Latham Group Posts Strong 2025 Results, Expands in Australia with Freedom Pools Acquisition
Event summary
- Latham Group reported $545.9 million in net sales for 2025, up 7.4% YoY, with adjusted EBITDA margin expanding by 250 basis points to 18.3%.
- Fourth-quarter net sales rose 14.5% YoY to $100.0 million, with adjusted EBITDA surging 189.6% to $10.5 million.
- Acquired Freedom Pools in February 2026 for immediate earnings accretion, adding $20 million in annualized net sales.
- 2026 guidance projects 9.0% net sales growth and 12.7% adjusted EBITDA growth at midpoints.
- Fiberglass pools accounted for 76.5% of total in-ground pool sales in 2025, with strong growth in Florida.
The big picture
Latham Group's strong 2025 performance and strategic acquisitions position it for continued growth in the residential pool market. The company's focus on fiberglass pools and expansion into the Sand States, particularly Florida, underscores its strategy to outperform a declining U.S. market. The Freedom Pools acquisition further strengthens its international footprint, though integration risks and market dynamics remain key variables.
What we're watching
- Market Expansion
- Whether Latham can sustain its outperformance in the U.S. in-ground pool market, which it estimates declined by low- to mid-single-digit rates in 2025.
- Integration Success
- The pace at which Latham integrates Freedom Pools and realizes acquisition synergies in the Australia/New Zealand market.
- Operational Leverage
- How increased investments in growth initiatives will impact Latham's margin expansion goals for 2026.
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