Latham Q1 Sales Rise 5.3% to $117.3M, EBITDA Grows 9.2%
Latham Group’s net sales rose 5.3% to $117.3 million in Q1 2026, driven by Freedom Pools acquisition and double-digit Florida fiberglass pool growth, while adjusted EBITDA increased 9.2% to $12.2 million and margin expanded 40 basis points. The company reconfirmed full-year guidance of 9.0% sales growth and 12.7% EBITDA growth.
1. Q1 2026 Financial Performance
Latham Group reported Q1 2026 net sales of $117.3 million, a 5.3% year-over-year increase, and an adjusted EBITDA of $12.2 million, up 9.2% with a 10.4% margin, while net loss widened to $8.5 million, or $0.07 per share, reflecting higher SG&A and integration costs.
2. Segment and Regional Highlights
Sales grew across all three product lines, with in-ground pools at $59.7 million, covers at $33.5 million, and liners at $24.1 million. The acquisition of Freedom Pools and double-digit fiberglass pool growth in Florida drove the gains despite adverse weather’s impact on organic pool sales.
3. Margin Expansion and Costs
Gross profit expanded 13.0% to $37.2 million, with gross margin improving by 220 basis points to 31.7% through volume leverage, lean manufacturing and value engineering. SG&A rose 19.5% to $36.6 million, reflecting marketing investments, digital transformation and acquisition-related expenses.
4. Liquidity and Outlook
The company ended Q1 with $27.5 million in cash, $311.2 million in debt and a net leverage ratio of 2.8x. Capital expenditures totaled $22.5 million, including four new fiberglass sites, and full-year guidance of 9.0% net sales growth and 12.7% adjusted EBITDA growth was reaffirmed.