Latham Group Q2 Earnings Call Highlights

Latham Group Q2 Earnings Call Highlights

Q2 sales grew 14% year over year to $197 million , driven by 23% growth in in-ground pools, demand for fiberglass products, and the Freedom Pools acquisition. Management cited market-share gains, stronger demand and increased consumer engagement.

Fiberglass pools remain central to the strategy, expected to comprise about 80% of full-year in-ground pool sales. Latham plans to expand its “Sand States” presence beyond Florida and Dallas into Texas, Arizona and Southern California.

The company raised its full-year outlook, now targeting 11.7% net sales growth and 15.2% adjusted EBITDA growth. Margins were pressured by production ramp-up costs and higher investments, but management expects improvement in the second half and leverage below 2x by year-end.

Latham Group NASDAQ: SWIM reported second-quarter 2026 sales growth that outpaced a flat market for new U.S. pool starts, led by demand for fiberglass pools, covers and liners. The company raised its full-year sales and adjusted EBITDA growth outlook, citing first-half demand, share gains and current order trends.

Net sales rose 14% year over year to $197 million in the second quarter, including 10% organic growth and a 4% contribution from the Freedom Pools acquisition completed in February. In-ground pool sales increased 23% to $96 million, or 14% organically, while cover sales rose 10% to $41 million and liner sales increased 6% to $60 million.

President and CEO Sean Gadd said the company benefited from a stronger-than-expected increase in demand following a weather-affected first quarter. He attributed the performance to market-share gains, national marketing efforts and progress in core markets and the so-called Sand States. “The demand in Q2 was higher than we had expected,” Gadd said during the company’s earnings call. “It looked like there’s just a true spike in demand, which is a result, in my mind, from us taking share over the last sort of 12 months.”

Fiberglass pools remain central to Latham’s growth strategy. Gadd said fiberglass is expected to represent about 80% of the company’s full-year 2026 in-ground pool sales and is projected to gain another percentage point of market share this year, reaching about 25% of new U.S. pool starts. The company reported double-digit sales growth in the Sand States, including Florida, where Latham has been targeting areas with favorable home values, lot sizes and household income profiles. The company plans to expand its market-development framework into Texas, followed by Arizona and California. Gadd said Texas represents a significant opportunity, with Latham currently concentrated in Dallas and seeking to build its presence in San Antonio, Austin and Houston. The company has also opened a role for a vice president of Sand States West as it evaluates expansion in Arizona and Southern California.

Latham’s marketing activity also produced higher consumer engagement during the quarter. Consumer leads increased 60% from a year earlier, website traffic rose 30%, and Google search demand for Latham was up more than 100%, according to Gadd. He said Latham remained the most-searched brand among fiberglass pool competitors. The company is also seeking to raise automatic-cover attachment rates, with Gadd describing the goal as “an auto cover on every new pool installation.” Cover sales rose during the quarter, driven primarily by automatic covers, while liner sales benefited from Latham’s Measure by Latham technology and lead times, management said.

Gross profit increased 9.6% to $70 million, though gross margin declined 160 basis points to 35.5%. Chief Financial Officer Oliver Glo...