Operating expenses increased by $14 million (6%) as the company invested in technology, new sales centers, and self-insurance, reducing operating income to $52 million (EPS $0.85 vs. $0.98 prior year). Gross margin strengthened to 30.1%, up 70 basis points, while sales dipped 1% to $982 million, aided by late-year storm-related demand in Florida.

Revenue held steady at $5.3 billion for 2025, with full-year gross margin climbing 20 basis points to 29.7% on an adjusted basis. Operating income declined to $580 million (EPS $10.85 vs. $11.30), reflecting the absence of prior-year import tax benefits and ASU adjustments.

New pool construction in the U.S. totaled just under 60,000 units, a mid-single-digit decline, while maintenance items comprised 64% of product mix. Florida sales fell 2% for the year, Texas declined 3% (but rose 1% in Q4), and Europe returned to local-currency growth with a 4% Q4 gain. Chemicals sales were down, building materials and commercial products showed growth.

For 2026, the company forecasts low single-digit net sales growth, flat gross margin, and EPS of $10.85–$11.15, assuming stable new pool builds. Digital sales penetration reached a record 15% for the full year. Capital returns included $530 million to shareholders through $341 million in buybacks and a 4% dividend increase, with 5–8 new sales centers planned and $25–$50 million earmarked for acquisitions.