Hayward Holdings, Inc. (HAYW): Results of Operations and Financial Condition
Hayward Holdings, Inc. (HAYW) filed an SEC Form 8-K — Results of Operations and Financial Condition. July 29, 2026 Hayward Holdings Reports Second Quarter Fiscal Year 2026 Financial Results and Confirms 2026 Guidance SECOND QUARTER FISCAL 2026 SUMMARY • Net Sales increased 6% year-over-year to $318.4 million • Net Income increased 2% year-over-year to $45.6 million • Adjusted EB
How this was made
The 30-second read
Why it matters
The filing combines quarterly performance metrics with a balance-sheet update (debt refinancing, leverage reduction) and a reaffirmed full-year outlook, creating a clear near-term decision point for positioning around the earnings call.
Market read
Traders can update expectations for FY2026 growth and margin trajectory based on the reported Q2 datapoints and the explicit guidance range for adjusted diluted EPS.
What to watch
Adjusted EBITDA margin fell 40 bps and net income margin fell 70 bps, so the quality of earnings may be less strong than headline EPS growth suggests.
Hayward Holdings Reports Second Quarter Fiscal Year 2026 Financial Results and Confirms 2026 Guidance
Net sales increased 6%, operating income increased 6%, adjusted EBITDA increased 5%, and the company reaffirmed full-year 2026 guidance. North America grew 9%, while Europe & Rest of World net sales decreased 8% and consolidated gross profit margin decreased by 50 basis points.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $318.4 million | – | increased by 6% |
| Gross profitGAAP | $155.1 million | – | increased by 5% |
| Gross profit marginGAAP | 48.7% | – | decreased by 50 basis points |
| Selling, general, and administrative expenseGAAP | $64.3 million | – | increased by 4% |
| Selling, general, and administrative expense as a percentage of net salesGAAP | 20.2% | – | decrease of 30 basis points |
| Research, development, and engineering expenseGAAP | $7.7 million | – | increased by 25% |
| Research, development, and engineering expense as a percentage of net salesGAAP | 2.4% | – | increase of 40 basis points |
| Operating incomeGAAP | $76.0 million | – | increased by 6% |
| Operating income as a percentage of net salesGAAP | 23.9% | – | 10 basis point increase |
| Interest expense, netGAAP | $17.0 million | – | increased by 24% |
| Net incomeGAAP | $45.6 million | – | increased by 2% |
| Net income marginGAAP | 14.3% | – | decreased by 70 basis points |
| Adjusted net incomenon-GAAP | $57.8 million | – | increased by 11% |
| Adjusted net income marginnon-GAAP | 18.1% | – | increased by 70 basis points |
| Adjusted EBITDAnon-GAAP | $92.7 million | – | increased by 5% |
| Adjusted EBITDA marginnon-GAAP | 29.1% | – | decreased by 40 basis points |
| Diluted earnings per share (EPS)GAAP | $0.21 | – | increased by 5% |
| Adjusted diluted EPSnon-GAAP | $0.26 | – | increased by 8% |
| North America segment incomeGAAP | $90.2 million | – | increased by 8% |
| North America adjusted segment incomenon-GAAP | $97.1 million | – | increased by 9% |
| Europe & Rest of World segment incomeGAAP | $6.6 million | – | decreased by 13% |
| Europe & Rest of World adjusted segment incomenon-GAAP | $7.4 million | – | decreased by 8% |
| Net leverageother | 1.5x | – | – |
| First-half net sales growthGAAP | 9% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| North America (NAM)Positive net price to offset inflation and tariffs and an increase in volume. | $277.7 million | – | increased by 9% |
| Europe & Rest of World (E&RW)A decline in volume, partially offset by the favorable impact of foreign currency translation and positive net price. The decrease in volume was driven by the impact of geopolitical conflicts in the Middle East. | $40.7 million | – | decreased by 8% |
Fiscal Year 2026 outlook
- Revenuenet sales to increase approximately 5% from Fiscal Year 2025
- Noteadjusted diluted earnings per share of $0.84 to $0.87, an increase of approximately 9% to 13% from Fiscal Year 2025
Capital returns
- Returned capital to stockholders through share repurchases.
What drove it
- Consolidated net sales growth was driven by positive net price to offset inflation and tariffs and the favorable impact from foreign currency translation.
- North America growth reflected positive net price and increased volume.
- First-half net sales increased 9%, driven by strong price realization and stable volume performance.
- RD&E spend continued to focus on new product development and new product performance improvements.
- The aftermarket represents approximately 85% of North America residential pool net sales.
- The company cited technology adoption, including SmartPad™ pool equipment products, as a long-term growth opportunity.
Concerns
- Gross profit margin decreased by 50 basis points primarily due to higher cost of sales driven by tariffs and inflation, partially offset by positive net price.
- Europe & Rest of World net sales decreased by 8%, primarily due to a volume decline driven by geopolitical conflicts in the Middle East.
- Interest expense, net, increased by 24%, primarily due to $5.2 million of debt financing costs from the June 23, 2026 credit agreement.
- Net cash provided by operating activities for the six months ended June 27, 2026 decreased by $16.8 million, primarily due to higher incremental payments for accrued expenses, mainly customer rebates and incentive plans.
What to watch
- Whether positive net price continues to offset inflation and tariffs.
- North America volume performance and share gain initiatives.
- The trajectory of Europe & Rest of World volume amid geopolitical conflicts in the Middle East.
- Gross profit margin and adjusted EBITDA margin following their respective 50 basis point and 40 basis point decreases.
- Progress toward Fiscal Year 2026 net sales growth of approximately 5% and adjusted diluted EPS of $0.84 to $0.87.
Balance sheet and cash flow
- Cash and cash equivalents of $304.1 million as of June 27, 2026.
- Short-term investments of $179.3 million as of June 27, 2026.
- $425.6 million available for future borrowings under its revolving credit facilities as of June 27, 2026.
- Net cash provided by operating activities for the six months ended June 27, 2026 decreased by $16.8 million from the six months ended June 28, 2025.
- Completed a debt refinancing through entry into the Amended and Restated First Lien Credit Agreement on June 23, 2026.
Analysis
Hayward reported a solid second quarter of fiscal 2026, with net sales increasing 6% to $318.4 million and operating income increasing 6% to $76.0 million. Adjusted EBITDA increased 5% to $92.7 million, while diluted EPS increased 5% to $0.21 and adjusted diluted EPS increased 8% to $0.26. The company also stated that first-half net sales increased 9%, supported by strong price realization and stable volume performance.
The revenue mix was led by North America, where net sales increased 9% to $277.7 million on positive net price and increased volume. Europe & Rest of World net sales decreased 8% to $40.7 million, as a volume decline, attributed to geopolitical conflicts in the Middle East, more than offset favorable foreign currency translation and positive net price. This regional divergence is important because North America represents the larger reported segment while international conditions constrained consolidated growth.
Margins reflected both pricing and cost pressure. Gross profit increased 5% to $155.1 million, but gross profit margin decreased 50 basis points to 48.7% because tariffs and inflation raised cost of sales. SG&A grew 4% to $64.3 million, slower than sales, and its sales ratio improved 30 basis points to 20.2%. RD&E increased 25% to $7.7 million and rose to 2.4% of sales from 2.0%, reflecting continued investment in new product development and performance improvements. Adjusted EBITDA margin decreased 40 basis points to 29.1%.
Net income increased 2% to $45.6 million, trailing operating income growth as interest expense, net, increased 24% to $17.0 million. The company cited $5.2 million of debt financing costs related to the Amended and Restated First Lien Credit Agreement entered on June 23, 2026. Hayward reported $304.1 million of cash and cash equivalents, $179.3 million of short-term investments, and $425.6 million of revolving-credit availability as of June 27, 2026. It also reported net leverage of 1.5x and share repurchases, although no repurchase amount was provided.
Hayward reaffirmed Fiscal Year 2026 guidance for net sales to increase approximately 5% from Fiscal Year 2025 and adjusted diluted EPS of $0.84 to $0.87. Management tied the outlook to solid execution, positive price realization, and continued technology adoption, while citing balanced channel inventory and growing traction from share gain initiatives. The principal reported items to monitor are whether pricing can continue to offset tariffs and inflation, the recovery path for Europe & Rest of World volume, and the conversion of sales growth into gross profit and adjusted EBITDA margin expansion.
Management, verbatim
Hayward delivered a strong second quarter and first half of 2026, reflecting continued disciplined execution and the resilience of our installed base aftermarket business model.
Kevin Holleran, President and Chief Executive Officer
Solid cash flow generation enabled us to reduce net leverage to 1.5x, the lowest level since the Company’s initial public offering (“IPO”) in 2021, while returning capital to stockholders through share repurchases.
Kevin Holleran, President and Chief Executive Officer
With balanced channel inventory levels and increasing traction with our share gain initiatives, we are maintaining our full year guidance.
Kevin Holleran, President and Chief Executive Officer
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so comparison of actual results with prior guidance is unavailable.
- Prior-quarter figures and sequential changes for reported metrics were not provided.
- Prior-year absolute figures for net sales, gross profit, SG&A, RD&E, operating income, interest expense, net income, adjusted net income, diluted EPS, adjusted diluted EPS, and segment results were not provided.
- Net cash provided by operating activities amount for the six months ended June 27, 2026 was not provided.
- Free cash flow was not provided.
- Total debt and net debt amounts were not provided.
- Share repurchase amount, number of shares repurchased, remaining authorization, and dividend information were not provided.
- Fiscal Year 2026 guidance for gross margin, operating expenses, tax rate, cash flow, capital expenditures, and free cash flow was not provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K with Item 2.02, including an EX-99.1 press release for Hayward’s Q2 fiscal 2026 results and guidance reaffirmation.
Ticker impact
Hayward reported Q2 FY2026 net sales up 6% to $318.4M, EPS up 5% to $0.21, and reaffirmed full-year guidance.
Near-term bias modestly positive if investors focus on guidance reaffirmation and leverage reduction; downside risk if margin compression from tariffs/inflation is viewed as persistent.
The filing provides concrete quarterly datapoints (sales, EPS, margins) plus a specific balance-sheet/capital action (debt refinancing, leverage to 1.5x) and explicitly reaffirms 2026 guidance.
Market effects
Signals resilience in pool/outdoor living aftermarket demand, while highlighting tariff and inflation sensitivity in specialty water management manufacturing margins.
Europe & Rest of World volume declined 8% with Middle East geopolitical conflict cited as a driver, implying regional demand volatility.
Foreign currency translation helped offset some weakness, indicating FX remains a meaningful swing factor for reported results.
Counterpoint
Margin and interest headwinds (tariffs/inflation, higher debt financing costs) could outweigh the sales growth narrative if investors expect normalization.
Key entities
- issuerHayward Holdings, Inc.
Reports Q2 FY2026 financial results, confirms 2026 guidance, and discusses debt refinancing and leverage reduction.
- financingAmended and Restated First Lien Credit Agreement
Debt refinancing entered June 23, 2026, driving higher interest expense via $5.2M debt financing costs in Q2.
- productSmartPad pool equipment products
Cited as driving technology adoption, with aftermarket/new construction traction and ~85% of North America residential pool net sales.
