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Sep 30, 2023
Hayward Q3 2023 Earnings Report
Hayward's Q3 2023 financial performance reflected continued execution amid challenging operating conditions.
Key Takeaways
Hayward Holdings reported a decrease in net sales by 10% to $220.3 million for the third quarter of fiscal 2023. Net income decreased by 49% to $11.8 million, with diluted EPS decreasing by 50% to $0.05. Adjusted EBITDA decreased by 22% to $47.2 million.
Net sales decreased by 10% to $220.3 million.
Net income decreased by 49% to $11.8 million.
Diluted EPS decreased by 50% to $0.05 and adjusted diluted EPS decreased by 36% to $0.09.
Adjusted EBITDA decreased by 22% to $47.2 million.
Hayward
Hayward
Forward Guidance
Hayward is updating its guidance primarily to reflect the impact of more challenging macro conditions in Canada, the Middle East, and Latin America, in addition to modestly reduced expectations for the US and Europe. For the full fiscal year 2023, Hayward now expects net sales to decrease 24% to 26% from the prior year and Adjusted EBITDA in the range of $245 million to $255 million.
Positive Outlook
- Early buy orders in our primary US market increased year-over-year and were in line with expectations.
- The company remains positive about the long-term 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.
- The industry continues to benefit from secular demand tailwinds, including sunbelt migration.
- The industry continues to benefit from secular demand tailwinds, including smart home technology adoption, and environmentally sustainable products.
Challenges Ahead
- Recent in-season orders have been softer than previously anticipated reflecting a cautious approach by channel partners ahead of 2024.
- Hayward is updating its guidance primarily to reflect the impact of more challenging macro conditions in Canada.
- Hayward is updating its guidance primarily to reflect the impact of more challenging macro conditions in the Middle East.
- Hayward is updating its guidance primarily to reflect the impact of more challenging macro conditions in Latin America.
- Hayward is updating its guidance primarily to reflect modestly reduced expectations for the US and Europe.