Latham Group Inc. Reports Strong Financial Results for 2025 and Provides 2026 Outlook

Sean Gadd, President and CEO of Latham Group, expressed pride in the company’s performance, stating, “2025 marked another year of strong execution by the Latham team.” The focus on strategic priorities allowed Latham to outperform the broader U.S. in-ground pool market, resulting in meaningful margin expansion. The company’s sales growth was particularly robust in the Sand States, which are seen as critical growth areas moving forward.

In the fourth quarter of 2025, Latham achieved net sales of $100 million, reflecting a year-over-year increase of 14.5%. This growth was largely driven by a 15% rise in in-ground pool sales, particularly in fiberglass pools, which comprised 76.5% of total in-ground pool sales for the year. Notably, sales of covers and liners also contributed to the overall sales increase, driven by heightened consumer awareness and demand.

For the full year 2025, Latham reported net sales of $545.9 million, up 7.4% from the previous year. This growth was attributed to both organic and acquisition-related factors, as well as price increases related to tariffs. The company’s gross profit for the year reached $182.1 million, marking an 18.4% increase.

Latham's recent acquisition of Freedom Pools, a fiberglass pool manufacturer in Australia and New Zealand, is expected to boost the company’s net sales by approximately $20 million and add about $4 million in adjusted EBITDA annually. This acquisition aligns with Latham's strategy to expand its footprint in key markets.

Looking ahead to 2026, Latham Group anticipates continued revenue growth, projecting net sales between $580 million and $610 million, which translates to a year-on-year growth rate of approximately 9% at the midpoint. The company expects adjusted EBITDA growth of 12.7% at the midpoint, driven by its operational leverage and ongoing investments in growth initiatives.

Mr. Gadd elaborated on the company’s strategy for 2026, stating that Latham will enhance its branding and marketing efforts, especially in the Sand States, to build relationships with contractors and homebuilders. This targeted approach aims to capitalize on the substantial market opportunities available.

At the end of 2025, Latham reported cash reserves of $71 million and total debt of $279.8 million, resulting in a net debt leverage ratio of 2.1. The company’s capital expenditures for 2025 amounted to $25.4 million, reflecting investments in long-term growth.

Latham Group Inc. has showcased remarkable resilience and growth in 2025, positioning itself for a promising 2026. With strategic acquisitions and a focus on expanding its market presence, the company is well-equipped to navigate the challenges of the residential swimming pool market and deliver value to its stakeholders.

Latham will hold a conference call to discuss its financial results further today, March 3, 2026, at 4:30 PM Eastern Time. Investors and analysts interested in the company's performance are encouraged to participate.