Hayward Holdings Inc (NYSE:HAYW) has reported financial results for the third quarter of its 2025 fiscal year, concluding September 27, 2025. The company, a global designer and manufacturer of pool and outdoor living technology, delivered a performance that exceeded analyst expectations on key profitability metrics, prompting a positive reassessment of its full-year guidance.
Earnings and Revenue Performance Versus Estimates
The company's third-quarter results demonstrated robust operational execution, with both revenue and earnings per share coming in ahead of market forecasts.
- Revenue: Reported net sales were $244.3 million, a 7% increase year-over-year. This figure surpassed the analyst consensus estimate of approximately $236.8 million.
- Earnings Per Share (EPS): The company reported adjusted diluted EPS of $0.14, which represents a 27.3% increase compared to the prior year. This result comfortably exceeded the analyst estimate of $0.12.
The outperformance was primarily driven by positive net pricing to counter inflation and tariffs, increased sales volume, and favorable foreign currency translation. The company's operational efficiencies and disciplined cost management also contributed significantly to the bottom-line beat.
Market Reaction and Price Action
The market responded favorably to the earnings report and the subsequent increase in full-year guidance. In pre-market trading following the announcement, Hayward's stock price showed a notable increase of over 10%. This immediate positive price action suggests that investors were pleased with the company's ability to exceed profit expectations and its confident outlook for the remainder of the fiscal year. The strong pre-market movement indicates a reassessment of the company's near-term value based on its improved financial trajectory.
Updated Fiscal 2025 Outlook
Bolstered by its strong year-to-date performance and solid participation in early buy programs, Hayward's management has raised its financial guidance for the full 2025 fiscal year. The updated outlook now exceeds the previously provided analyst consensus.
- Net Sales Guidance: The company now expects net sales in the range of $1.095 billion to $1.110 billion, up from the prior guidance of $1.070 billion to $1.100 billion. This new range, representing growth of 4% to 5.5%, is above the analyst sales estimate of $1.113 billion at the midpoint.
- Adjusted EBITDA Guidance: Hayward raised its Adjusted EBITDA forecast to a range of $292 million to $297 million, an increase from the previous $280 million to $290 million range.
This upward revision in guidance signals management's confidence in the company's strategic initiatives and the underlying resiliency of its aftermarket-focused business model, which constitutes approximately 85% of net sales.
Key Financial and Operational Highlights
Beyond the headline earnings and revenue figures, the quarterly report highlighted several areas of strength:
- Profitability Expansion: Gross profit margin increased by 150 basis points to 51.2%, while operating income surged 23% to $41.1 million. The operating margin expanded by 210 basis points to 16.8%.
- Strong Cash Flow: The company generated $283.0 million in cash from operations for the first nine months of the year, enabling a reduction in net leverage to 1.8x, the lowest level in over three years.
- Segment Performance: Both the North America and Europe & Rest of World segments posted sales growth of 7% and 11%, respectively. The international segment saw a particularly sharp increase in segment income, which rose 152%.
Conclusion
Hayward Holdings' third-quarter earnings report paints a picture of a company successfully navigating its market, exceeding profit expectations, and demonstrating solid operational control. The significant pre-market stock price reaction reflects investor approval of these results and the heightened confidence embedded in the company's raised full-year guidance. With a focus on technology adoption in the growing pool industry and a strong aftermarket presence, Hayward appears well-positioned for its updated targets.
For a more detailed look at Hayward's historical earnings and future analyst estimates, you can review the data here.
Disclaimer: This article is for informational purposes only and is not intended as investment advice. All investing involves risk, including the possible loss of principal.
