Latham Group (NASDAQ:SWIM) Issues Earnings Results, Misses Expectations By $0.05 EPS

Latham Group (NASDAQ:SWIM) issued its quarterly earnings results on Tuesday. The company reported $0.10 EPS for the quarter, missing the consensus estimate of $0.15 by ($0.05), FiscalAI reports. The company had revenue of $182.18 million during the quarter, compared to analysts’ expectations of $181.06 million. Latham Group had a return on equity of 1.31% and a net margin of 0.92%.

Here are the key takeaways from Latham Group’s conference call:

• Q3 sales rose 12.5% to $182.2 million, with organic growth of 8.4%, while Adjusted EBITDA increased 18.1% and margin expanded to 24.8%. Growth was led by fiberglass pools and autocovers, supported by improved plant absorption and lean manufacturing.
• Sales in the strategically important Sand States increased 21%, with leads up sharply in Florida and Texas. Latham is adding field resources, launching three region-specific pool models, and partnering with a national Florida homebuilder to expand its reach.
• Management reaffirmed and narrowed 2026 guidance to $605 million-$615 million of sales and $112 million-$118 million of Adjusted EBITDA. The company said implemented freight surcharges and price increases should offset current transportation, resin, and other commodity cost pressures.
• Latham ended the quarter with $95 million of cash and 1.8x net leverage after refinancing its debt. The board also authorized a three-year, $100 million share repurchase program, while management continues to evaluate accretive acquisitions.
• Management expects the overall pool market to remain roughly flat in 2027 and does not anticipate meaningful macroeconomic support. Liner sales declined 4.9% in Q3, and the company remains exposed to ongoing commodity, freight, tariff, and consumer-demand uncertainty despite its share-gain initiatives.

Latham Group Price Performance

SWIM traded down $0.14 on Tuesday, hitting $7.32. 1,333,263 shares of the company’s stock were exchanged, compared to its average volume of 870,491. Latham Group has a fifty-two week low of $4.64 and a fifty-two week high of $8.97. The company has a current ratio of 2.16, a quick ratio of 1.44 and a debt-to-equity ratio of 0.67. The firm has a 50-day moving average price of $6.54 and a 200-day moving average price of $6.18. The stock has a market cap of $861.17 million, a price-to-earnings ratio of 146.40, a P/E/G ratio of 1.54 and a beta of 1.66.

Wall Street Analysts Forecast Growth

SWIM has been the topic of several research analyst reports. Weiss Ratings upgraded shares of Latham Group from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, August 18th. Barclays upped their price target on shares of Latham Group from $7.00 to $8.00 and gave the stock an “equal weight” rating in a research report on Monday, August 10th. The Goldman Sachs Group reaffirmed a “sell” rating on shares of Latham Group in a research note on Monday, October 12th. William Blair cut Latham Group from an “outperform” rating to a “market perform” rating in a report on Thursday, October 8th. Finally, Zacks Research lowered Latham Group from a “hold” rating to a “strong sell” rating in a research note on Friday, October 9th. One investment analyst has rated the stock with a Buy rating, three have assigned a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of “Reduce” and an average target price of $7.83.

About Latham Group

Latham Group, Inc designs, manufactures and markets residential swimming pool products. The company is best known for its in-ground fiberglass pools, which are manufactured as pre-formed shells and installed at residential properties. Its product portfolio also includes vinyl pool liners, automatic and safety pool covers, pool walls, steps, stairs and related components.

Latham serves the residential swimming pool construction and renovation markets through a network of dealers, builders and distributors.