Latham Group Reports Strong 2025 Financial Turnaround, Appoints New CEO, and Completes Strategic Acquisition

summarizeSummary

Latham Group, Inc. reported a strong financial turnaround for fiscal year 2025, returning to net income profitability with increased sales and Adjusted EBITDA, alongside a new CEO appointment and a strategic acquisition to expand its international presence.

check_boxKey Events

• Strong Financial Performance in 2025

  The company reported a significant financial turnaround for the year ended December 31, 2025, achieving net income of $11.1 million compared to a net loss of $17.9 million in 2024. Net sales increased by 7.4% to $545.9 million, and Adjusted EBITDA rose by 24.4% to $99.8 million.

• CEO Transition Announced

  Sean Gadd was appointed President and Chief Executive Officer, effective January 5, 2026, succeeding Scott Rajeski who retired. This leadership change is a notable development for the company's future direction.

• Strategic Acquisition Completed

  On February 26, 2026, Latham Group acquired Freedom Pools, a fiberglass pool manufacturer and installer in Australia and New Zealand, for approximately $17.0 million in cash. This acquisition is expected to be immediately accretive, adding $20.0 million in net sales and $4.0 million in Adjusted EBITDA annually.

• Stable Debt and Liquidity Position

  As of December 31, 2025, the company had $71.0 million in cash and $279.8 million in outstanding Term Loan borrowings, with $75.0 million available under its Revolving Credit Facility. The company remains in compliance with all debt covenants.

auto_awesomeAnalysis

This annual report details Latham Group's significant financial recovery in 2025, moving from a net loss to a net income of $11.1 million on increased sales and Adjusted EBITDA. This turnaround is a key positive signal for investors. The filing also confirms the appointment of Sean Gadd as the new President and CEO, a material leadership change. Furthermore, the company completed the $17.0 million acquisition of Freedom Pools, a strategic move to bolster its international fiberglass pool manufacturing and market share, which is expected to be immediately accretive. The company's debt position remains stable, and it has provided comprehensive new disclosures on cybersecurity risk management, reflecting compliance with evolving regulatory requirements. Investors should view the return to profitability and strategic expansion as positive indicators for future performance.