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…
Earnings analysis · 10-Q
HAYW earnings analysis
Filed July 29, 2026 · Our reading of the company's report
The latest report
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%…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.21
What stood out
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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.
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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.
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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.
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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.
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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.
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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.
What to watch
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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.
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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%.
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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.
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.