Hayward’s third quarter results drew a significantly positive response from the market, reflecting outperformance driven by margin expansion and resilient aftermarket demand. Management credited the quarter’s growth to disciplined cost management, robust operational efficiencies, and continued adoption of its technology solutions, particularly in automation and controls. CEO Kevin Holleran highlighted the company’s ability to offset tariff headwinds and emphasized that “the strength and stability of our aftermarket model” underpinned performance, as aftermarket maintenance demand remained resilient. Additionally, strong dealer engagement and a solid finish to the pool season supported higher sales volumes across North America and international markets.
Is now the time to buy HAYW? Find out in our full research report (it’s free for active Edge members).
Hayward (HAYW) Q3 CY2025 Highlights:
- Revenue: $244.3 million vs analyst estimates of $231.5 million (7.4% year-on-year growth, 5.5% beat)
- Adjusted EPS: $0.14 vs analyst estimates of $0.12 (15.8% beat)
- Adjusted EBITDA: $59.07 million vs analyst estimates of $53.03 million (24.2% margin, 11.4% beat)
- The company lifted its revenue guidance for the full year to $1.10 billion at the midpoint from $1.09 billion, a 1.6% increase
- EBITDA guidance for the full year is $294.5 million at the midpoint, above analyst estimates of $287.1 million
- Operating Margin: 16.8%, up from 14.7% in the same quarter last year
- Organic Revenue rose 6.9% year on year vs analyst estimates of 1.7% growth (519.5 basis point beat)
- Market Capitalization: $3.51 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 From Hayward’s Q3 Earnings Call
- Ryan Merkel (William Blair) asked about seasonal demand and early buy participation. CEO Kevin Holleran said channel partners reported stronger sales-out as the quarter progressed, while early buy programs tracked with expectations and reflected solid dealer enthusiasm.
- Saree Boroditsky (Jefferies) inquired about the impact of new product investment on pricing and volumes. Holleran explained targeted engineering investments in automation and controls, while CFO Eifion Jones noted no material trade-off between price and volume in the aftermarket segment.
- W. Andrew Carter (Stifel) questioned capital allocation priorities and stepped-up CapEx. Jones outlined increased investments in automation and supply chain, with M&A and share repurchases remaining options due to improved leverage.
- Jeffrey Hammond (KeyBanc Capital Markets) asked about Q4 comp headwinds from last year’s hurricane repairs. Holleran acknowledged the prior year’s unusual storm-driven demand and stated this was factored into guidance, with early buy programs providing incremental offset.
- Brian Lee (Goldman Sachs) sought clarity on international margin sustainability and pricing trends. Jones attributed margin gains to operational improvements and one-time tariff refunds, and projected mid-single-digit pricing increases for 2026, pending inflation and tariff developments.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will closely monitor (1) adoption rates and dealer feedback for new OmniX-enabled automation products, (2) the pace and effectiveness of Hayward’s supply chain realignment and tariff mitigation initiatives, and (3) continued margin improvement, particularly in international markets following operational changes. Progress on M&A and capital allocation strategies will also be important indicators of Hayward’s execution.
Hayward currently trades at $16.19, up from $15.36 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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