Latham Group Inc. Reports Strong Recovery and Growth in 2025 Annual Report

For the fiscal year ending December 31, 2025, Latham reported net sales of $545.9 million, a 7.4% increase from $508.5 million in 2024. This growth is attributed to a strategic increase in sales volume, which alone accounted for $32.8 million, alongside $4.6 million from tariff-related price adjustments. The company achieved a net income of $11.1 million, a significant improvement compared to a net loss of $17.9 million in the previous year. The net income margin also improved to 2.0%.

Latham's adjusted EBITDA rose by $19.6 million to reach $99.8 million, with an adjusted EBITDA margin increasing from 15.8% in 2024 to 18.3% in 2025.

Latham's diverse geographic footprint has contributed to its robust financial performance. Notably, the United States Federal market continues to be the largest revenue contributor, accounting for $462 million in sales. This marks a growth of 7.63% from the previous year. Other regions also showed positive growth, particularly:

The revenue growth was driven by multiple product lines, with in-ground swimming pools generating $261.9 million, which represents a modest growth of 1.06%. The most significant increase was seen in the covers segment, which surged by 22.41% to $160.7 million, highlighting a growing consumer preference for safety and convenience. Liners also contributed positively, achieving $123.1 million in sales, up 4.42% from 2024.

In 2025, Latham continued to fortify its market leadership, particularly in fiberglass pools and autocovers, while expanding its presence in the Sand States. The company plans to enhance its branding and marketing efforts in 2026, focusing on contractor and homebuilder engagement in key markets. This forward-thinking approach is complemented by ongoing initiatives aimed at improving operational efficiencies through value engineering and lean manufacturing practices.

A significant leadership change took place with the appointment of Sean Gadd as President and Chief Executive Officer, effective January 5, 2026. Gadd succeeds Scott Rajeski, who has retired but will remain as a Special Adviser for six months to ensure a smooth transition.

On February 26, 2026, Latham completed the acquisition of Freedom Pools, a fiberglass pool manufacturer and installer in Australia and New Zealand. This strategic acquisition is expected to be immediately accretive to earnings, contributing approximately $20 million in net sales and $4 million in adjusted EBITDA annually, prior to any potential synergies. The acquisition was entirely financed with cash on hand, reflecting Latham's strong liquidity position.

Latham's balance sheet reflects a solid financial foundation, with total assets of $823.2 million and total liabilities of $417.3 million as of December 31, 2025. The company reported total equity of $405.8 million, indicating a strong capital structure to support future growth initiatives.

The cash flow statement showed a net change in cash of $14.64 million, driven by operational cash flows of $63.43 million. The company's commitment to its operational efficiency is evidenced by the healthy cash flow from operations that significantly offset investments in growth initiatives.

Latham Group Inc. has demonstrated resilience and growth through strategic initiatives and innovations. The leadership transition, combined with ongoing efforts to enhance market presence and product offerings, positions the company for continued success in the competitive pool industry. The outlook for 2026 appears promising, with plans for further branding enhancements and an expanded product portfolio. As Latham navigates through inflationary pressures and evolving market demands, its strong fundamentals and strategic focus will be pivotal in driving future growth.