Latham Group Lifts Full-Year Outlook After Q2 Sales Climb 14.4%
SWIM sits 29% above its 52-week low of $4.64.
Summary
Latham Group posted Q2 2026 net sales of $197.5M (+14.4% YoY) and net income of $12.8M, then raised its full-year guidance for both sales and Adjusted EBITDA, citing strong organic growth and market share gains.
Key Events · Earnings and Guidance · SWIM
-
Q2 Sales Surge 14.4%
Net sales reached $197.5 million, driven by 10.3% organic growth and double-digit gains in the Sand States. In-ground pool sales jumped 22.5% (13.6% organic).
-
Full-Year Guidance Raised
Management increased 2026 net sales guidance to $600–620 million (midpoint +11.7% YoY) and Adjusted EBITDA to $110–120 million (midpoint +15.2% YoY), reflecting confidence in continued share gains.
-
Gross Margin Hit by Ramp-Up Costs
Gross margin contracted 160 bps to 35.5%, including ~$2.8 million in quarter-specific costs from faster-than-expected demand ramp; the majority expected to be recovered in H2 2026.
-
Adjusted EBITDA Up 11.9%
Adjusted EBITDA rose to $44.6 million (22.6% margin), despite higher SG&A from strategic investments and $2.2 million in acquisition earn-out costs.
Analysis · SWIM · Industrial Applications And Services
A strong second quarter saw Latham Group's net sales rise 14.4% to $197.5 million, fueled by organic growth across all product lines and double-digit gains in the key Sand States market. Net income reached $12.8 million, or $0.11 per diluted share, while Adjusted EBITDA advanced 11.9% to $44.6 million. Reflecting confidence in its market share momentum and fiberglass conversion strategy, management raised full-year guidance—now projecting net sales of $600–620 million and Adjusted EBITDA of $110–120 million at the midpoint. The quarter did absorb a 140-basis-point gross margin headwind from $2.8 million in incremental ramp-up costs as demand accelerated beyond seasonal norms, though the majority of those costs are expected to be recovered in the second half. With a net debt leverage ratio of 2.2x and $43.5 million in cash, the balance sheet remains manageable. This earnings beat and guidance raise signal that Latham is executing well against a flat market backdrop, making it a notable positive update for investors.
At the time of this filing, SWIM was trading at $6.00 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $669.2M. The 52-week trading range was $4.64 to $8.97. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.