Latham Group Reports Strong Q4 2025 Earnings with Strategic Growth Initiatives
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 04 2026
0mins
Should l Buy SWIM?
Source: seekingalpha
- Significant Revenue Growth: Latham Group reported net sales of $100 million for Q4 2025, reflecting a 15% increase year-over-year, demonstrating strong growth across all product lines, particularly amidst overall industry declines, showcasing the company's market resilience.
- Market Share Increase: Despite a sluggish overall market, Latham's fiberglass pool sales grew by 2.5% year-on-year, accounting for 24% of U.S. pool starts in 2025, indicating the company's strengthening competitiveness in the niche market.
- Successful Strategic Acquisition: The recent acquisition of Freedom Pools is expected to be immediately accretive to earnings and further expand Latham's market presence in Australia and New Zealand, aligning with the company's long-term growth strategy.
- Optimistic Future Outlook: Latham projects net sales for 2026 to be between $580 million and $610 million, with adjusted EBITDA ranging from $105 million to $120 million, reflecting confidence in market demand and the potential growth from ongoing marketing investments.
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Analyst Views on SWIM
Wall Street analysts forecast SWIM stock price to rise
5 Analyst Rating
3 Buy
1 Hold
1 Sell
Moderate Buy
Current: 5.750
Low
8.00
Averages
8.92
High
10.00
Current: 5.750
Low
8.00
Averages
8.92
High
10.00
About SWIM
Latham Group, Inc. is a designer, manufacturer, and marketer of in-ground residential swimming pools in North America, Australia, and New Zealand. The Company offers a range of pools and related products, including in-ground swimming pools, pool liners, and pool covers. Its in-ground swimming pools products include fiberglass pools and packaged pools. The Company offers a portfolio of fiberglass pools with customizable features that include different colors, elaborate finishes, floor mosaics, lighting options, water features, in-floor cleaning, tanning ledges, and spillover spas. Its pools are available in a variety of different shapes and sizes. The Company manufactures replacement liners and custom vinyl pools. The Company offers automatic safety covers and all-season pool covers. In North America, it operates under one banner, Latham, the Pool Company. Its sub-brands, which sit under the Latham master brand, include Narellan, CoverStar, Radiant, and GLI, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Latham Group Reports Q1 2026 Earnings with Growth Amid Challenges
- Sales Growth: Latham Group reported Q1 2026 net sales of $117 million, achieving year-on-year growth across all product lines despite adverse weather conditions, particularly highlighting significant sales gains in fiberglass pools within the Florida market, indicating strong performance in a key region.
- Profitability Improvement: The company achieved a gross margin of 32% and an adjusted EBITDA of $12 million with an adjusted EBITDA margin of 10.4%, primarily driven by lean manufacturing and value engineering initiatives, thereby enhancing profitability and competitive positioning in the market.
- Cost Pressure Mitigation: Management acknowledged moderate increases in transportation and commodity costs due to high oil prices, implementing temporary fuel surcharges to alleviate these pressures while closely monitoring geopolitical developments in the Middle East for potential impacts on costs and consumer demand.
- 2026 Outlook: The management reaffirmed guidance for 2026, projecting 9% revenue growth and 13% adjusted EBITDA growth, with expectations for flat U.S. pool starts, reflecting confidence and stability in the company's future market positioning.
See More
Latham Group Reports Q1 Earnings Beat Expectations
- Earnings Performance: Latham Group reported a Q1 GAAP EPS of -$0.07, which, while still negative, shows improvement against expectations, indicating a gradual recovery for the company amidst challenges.
- Revenue Growth: The company achieved Q1 revenue of $117.3 million, exceeding market expectations of $113.6 million, demonstrating stable revenue growth amid a recovering market demand.
- Future Guidance: Latham Group projects net sales for 2026 to be between $580 million and $610 million, reflecting strategic intentions to expand in Sand States and the acquisition of Freedom Pools, aimed at increasing market share.
- Valuation Risks: Despite the earnings beat, analysts remain cautious about Latham Group's valuation risks, which could impact investor confidence and future stock performance.
See More
Latham Group Promotes Water Safety Measures
- Raising Water Safety Awareness: Latham Group collaborates with Olympic gold medalist Bode Miller and his wife Morgan Miller to emphasize the importance of water safety, particularly in light of the high incidence of swimming accidents among children, aiming to raise public awareness about drowning prevention through personal storytelling.
- Importance of Swim Lessons: According to the National Institutes of Health, formal swim lessons can reduce drowning risk in children aged 1-4 by 88%, prompting Latham to encourage parents to enroll their children in swim classes early to enhance their safety awareness and skills.
- Advantages of Automatic Safety Covers: Latham's Coverstar automatic safety covers not only provide a strong protective barrier to prevent children from accidentally entering the pool but also help minimize water loss, maintain water temperature, thereby reducing electricity costs and extending the swimming season, which boosts families' confidence in using their pools.
- Establishing Safety Rules: Latham advises families to set clear swimming safety rules, such as never swimming alone and entering the pool feet first, ensuring that every family member understands and adheres to these guidelines to safeguard their enjoyment of swimming activities.
See More
U.S. Stocks Rise as Fear Index Eases Slightly
- Fear Index Update: The CNN Money Fear & Greed Index slightly increased to 37.3 on Wednesday, remaining in the 'Fear' zone, indicating a modest improvement in market sentiment while cautioning against potential risks ahead.
- Stock Market Performance: U.S. stocks rose broadly on Wednesday, with the Nasdaq Composite gaining over 1% to close at 22,807.48, primarily driven by optimism surrounding potential U.S.-Iran diplomatic talks, reflecting a rebound in investor sentiment.
- Earnings Impact: Abercrombie & Fitch Co. (NYSE:ANF) saw its shares fall approximately 4% after disappointing fourth-quarter earnings, while Latham Group Inc. (NASDAQ:SWIM) surged 12% due to better-than-expected results and FY26 sales guidance, highlighting a divergence in market reactions to corporate performance.
- Employment and Economic Data: U.S. private businesses added 63,000 jobs in February, the highest since July, exceeding market expectations of 50,000, signaling strong economic recovery, while the ISM services PMI rose from 53.8 to 56.1, further bolstering confidence in economic growth.
See More
Sporting Goods Stocks Surge on Strong Performance
- Sector Performance: Sporting goods and activities stocks rose approximately 3.2% collectively, indicating strong market confidence in the sector, which may attract more investor interest.
- Accel Entertainment Leads: Accel Entertainment's stock surged about 19.4%, positioning it as a leader in the industry, reflecting its competitive advantage and positive investor sentiment.
- Xponential Fitness Growth: Xponential Fitness saw its stock increase by approximately 17.9%, showcasing the success of its business model and strong market demand, potentially driving further expansion plans.
- Market Trend Analysis: The robust performance of the sporting goods sector may signal ongoing consumer interest in health and fitness, prompting companies to capitalize on this trend to enhance market share.
See More
Latham Group Shares Surge After Strong Q4 Results
- Strong Earnings Report: Latham Group reported a fourth-quarter loss of 6 cents per share, outperforming analyst expectations of a 10-cent loss, indicating improvements in cost control and operational efficiency.
- Sales Exceed Expectations: The company achieved quarterly sales of $99.950 million, surpassing the analyst consensus estimate of $96.786 million, reflecting strong market demand and robust product performance, which bolstered investor confidence.
- Significant Stock Surge: Following the positive earnings report, Latham Group's shares jumped 25.7% to $8.10 on Wednesday, reflecting market optimism regarding the company's future growth potential.
- Positive Future Outlook: Latham Group issued FY26 sales guidance above estimates, further solidifying investor confidence in the company's long-term growth trajectory.
See More
Latham Group Reports Q1 2026 Earnings with Growth Amid Challenges
- Sales Growth: Latham Group reported Q1 2026 net sales of $117 million, achieving year-on-year growth across all product lines despite adverse weather conditions, particularly highlighting significant sales gains in fiberglass pools within the Florida market, indicating strong performance in a key region.
- Profitability Improvement: The company achieved a gross margin of 32% and an adjusted EBITDA of $12 million with an adjusted EBITDA margin of 10.4%, primarily driven by lean manufacturing and value engineering initiatives, thereby enhancing profitability and competitive positioning in the market.
- Cost Pressure Mitigation: Management acknowledged moderate increases in transportation and commodity costs due to high oil prices, implementing temporary fuel surcharges to alleviate these pressures while closely monitoring geopolitical developments in the Middle East for potential impacts on costs and consumer demand.
- 2026 Outlook: The management reaffirmed guidance for 2026, projecting 9% revenue growth and 13% adjusted EBITDA growth, with expectations for flat U.S. pool starts, reflecting confidence and stability in the company's future market positioning.
See More
Latham Group Reports Q1 Earnings Beat Expectations
- Earnings Performance: Latham Group reported a Q1 GAAP EPS of -$0.07, which, while still negative, shows improvement against expectations, indicating a gradual recovery for the company amidst challenges.
- Revenue Growth: The company achieved Q1 revenue of $117.3 million, exceeding market expectations of $113.6 million, demonstrating stable revenue growth amid a recovering market demand.
- Future Guidance: Latham Group projects net sales for 2026 to be between $580 million and $610 million, reflecting strategic intentions to expand in Sand States and the acquisition of Freedom Pools, aimed at increasing market share.
- Valuation Risks: Despite the earnings beat, analysts remain cautious about Latham Group's valuation risks, which could impact investor confidence and future stock performance.
See More
Latham Group Promotes Water Safety Measures
- Raising Water Safety Awareness: Latham Group collaborates with Olympic gold medalist Bode Miller and his wife Morgan Miller to emphasize the importance of water safety, particularly in light of the high incidence of swimming accidents among children, aiming to raise public awareness about drowning prevention through personal storytelling.
- Importance of Swim Lessons: According to the National Institutes of Health, formal swim lessons can reduce drowning risk in children aged 1-4 by 88%, prompting Latham to encourage parents to enroll their children in swim classes early to enhance their safety awareness and skills.
- Advantages of Automatic Safety Covers: Latham's Coverstar automatic safety covers not only provide a strong protective barrier to prevent children from accidentally entering the pool but also help minimize water loss, maintain water temperature, thereby reducing electricity costs and extending the swimming season, which boosts families' confidence in using their pools.
- Establishing Safety Rules: Latham advises families to set clear swimming safety rules, such as never swimming alone and entering the pool feet first, ensuring that every family member understands and adheres to these guidelines to safeguard their enjoyment of swimming activities.
See More
U.S. Stocks Rise as Fear Index Eases Slightly
- Fear Index Update: The CNN Money Fear & Greed Index slightly increased to 37.3 on Wednesday, remaining in the 'Fear' zone, indicating a modest improvement in market sentiment while cautioning against potential risks ahead.
- Stock Market Performance: U.S. stocks rose broadly on Wednesday, with the Nasdaq Composite gaining over 1% to close at 22,807.48, primarily driven by optimism surrounding potential U.S.-Iran diplomatic talks, reflecting a rebound in investor sentiment.
- Earnings Impact: Abercrombie & Fitch Co. (NYSE:ANF) saw its shares fall approximately 4% after disappointing fourth-quarter earnings, while Latham Group Inc. (NASDAQ:SWIM) surged 12% due to better-than-expected results and FY26 sales guidance, highlighting a divergence in market reactions to corporate performance.
- Employment and Economic Data: U.S. private businesses added 63,000 jobs in February, the highest since July, exceeding market expectations of 50,000, signaling strong economic recovery, while the ISM services PMI rose from 53.8 to 56.1, further bolstering confidence in economic growth.
See More
Sporting Goods Stocks Surge on Strong Performance
- Sector Performance: Sporting goods and activities stocks rose approximately 3.2% collectively, indicating strong market confidence in the sector, which may attract more investor interest.
- Accel Entertainment Leads: Accel Entertainment's stock surged about 19.4%, positioning it as a leader in the industry, reflecting its competitive advantage and positive investor sentiment.
- Xponential Fitness Growth: Xponential Fitness saw its stock increase by approximately 17.9%, showcasing the success of its business model and strong market demand, potentially driving further expansion plans.
- Market Trend Analysis: The robust performance of the sporting goods sector may signal ongoing consumer interest in health and fitness, prompting companies to capitalize on this trend to enhance market share.
See More
Latham Group Shares Surge After Strong Q4 Results
- Strong Earnings Report: Latham Group reported a fourth-quarter loss of 6 cents per share, outperforming analyst expectations of a 10-cent loss, indicating improvements in cost control and operational efficiency.
- Sales Exceed Expectations: The company achieved quarterly sales of $99.950 million, surpassing the analyst consensus estimate of $96.786 million, reflecting strong market demand and robust product performance, which bolstered investor confidence.
- Significant Stock Surge: Following the positive earnings report, Latham Group's shares jumped 25.7% to $8.10 on Wednesday, reflecting market optimism regarding the company's future growth potential.
- Positive Future Outlook: Latham Group issued FY26 sales guidance above estimates, further solidifying investor confidence in the company's long-term growth trajectory.
See More
