Hayward (NYSE:HAYW) Issues Quarterly Earnings Results

Hayward (NYSE:HAYW) released its earnings results on Wednesday. The company reported $0.26 earnings per share for the quarter, beating the consensus estimate of $0.24 by $0.02, FiscalAI reports. The firm had revenue of $318.38 million for the quarter, compared to analyst estimates of $303.35 million. Hayward had a return on equity of 11.61% and a net margin of 13.83%.The company’s quarterly revenue was up 6.3% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.24 earnings per share. 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 Stock Down 0.5%

HAYW traded down $0.07 during trading on Friday, hitting $15.29. The company had a trading volume of 644,039 shares, compared to its average volume of 2,412,546. The company has a market capitalization of $3.32 billion, a PE ratio of 20.66, a PEG ratio of 1.60 and a beta of 1.07. The firm’s 50-day moving average price is $15.04 and its 200 day moving average price is $15.10. The company has a quick ratio of 2.47, a current ratio of 3.33 and a debt-to-equity ratio of 0.59. Hayward has a one year low of $12.93 and a one year high of $17.73.

Analysts Set New Price Targets

HAYW has been the topic of several recent analyst reports. Weiss Ratings lowered shares of Hayward from a “hold (c+)” rating to a “hold (c)” rating in a research note on Wednesday, July 15th. KeyCorp reiterated a “sector weight” rating on shares of Hayward in a report on Monday, July 20th. The Goldman Sachs Group reissued a “neutral” rating on shares of Hayward in a report on Wednesday. Zacks Research downgraded Hayward from a “strong-buy” rating to a “hold” rating in a research note on Monday, April 27th. Finally, Cantor Fitzgerald reiterated a “neutral” rating on shares of Hayward in a report on Monday, July 6th. Two investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $17.50.

Insiders Place Their Bets

In other news, CEO Kevin Holleran sold 120,000 shares of the business’s stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $17.28, for a total value of $2,073,600.00. Following the completion of the sale, the chief executive officer owned 701,234 shares of the company’s stock, valued at approximately $12,117,323.52. The trade was a 14.61% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 222,389 shares of company stock worth $3,649,544. 4.73% of the stock is owned by company insiders.

Institutional Investors Weigh In On Hayward

Several institutional investors have recently made changes to their positions in the stock. EverSource Wealth Advisors LLC lifted its position in Hayward by 149.2% during the second quarter. EverSource Wealth Advisors LLC now owns 4,700 shares of the company’s stock worth $65,000 after purchasing an additional 2,814 shares during the period. Kemnay Advisory Services Inc. bought a new stake in shares of Hayward in the 4th quarter worth $99,000. Northwestern Mutual Wealth Management Co. raised its holdings in shares of Hayward by 756.2% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 6,713 shares of the company’s stock valued at $104,000 after purchasing an additional 5,929 shares during the last quarter. Orion Porfolio Solutions LLC bought a new position in shares of Hayward during the second quarter valued at about $151,000. Finally, Polymer Capital Management HK LTD purchased a new position in Hayward during the third quarter worth about $179,000.

About Hayward

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.