10-Q · April 28, 2026
POOL reported Q1 2026 net sales of $1,138,014,000, up 6% YoY, and diluted EPS of $1.45, beating consensus. Operating income rose 7% to $82.6 million and operating margin expanded to 7.3%. Management reconfirmed…
Earnings analysis · 10-Q
POOL earnings analysis
Filed July 29, 2026 · Our reading of the company's report
The latest report
POOL delivered modest Q2 growth, with revenue up 2% to $1.823 billion and adjusted EPS up 4% to $5.38, but GAAP EPS remained flat at $5.17 as freight, mix pressure and $8.3 million of CEO-transition costs weighed on…
Read full summary
POOL delivered modest Q2 growth, with revenue up 2% to $1.823 billion and adjusted EPS up 4% to $5.38, but GAAP EPS remained flat at $5.17 as freight, mix pressure and $8.3 million of CEO-transition costs weighed on profitability. Gross margin declined 30 basis points year over year to 29.7% and operating income fell 2% to $267.7 million, although both revenue and margins improved sharply sequentially from the seasonally softer Q1. Management maintained its $10.66-$10.96 GAAP EPS outlook, while balance-sheet leverage and working-capital metrics warrant monitoring.
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.
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
- $5.17
What stood out
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Sales returned to modest year-over-year growth
Q2 net sales rose 2% year over year to $1.823 billion, and increased 60% sequentially from $1.138 billion in Q1 2026. Inflationary product-cost increases contributed approximately 3% to Q2 sales growth, alongside steady maintenance demand and stronger building-material sales.
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Adjusted EPS increased despite flat GAAP EPS
GAAP diluted EPS was unchanged year over year at $5.17, while adjusted EPS rose 4% to $5.38. Sequentially, GAAP EPS increased from $1.45 in Q1 2026 to $5.17 in Q2, reflecting the seasonal peak period.
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Equipment and building materials grew
Equipment sales increased 3% in Q2 and represented approximately 29% of net sales, while building-material sales increased 4% and represented approximately 12% of sales. These categories offset declines in discretionary product sales.
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Seasonal sequential margin recovery
Gross margin improved sequentially by 70 basis points from 29.0% in Q1 2026 to 29.7% in Q2 2026. Supply-chain initiatives partly offset elevated inbound freight costs and an unfavorable customer-mix shift.
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Inventory growth moderated materially
Inventory fell $282.1 million sequentially to $1.379 billion at June 30 from $1.661 billion at March 31, as peak-season inventory was sold through. Year-over-year inventory growth moderated to 4%, versus 14% reported in Q1.
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Liquidity and repurchase capacity remain available
The company had $359.9 million available under its Credit Facility at June 30 and remained compliant with covenants; its 1.78x average total leverage ratio was below the 3.25x maximum. It also retained $580.0 million of share-repurchase authorization as of July 23.
What to watch
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Freight and mix pressure margins
Q2 gross margin declined 30 basis points year over year to 29.7%, while operating margin fell 60 basis points to 14.7%. Management expects 2026 gross margin to be approximately 30 basis points below 2025's 29.7%, citing higher inbound freight costs and product/customer mix.
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Higher debt is raising financing burden
Total debt increased $110.8 million year over year to $1.341 billion at June 30, 2026, and interest and other non-operating expense increased $2.1 million in Q2. Average total leverage rose to 1.78x from 1.73x at March 31.
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Receivables and inventory efficiency weakened
Total net receivables increased 11% year over year and DSO increased to 27.6 days from 25.8 days. Inventory turns declined to 2.6x from 2.8x, indicating slower working-capital efficiency despite the sequential inventory drawdown.
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First-half free cash flow remained negative
Cash used in operating activities was $0.7 million in the first six months of 2026, and net cash used in investing activities was $36.0 million; implied free cash flow was negative $36.8 million. Capital expenditures are projected at 1.0%-1.5% of 2026 sales.
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No new risk-factor update; macro exposure persists
Item 1A states there were no material changes to risk factors from the 2025 Form 10-K. However, management continues to identify weather, discretionary spending, housing, inflation, interest rates, tariffs and supplier relationships as key uncertainties; 95% of sales were generated in North America during the first six months of 2026.
Management's outlook
Management maintained 2026 GAAP diluted-EPS guidance of $10.66-$10.96; adjusted diluted EPS excluding $8.3 million of CEO transition costs is projected at $10.87-$11.17. Management expects full-year sales growth at a low-single-digit percentage, but did not provide a quantitative revenue range; gross margin is projected approximately 30 basis points below 2025's 29.7%.
Earlier filings 4
10-K · February 26, 2026
Pool Corporation positions itself as the world’s largest wholesale distributor of swimming pool supplies with 456 sales centers as of December 31, 2025 and a highly recurring revenue base (64% of 2025 sales from…
10-Q · October 29, 2025
Pool reported Q3 2025 net sales of $1,451,131,000, up $18,252,000 (+1.3%) versus Q3 2024, with diluted EPS of $3.40 (versus $3.27 a year ago). Gross margin expanded to roughly 29.6% and operating income was essentially…
10-Q · July 30, 2025
Pool reported Q2 net sales of $1,784,530 (thousand) (i.e. $1.7845B), up modestly from $1,769,784 in Q2 2024, with gross margin steady at 30.0% and operating margin 15.3%. GAAP diluted EPS was $5.17, up from $4.99 a year…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.