Latham Group Q4 Sales Rise 14.5% with 10.5% EBITDA Margin, Acquires Freedom Pools for $17M
Latham Group reported Q4 net sales of $100M, up 14.5%, with adjusted EBITDA of $10.5M and narrowed its net loss to $0.06 per share. It acquired Freedom Pools for $17M, adding $20M in sales and $4M in EBITDA, guided 2026 sales growth of 9% with 12.7% EBITDA expansion.
1. Q4 and Full Year 2025 Financial Performance
In the fourth quarter, the company generated $100.0 million in net sales, a 14.5% increase versus prior year, delivering $10.5 million in adjusted EBITDA and narrowing its net loss to $7.0 million ($0.06 per share). For full year 2025, net sales rose 7.4% to $545.9 million and the firm turned to a net income of $11.1 million with adjusted EBITDA up 24.4% to $99.8 million.
2. Margin Expansion Drivers
Gross margin expanded to 28.0% in Q4 (up 340 basis points) and to 33.4% full year (up 320 basis points) through volume leverage, lean manufacturing and value engineering initiatives, as well as accretive acquisitions of Coverstar businesses. Adjusted EBITDA margin reached 10.5% in Q4, up 630 basis points year-over-year.
3. Freedom Pools Acquisition
The acquisition of Freedom Pools for $17 million on February 26 added approximately $20 million in annual net sales and $4 million in adjusted EBITDA. The deal enhances Latham’s footprint in Australia and New Zealand, provides a direct-to-consumer channel through display centers, and complements existing Narellan Pools operations under a dual-brand strategy.
4. 2026 Guidance
Looking to 2026, the company expects mid-point net sales to grow 9.0% and adjusted EBITDA to increase 12.7%, reflecting continued investments in sales, marketing, digital transformation and further market penetration in key regions such as the Sand States.