Abstract

Hayward Holdings, Inc. will report its quarterly results on July 29, 2026 Pre-MKt; investors are watching revenue momentum, margin resilience, and adjusted EPS against steady demand in residential pool equipment and an uneven rebuild cycle in commercial and industrial flow control.

Market Forecast

Consensus for the current quarter points to revenue of 304.60 million US dollars, an increase of 4.63% year over year, with EBIT forecast at 78.31 million US dollars, up 10.74% year over year; adjusted EPS is estimated at 0.24, implying 5.85% year-over-year growth. The company’s gross profit margin and net profit margin for the quarter are not guided, but the previous quarter’s margins suggest a mid-40s gross margin baseline and a high single-digit net profit margin; adjusted EPS is seen rising modestly. The core residential pool business is expected to remain the main revenue driver as channel inventories normalize, while commercial pool and industrial flow control provide incremental contribution and geographic diversification. Among segments, residential pool equipment remains the most promising near-term contributor with last quarter revenue of 223.80 million US dollars and a stabilizing demand trend; growth is expected to be modest on a year-over-year basis as the market digests prior restocking.

Last Quarter Review

In the prior quarter, Hayward Holdings, Inc. posted revenue of 255.22 million US dollars, a gross profit margin of 46.51%, GAAP net income attributable to the company of 23.36 million US dollars with a net profit margin of 9.15%, and adjusted EPS of 0.13, representing a 30.00% year-over-year increase. A key highlight was the strong operating leverage that supported earnings outperformance versus internal and external expectations, even as demand remained seasonally light. The main business remained anchored by residential pool products at 223.80 million US dollars, with commercial pool at 17.92 million US dollars and industrial flow control at 13.50 million US dollars, reflecting a revenue mix still dominated by residential pool equipment on a year-over-year improving trend.

Current Quarter Outlook (with major analytical insights)

Main business: Residential pool equipment

Residential pool equipment remains the largest revenue engine and the single most influential factor for this quarter’s top line. Channel checks and seasonal patterns imply relatively steady sell-through, with normalized inventory levels compared with prior year disruptions, which should support the 4.63% year-over-year revenue growth projection to 304.60 million US dollars. With gross margin previously at 46.51%, the company’s product mix and pricing architecture suggest potential maintenance of mid-40s gross margin this quarter if input costs and freight remain stable. The key swing factors inside residential include the pace of new pool installations versus aftermarket replacement, which tends to be less cyclical; a higher mix of aftermarket should slightly benefit margins. Any incremental pricing discipline or mix shift toward controls, variable-speed pumps, and connected devices is likely to support EBIT growth forecast at 10.74%, outpacing revenue growth.

Most promising business: Commercial pool and adjacent flow control

Commercial pool and industrial flow control together accounted for roughly 12% of last quarter’s revenue, and while smaller, they offer optionality tied to project timing and institutional spending. The project-driven nature of commercial pools can lead to lumpiness, but a reacceleration in renovation and hospitality spending can lift this sub-segment above corporate averages when backlogs convert. Industrial flow control, while modest in scale at 13.50 million US dollars last quarter, diversifies end-market exposure and can benefit from demand in water handling and niche industrial applications. The forecasted EPS growth of 5.85% alongside faster EBIT growth indicates operating efficiency gains; if commercial backlogs convert more quickly or mix tilts toward higher-value controls and automation, incremental margin contribution could exceed baseline expectations.

Stock price drivers this quarter

Margin trajectory will be central for equity performance. With EBIT expected to grow 10.74% year over year against 4.63% revenue growth, investors will scrutinize gross margin resilience around the mid-40s level and operating expense discipline to validate the implied operating leverage. Cash generation and working capital will be watched closely given seasonal inventory builds and sell-in patterns; any evidence of improved cash conversion could reinforce confidence in guidance. Finally, commentary on dealer inventory levels and aftermarket demand versus new construction could drive multiple expansion or compression, as it directs the sustainability of the revenue and EPS trend into the back half of the year.

Analyst Opinions

Across recent commentary, the balance of views skews neutral-to-cautious, with the majority emphasizing steady demand but limited upside given a normalized replacement cycle and a slower rebound in new pool installations. Analysts with a cautious stance highlight modest revenue growth expectations at 4.63% year over year and the possibility that gross margin hovers around mid-40s without a clear catalyst for expansion, while accepting that EBIT growth near 10.74% would be constructive if achieved. The neutral-to-cautious camp also points to the need for sustained aftermarket momentum and cleaner channel inventory to support the projected 0.24 adjusted EPS. Within this framework, monitoring the conversion of commercial backlogs and visibility into second-half orders remains key to validating the current-quarter setup.