Latham Group Posts Mixed Q1 2026: Sales Up, Losses Widen
Event summary
- Q1 2026 net sales rose 5.3% YoY to $117.3M, driven by organic growth in covers and liners, and the Freedom Pools acquisition.
- Net loss widened to $8.5M from $6.0M YoY, despite a 220 basis point gross margin expansion.
- Adjusted EBITDA grew 9.2% YoY to $12.2M, with Florida fiberglass pool sales up double digits.
- Reaffirmed FY 2026 guidance: 9.0% net sales growth and 12.7% adjusted EBITDA growth at midpoints.
- Capital expenditures surged to $22.5M, including $17.6M for four fiberglass production sites.
The big picture
Latham Group's Q1 2026 results highlight its strategic focus on fiberglass pool expansion in Florida, a key Sand State market. The company's ability to grow sales while managing higher SG&A and capital expenditures will be critical as it competes in a flat U.S. pool market. The acquisition of Freedom Pools and investments in manufacturing sites underscore its long-term play for market share.
What we're watching
- Market Penetration
- Whether Latham can sustain double-digit Florida growth amid flat U.S. pool market expectations.
- Operational Leverage
- How SG&A increases will impact profitability as growth initiatives scale.
- Debt Management
- The pace at which capital expenditures and acquisitions will affect the net debt leverage ratio.
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