Hayward (NYSE:HAYW) Posts Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Hayward (NYSE:HAYW) released its earnings results on Wednesday. The company reported $0.26 earnings per share for the quarter, topping the consensus estimate of $0.23 by $0.03, FiscalAI reports. Hayward had a return on equity of 11.45% and a net margin of 13.98%.The firm had revenue of $318.38 million during the quarter, compared to analysts’ expectations of $303.35 million. Hayward updated its FY 2026 guidance to 0.840-0.870 EPS.

Here are the key takeaways from Hayward’s conference call:

• Strong first-half performance: Second-quarter sales rose 6% to $318 million, while first-half sales and adjusted EBITDA increased 9% and adjusted diluted EPS rose 18% to $0.26. North America delivered 9% quarterly growth, including 2% volume growth.
• Full-year outlook maintained: Hayward continues to expect 2026 net sales growth of approximately 5%, adjusted diluted EPS growth of 9%-13% to $0.84-$0.87, and free cash flow of about $200 million.
• Balance sheet strengthened: Debt refinancing extended the term-loan maturity to 2033 and is expected to reduce annual interest expense by approximately $6 million. Net leverage declined to 1.5 times, while the company repurchased $64 million of shares in the first half.
• International markets remained weak: Europe and Rest of World sales declined 8% in the second quarter, including a 16% decline in Rest of World, primarily due to macroeconomic and geopolitical disruptions tied to conflicts in Ukraine and the Middle East.
• Cost pressures weighed on margins: Gross margin fell 50 basis points year over year to 48.7% as specialty metals, freight, resin, and other inflationary pressures preceded the full benefit of surcharges and mitigation actions. Management expects normal seasonal margin pressure in the third quarter, though it still targets full-year margins roughly in line with 2025.

Hayward Trading Up 2.8%

Shares of NYSE:HAYW traded up $0.43 during mid-day trading on Wednesday, reaching $15.54. 1,792,750 shares of the company’s stock were exchanged, compared to its average volume of 2,376,785. The company has a debt-to-equity ratio of 0.58, a quick ratio of 2.47 and a current ratio of 3.26. Hayward has a twelve month low of $12.93 and a twelve month high of $17.73. The firm has a market capitalization of $3.37 billion, a price-to-earnings ratio of 21.29, a PEG ratio of 1.53 and a beta of 1.07. The business’s fifty day moving average price is $14.98 and its 200-day moving average price is $15.11.

Insiders Place Their Bets

In related news, CEO Kevin Holleran sold 120,000 shares of the firm’s stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $17.28, for a total transaction of $2,073,600.00. Following the completion of the transaction, the chief executive officer directly owned 701,234 shares of the company’s stock, valued at $12,117,323.52. This trade represents a 14.61% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Susan M. Canning bought 2,242 shares of the business’s stock in a transaction on Thursday, April 30th. The shares were bought at an average cost of $12.76 per share, for a total transaction of $28,607.92. Following the completion of the acquisition, the senior vice president directly owned 103,837 shares in the company, valued at approximately $1,324,960.12. This trade represents a 2.21% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders sold 222,389 shares of company stock valued at $3,649,544 over the last 90 days. 4.73% of the stock is currently owned by company insiders.

Institutional Trading of Hayward

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. AQR Capital Management LLC raised its holdings in Hayward by 66.8% during the 4th quarter. AQR Capital Management LLC now owns 4,191,014 shares of the company’s stock worth $64,751,000 after purchasing an additional 1,678,955 shares during the last quarter. Schonfeld Strategic Advisors LLC boosted its stake in shares of Hayward by 123.9% in the 3rd quarter. Schonfeld Strategic Advisors LLC now owns 1,331,049 shares of the company’s stock valued at $20,125,000 after purchasing an additional 736,549 shares during the last quarter. Bank of America Corp DE increased its position in shares of Hayward by 31.5% during the second quarter. Bank of America Corp DE now owns 3,026,888 shares of the company’s stock worth $41,771,000 after buying an additional 725,084 shares during the period. Gotham Asset Management LLC increased its position in shares of Hayward by 33.3% during the fourth quarter. Gotham Asset Management LLC now owns 2,594,594 shares of the company’s stock worth $40,086,000 after buying an additional 647,457 shares during the period. Finally, Wellington Management Group LLP raised its stake in Hayward by 9.1% during the third quarter. Wellington Management Group LLP now owns 7,546,816 shares of the company’s stock worth $114,108,000 after buying an additional 627,866 shares during the last quarter.

Analyst Upgrades and Downgrades

HAYW has been the topic of several research analyst reports. Zacks Research lowered Hayward from a “strong-buy” rating to a “hold” rating in a research note on Monday, April 27th. Weiss Ratings lowered shares of Hayward from a “hold (c+)” rating to a “hold (c)” rating in a research report on Wednesday, July 15th. KeyCorp reaffirmed a “sector weight” rating on shares of Hayward in a research note on Monday, July 20th. Jefferies Financial Group reiterated a “hold” rating and set a $15.00 price target (down from $16.00) on shares of Hayward in a report on Tuesday, March 31st. Finally, Bank of America cut their price objective on Hayward from $19.00 to $18.00 and set a “buy” rating on the stock in a report on Monday, April 20th. Two analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $17.50.

Hayward Company Profile

Hayward Holdings, Inc is a leading manufacturer and marketer of residential and commercial swimming pool equipment and related outdoor living products. The company designs, engineers and produces a comprehensive range of products that address water circulation, filtration, heating, sanitation, automation, lighting and cleaning needs for pools and spas. Hayward’s offerings include pumps, filters, heaters, salt and chemical sanitization systems, automation controls, lights, robotic cleaners and various accessories that serve both new pool construction and aftermarket renovation markets.

Hayward’s product portfolio is organized into several core categories.