Hayward’s first quarter results were well received by the market, with management attributing growth to a combination of robust aftermarket demand, successful price increases, and effective cost controls. CEO Kevin Holleran pointed to strong performance in both North America and international markets, highlighting gains across key product categories like pumps, lighting, automation, and sanitization. The company’s ability to navigate a challenging tariff environment—through supply chain adjustments and targeted pricing actions—also contributed to margin stability. Holleran emphasized, “We delivered solid profitability in our seasonally softest quarter with gross profit margins increasing to 49.5% and adjusted EBITDA margins increasing to 21.5%.”
Is now the time to buy HAYW? Find out in our full research report (it’s free).
Hayward (HAYW) Q1 CY2025 Highlights:
- Revenue: $228.8 million vs analyst estimates of $213.7 million (7.7% year-on-year growth, 7.1% beat)
- Adjusted EPS: $0.10 vs analyst estimates of $0.09 (17.4% beat)
- Adjusted EBITDA: $49.1 million vs analyst estimates of $42.7 million (21.5% margin, 15% beat)
- The company reconfirmed its revenue guidance for the full year of $1.08 billion at the midpoint
- EBITDA guidance for the full year is $285 million at the midpoint, in line with analyst expectations
- Operating Margin: 14.6%, in line with the same quarter last year
- Organic Revenue rose 5.9% year on year (1.1% in the same quarter last year)
- Market Capitalization: $2.98 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Hayward’s Q1 Earnings Call
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Andrew Carter (Stifel): Sought details on Hayward’s tariff mitigation strategy and whether cost increases would be fully offset. CEO Kevin Holleran explained that shifting production to U.S. facilities and implementing broad price increases were central, with CFO Eifion Jones adding that some capital expenditures would be required but cash flow guidance remained strong.
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Saree Boroditsky (Jefferies): Asked about channel inventory and the risk of overstocking. Holleran responded that inventories were “appropriate at this point in time” and that prior destocking cycles had been completed, reducing risk of disruption.
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Saree Boroditsky (Jefferies): Inquired about price sensitivity and evidence of customers trading down or deferring purchases. Holleran said any shifts were viewed as deferrals rather than permanent demand loss, and that permit values for pool projects remain elevated, suggesting ongoing appetite for premium features.
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David Tarantino (KeyBanc): Requested color on early season trends and margin levers outside of pricing. Holleran noted a slow start followed by strong March sales, while Jones described ongoing manufacturing automation and SKU rationalization as key cost initiatives.
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Sean Colman (BofA Merrill Lynch): Queried the impact of price increases on automation adoption and early results from OmniX. Holleran highlighted that OmniX offers a more cost-effective automation path, and initial channel response has been positive, with wider rollout planned over coming quarters.
Catalysts in Upcoming Quarters
Looking ahead, our analysts will be watching (1) the pace of OmniX adoption and its impact on aftermarket upgrade activity, (2) further progress in shifting production and sourcing away from China to reduce tariff risk, and (3) the ability to maintain stable margins despite ongoing cost pressures. We will also monitor developments in discretionary pool spending as economic conditions and housing turnover evolve.
Hayward currently trades at $13.80, up from $13.34 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
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