HAYW earnings analysis
What we found in HAYW's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Hayward delivered a solid seasonal Q2, with revenue up 6.3% year over year to $318.378 million and GAAP diluted EPS of $0.21, ahead of the $0.11 earned in Q1 and $0.20 a year ago. NAM growth of 8.8%, including 1.8% volume growth, offset an 8.3% E&RW decline tied to Middle East disruption. The principal offsets are 50 basis points of consolidated gross-margin compression from tariffs and inflation, weaker first-half operating cash flow, and higher refinancing-related interest costs; liquidity nevertheless remains robust with $304.1 million of cash and an undrawn $425.0 million revolver.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue accelerated sequentially and grew 6.3% YoY
- Q2 net sales increased $18.775 million, or 6.3% year over year, to $318.378 million; this was also 24.9% above Q1 2026 sales of $255 million. Growth was driven by 6.1% net price and 0.3% currency/other, partly offset by a 0.1% volume decline.
- North America delivered volume-led growth
- NAM sales rose $22.483 million, or 8.8%, to $277.658 million, with 7.0% from price and 1.8% from volume. NAM generated 87% of consolidated Q2 sales, versus 85% a year earlier.
- Operating profit and EPS improved
- Operating income increased $4.616 million to $75.999 million, producing a 23.9% operating margin versus 23.8% in Q1 2026. GAAP diluted EPS was $0.21, up from $0.11 in Q1 and $0.20 in Q2 2025; adjusted diluted EPS was $0.26 versus $0.24 a year ago.
- Liquidity remains substantial
- Six-month operating cash flow remained strong at $171.563 million, despite declining $16.799 million from $188.362 million in the prior-year period. The company held $304.1 million of unrestricted cash and $179.3 million of short-term investments at June 27, 2026.
- Refinancing extended debt maturities
- The June refinancing established a $425.0 million revolver with zero drawn and full $425.0 million availability, and extended term-loan maturity to June 23, 2033. The company was in compliance with all credit covenants at June 27, 2026.
- Capital returns accelerated through buybacks
- The company repurchased 4.072 million shares at an average $14.24 per share in Q2; $382.3 million remained under the $450.0 million authorization at June 27, 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Tariffs and inflation compressed gross margin
- Consolidated gross margin contracted 50 basis points year over year to 48.7%, and NAM gross margin fell 90 basis points to 50.4%, as inflation and tariffs increased costs. Net price added 6.1% to consolidated Q2 sales but did not fully offset the cost pressure.
- Middle East conflict pressured international sales
- E&RW revenue declined $3.708 million, or 8.3%, to $40.720 million as volume fell 11.6%; management attributed the volume decline primarily to geopolitical conflicts in the Middle East. E&RW segment income fell 12.5% to $6.640 million and margin declined 80 basis points to 16.3%.
- Refinancing costs and leverage weighed on earnings
- Net interest expense rose $3.331 million, or 24.4%, to $16.981 million, primarily reflecting $5.186 million of refinancing costs; the company also recorded a $1.836 million Q2 loss on debt extinguishment. Term Facility borrowings were $960.0 million at June 27, 2026.
- Cash conversion weakened despite higher income
- Operating cash flow decreased 8.9% year over year to $171.563 million for the first six months, primarily due to higher payments for accrued expenses, including customer rebates and incentive plans. Cash and equivalents declined $25.531 million from December 31, 2025 to $304.1 million.
- Capital deployment increased cash outflows
- Investing cash use increased to $126.722 million from $13.582 million in the prior-year first half, primarily from net purchases of short-term investments; financing cash use rose to $69.523 million from $8.052 million due to buybacks and debt-issuance costs.
- Derivative litigation exposure remains unresolved
- No material changes to the risk factors disclosed in the annual report were reported. Separately, the securities class-action settlement received final court approval on July 28, 2026, while four derivative actions seek unspecified damages and the company cannot estimate a reasonably possible loss range.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.21
- Gross margin
- 48.7%
- Operating margin
- 23.9%
- Segment
- North America (NAM): $277.658 million revenue, up 8.8% year over year
- Segment
- Europe & Rest of World (E&RW): $40.720 million revenue, down 8.3% year over year
What they said about what is next.
The 10-Q MD&A provides no explicit quantitative fiscal-year revenue or EPS outlook. Management states that operating cash flow and Revolving Facility availability should adequately fund working capital, capex and debt service over the next 12 months.
The filing reads about the same as the one before it.
What came before.
- 10-Q · April 29, 2026
- Hayward Holdings, Inc. reported Q1 2026 revenue of $229 million, up 6% year-over-year but down 30% from Q4 2025. EPS dropped to $0.06, a decline from $0.31 in the previous quarter but slightly improved from $0.07 a year…
- 10-K · February 25, 2026
- Hayward positions itself as a market leader in pool equipment with a large installed base (~25 million pools) and a product mix driven by aftermarket sales (≈85% of net sales). Fiscal 2025 showed revenue strength and…
- 10-Q · October 29, 2025
- Hayward reported Q3 net sales of $244,336,000, up $16,767,000 (≈7.4%) versus Q3 2024, with gross profit rising to $125,136,000 (51.2% margin) and operating income increasing to $41,053,000 (16.8% margin). Net income was…
- 10-Q · July 30, 2025
- Hayward reported Q2 net sales of $299,603,000, up $15,210,000 versus $284,393,000 in the year-ago quarter, with gross profit rising to $157,839,000 (gross margin ~52.7%). Operating income was $71,383,000 (operating…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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