challenging demand environment. The company now expects net sales of $1.010 billion to $1.040 billion and adjusted EBITDA of $255 million to $270 million.
Positive Outlook
- Net sales are expected to increase by approximately 2% to 5% from fiscal year 2023.
- The ChlorKing acquisition is expected to contribute approximately 1% to net sales.
- Adjusted EBITDA is projected to increase by approximately 3% to 9% from fiscal year 2023.
- Hayward continues to leverage competitive advantages and drive adoption of SmartPad™ pool equipment products.
- The company anticipates long-term profitable growth and robust cash flow generation.
Challenges Ahead
- The company is facing a more challenging demand environment, particularly in new construction and remodels.
- Certain international markets are experiencing weaker demand.
- Economic and interest rate environment remains uncertain.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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